Milford chronicle., 1949-05-06
Yardstick For Rent
Hikes is Announced
tcort.nued from tirst page1

NIoAtaAtuSa AAsAA 4AAet E21SS
more than a month ago. The law,
which extended controls for 15
months, said landlords should get
a fair net operating income" but /
left it up to Woods to define such an /
income.
Woods, making public his for
mula, said it is impossible to esti-
mate now exactly how it will affect
rents on the approximately 14,000,- !
600 dwellings still under federal
controls.
Woods had said previously the
new law would result in no general
nationwide increase.
His announcement Monday night,
however, left little doubt that some
boosts would be forthcoming.
How Formula VIII Work
! Woods used this example to show
how the new formula will work in
the case of a small landlord:
The landlord has total annual
income from rents of $1,000. His
operating expenses are $500 a year.
His depreciation allowance is $500
la year.
This leaves him a met operating
income" of 5000 a year, or 20 per
icent of his gross rental income. He
is entitled to rent ceiling increase
to bring his income up to 30 per
cent.
In this case, the increase would
be approximately $12 a month to
bring his gross rental income up
to $l143 a year.
Except for the lower percentages,
the formula would work the same
way for large" landlords.
After a landlord has determined
, whether he is qualified to receive
: an increase, this is the way he may
! figure the income to which he is
entitled:
A. Small" landlords: Multiply
: annual operating expenses includ
: ing taxes and depreciation by 10O
/ and divide by 20. This will Civ,
him a "fair" gross income. Th'
: increase to which he is entitled i
: the difference between that an,
, his actual rentals.
: B. Large" landlords: Multipl
annual operating expenses includ
ing taxes and depreciation by 10C
and divided by 75. The increase t
which he is entitled is again tn
A. difference between that and hi
r. actual rentals
individuals landlords may appl
IN for rent boosts by filing what Wood
to called "a simple petition form"
area rent offices. 1t calls for tn
sy listing of present rents and of a
current operating expenses incluC
H. ing a charge for depreciation, {
" normal wear.
The depreciation allowance
~ ~ limited to 21 per cent of the gros
st income in the case of "small stru,
" lures and 16 per cent in the case I
,t ''large" ones.
- To Grant Boosts At Once
- Associates of Woods said they al
prepared to star granting increas,
under the formula to qualified lam
lords Immediately. Any such boOs
will be made retroactive to the da
in on which the landlord filed p
nd tition for an increase.
at Whenever a landlord files pei
ton for an increase, his tenan
n will be notified They will be giv'
h an opportunity to protest.
Ap- Woods said the percentages we
er- worked out after a thorough stu
OF his Office made of past experien
of small and large landlords. 1t W
at based on data collected by OPA
pei SO cities from 1889 through 1914
zen He said the 80 and 25 per &C
Is figures were median figures in tho
years-that is, that half the lar
ler lords in those years received high
.oil returns and half received lower
III ~ turns.
the "a number of possible critic
were considered for determini
'.lli ~ what constitutes a fair net oper
on ing income Woods said in
statement outlining the new f,
mula.
Solution Called Equitable
- 1--WE determined that the stal
ard that was most equitable, m
understandable and the most pr
tical to administer was one that
tablished a minimum percents
- relationship between net operati
STn No income and gross income as
"a basic criterion.
ley, --==--
ant, Eg<xxyxxx