Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1910-06-11
APARTMENT HOUSES
AS AN INVESTMENT
Success Depends solely on the Iilc.
ments Of Location, Construction
And Capable Management.

So many prominent local nuanclers
are investing In apartment houses, and
80 numerous are apartment structures
becoming especially in the easily aC-
cossible districts, that some informa-
ton Is most opportune. Probably the
best that has recently been written on
the subject was by W " Hannah, the
president of the National Association or
Zeal Estate Exchanges, in the official
journal Ia Pant ne says.
Let me az tne outset establish this
prncpe int the success OF an apart
ment mouse Investment depends on
three clements. Firstly location, Sec
OnuIy, cuuatruCtlou. ana tniruB, man
usuuvuL
ino selection OF an improper location
FOR an apartment mousse Ot certain
type means s,ystanual loss TO the
Investor What 4 mean by au improper
location is TINS.
Suppose "a man who either has SUE
hcleut means, Or rs ln a position To pro-
cure them. desires To erect large
apartment house Wnicn he intends small
cater TO what We term the moderate
trent payer. The first question ne must
ask hlnlscu is. ~ mere snail 4 build
this apartment hOusc2 lie then must
lttNH dllsN yer u4Nltt4A ltldA ne must
build IL Wnerc 1t is easy OF access 10 the
class OF tenants ne Intends catering 10.
or whore there are indications Of a
substantial building up OF "A certain
section. The next step is 10 determine
on a location winch Wil Warrant the
Investment proposed.
suppose this man Invests from $50,
900 to Sio0uO, and when his apartment
house is thrown open for rental, he
finds that the ciass ui tenants who de
sire TO, or are WiiluB &, reside in that
particular section oI the Dtty, want am
apartment 1t lower rental, tAat his
fine structure though It may be per-
fecti n every detail must so begging
for tenants
lie can't reduce the liked charges
without further pecuniary loss. lie
cannot reduce the JanItor force, or the
property suffers in depreciation and
gains an unenViabe reputation among
apartment house jewellers. He can 1
reduce the cost Of heating. for tho
same reason He can't reduce
the taxes, for he has no con-
troll over that element. He can't
reduce the interest rate on the money
he put into the structure
Take the case Of the man who desires
to erect an apartment house that shall
be somewhat exclusive IN its nature.
In the construction OF a large apart 70
tect who has made apartment houses a
special study. should be sought.
Time was when the investor actually
believed that II lac had fine build
ing, that was all that was necessary.
A tenant may have magnificent
apartment and be satisfied with II In
every respect. but IL the owner or man
ager OF the building does not see "a
IL that the halls are kept clean, that
the employees about the building are
kind and courteous and that dozens
OF other details are not neglected, the
tenants viii move out They will 60
where there is proper management
II Is the small things that count in
apartment house management
Keep your buildings clean. Set al
example I'm cleanliness for your ten
ants. II doesn't cost much more q
: keep a building clean that II does {,
allow II to doteriorate in that respect
Let us consider briefly what class o
apartment houses present the best pos
sible returns on the investment,
When "A builder once determines e
erect a large apartment house. he
should bear in mind that the addition
Of two three or more stories 20 his
original plans VIII not increase the
fixed charges. with the exception per
haps OF "A sliPht increase In taxes. The
original revenue that those additional
floors will bring, however, more than