Rent Increases In Beacon - Sometimes 12% - Driving Beaconites Out Or Stress On How To Stay
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Renters during the pandemic have had some protections, in the form of the Eviction Protection under New York State as well as at the federal level via the CDC. Currently, some renters who cannot make payments may see an eviction paused, which the CDC has extended through March 31, 2021.
However, renters who are still making payments to landlords are also at the mercy of their landlords as Beacon’s real estate market continues to heat up, as a result of favorable tourism media (including this blog, lots of mixed-feelings here!), sexy hypes by realtors (ex: “bidding war!…buying with cash!…”), and city-dwellers leaving NYC at a faster rate as the pandemic makes social distancing unbearable. There is no rent regulation in Beacon, so property owners can make decisions based on the market and their relationships with tenants.
Some Beaconites Share Their Rent Experience
Some Beacon residents wanted to share their stories, to get a read on how other renters are faring, but wanted to remain anonymous, as landlords could be local, neighbors, influential people in the community, etc. We are respecting that for this story.
The Artist, The Dog, and the 12% Increase
Real life Beaconite after hearing the news of their 12% rent increase. The caption is from the artist.
An artist living in Beacon with her life partner recently put her dog (pictured here) up on Instagram after their landlord raised the rent 12%, hoping her dog could pull his weight a little by posing on Instagram and somehow making money. Her dog is known for his many facial expressions, so she posted a picture of his “surprised face” when they learned that the landlord was raising the rent 12%.
The caption read: “The face U make when UR landlord raises your rent 12% and U want UR dog to make money on Instagram bc other people somehow do it but U really have no time for that and wish he could just do it himself.”
This artist recently rented an office to do her commissioned work out of the home, as her life partner had surgery, which took him out of his job as he recovers at home. She needed space to spread out as orders come in and she needs to make the orders. Their residential rent will increase 12%. They are currently in negotiations.
The Renting Family Whose Residence Might Sell With Slim Chances To Buy In Beacon
Another resident with a child in the Beacon City School System used to work in hospitality, but saw her job disappear. While she and her life partner have been making the rent, the owner of the property they rent was considering selling, which would create more uncertainty about their rent. “I do feel lucky in that they could have just sold no problem months ago,” she told A Little Beacon Blog, “but told us that we could stay for however long we need to. We speak next month about renewing in the summer. Fingers crossed they haven’t changed their minds. One of my biggest anxieties right now is being pushed out of Beacon because we can’t afford it anymore. It’s fantastic for those that already own, but our chances of buying feel slimmer than they were one year ago.”
“For Sale By Owner” Listing For $800K - “NYCers Will Buy Anything!” - Or Will They?
The time came for a Beaconite, who was raised here and grew up to raise their own family, to sell his parent’s home. With the help of his siblings, they intended to sell the home themselves. The house is a Victorian “with good bones” but is not updated, and an unfinished but usable attic. His childhood nickname is still painted on the attic ceiling which served as their playroom.
The adult children were going to list the house at $800K. “We aren’t going to list it with comps (examples of recent nearby home sales),” he told me one afternoon as I lent him my extension cord for his leaf blower, in preparation for the first open house the next day. “These people from Manhattan will buy anything.”
I told him that 2 of my friends who live in Beacon were looking to buy, and I would send them right over, but at that price, they most likely could not afford. One friend with kids in the district rents in a complex, and cannot find an affordable home in Beacon. They are looking in Wappingers Falls. The other friend had outgrown their home with their kids, and also needed a larger place. They ended up buying in Newburgh.
The listing went up for $800,000. I didn’t see many cars for the open house. The following week, a realtor’s sign was out front, and the for-sale-by-owner listing online disappeared. The house popped up on Zillow for $699K, then was lowered to $625K, then $599K, then lowered again to $525K, and finally sold at $490K, according to Zillow.
While it’s understandable that everyone needs to make a buck, and pay for nursing homes for aging parents, or private nursing, or settling debts, or purchasing the next family home, a lot can be determined by the personal decision of a homeowner selling to the next person.
Councilperson Nelson Urges Landlords Not To Raise Rents - Calling Out West End Lofts
In a City Council Meeting in December 2020, Councilperson Terry Nelson voiced his disapproval with property management companies raising the rent during a pandemic, “even if it’s for $40,” he stated. Councilpeople often allude to people or companies, but don’t mention names. Therefore, A Little Beacon Blog followed up with Terry to confirm which property was raising the rent, and he stated West End Lofts, which is the complex along Wolcott that was billed and financed as affordable living with artist lofts by Kearney Realty Group.
A Little Beacon Blog reached out to West End Lofts for confirmation on the rent increase, and did not receive response. The West End Lofts complex was viewed by some residents as a solution to more apartments to accommodate more people wanting to stay in Beacon. When the property was initially cleared for development and the trees were cut, the loss of woods was traumatic for some who were not expecting it. Others viewed it as an opportunity to move their young children to Beacon. Said one resident who grew up in her parent’s home near South Avenue and now has children of her own: “I remember watching fireworks in Newburgh from my parents home (near South Avenue) through those trees. I hope I can live in those new apartments.”
West End Lofts are marketed largely to artists. There is a discount if a person is an artist. According to their website: “West End Lofts is a mixed-income artist housing development in the heart of Beacon, New York. West End Lofts consists of 50 affordable artist lofts, 21 middle-income units, and 25 market rate units.”
The Neighbor Who Lost 2 Neighbors After The Landlord Raised The Rent For New NYC Renters
A reader contacted A Little Beacon Blog with their story of their neighbors having to move out when the landlord raised the rent, replacing them with New Yorkers who left the city for a greener life, and found Beacon’s rents lower then NYC. Said the Beacon resident: “Our rent innitially was very affordable,“ she said. “A year ago, my house was sold to an investor and immediately he tired to raise my rent $150 a month after living in the space for 4 years. I very kindly said no way - and then asked him down to the original rent and had to school him that everyone in the building had lived here for years and that our landlord only raised the rent $20 years for cost of living. Needless to say, 2 tenants moved out because of that and of course people from Manhattan moved in who paid $1,600 instead of the going $1,300/$1,400.”
The connection between NYC and Beacon has always been there, with economic activity happening on the river bringing goods up and down the water. The surprise of residents from New York is not new, but the replacement of residents with rising rents is hard to watch. As is families who rent currently and want to buy are having such trouble.
How are homeowners faring with their mortgages? Some are faring well with federally mandated forbearance for those who have reduced income. But property taxes are still due, and sometimes that is a cash payment to the City of Beacon. How is that working out? Those who have an escrow account might have experienced an unexpected benefit. We look into it here.
Learn more about Help for Renters at the Consumer Financial Protection Bureau, and if a landlord is getting mortgage relief under the CARES ACT.
