GREENSBORO, N.C. — The property managers of New Garden Manor apartments in Greensboro have now postponed the planned rent increase for the complex, after initially telling residents in February that rent would go up in June.
Brown Investment Properties sent a letter to residents in February notifying residents that rent would be increased to $1230 per month in June. This applied to residents with expired leases and are thus living month-to-month at the complex. In the letter obtained by News 2, the company said the rate increase is due to the "escalating cost of operation and the need for significant capital improvements." Currently, residents pay between $575 and $675. The increase is legal and company officials said it's typical to give 30 days' notice rather than the 90 days they gave those at New Garden Manor.
Residents came together and sent a letter back to the management company, asking for the first increase to be $725 per month and then give them until September to make the larger increase. The management company said they were continuing with their original plan.
"They said they appreciated the letter and all the kind things that we said about the property and the previous management but it was not up for negotiation," said resident Kathy Daily. "As a community, we need to come together and consider that not everybody can afford $1200 a month and there are folks that need assistance."
On Monday, the company changed course, telling residents that they would have until October 1 before the rent increase. Officials with Brown Investment Properties say they considered the tight housing market in Greensboro and decided to make the change. Mayor Nancy Vaughan also said she spoke with the company about residents' concerns.
"Every day you’re looking at apartments.com, you are looking on Zillow, you were looking all over," said resident Judy Byers. "We are looking but we can’t find anything affordable, safe."
Byers said she found new place to live but the extension will help others at the complex who still need help.
So I do appreciate that (the postponement) does make things better but the move is still inevitable," Byers said. "So I don’t know what’s going to happen when that five months passes or in between."
A Larger Problem
Josie Williams with the Greensboro Housing Coalition said rising rent prices are becoming a problem across the country.
"You're going to see hundreds, if not thousands, displaced or homeless," Williams said. "We are seeing an exorbitant amount of rent for properties (and) when you take a look at them you have to ask the question why is this so high?"
Williams said rent increases, especially among vulnerable populations, are driving people out.
"We are still grappling with COVID-19 we are so grappling with the economic fallout (...), we are still grappling with people not making enough income and still looking for jobs," said Williams. "Although we can see that in some cases people say jobs are existing but when you look at the populations that we are dealing with, such as the seniors, these are retirees, these are veterans, these are people that thought they were going to age in place."
Affordable housing, she says, is also limited.
"We have to begin to really think, be creative, when we are talking about developing affordable housing," said Williams. "We have to lessen the barriers that prevent developers from coming in and doing that, in an equitable way, or doing that in the most effective and efficient way so that we can build up as quickly as possible."