Hoboken: Archstone Hudson Park - Outrageous Rent Increases
I am going to mention this since one of my good co-workers lives there, and the actions by management are quite reprehensible.
The Hudson Park condo known as 77 Park in Hoboken was recently completed in 2000 and holds approximately 300 rental units, 450 parking spots (public/private). It is located near the Hoboken PATH station, about 2-3 blocks away, and is along the Observer Highway and railroad tracks leading to Hoboken Terminal.
A little over 2 years ago, it was taken over by Archstone Properties. (See notice indicating the takeover). It was originally run by The Pegasus Group.
Recently, some residents of Hudson Park were starting to get their next projected rent increase for next year. While a few were receiving increases of about 7 percent, others were notified of rent increases of 24 percent to 35 percent!
As stated on hoboken411.com, one tenant was offered a 8-month lease with a rent increase of 7%. At the end of that lease, he was offered another 8-month lease with another increase of 7%. So this was a 14% increase in a 16-month period. Another tenant's lease was raised from $1800 to $2800. He refused the new price. Another one had $2100 going up to $2900 (35%), and one had $2500 to $3100 (24%).
Because of these exorbitant and unfair increases, a group of residents passed out a flyer and wanted to get together in the gym to voice their concerns and sound out some ideas on how to address the price increase.
Well, it seems that the building management found out about the meeting and released a "Courtesy Update" to all residents on the 21st of November. (The same day where the tenant meeting about the rent increase was supposed to ake place.)
The eventual tenant meeting was held off-site.
The notice regarded the flyer by the "Concerned Tenants" as unapproved by management and was not given permission to be distributed to apartment residents. It also noted that the gym was not an "appropriate" meeting place to hold a discussion, and that the lobby should have been used instead, but further stated that permission was still needed nevertheless.
It claimed that some residents were offended by the "surreptitious" nature of the delivery of the flyer. (Cheapshot excuse.)
The management's reasoning on the huge rent increases:
1. Claimed that "extensive" market surveys showed apt rates increasing significantly in the greater New York area
2. Argued that the prior owner (Pegasus Group) did not raise rents in response to changing market conditions
3. Believed that rental rates "slipped" well below the value of apt housing at Hudson Park condo
4. Believed that residents were enjoying this "temporary pricing benefit" as a courtesy by current management
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A snapshot of Archstone's rates for the property:
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It is true that condo property located in Hoboken have appreciated in value because of its proximity to New York City, and more luxury rentals and condos are still being built in the area. Of course, the Hudson Park condo is not registered under the Hoboken rent control ordinance.
The rent control law currently being applied to the older multi-family properties limits rent increases to the CPI or 7.5 percent max each year. If a tenant vacates, the rent can be raised up to 25 percent for the new tenant. Yet, this condo and newer properties being built are not applicable (an agreeemnt with the Hoboken town council?).
While a few can argue that this huge rent increase is not surprising, the issue is that rents usually stay in line with wages and inflation. How can raising your rent by 55 percent be considered reasonable? If inflation goes up 2-3 percent, and your salary raise goes up 5-6 percent, this would mean you would be hard pressed to support your current living arrangements.
Even some residents argue that the "luxury" condo is not really that great. No significant improvements have been made to the building. There were past incidents of water pressure loss and a mice infestation.
Obviously, the management really wants to squeeze as much as money as possible out of the renters. It is true that residents can take their business elsewhere, but does this mean we should surrender without a fight? It is true people can advertise the fact that the management operating Hudson Park are liars and are willing to charge expensive rental leases, but there will always be people willing to afford those prices. Yet, Hoboken is not New York City. It is not Chelsea, Soho, or the Upper East/West Side.
It would seem that everyone is sympathetic to the Hudson Park residents. Action should clearly be taken since the management is attempting to "suppress" the residents' efforts to join together. It is using the "safety policy" to prevent any meeting to be held in the gym, and while it has suggested the lobby as an alternative meeting place, it seems that management has placed one of their staff members in the lobby to keep "an eye on things."
It is true that renters do not have property rights. But is a rent increase of 30-60% conscionable and reasonable?
Update 12/04/06
The tenants are getting together tonight again to address the rent issues. I wonder if management will try to get someone from their side to attend. It would be miraculous if a management person shows up and actually listens to the complaints and criticism of their rent increases. Perhaps a "tar and feather" would be an enjoyable conclusion to the meeting.
It would also appear that Archstone is implementing their higher-than-normal rent increases at other properties. Washington Post has a piece on the Archstone Newport Village located in Alexandria, VA. The article noted that after the original owner, Charles E. Smith Residential Realty, merged with Archstone back in 2001, there were more frequent rent increases, and certain amenities were now charged separately from the rent bill.
"We were finding that many of our customers were looking for short-term leases, and Archstone decided to test whether customers should receive price breaks for those leases," explained Jessica Janez, Newport Village's assistant manager.
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If you take a look at the opinions of Archstone properties across the country, you may find similar complaints about their fee structure, unreasonable excuses why your rent has to go up 35%, and poor quality of management of the property. Likewise for property that were taken over by Archstone. It would seem they are pursuing a relationship where they will clean you out of whatever cash you may have for their high rent price and other so-called "administrative" fees. They are more interested in high turnover than retention.
Update 12/12/2006
Here's a link to rentometer on the 77 Park property. An average rent of $2,900 per month at this property places it higher than the other nearby rental properties in Hoboken.
Also, the Hoboken Reporter has an article on it.
Trackbacks
Trackback URL for this entry is: http://blog.case.edu/james.chang/mt-tb.cgi/11338
Archstone Hudson Park - Unconscionable?
Excerpt: 11/22/2006 Another Update:
Any readers know the best way to get a local news channel to come investigate this nutty situation at 77 Park? Like that ball-busting Arnold Diaz from “Shame on You”.. or “7 on your side”? The satellit...
Weblog: Hoboken411
Tracked: November 22, 2006 09:51 AM
Comments
Posted by: alison
Posted on: November 25, 2006 08:24 AM
Thanks for posting this. I live in this building and they are raising my rent by $600 per month! They should be stopped. At some point, tenants have to stand up for themselves. We cannot just sit back and take it and let them kick us out of our homes, which they are clearly happy to do. I saw them showing apartments yesterday to some poor unsuspecting couple..those people probably were lured in by the $500 American Express gift card incentive. People should look elsewhere to rent. You will regret renting here.
Posted by:
Posted on: November 28, 2006 03:31 PM
Do not rent from this establishment. I live here and was planning on staying here until I started a family. With the rent increase my husband and I are looking for a new place to live. Not the easiest thing to do when you live in hoboken. The whole building is a joke especially office staff and their broken promises.
Posted by: ksulli
Posted on: November 29, 2006 06:26 PM
When I moved from San Diego to Hoboken, I transferred from a California Archstone property to Archstone Hoboken because I was happy with Archstone. In Hoboken, I was disappointed from the start. I have all the normal complaints- cheap fixtures, broken elevators, mice, management, etc. The close proximity to the PATH & the NYC views were not worth the hassles. After my original year lease expired, I was offered a six-month lease at a "special" rate. I took it & six months later, they wanted an insane amount for a lease. I found another apartment in Hoboken with much better amenities for much cheaper. Take the time & effort to find another apartment & you will be much happier!
Posted by: Bored Bystander
Posted on: December 5, 2006 09:12 AM
what recourse do the current tenants have? If there are really new tenants willing to pay those rents, then Archstone can claim their increases are justifiable in terms of what the market can bear.
Posted by: george
Posted on: December 6, 2006 03:15 PM
is this city housing? or welfare housing? get a grip people its private property they are required to maintain it and keep it habitable not keep it to fit your budget its a rental!!!!! a Luxury rental at that ya gotta buy a condo
Posted by: Author (James)
Posted on: December 6, 2006 07:13 PM
George, you should read the trackback over at hoboken411.com on this condo. It's a private condo and of course the rent would probably be expensive in a place like Hoboken, given its location.
But if you are paying $2000 or $3000 per month, there ought to be a good minimum of services that come with the apartment. If you can read the stories of those current residents, the management's performance at Archstone is pretty shoddy ever since they took over the place. Even though they cannot do quite a lot, they can generate publicity and criticism.
Already, current and past residents have been actively reporting their experiences on many of the rental web sites that list this particular property, and the one they can do is discourage future residents from spending their hard-earned money at that place.
There are reasonable rent increases and there is the 55% percent increase. Is that bad business?
Posted by: Lola
Posted on: December 11, 2006 03:28 PM
Boy Im I glad I moved to the country. Why dont you all get together and invest in a building of your own and let Archstone stuck with all those empty apt. I have a 4,000 sq ft home an inground pool with 2ac , I do not even get close to paying as much as you guys are paying. That is ashame there should be a law against landlord rent holdup.
Posted by: Stu
Posted on: December 12, 2006 11:28 AM
This past September my rent from $2,490 to $2,790. This by no means a luxury building. The gym has only a few machines, which has two broken at all times. Parking is not inlcuded in rent and costs between $200 to $350/month.
In my year living their, I have had mice in my apartment, my ceiling leaked, and if I wasnt home at the time, my TV, steareo and furniture would have been destroyed (they did not fix it promptly by no means. The elevators always have problems, not to mention broken doors in the lobby.
They are currently building a Internet, coffee room or something in the lobby, that few residents could care less about, and I would assume none requested.
DO NOT rent from this building.
Unfortunately, Real Estate is all about location, and they have a great location.
Until laws are changes, there is very little that can be done, except moving out.
Posted by: Glenn
Posted on: January 26, 2007 04:53 AM
I live in the Archstone Chelsea in Manhattan. I have lived in my apartment for nearly three years. When I first moved in, the building was known as The Aston. Archstone took over the building last year just before my lease was up for renewal. They raised the rent for my small 1 bedroom apartment (600 sq. ft.) $600/month, from $3,000/month to $3,600/month. Despite this exorbitant increase and the fact that all the staff was fired and that the services really went downhill, I foolishly decided to renew. Well, my lease is up for renewal again. I just got the renewal papers today. To my astonishment, they are raising my rent another $1,000/month to $4,700/month. Furthermore, as an additional “F” you from Archstone, the small gym that tenants had been using for free will now cost $100/month. I can barely afford the rent I am presently paying, so this means I have to find another home. This will be even more difficult since I just lost my job and have had to resort to freelance work.
What makes this situation even more vexing for me is that, as a tax abatement for Archstone, a number of units on the lower floors of this building have been set aside for “lower income” tenants. Normally, I would have no problem at all with this. However, I have personally witnessed drug transactions taking place right in front of the building and even in the lobby. Furthermore, I was cornered in the elevator by a group of thugs after I came from the building’s gym. One of them got a couple of inches from my face and told me to go to a “fag gym”. When I reported this to the guy who manages the building, he just chuckled and said he’d check into it. Just the other night, a lit cigarette was flung into my face as I entered the building.
It is so disheartening to be in this situation, knowing full well there is no recourse. It is so discouraging trying to find an apartment in this city, not to mention the physical, mental and financial ordeal of moving. It I hadn’t been paying so much rent over the past few years, I might be able to buy something and then feel like I actually have a home.
Glad I could use your blog to vent!
Posted by: Joseph
Posted on: April 27, 2007 08:26 PM
Thank for your posting, great blog.
Posted by: Denver Real Estate
Posted on: June 11, 2007 04:58 PM
Thanks for the post
Posted by: Rent to own homes
Posted on: July 17, 2007 03:45 AM
Just checked out rentometer - thats a cool tool. I'm actually going to use this for the rent to own's I do out here in Nevada. Thanks for the tool and the post. -Jason in Las Vegas
Posted by: We Buy Houses
Posted on: August 9, 2007 03:53 AM
If it weren't for rent control and other anti-market laws then New York rents would be more manageable, if you take the profit out of renting then you won't have any landlords and therefore you will have high rents. New York wants to control and regulate and make it impossible to evict and then the tenants wonder why there is a shortage and therefore extremely high rents. So yea fight the power, pass more laws and see what happens.
Posted by: Fed Up with the FRATmosphere
Posted on: September 8, 2007 09:27 PM
Has anyone noticed the weekly "frat" party going on at Archstone Hoboken? It's apparent to all but the management that three neighbors on the ground floor (Garden Street side) have built a large bar and even brought in an ice luge for their latest party. I've complained to the Concierge, the police, and even the building management but no one seems to care. I suppose it doesn't matter to them that these idiots leave their trash out in the patio at the front of the building and have no regard for the building's code of conduct. It's ridiculous.
Posted by: Jason Fox
Posted on: October 6, 2007 09:34 PM
Some things never change... I do like the rentometer tool you mentioned. Thanks
Posted by: Alex Bell.
Posted on: October 29, 2007 09:01 AM
[...]thank,I applaud the effort.[...]
Posted by: atlanta apartment
Posted on: February 12, 2008 10:53 PM
That is outrageous. Atlanta apartments only range from 600 to 1200 a month. Now I see why New York has rent control in place to stop such acts.
Posted by: Gandung
Posted on: September 22, 2008 09:47 PM
Thanks for the info about rental apartment in Hoboken. Looking forward to read your next post about apartment in another area.
Posted by: Shawn
Posted on: December 9, 2008 04:25 PM
I have lived in Archstone since 2006 and have never had an issue with the rents. Sorry but that IS the market rate for the area. Yeah it is high but that's the cost of being that close the NYC. Manhattan is worse.