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Tenants, buyers of foreclosed units tangle over rents

Inocencia Perez and Gerardo Romero thought the arrival of a new landlord meant they could stop worrying about the status of their apartment, on the second floor of a Chelsea building seized by a bank through foreclosure.

But instead of newfound security, Perez and Romero — who have three young children — were unnerved when, not long after taking over, the two-decker’s buyer, City Realty Group LLC, raised their monthly rent by $300, to $1,300. The couple said they were given two options: pay up or move out.

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So clearly, the previous rent wasn't high enough since it led to foreclosure...

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Clearly market economics does not equal economic justice when the rich are getting richer and the poor poorer. This family is not simply a statistic. They are a hardworking couple with children in school who need a living wage. Make sure a minimum wage =$22/hr and then say that the rent wasn't high enough!

If the minimum wage was $22 per hour, then low-skill low-productivity workers like Sr. and Sra. Perez would have no jobs at all because nobody is going to pay that much for the kind of low value added work that they do.

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Interesting concept that the tenant has found an apartment way under the market and the tone of the article suggests the new owner should continue to subsidize them.  

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Get used to the concept, just as you've gotten used to bankers getting big bonuses and tax-payers bailing out banks that are too big to fail. I guarantee you that City Realty will not lose a penny on this family! Google City Realty and find out just how well they treat their tenants!

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If those units were inspected by inspectional services most would not pass.....it funny how the "money changers" seem to find another way to victimize the poor.  

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So you have done your research on City Realty Group LLC and your research has determined that thet are slum lords?

It would have been nice if the reporter gave us some math on the Romero's Unit so we can all make a reasonable opinion. Is City being unreasonable? How can we know she dosn't tell us the number of units, the purchase price, taxes etc.

Or maybe she did't want to show the other side. The omission makes the article susbect.

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If someone who is working full time cannot afford the rent in a cheap apartment in Boston, it is time to raise the minimum wage.

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If minimum wage is the best you can do, then having a family of 6 is irresponsible...I had 2 children, because that is what my husband andI could afford.  It is almost like you didn't read the article...they have had no increase in years and likely have not paid rent in years (they still aren't paying now), yet every year property taxes have risen and I imagine the water bill for 6 peoplewho think water is free is astronomical!!!  Don't think there will be any profit on that unit...$1300 is below market.  Champion personal responsibility if you need a soap box...

Chrissie, you jumped to an assumption that they "have not paid rent in years" and "still aren't paying", which is totally false. It's time to stop bullying and see things for what they are. They are our neighbors, they are a family working hard and not making enough to pay an extra $300 a month immediately. Their kids are in school and the family would like them to stay there instead of disrupting them in the middle of the year. They're living in Chelsea because that's where they found a rent they could afford. (In other words, they are PERSONALLY RESPONSIBLE. BTW, who's on a soap box?)

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Being a landlord in MA is no picnic. I did it once years ago, along with a few others, I made some money, but never again. Tenants can be a PITA, most are fine, but the bad ones, yikes, I still hate to think about. A tenant can essentially stop paying rent, for whatever reason, months and months can go by, very little recourse for the owner. The laws tilt toward the tenant, and the court system is so slow. Evicting someone takes a year, 12 months of rent gone, and, of course, during that year, the tenant couldn't care less about the condition of the property. Maybe this is best left to big outfits like City Realy. As for this particular case, not knowing the fair market value of the apartment (maybe fail by Ms. McKim), impossible to know the just outcome. The current occupants seem like good tenants, I'd rather reliably get $1000/month from a responsible, hardworking tenant than risk an extra $300/month on some loser. But, hey, maybe that's why I had a bad experience. 

Why is this even a discussion?  Rent control was repealed back in the mid-1990s.  A landlord can charge whatever rent the market will bear.  If he raises the rent too high he will have a vacancy problem.  If the rent that the landlord charges is too low he is leaving money on the table.  If rents get high enough then developers will build new rental housing and the new supply will depress rents.  The solution to high rents is high rents.  Rental housing is a commodity like any other.  If the rent is too high in Dorchester then move to Mattapan or Maverick Square.

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Agreed.  Some reporting on the rents of the surrounding buildings would have been very telling.  I have a hard time believing anyone charging $1,300 a month for anything other than the very worst family-sized apartment within the city of Boston has a "vacancy problem."

This is what you get when the Globe refuses to report on the currentnegative financial news of this week, the situtation in Cyprus. And its effect on the Eurozone, and US financial markets.

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You can bet that the taxpayer is subsidizing this family one way or the other. 

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One way or the other, everyone gets a subsidy.

That's a pretty big assumption.  How do you know that? Also if that were true then the housing authority would be handling the matter on their behalf. I really get tired of the assumption that the working class is all on taxpayer subsidy.  Guess what Vladjr, if you're living in your own home with a mortgage you're living in subsidized housing too.  We taxpayers are taking the hit for your mortgage interest deduction.

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Interesting story when viewed alongside an earlier New York Times piece about the city trying to develop land on or near public housing:

http://www.nytimes.com/2013/03/12/nyregion/plan-to-lease-open-land-at-housing-projects-stirs-concern.html

And I agree with previous commenters that a little more context would have gone a long way in this article.  E.g. How big is this apartment?  Exactly where is it?  What are the neighbors' rents like?  Much like in the Times article, it sounds like there are quite a lot of people living in up-and-coming Boston neighborhoods expecting (hopelessly, in my opinion) to be able to hold back a rising tide of gentrification.

While I can certainly understand the argument for income diversity in any area, it does seem to put residents in the awkward position of opposing needed improvements to neighborhood services on the grounds that it will "make people want to live there" (as if that's a bad thing).  Or, in this case, the very sort of private investment that is needed in order to revitalize a blighted area.  Better to look for ways to improve people's incomes (like subsidizing college education or construction jobs building city infrastructure!), rather than the Wal-Mart effect of considering poverty inevitable and then trying to cater to it.

At any rate, it would have been nice to see this article delve into the larger debate a bit.  Or at the very least acknowledge it.  Context, in this case, was sorely lacking.

Interesting discussion, however, why has the Globe not reported on the MAJOR Financial News since the weekend, the bank bailouts (possibly taxing depositors' money) in Cyprus?

6 people in an apartment for $1300...where can you get that deal? The water and property taxes alone must be very high...not to mention maintenance.  I knw someone living in a shoebox alone for that in Malden, just a few miles away.  If we made people feel personally responsible for themselves, then these articles wouldn't even be written anymore.  How big must this apartment be? At least a 3 bedroom...this is sticker shock because these people are going from zero to $1300...can't raise a family of 6 on one minimum wage income (and you shouldn't expect to)...perhaps they should have considered that.  The landlords have a right to make a profit...they are not the bad guy that this article pretends that they are. These people should move if they can't pay, but instead they are going to stay rent free for as long as they can...and the landlord has to keep paying the mortgage, taxes, water bill and any utilities they are responsible for. 

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The article implies that the tenants have not paid rent in months and thuis is just "not used" to paying rent.    What this article, obviously written with the assistance of the bank and its lawyer, doesn't discuss is that the city has not been enforcing the houslingg code for years and that the landlord, obviuosly in foreclosure for a while, has been making even less repairs than usual; in other words, it has not made any repairs for a long time.  

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No the article doesn't imply that the tenants have not been paying rent.  It says they have paid rent all along.  They are paying $1000 per month and the rent is going up to $1300 per month.  Can't anyone on this board read?  Mulitple posters have been making this mistake.

The article mentions that tenants living in a forclosed property sometimes do not pay rent for months. This is because the forclosing institution is reluctant to become a landlord and does not/will not collect rents.

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Nowhere does it say that this couple do not pay their rent. They just cannot afford another $300. There are two adults with 3 small children and it's probably a 2 bedroom. The article doesn't speak to the size or condition. $1800 rent is a lot of money for anyone person or couple with children not making $75K. Even with that, if they have to pay for a car to get to work, etc. then there is nothing left over. Chelsea is not the Back Bay or the trendy North End where closets rent for $1800. As a former landlord, I can truly say that I'd prefer a good tenant to a lousy one with more money.

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Inocencia Perez and Gerardo Romero. They have three children. Just wondering with two different last names are they married?

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What diffence does that make?  Pretty quick to stick your nose into other people's business, I see.

BTW, my wife of 11 years and I have different last names.

My wife of 32 years kept her maiden name and we have two kids.  You're probably right about what you assume but you shouldn't assume as much as you do.

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Their rent is not $1800. It has gone from$1000 to $1300. Read the article.

The new owners picked up that property for a song so it's not like they haven't made a profit already.  And now they have all this bad publicity to deal with.  And if that apartment is empty for 3 and a half months there goes whatever increase that 300 would have given them for a year.  An increase of $50 to $75 a month rent over the next couple of years would have accomplished the same thing without the bad press and loss of income.  Slow and steady wins the race.

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Absolutely!  As a former apartment property manager for 20 years, I couldnt agree with you more.  (Thank god I got out of that side of the property management field!)

See the documentary "American Winter" on HBO.  And no, America isn't just about making a profit.  It's about compassion, honesty, courage, decency, fairness, quality of life, liberty and justice for all - not just for a few!

1800 is fair market in chelsea? i would say most are between 600 and 1100.

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http://boston.craigslist.org/gbs/abo/3691947149.html

http://boston.craigslist.org/nos/abo/3688536381.html

http://boston.craigslist.org/gbs/abo/3680703219.html

 

Good luck finding anything but a tiny studio in Chelsea for less than $1100

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Gouge-a-rama.

Get one of those Auntie Zeitune project apartments.  Oh wait.  You have to be an illegal alien to get one of those Auntie Zeitune project apartments.  Oh, wait.

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Oh Mr Pitts, you were doing so well with your comments, then you unloaded this cheap stuff? This is something Miker6 or CindyLou would whine about, not a distinguished dude rockin' a bow tie!

 

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Ok I just had to reread the article because some of your comments are outrageous. So from what I understand, this family lives in an apartment building who's owner (not them) stopped paying the mortgage and hence the bank sold the property to City Realty for a bargain price. They have never missed a payment and they aren't asking to not raise the rent, but to only raise it by $100-150. Wouldn't you be upset if you had to shell out an extra $300 a month?

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Upset, yes. But it's a Free Market, that's the way it goes. Pay it or move. I know it sounds heartless, these folks seem like they are trying hard, I wish them well, maybe they can hold out to the end of the school year.

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Legally, these "People" have the right to raise rent. Ethically it is a f***ing crime. Period.

 

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Why?  Surely the market decides?

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If they can't afford market rate rent and are eligible, they should get a section 8 voucher.  That would make up the difference between what they can pay and what the apartment actually costs.  I'd bet that the new owners have a LOT of work to do on the whole building since the previous owners couldn't afford the mortgage, they also couldn't afford basic maintenance.  Not to mention water bills, taxes, etc, which the new landlord must pay.  

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