Great Falls daily tribune., 1920-04-02
RENTS AND NEW BUILDING

RENTS AND NEW BUILDING
There is hardly any expense that most men
hate to pay worse than rent For some reason,
it goes against the grain Many people seem to
regard rent as gift to the landlord. You often
hear men and women say, ''Why, we have paid
our landlord enough rent in the last 10 years to
have bought this property. We have thrown
away that money which might have bought
home" And yet, money placed at 6 per cent
compound interest will double itself in ten years.
II landlord does not get the cost Of his rented
property back in rents in ten years he has made
mighty poor investment. Rents in Great Falls
are not as high as they were year or two ago,
in our opinion. There are more vacant houses
to rent but it is worth while noting that even the
top notch prices charged for rents in Great Falls
did not induce much building of houses for rent.
The experience of capitalists in building houses
for rent has not stimulated the business This
idoes not apply to apartment houses, many Of
(which have been built for investment in the past
TO years. But it does apply to separate and in
idividual houses. Houses of that class which
have been built in the last 10 years have been
NEARLY all built for individuals who intended the
Ibuilding for their own home, or they have been
built by spectators who expected to sell them at
Ia profit to some one who wished to purchase
lthome In spite of the increase in rent in recent
|years, very few people seemed inclined to put
fmoney into dwellings for rent, and if they do it
lis generally the very cheapest class Of dwelling
places they invest in. A modern bungalow locat-
led in good portion of the city, and provided
with the conveniences generally demanded, is
seldom built as a renting investment these days.
The reason is apparent. The rent that can be
obtained for it does not pay very good net in
;terest on the investment.
There is loud complaint in Europe over lack
of dwelling houses because there has been no
building for the last five years. There is also
loud complaint in New York City and many other
cities in the United States about the difficulty
of finding suitable residence for ones family,
and with it goes an equally loud complaint about
the enormous rents demanded. A scarcity of
dwelling houses for rent will increase rents un-
doubtedly in accord with the law of supply and
demand. But that condition carries it's remedy
along with it provided rents increase to point
where they furnish better return in money in
vested than other investments. Capital is al
ways on the outlook for such chance to increase
its return, and the shortage is likely soon to be
SuAcu Ny a plus VI IOuSeS saHu ucClILuS Ie1ltS
The quickest and most efficient way to bring
down rents is to profiteer in rents by over charg-
ing on the part of the landlords.
Just now in New York there is quite an agita-
ton over the lack of dwellings and the high
rents charged by the landlords. As usual these
days. the people want relief by legislative enact
}ment. The remedy is dubious efficiency, we
believe, and may prove boomerang. Evidently,
the New York Sun feels the danger, for it COM
:ments on the facts as follows:
Zone thing the landlord must remember-and
the fair minded landlord not only remembers,
but admits the facts that there is rent profi-
steering. There is profiteering among real estate
owners as there is profiteering among manufac-
turers, among farmers, among labor unions who
have the public at their mercy. But just as there
are millions of business men and workers who
are not preying upon the public, there are thou
sands of landlords who are not taking advantage
of the desperate housing shortage to pillage the
man who must have roof over the heads of his
family.
Zone thing the tenant must remember-and
the legislature will do him poor service if it
does not also remember its that while it is
need and duty to suppress the unspeakable
profiteer it is every whit as essential to increase,
and increase largely, the supply of homes.
IF all rents were cut in hail. this wouldn't do a
thing for tens Of thousands of families now in
vain search for suitable shelter. It would not
~,,< chinn1o q now r00f IN tho con+rorx,