Stop McKinley Properties From Price-Gouging Their Tenants


Stop McKinley Properties From Price-Gouging Their Tenants
The Issue
McKinley Properties, co-owned by CEO Albert M. Berriz, have been a staple real estate agency in the Ann Arbor (Michigan) area for years. Founded in 1968, they have grown their company to now contain nearly 1,000 employees with an annual revenue of $500 million - $1 billion dollars.
Ann Arbor has around 120,000 residents with a workforce of almost 80,000. McKinley has developed a monopoly over the Ann Arbor area with owning over 50% of the rental properties available. Affordable housing is almost non-existent and McKinley has become one of the lead contributors. For years, McKinley has offered reasonable housing options in Ann Arbor. However, there has been a noticeable shift in their priorities within the last 5 years. Instead of a company that cares about their tenants and communities, they have become more concerned with collecting every dime they can get their hands on.
In contrast to most rental agencies, McKinley charges their tenants for all utilities. Tenants are responsible for rent, electric, gas, trash, water and sewage. This is on top of already steep rent prices. Many have complained about McKinley's bait and switch tactics of offering enticing rent discounts several years ago and then implementing $100-$200 annual rent increases to bring those discounted prices back up to "market value". What do you get for that extra $1,200 - $2,400 a year? Not a thing. No upgrades offered and apartments remain old and outdated.
So why are we writing this petition today?
PROBLEM: On top of the outrageous price-gouging of rent, McKinley has “coughed” in the faces of their tenants during the COVID-19 pandemic. While the majority of rental agencies across Michigan have offered aid and support during these difficult times, McKinley announced a 5% off discount to those who could pay their rent early; gifting those who are not in financial crisis with an embarrassing $50 discount off of their $1,000+ rent. What about those who have been put out of a job and struggling to file for unemployment (along with 1 million other Michigan residents)? Tough luck. They won't be put out of their homes yet (since the executive order currently prohibits this) but tenants have been warned that once the order is lifted, those missed payments are expected to be paid in full. It’s not like at the end of the “eviction moratorium” we will miraculously be able to pay rent. And while McKinley continues to send out notices "thanking" their tenants for their understanding, there is no understanding. We have been horrified at McKinley's response, or lack thereof. Even amidst the COVID-19 crisis, notices for lease renewals are being sent demanding another $100 - $200 increase for 2020. Going broke from rent payments while families are struggling to deal with COVID-19 will have enough of a catastrophic impact on us; we certainly do not need McKinley Properties to just put their tenants in body bags and throw them out. This is unacceptable.
SOLUTION: Albert M. Berriz, as residents of your communities and “gracious contributors” to your salary, we ask that you find it in your heart to prioritize the well-being and livelihood of the residents who occupy your properties. Ann Arbor is a fast growing city, we know this, but to expect your tenants to pay an additional $1,200 - $2,400 every year to stay in their homes is ignominious. Sorry we don’t all have millions to fall back on. Has your money made you this cold hearted? While the economy attempts to repair itself after the detrimental and debilitating effects of COVID-19, we demand that you CEASE ANY RENT INCREASES FROM NOW UNTIL 2022. It should remain your top priority to provide SAFE & AFFORDABLE housing for your residents – a responsibility that is even more critical at this moment in history. For God's sake, we're in the middle of a global pandemic. Step up and do the right thing.
136
The Issue
McKinley Properties, co-owned by CEO Albert M. Berriz, have been a staple real estate agency in the Ann Arbor (Michigan) area for years. Founded in 1968, they have grown their company to now contain nearly 1,000 employees with an annual revenue of $500 million - $1 billion dollars.
Ann Arbor has around 120,000 residents with a workforce of almost 80,000. McKinley has developed a monopoly over the Ann Arbor area with owning over 50% of the rental properties available. Affordable housing is almost non-existent and McKinley has become one of the lead contributors. For years, McKinley has offered reasonable housing options in Ann Arbor. However, there has been a noticeable shift in their priorities within the last 5 years. Instead of a company that cares about their tenants and communities, they have become more concerned with collecting every dime they can get their hands on.
In contrast to most rental agencies, McKinley charges their tenants for all utilities. Tenants are responsible for rent, electric, gas, trash, water and sewage. This is on top of already steep rent prices. Many have complained about McKinley's bait and switch tactics of offering enticing rent discounts several years ago and then implementing $100-$200 annual rent increases to bring those discounted prices back up to "market value". What do you get for that extra $1,200 - $2,400 a year? Not a thing. No upgrades offered and apartments remain old and outdated.
So why are we writing this petition today?
PROBLEM: On top of the outrageous price-gouging of rent, McKinley has “coughed” in the faces of their tenants during the COVID-19 pandemic. While the majority of rental agencies across Michigan have offered aid and support during these difficult times, McKinley announced a 5% off discount to those who could pay their rent early; gifting those who are not in financial crisis with an embarrassing $50 discount off of their $1,000+ rent. What about those who have been put out of a job and struggling to file for unemployment (along with 1 million other Michigan residents)? Tough luck. They won't be put out of their homes yet (since the executive order currently prohibits this) but tenants have been warned that once the order is lifted, those missed payments are expected to be paid in full. It’s not like at the end of the “eviction moratorium” we will miraculously be able to pay rent. And while McKinley continues to send out notices "thanking" their tenants for their understanding, there is no understanding. We have been horrified at McKinley's response, or lack thereof. Even amidst the COVID-19 crisis, notices for lease renewals are being sent demanding another $100 - $200 increase for 2020. Going broke from rent payments while families are struggling to deal with COVID-19 will have enough of a catastrophic impact on us; we certainly do not need McKinley Properties to just put their tenants in body bags and throw them out. This is unacceptable.
SOLUTION: Albert M. Berriz, as residents of your communities and “gracious contributors” to your salary, we ask that you find it in your heart to prioritize the well-being and livelihood of the residents who occupy your properties. Ann Arbor is a fast growing city, we know this, but to expect your tenants to pay an additional $1,200 - $2,400 every year to stay in their homes is ignominious. Sorry we don’t all have millions to fall back on. Has your money made you this cold hearted? While the economy attempts to repair itself after the detrimental and debilitating effects of COVID-19, we demand that you CEASE ANY RENT INCREASES FROM NOW UNTIL 2022. It should remain your top priority to provide SAFE & AFFORDABLE housing for your residents – a responsibility that is even more critical at this moment in history. For God's sake, we're in the middle of a global pandemic. Step up and do the right thing.
136
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Petition created on April 17, 2020