The sun., 1912-08-04
SCIENCE IN MANAGING
CURES MANY ABUSES
Owners Take Kindly to the
New Method for Handling
Income Properties. 3.
80 CHANCE FOR GRAFT
! Returns From Buildings Grow
When system Is Applied to
Their Management.
40 CHANCE FOR GRAFT

way III WHICH properties can Dc IusiH-
aged to pay better return than is had
BY the old fashioned unresp ,nsible
With taxes mounting. yearly.
The cost of help constantly increasing
and the cxprnsf pf maintenance going
up all the time, i ppcrty owners are not
lverse to consulting rp To- date man
acers. getting thei. views and then Civ
ING ,hem chancc to demonstrate their
ability to produce better results by their
scientific methods. ..
Scientific management does not con-
sist Of having an engineer go over tho
plant, make recommends tiUus and in
stall expensive improvements. II is
simply u mcthcd OF getting out of
property all there is in It. Al the low
est cost to the owner. 1t means chiefly
personal supervision ,sv one skilled In
the handling ~. lated properties. and
the application VI h5n.S,ty ana honest
methods In the handling of iWlp and
the purchase Of supplies. Really there
is no great amount Of, science used
IN such management. ant rather IN
tcllgence and honor.
ONCE buildings, lofts and apart
ments are the three classes of prop
crty to which scientific manage rncnt
Of property it IL necessary to employ
help, purchase many supplies apo "ivo
an amount Of service To tenants Tho
matter Of th" help - y" far the most
important. for between first class
superintendent and Il poor one thcro
Is the difference If many dollars in net
income from given property. IN tho
help rests the responsibility for good
t..,lf It,N., l..N
handled in such manner as :" dis
please tenants can bc expected to pay
its full return.
II used To hc that the superintendent
was the chief manager of IA property.
collected the rents. arranged for all
repairs. purchased all supplies. made
arrangements for whatever the tenants
needed in the way of ice. toilet sup
plies and the like. and hired all Of his
assistants. Nj that IS changed under
the modern scientific management. It
Is the rule FOR supsr!nteudcnts now
TO cneratc the buildings under the di-
rect supervision of the agent with tho
result that all of the avenues by which
the superintendent formerly Increased
his income are closed.
II il reported that one Manhattan build-
u,
return OF S'O.pO. last year brought in only
siI .Ooo The owner was 80 veNed that
he consulted a scientific manager. who
found thG. the superintendent who
ordered all supplies placed his orders
with the various concerns from which
he obtained the greatest commissions.
The supply people mad" up for these
losses bv increasing their prices and ny
giving shott weight, Besides this the
superintendent purchased interior goods
4. i l,,,,
quantities Also il was found upon in
vestieation that the building WAS run by
almost double a. many person, as were
actually needed To give first class service.
II WAS found TOO that tcnai = to get salts
factory service found il necessary to
| make frequent contributions TO tho super
/, intendent Many who refused 81 To do
| had become so aegr.eved that they moved
! al the end of their terms and the landlord
lost large amounts from vacancies
Probably this is an extreme case. but
: it serves TO roint out the various abuses
which are bound 10 appear in a city OF
20 many large buildings. where OWNERS.
under the impression that they are saving
money. turn their properties nvrr toirre-
sponsii,le individuals The charge ~ the
scientific manager is from ? TOD t'er cent
OF the gross rents. according TO the grade
of property managed. and b. modern
/ methods employed ne u able 10 Cielnen
strate saving Of not less than the amount
he asks for his SERVICES. while III seine
cases after a,'tual management he Ii able
to show gains in net income of as much
AS ~ per cent He holds out the added
inducoment of placing IN" PROPERTY on
a permanent good incou" hasIs hv salts
fying the tenants and Causing them TO
remain.
/ The scien, ific manager has no written
book of rules. Every building j. "A new
problem TO him. demanding its own spe-
, cial treatment. IL the building he has
in hand is a new one ho generally places
! in il a permanent renting agent who ia
qualified for the place. such men often
are college graduates and have the ability
Ia meet and talk TO prospective tenants
and to give them good impressions even
though they do not know much about
real estate or values. Another OF the
first cares Of the modern manager is 20
have the building properly supplied with
help under the direction Of a superinten-
dent who is skilled and able to keen The
property up 10 its best condition. Every
modern Office for managing property
is. equipped with a repair department
which il capable OF handling any matter
that possibly can come to II Through
the service of such u repair department
owners can get wor!; done al the very
lowest cost. the charge as rule cover
ing the cost OF labor and ma, erial onlv
Where the largest saving is made is
in the matter Of supplies. In the we'll
managed building not one cents worth
OF anything can he ordered 10y any one
but the agent himself and such set of
vouchers is kept that overchargng Is
impossible. Agents having many prop
critics to manage save u considerable
amount for each owner every year IN the
matter of coal alone. II is the custom
OF the larger agencies 10 ask for bids
from several concerns al the beginning
of the season for supplies to cover all
their properties The prices obtained
for large q,antities usually represent
a material saving All other supplies
are purchased IN large uuan,iies at
wholesale prices. and a. used are charged
against the properties using 'hcnl at I've
cost prices.
In connection with the active manage
ment Of a property II is par' o' the
agents duties also 90 keep the owner
Informed IN to outside matters ancctinS
his building. He sees thai the tax bi'ls
are correct and thai the owner ,s m
formed oc rebates. that water h''is ~"
right and promptly raid tn escaie pen
allies and that the various ordinances
of the ,lt9 are compiled with, 80 that NC
ovner IL IN no Danger OF heing muic,"L
OStan TOO the agent through, his en nzt'ie"r'
Inc, aud repair department ~ able to make
.urh small ii,eNp"n-n" ol..nges a. will
materially rruuCc iiSuf,,lr " ruler
Scieniihc uuanahcrs ar" helpful not,
alon. 10 owners dlfoV,k bhi indir"ctlYt
6y helping tenants In these days