New-York tribune., 1920-07-25
Rentals Will
tORisa
For Many Years
Until the Attitude of T,aho.
Changes Only Relief l.
in Cooperative Owner,
ship, Says f. A. Wyckoff
Ienant-Owner Plan Good
Should Not Be Entered
Into Until Found To
BE a Good Investmea,

Much has been said during the l.s4
few weeks in reference to the ady;..
bility of the purchase Of anartr,os..
houses by tenant owners, or on the 60
operative plan,' says FREDERICK
Wyckoff, vice-president Of the woos
Dolson Company, Inc "The CRITICS.,
by, Alderman William F Quinn and
others has been thoroughly justified A.
Tar as 1t pertains TO propositions
wherein INSCRIPTIONS landlords NAV
nave obtained from tenants large suns
of money under false pretenses ara
some instances without even transfer.
ring title Of the property to the in
vestors.
The very careful ANALYSIS of n.
tenant-owner proposition made h, To-
ement House Commissioner Mann -.
reported in last Sundays Dapers. clso~
~ shows that the proposition Of tba
purchasing OF apartment houses hv
tenant-owners is desirable with tbs
proper safeguards, such as an apprajse-
ment as to the value Of the pronertv
by reputable real estate concern well
acquainted with local conditions. and
which can also estimate the income fo~
the next five years; long-.erm mort.
cages, with a sufficient sinking fund to
provide for their reduction; a sound
and legal proprietary lease, and.
above all, efficient management.
"1f the property, after such an in
vestigation, is good investment for
an individual, it is far better PROPOSE
tion for a group of tenants. who not
only have the investment, but are sure
of possession of an apartment for many
years to come, without the constant
annoyance Of the change of owners, the
renewal of leases, increased rentals, the
question of repairs. undesirable ten
ants, etc.
Investigate Before You Buy
"A tenant. after deciding the integ.
rity and reputability OF the people who
give careful consideration as to the
permanency Of the home in which he
is about to purchase. Much attention
should be given to the character OF
the eighborhood and to any conditions
that may arise that would make it un-
desirable for residential purposes.
One fact remains, that under the
present Jaws tenant must pay rea-
sonable rent demanded by the owner
of building or be subject to trial
before a municipal court justice. In
the event that the decision is not
mutually satisfactory and an extension
is granted to the tenant for a period
of from one month to a year, with the
termination of this stay tenant must
vacate the premises. This can be
avoided by the tenants purchase into
u building, thereby having a voice in
regulating and governing his own
rental, terms of lease, etc.
The rental value OF apartments well
loca ted on the West Side, in freproof
buildings. Is from $500 to 5000 a room,
or an eight-room apartment is worth
from $4,000 to 81 500. Is it not more
profitable for a tenant to purchase into
the ownership Of a property at cost
of four or five years rental than to
pay the rent and receive no return for
it? By the purchase of an apartment
the rent becomes nominal and the
equity is increased annually by the in
come being diverted into q sinking
fund for tho reduction OF the mort
cages.
Rentals to Advance for Years to Come
Rentals in modern freproof build
ings viii advance for number Of
years, or until such time as there is
open competition in the Offering OF
nigh class apartments. Under present
conditions it VIII take at least twelve
months to erect twelve-story fireprocf
apartment house and no encouragement
is offered to builders By labor, the re-
duction in the cost Of materials. or by
capital. Conditions iu 1927 and 1922
Wll be worse than they are to-day, the
demand far exceeding the supply, un-
less capital comes TO the rescue.
Rentals in modern tireproof build
ings are not high, considering the
tremendous increase in the cost of all
supplies and labor in the last three
years. It is fact that in some fire.
proof buildings in the best locations
OF New ork, erected ABOUT ZEN years
ago, the gross income to-day is less
than at the time OF their erection, de-
spite the cry of high rents.
Prior to 1914, due TO cheap labor
and plentiful money, there was an over
production in all classes of buildings.
Rents were considerably reduced, and
only in the last year or two have they
been brought back to their original ilg-
ure. Any student of present day con-
ditions can surely realize that the
events of these wears wall not be re-
peated.
Cooperative Ownership VIII Be Popular
"Where it was possible prior to 1915
to assemble a plot Of five or six old
houses at low figure for building
purposes, the price has now become
excessive. The loaning institutions
have increased the rate of interest.
and have not increased the amount Of
the loans in proportion to the cost Of
the property, and believe that with the
other items above mentioned the high
cost of building viii continue for .
number of years, especially IN those OF
steel construction.
Not only should there be numoef
of tenant-owner purchasers of buiia
ings that are at present erected, put
it is my belief that many combinations
will be formed by those who desire
apartments built and planned to sule
their requirements with many features
that speculative builders ignore. TN
der the proper guidance and manage
ment, the incorporators in these prol-
ects viii have less trouble than 'he
tenants of the present day
Cooperative Venture