Residents Form Union To Fight 22%-58% Rent Hikes
Tenants in Malden and Medford protest raised rents after large purchase by Brighton-based Alpha Management Corporation.
Photos
Tenants across the city found every renter's nightmare slipped under their doors last week: a notice their rents will increase anywhere from 22 percent to 58 percent next month, with just two weeks to decide whether to accept the new agreement.
But residents say they won't take the hikes without a fight, and a majority of the tenants have formed a union – Malden Tenants United – to prevent what they call unreasonable increases in a sluggish economy.
The sudden increase and union-organizing comes after a total of 265 units at 349 Pleasant St., 17/19 Washington St. and 86-96 Maple St. in Malden, as well as 53/63 Fellsway in Medford, were purchased by Brighton-based Alpha Management, which owns and maintains more than 60 properties in the Greater Boston area.
Studios that once went for $600 jumped to as high as $850 to $950, one bedrooms from $900 to $1,150 and two-bedrooms from $1,100 to $1,350.
“Some people's rents raised $200, $250 – some $300,” Damon Syphers, who lives at 349 Pleasant St., said. “That's outrageous, to expect you can come in here, buy a building in May and want that kind of money by June....we're working people.”
As all the previous rental agreements at the properties were tenancies-at-will, the rent hike is legal. Tenants can be granted as little as thirty days to accept a new arrangement, willingly leave or face a formal eviction process in court.
“The honeymoon's over”
Owner Anwar Faisal called the $24 million purchase a long-term investment for the company, describing Malden as a curiously “long ignored” area for real estate value to increase the next decade.
He said the rent increases, while imposing an unfortunate hardship on residents, represented a fair market value for the properties. Tenants, who said they conducted their own analysis, disagreed.
Faisal told Patch he wanted to encourage residents to reach out to him directly, but said he had a $160,000 a month mortgage to pay on the properties and couldn't afford to help everyone.
“I would like to work with all of them. They are very nice wonderful people,” Faisal said. “But when you are in a honeymoon and somebody asks you to live a normal life – the honeymoon's over – you reject that, you want to continue with that honeymoon.”
“What does he expect?”
At the union's meeting, a number of tenants portrayed a starkly different account of Faisal's management style.
The letter slipped under residents' doors on April 27 did not indicate any such willingness to work with residents – only a standard legal form offering a 15-day window to accept the new rate or face eviction.
Residents had already formed a union, held two meetings, elected to collectively bargain and alerted city officials about their situation before the company started reaching out to residents nearly a week later, on May 3.
“You can't jack up the rent 30, 40 percent and expect people to accept that,” resident Robert Smith said. “What does he expect?”
Even as representatives reached out to tenants, some members complained of harassment related to repeated visits by Alpha employees anywhere from 8 a.m. to 9 p.m., even after informing the representatives they would only negotiate collectively.
Faisal said these house calls were good faith efforts at negotiation and assistance, though members of the tenants union said the company has now ignored their demand to negotiate collectively for about a week.
“I think the good idea (would've been) to talk to everyone in the community first thing,” resident Vineela Tummala said.
A history of controversy
It’s not Faisal’s first brush with controversy.
In September 2010, Alpha Management was the focus of a WBZ investigative report that found 73 complaints against the company registered within 18 months. In 2008, 23 such complaints went to court before they were resolved.
In November, Faisal was ordered to pay $250,000 in back wages to 42 employees following an investigation by the U.S. Department of Labor’s Wage and Hour Division that found he misclassified 42 workers as independent contractors and withheld owed overtime payments.
While tenants are more likely to complain than praise their landlords on the internet, online reviews of the company are full of angry, one-star ratings - as well as a number of glowing, five-star reviews Yelp’s spam filter identified as fraudulent.
Could collective bargaining work?
Boston-area tenants unions have been successful in the past – organizers with City Life, a Boston-based advocacy group, effectively organized tenants against proposed rent increases in Mattapan by The Mayo Group in 2006.
Such organizations were historically a significant political force in the city and surrounding area, Malden-based housing attorney Edward Rice said.
In fact, tenants associations are offered a number of legal protections similar to those governing unions, such as protection from retaliation.
“It used to happen more, back in the days of rent control and when people were sort of more activist(-oriented),” he said. “It's kind of fallen out of favor, especially as the economy was growing in the '80s and '90s – people would just move to new places if their rent went up.”
Rice said that the city’s rents stayed flat in 2007, and that he has seen such cases “picking up” in frequency as property values continue to increase in the city.
He said the standoffs often come down to economic factors.
“It would depend on the judge and landord,” he said. “If he has 250 units, does he really want to say, take 75 cases to court, or does he want to sit down and plan a strategy with these tenants that works for everybody?
“If you have to hire a lawyer for 75 evictions, you might be better off,” he said.
Union members say they continue to regularly meet and collect signatures for a letter they will send to the Alpha Management offices, outlining their objections as a basis for negotiations.
Kasey Hariman
9:22 am on Thursday, May 10, 2012
How do people feel about the rent increases? Is it fair for an owner to raise rent on such short notice, even though they do own the property?
Pleasant St Resident
4:53 pm on Thursday, May 10, 2012
It is legal but not morally fair, us tenats cannot afford this sort of increase and in such a short period of time is crazy. They would have been better off coming in and introducing themselves to us and getting a feel of the situation. But instead they have caused us to group together and take a stand. I am PROUD to be standing shoulder to shoulder with my neighbors on this and hope Mr. Faisal gets the message loud and clear that we are UNITED.
Kasey Hariman
1:52 pm on Monday, May 14, 2012
Thanks for answering! This and other responses help us get a better understanding for what's going on with the situation.
Don
10:18 am on Thursday, May 10, 2012
Got to wonder how people will be able to pay the rent that is being asked. Unfortunately in America, whoever owns something is who determines anything about it. That is the way it is. Sometimes I think socialism is better and it would protect these people who are going to be shoved onto the street. Guess the question is, how can they be helped?
howard mcgowan
10:19 am on Thursday, May 10, 2012
I have been a resident of 349 Pleasant Street for 27 years and have not "missed a beat" on monthly rent payment and any normal rent increases on an annual basis. I have an agreement with the former landlord renewed as of April 2012 that they would review rent for the apartment on an annual basis and what the Last months rent would be. This "Contract" effective to 2013 was my contention signed by the former owner and my tenancy and should be enforeable with the new owners An irresponsible use of law forms to harrass tenants and to manipulate tenant/landlord relations in an immoral manner and yet instead of negoiate use our Court System to force tenants out. I have not heard fro the new owners with an offer and hope they deal with tenants collectively with mediation with our City officials.
Lets see our Malden Goverment officials get involved "Support our CITIZENS "
Enforce the ordinances and assure public safety to deal with "ABSENTEE LANDLORDS
Pleasant St Resident
4:47 pm on Thursday, May 10, 2012
Very well said Mr. McGowan.... here is to hoping that the city helps the tenants.
Potential Renter
8:19 am on Tuesday, June 5, 2012
What happened with this? I can't find any info after May 15th or so. I'm supposed to be looking at an apartment at 349 Pleasant, but I don't want to take it if I'm going to be going against a union. Thanks!
Chris Caesar
10:38 am on Tuesday, June 5, 2012
Actually working on a follow up now!
Pleasant St Resident
12:28 pm on Tuesday, June 5, 2012
Dear Potential Renter..... While it is a nice area to live in, the apartments are nothing special and for what they are asking people to pay you can get better some place else there is NOTHING modern in these apartments. Do your research on this owner (Anwar Faisal) and management company (Alpha Management) they do not have good reviews or a good reputation and do you want to live under someone who is not going to maintain the buildings in which you live. They have fired the 2 live in building superintendents and things are already looking bleak. We the tentants have formed a "Union" and are sticking together and hoping this man will be reasonable with us. Good Luck with your aparmtent search I know it is not easy as I cannot afford what this man wants me to pay and have been on the lookout for something new since I do not like his bad reputation.
Teresa Bello
10:44 am on Thursday, May 10, 2012
I'm not sure if Alpha Management's purchase was a private sale or if city officials were involved. The management company seems to have a poor record so I do think the city government should do a thorough background check on potential buyers of large residential properties. I support the tenants in this issue.
Maggie
12:59 pm on Thursday, May 10, 2012
Good luck to these tenants, from what I've read their new landlords are shady.
Pleasant St Resident
4:54 pm on Thursday, May 10, 2012
Thanks Maggie....
Chris Caesar
1:44 pm on Thursday, May 10, 2012
Bashing foreigners guys? Completely uncool on these boards.
Barbara Murphy
7:10 pm on Thursday, May 10, 2012
Chris, maybe I missed something, but, I have reread the above posts and do not see anything that resembles "bashing foreigners". I grew up at 349 Pleasant St and it was not just an apartment complex it was my home. It is just like any neighborhood in Malden, maybe even more so as we all lived in very close proximity and I might add harmony. So, am I outraged by a new landlord coming into Malden and basically setting the stage for gentrification? YES, I AM. I would like to think we value family and community above all and that everyone will get involved to make sure that common ground is found. Barbara Murphy Ward 5 City Councillor.
Chris Caesar
8:24 pm on Thursday, May 10, 2012
Hey councilor,
I actually deleted the offending statements. There is some more information about them below, if you're interested.
Very interesting you lived at 349 Pleasant St! Is there anything the council can do to help with the dispute? I know Councilor Matheson said he and the mayor's office are looking to work with both of the parties, but should the council explore some kind of ordinance-based solutions if this situation happens again?
Citizen K
2:18 pm on Thursday, May 10, 2012
I support these people and I suggest they look into ALL of their options carefully. If all else fails, there's always the "poison pill" of personal bankruptcy. While that winds its way through the courts, the landlord cannot kick them out of their home. Wouldn't that be something huh? Having to pay rent on a property for 2 years or more while 75 BKs are in process and they aren't paying you a dime? hAHAHA Alpha is playing with fire and they're going to get burned. See ya at the table guys.
Pleasant St Resident
4:57 pm on Thursday, May 10, 2012
Wouldn't that be nice.... but most of us are very hard working citizens and do not want to file personal bankruptcy. But we do know our rights, we will not make this easy for him if he is not willing to work with us as a group.
whatsup
3:31 pm on Thursday, May 10, 2012
One word to the tenants: Run.
This is a possibly one of the worst management company run by the most incompetent people. Poeple should not stay in Alpha management and the shady Anwar Faisal's property even if its free just for health and safety reasons
See some comment on yelp:
http://www.yelp.com/biz/alpha-management-corporation-allston
Faisal’s company, Alpha Management, owns thousands of units. In just over a year-and-a-half, the i-Team found 73 complaints filed against Alpha Management.
No heat, no hot water, leaking pipes – one tenant said the rats were so bad, she had to live in her car.
“His ability to manage his units and service his tenants is in question,” said Don Irish is with Boston’s Department of Inspectional Services.
http://cbswbzam.wordpress.com/2010/10/01/i-team-landlords-units-said-to-be-in-disrepair/
whatsup
3:34 pm on Thursday, May 10, 2012
BTW...just google the guy Faisal Anwar..seems like total scumbag.
http://www.dol.gov/whd/media/press/whdpressVB2print.asp?pressdoc=Northeast/20111104.xml
Chris Caesar
3:35 pm on Thursday, May 10, 2012
Not sure if you are directly addressing me, whatsup, but all of that information was in the article already.
TIM H
3:35 pm on Thursday, May 10, 2012
i dont see any foreigner bashing in what i have read so far.......
Chris Caesar
3:36 pm on Thursday, May 10, 2012
Hey Tim, I redacted the inappropriate comments.
stella
4:38 pm on Thursday, May 10, 2012
Nobody was bashing foreigners. I was stating facts. Pretty sad that you cant voice a true decent opinion. This is America or so i thought
Chris Caesar
4:43 pm on Thursday, May 10, 2012
Technically, this is Malden Patch. If someone says something unambiguously racist, such as your comment asking if you can "blame the American people for having a bad taste in their mouth with these foreign people", it is within my purview to delete it.
Aaron Prestley
8:52 pm on Sunday, May 13, 2012
It may have been un-PC but it's not racist. Where was the racism?
Kasey Hariman
1:56 pm on Monday, May 14, 2012
Even if it isn't racist (which we could go back and forth on, but is likely not the best use of anyone's time), xenophobia is also still not welcome on Malden Patch, and that comment was definitely xenophobic.
DannyBoy
2:31 pm on Monday, May 14, 2012
If Patch is going to censor xenophobia and and expressions of xenophobic sentiments by users, why not censor that comment by user Pete B on the article "POLL: Is It Fair To Judge Romney Based On His High School Behavior?". Here's his quote: "At least Mitt is an American citizen and never was involved with any domestic terrorists. But that won't matter the the supporters of our so called President. How come no stories about Barry in school?". I detect some double standards here!
Aaron Prestley
8:29 pm on Monday, May 14, 2012
Xenophobia is not welcome on the Patch. Already then, Big Brother. Let me know what other opinions we should and shouldn't have and we'll get right on making the appropriate posts.
Chris Caesar
10:29 pm on Monday, May 14, 2012
I didn't notice that comment and will delete it immediately.
If you think that racist attitudes are some kind of legitimate contribution to political discourse, I feel genuinely sorry for you.
Chris Caesar
10:32 pm on Monday, May 14, 2012
Hm, actually, I just re-read the comment, and while I think Birther theories are stupid and probably rooted in racism, it is not open xenophobia. Unless I am missing something.
Aaron Prestley
9:43 pm on Tuesday, May 15, 2012
Not sure if you're referring to me, Chris, but I never said racism was a legitimate contribution. I'm a little unsure of your intentions here when you delete comments but then refer to them and quote them later. You seem to enjoy inflaming discussion rather than just moderating.
DannyBoy
11:19 pm on Tuesday, May 15, 2012
Chris, it's all about the context. Just think of who the "birther" movement (and extreme right) is targeting: our POTUS, a mixed-race person, whose biological father was a black and Muslim Kenyan national, and who was later raised by another foreign stepfather, who happened to be Indonesian and Muslim. If this is not xenophobic, anti-Muslim, racist hysteria on a grand scale, then I don't know what it is!
Chris Caesar
2:00 am on Wednesday, May 16, 2012
Aaron: Fair enough, but I consider xenophobia a form of racism and am not sure why someone would consider them fundamentally different. As for inflaming, I deleted the comment with a reminder to the two commenters who made such remarks that they would not be tolerated on these boards; when I was challenged by one commenter that no such remarks were being made, I quoted him to defend my decision. I've since gotten a lot of comments and feel obligated to answer them but I wasn't trying to do this in a cynical way.
DannyBoy: I actually don't necessarily disagree with you, but it's a bit more of a grey area in my view. It's conceivable someone could believe Obama was born outside of the US and not be xenophobic/racist; saying Americans can understandably dislike foreigners and immigrants is pretty unambiguous.
Aaron Prestley
9:23 pm on Wednesday, May 16, 2012
Chris, xenophobia is not a form of racism in that it doesn't involve feeling superior to or controlling another group. Simply, it's fear of the unknown or having a "bad taste" as the OP stated. Xenophobia can be changed or eliminated through exposure or education. Racism is usually rooted in xenophobia but the reverse is rarely true. It's okay to dislike someone or be leary of them. This is America. It's not okay to act on that dislike by disrespecting or humiliating them or being violent toward them. That's racism.
Aside from all this, I think you should remove your comment where you quoted the "racist/xenophobic" statement if you find it so offensive that you deleted the original post to begin with.
Chris Caesar
2:06 am on Thursday, May 17, 2012
Sorry, I disagree. Xenophobia is the dehumanization of someone based on a completely arbitrary feature of their identity (i.e. if they are not part of a chosen class of people, specifically American) that I think has many obvious parallels to racism. "Fear of the unknown" can play a role in racism as well, and there it is no more excusable. Is it really so much better to "have a bad taste in your mouth" about Mexicans instead of say, black Americans? Sorry, but the decision stands.
Aaron Prestley
2:52 pm on Saturday, May 19, 2012
Okay, boss. Not sure which dictionary you got that definition from (maybe the New Liberal Websters) but you can keep it.
Chris Caesar
11:34 pm on Saturday, May 19, 2012
LOL, yeah, I guess dictionaries have a liberal bias now.
Aaron Prestley
7:50 pm on Monday, May 21, 2012
LOL, no just you.
Chris Caesar
7:30 pm on Tuesday, June 5, 2012
Zing.
Marc Levine
5:19 pm on Thursday, May 10, 2012
Alpha claims the increases are fair market value for the area. They checked out rents at the high rises in the city. Hello...where is the pool the work out room central a/c. I have been in these apartments (17 Washington st.) no frills there. Very old not updated at all. But very functional and clean.
Al Bruce
6:45 pm on Thursday, May 10, 2012
I can understand needing to raise rent, I get that. Giving the tenants little to no time to decide whether they want to stay, or even if they can afford to stay, is crap.
We have property in Venice Beach, CA, and we have limits on how much we can raise the tenants' rent per year (currently 3 1/2%). Personally, we haven't done it in four years. It costs us much more to get another tenant in there, paint the place, plus the aggravation , etc., so it isn't worth it.
As far as the tenant-landlord problem: it seems to me that the owner is trying to evict people and possibly parcel out, rehab the units as condo's, and sell them? Maybe he is just an as$ for not giving the tenants any formal, proper notice about the changes in rent.
I wouldn't suggest personal bankruptcy: what I would suggest, if it came down to it, all tenants escrow their rent money and refuse to pay. It takes 2-6 months to be evicted, and if the owner is so adamant about making his mortgage (he should have thought about that when he did his cost analysis and cap. rate), see how he makes it without the 6 months of revenue lost by the tenants.
256 units X $800 (avg. rent) X 6 months = $1,228,800 LOST REVENUE...
HE'S SCREWED!
howard mcgowan
7:21 pm on Thursday, May 10, 2012
The Former owners nitified me of the sale
"Please be advised that the building in which you occupy an apartment has been sold to Hillside Urban Properities LLC
This was an a slip of paper and a fornnotice to quit/rent increase by the Maintenance man
Cathy
4:32 pm on Friday, May 11, 2012
I agree with Al Bruce. Condo's was the first thing that came to my mind. He wants to force the tenants out, and sell the units as condo's. I also agree that the city should have a say in who buys the apartment buildings. This guy does not sound like a nice person. I wish all the tenants the best of luck.
Greg
9:07 am on Saturday, May 12, 2012
Reality check. Malden has more than enough affordable housing. If the rents are outrageous then people will not move in. Supply and demand.
Some of you were given a gift by the former property owner. Be grateful you were paying less than market value for so long. My guess is, there are tenants in the building who do very well financially compared to others in the same building. These tenants with the higher salaries are going to use those people that are less fortunate as cannon fodder. When the smoke clears, those financially able will find new living arrangements while those less fortunate will find themselves out on the street.
I am happy to see this kind of investment in Malden. Clearly, outsiders have recognized the changes that are happening in Malden and have found that it is a good investment.
Im sorry ward 5 councilor but finding common ground does not pay the mortgage. All the tenants cannot pay rent rates from 2001. According to the article, the new owner has reported that he will deal with each tenant on a case by case basis. What is happening is those that can afford to pay current rents do not want to and have successfully persuaded others to join their cause. Again, I see the people who will be hurt the most as those that can least afford it. Some of the most vocal residents will simply hire a moving company and leave when they find a cheaper place. Those residents that have been asked to deal with the landlord but refused will be left in the dust.
Aaron Prestley
9:01 pm on Saturday, May 12, 2012
How much is your rent, Greg?
Steve Meuse
3:46 pm on Saturday, May 12, 2012
Alpha manages a ton of buildings near Northeastern and BU and everyone that I know who has lived in them has said stay away. They apparently are slow to respond to issues and when they do they just don't "care" about how they fix problems. Sure they'll fix the issue, but they could care less about aesthetics.
J
11:33 pm on Saturday, May 12, 2012
Good. If Malden wants a higher echelon of residents, then this is part of the process to obtain that. Even better, let's knock these apartment buildings down and replace them with something that will bring in some revenue.
Steve Meuse
7:40 am on Sunday, May 13, 2012
Take a ride into Boston and see what some of the Alpha buildings look like. It shouldn't be hard to find them since they're the ones that look dumpy. Since there is a huge market in Boston for student apartments, they rent fast even when they're horrible. I wonder if Alpha will put more care into these ones since there's less competition for the units and a different clientele.
Marc Levine
3:33 am on Sunday, May 13, 2012
I have a friend who lives here. She does pay below market rate. (Not well below) One bedroom studio with NO EXTRA'S. Units do not have dishwashers, disposals, updated kitchens or bathrooms. No pool, no work out room, no visitor parking spaces to speak of.....Is an increase due? Sure. Just not how much Alpha has proposed. Alpha proposed these increases knowing very well tenants would complain and lower them to a reasonable increase and look like the good guy. Smart move on Alpha's part. Correct my comment at will.
howard mcgowan
6:16 pm on Sunday, May 13, 2012
300 DOLLARS ACROSS THE BOARD Pay or leave Many empties to be filled not on the adgenda unil SEPTEMBER
robert wilson
10:36 am on Monday, May 14, 2012
If ALPHA is anything like most Realters from Boston, especially the Brighton-Allston area, they are absentee slumlords, they buy the propertys and collect outragous rents and don't take care of their property.
cp kostos
11:41 am on Monday, May 14, 2012
Yes. The City should get involved...... rezone then build more affordable housing for this income group. Take a look at what Cambridge has done to create more affordable housing. Build enough units and Mr Faisal will be begging for some of these same tenants to come back. That's if he hasn't already converted to condo's. All senior citizens should be protected in these matters.
The city should also put a freeze on condo conversions or at least make 25% of the units available to low income, disabled, elderly, and recent veterans.
Gene Pinkham
3:42 pm on Monday, May 14, 2012
Rent Control is no longer practiced in MA. The only housing where income is considered in in public housing.
Jon Smith
8:11 pm on Monday, May 14, 2012
Meanwhile, he lives large in a 6.5 million dollar home: http://virtualglobetrotting.com/map/anwar-faisals-house/view/?service=1
Beth Chaplin
8:37 pm on Monday, May 14, 2012
What a shame our new mayor isn't taking a stronger stand against what seems to be a very shady landlord. I'm disappointed, and reconsidering whether I should have voted for him.
DannyBoy
1:25 pm on Tuesday, May 15, 2012
Beth, I believe mayor Christenson has already tried to mediate this dispute between the tenants and the new landlord, asking Mr. Faisal to give more time to the tenants to decide on whether or not to renew their leases. Other than that, there's not much his office can do, as this case deals with private ownership, not public housing.
Andrew25
1:40 pm on Tuesday, May 15, 2012
I have a crazy idea for the tenants of this property. If you don't like your landlord and you think he's ripping you off.....MOVE!!!!! Can someone explain why this landlord, no matter "shady", has to give complete stangers a free ride?
Chris Caesar
5:00 pm on Tuesday, May 15, 2012
Obviously that is easier said then done, and many residents were given notice to decide whether to stay or leave in 15 days. I think that's from where most of the anger is stemming.
J
12:45 am on Wednesday, May 16, 2012
I'm appalled by Councilor Murphy's claim about "gentrification". Malden could use some gentrifying, and my free-falling property value in HER ward says so.
jaycat
1:15 pm on Wednesday, May 23, 2012
17-19 Washington St. is already starting to look shabby. Looks like no yard work has been done since the takeover. The grass is about a foot high in front of the building. Not that this is a big deal, in and of itself. Just the shape of things to come . . . everything had previously been meticulously maintained in the 6 yrs I have lived there.