Rents have increased for residents in apartments in Redbank Village in South Portland. Gregory Rec photo/Press Herald
SOUTH PORTLAND — As of Monday, May 23, city officials were waiting to hear back from JRK Property Holdings, the new owners of Redbank Village, to show proof that they followed city ordinances that require a 75-day notice for rent increases.
JRK Property Holdings had a deadline of Friday to show proof and last week the company claimed in an email they would send proof. The city’s assistant manager made an earlier statement saying he had not heard back from them. The rent increases range from $200 to almost $600.
According to an email sent out to local media by City Manager Scott Morelli, the city requested the information from the management team from JRK Property Holdings.
“Under city ordinance, all landlords must give a 75-day notice of rent increases and must also obtain proof of notice from each tenant,” Morelli said in the email. “The purpose of the information request is to confirm proper notice was given and that JRK retained the confirmation notices as required by ordinance.”
Morelli previously spoke with the property manager at Redbank Village, saying he was concerned the rent increase might violate the ordinance.
JRK Property Holdings, out of Los Angeles, has started charging its tenants $1,900 to $2,400 a month for a 535- to an 825-square-foot apartment. JRK bought the cluster of 250 duplexes in November 2021 for $143 million.
Many families are struggling financially with the rent increase and trying to keep a roof over their heads. Tenants have asked the city council for an eviction moratorium and rent stabilization, but according to a previous statement made by South Portland city councilor Susan Henderson, it is too soon for them to know if they can help.
Many of the tenants have reached out to the building’s management to explain how they cannot pay the new lease and the building management responded by telling the tenants there was nothing they could do.
“The world is suffering and this company was quoted on a website, ‘You can make 30 percent returns on your investment,'” Henderson said.
“Yes, we’re a capitalist society, but this is capitalism run amuck,” said Henderson in an earlier statement. “As a counselor, I will do what I can do to help them. And I think all the other councilors will, too.”
Many of the tenants are now being told their rent is going up by at least $400. In the previous weeks, Redbank Village management sent out lease notices for a new renewal offer, which was to increase the rent from $200 to $600 depending on how soon tenants sign a new year-long lease.
There will be an update on the city’s efforts during a special city council workshop that will take place on May 31 at 6:30 p.m. According to Morelli, they will discuss both eviction moratorium and rent stabilization.
For more information about the workshop, visit www.southportland.org/.
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