New-York tribune., 1907-11-27
REALTY MANAGEMENT.
Il PROFITABLE TASK.
H. 4. UHcOr Tells Hoe TO Take
Care of FIathOuSeS.

Ransom e. Wilcox Of the real estate firm Of Will
& Shelton. spoke last night on Apartment
and Tenement Property" before the real estate
school OF the West Side Young Mems Christian
Association. in West 9th street Most Of the real
estate leaders who have spoken this year at the
school have had little to say about the details OF
the branch OF the realty business ia which they
especially prominent with which they are
more conversant than In other lines. In many ave
which lead TO the highest planes of success
in the real estate field it is the attention given to
the details that results in achieving success. Mr.
Wilcox, however, did not overlook the details
which collectively make up the main features of
managing real property. He frequently took the
members of the school into his confidence and told
them about various methods pursued in renting
houses. He said that the management Of property
does pay. 1t not only pays from a money point Of
view, but also in experience. He emphasized the
fact that values often depreciate.
Mr.. Wilcox further said ''If the rental return
each month from house Is $3.50 and the brokers'
commission for collecting the rent per cent. the
broker earns for the OF that house each
month SO Should he sell a sS00o house. he would
earn per cent Of that sum. 500. Which OF
these transactions pays best? Men experienced In
real estate would probably differ the question
raised. One day some years ago 1 got the manage
ment for my firm of four four story tenement
houses. On the same day my partner sold for a
client of the firm a house valued ct $1,000 The
largest immediate cash benefit to the firm from
the transactions was from the sale Of the $4,000
age stayed in care for many years-in fact.
long LAT almost looked upon them II
owned them. For managing the houses we got
about 500 a year, and we looked after them
for about fifteen years they netted IN that time
between 5000 and 5000. Moreover. the care of
the property brought into intimate acquaintance
with the owner and many other persons active
and influential in the real estate field
Finally conditions. circumstances. so shaped
themselves that the owner OF the houses would
only trade in realty through US. He had implicit
confidence in Our honesty and ability. And what
ever property the firm handled for him and other
persons got to know it well that we knew
what it ought 70 produce under all conditions and
therefore whether to increase OF decrease rents.
Furthermore. owing TO our knowledge Of managing
tenement property, We were able to make valuable
comparisons to determine whether not
such property was a better paying basis than
in previous years These are few of the realty
advantages which come to every office which
makes speciality OF caring for tenement property.
BY dligent attention business a real estate firm
instead of having in its only q few houses
will have about thirty in a little while, and the
firm will be paid for caring for those thirty houses
about $3.50 monthly. While members of the firm
are building up such business they will De adding
to their realty knowledge of the section in which
their office is or in which the houses they manage
are. and their knowledge of men will also be
widened. Maybe in short time they will get the
exclusive right to manage the property.
Tenement houses, like everything else, grow old
and they grow old they depreciate in value
Most persons who have not had the care of tene-
ment property do not appear to realize that fact
Occasionally buildings increase in value but such
instances the exception to the general order
Of such things 1t is the land which usually in
creases in value, and not the structures it. The
average life Of a building is from thirty 70 fifty
years. If poorly constructed and poorly managed
buildings become old and almost useless after twen-
ty-fve thirty years in the 90s, when it was a
difficult task find a market for property, several
persons who had bought in the sos asked the firm
of which 1 member TO find market for their
property. Suppose they had paid $4,000 house
for each house they bought in the sos. In the 90s
when they wanted to sell they were rprised that
they could not get better than $4,000 for each
parcel. Some Of the houses had been built when
construction material was considerably cheaper
than in the SOS. and at time when the cost Of
help, skilled workmanship especially, was much
less than at the time they sought market for
their property. In instances the depreciation
in the value OF the houses and the increase in the
cost Of the land made il possible 10 effect change
Of ownership at price higher than the sum paid
for the property by the sellers"
There are many persons who called pro-
fessionaI builders who do not rightly belong in
that class. They begin building with knowl-
edge of building. They put up badly Designed and
poorly constructed houses To keep many of such
structures from falling means spending the greater
part If not all Of the total sum of the rents.
with wide experience in the management
of tenement houses will be able TO see quickly
what badly constructed houses and what are
well built houses and will be able 10 avoid bur-
dening himself with the Of such property.
"A few years ago I spent several days in the
financial section perfecting overtures for the sale
Of Harlem property lOOx10O feet The parcel had
beeen acquired by the sellers In the dull times in
the 9Os. They were we'll known men. and the care
OF that property brought me in contact with many
influential men in business and social circles. My
firm had taken the property when IL loss
TO the owners. and after putting 1t good pay
ing basis held II for them until il could be profit
ably sold. Tho selleres congratulated the
sale OF the property. told them that they should
condole with me because the change Of
ship took the care OF the property from my firm
and such n loss could not be estimated IN dollars
and cents"
THE management OF property firmly and per-
manently establishes good viii. l know OF a
little business in Harlem, started about two or
three years ago, which has changed hands about
three times in those years. Yet 1t is continued
successfully under the original name Half OF the
good will OF the business was soid>for s5O99. How
will you establish such business? Get as costly
Office your purse buy In your spare
time get acquainted with the trade in general
Let your clients know that you can be found at a
certain time each day In your office. Select your
help with great Be sure TO get some persons
who come of good stock and then study how to
use them 10 your advantage When you hire 2
jal ltor, tell him he is not 10 get bossy' Impress
IL upon the janitors mind that the tenants of the
house must be made glad that you are the