The chapter opens with a description of the building in which the narrator rents a room. The narrator has nothing against the building, but he does not like the rent because it is very cheap. He had planned to hang some of his suits in the closet, but when he opens the closet door, he finds a scarlet dress on the closet floor. He is awakened by a knock on the door. He thinks he is dreaming, and when he brings himself back to reality, he realizes that the woman is looking at him through the peep hole. The woman is gone, and the wall of the corridor is painted with blood. The blood flows down the corridor, washing the night away the scarlet red. He cannot figure out what is going on, but his heart beats so fast that he is filled with panic. He puts the box beside the wall and the renter tells him that it is not a ghost, but a man's "conspiracy. The renter tells the narrator that the building's developers have put on a "show about the ghosts" to attract renters. This is how the narrator becomes a victim. Even if he finds out the truth, he still cannot live with what has happened the previous night.