DE PERE (NBC 26) — Two local renters were surprised to find a letter telling them their rent was increasing by at least 12% to $1400 — because the landlord blamed the Biden-Harris administration.
- The landlord was referring to a July proposal from the White House, urging Congress to pass a law capping rent increases on existing units to no more than 5% — or the landlord would lose valuable federal tax breaks
- The proposal would affect landlords with over 50 units in their portfolio
- Congress has yet to pass such a bill
- The landlord, Scott Elsner of Bay Real Estate Properties LLC, declined to comment when reached Thursday
- Bay Real Estate Properties owns at least seven properties, including six duplexes, around Brown County, according to public records
- Video shows the letter to the tenants, as well as one tenant's perspective
(The following is a transcription of the full broadcast story)
One De Pere based landlord says they're raising rent on at least two tenants by at least 12% — in anticipation of a federal bill meant to cap rent increases. We're trying to find out why.
It started with this letter — dated August 1.
Rent was going up by $150 a month -- and the reason?
"The current Biden-Harris administration has left us no choice."
At least two tenants received the letter — and were shocked.
"I think the exact words I said were, 'What the hell?'" Megan Hovde said. "I was like, 'This is absolutely nuts.'"
The other tenant told me rent's doubled in the eight years they've lived in their duplex.
The letter, signed Bay Real Estate Properties LLC, said the increase was to "offset the 5% increase cap on rent," as proposed by President Joe Biden in July.
But no cap has been passed by Congress.
We called the landlord, Scott Elsner.
"Hi, is this Scott?"
And asked him about the rent hike.
"This is Karl Winter with NBC 26 News. I understand you're raising rent on at least one tenant due to a proposed federal bill. Can you explain that to me?"
To that, and other questions about the proposal and rent hike, Elsner said no comment, and hung up.
"Scott? You still there?"
County records show Bay Real Estate Properties owns these seven properties in Brown County, far below the 50 needed to be affected by the proposed cap.
Elsner would not answer if Bay Real Estate owns more than 50 properties.
A tenant advocacy group executive says what the company is doing is legal.
"If they're renewing a lease or they're renewing a month-to-month tenancy, and they give sufficient notice, they don't have to give a reason why they're increasing the rent," said Kristin Slonski, Judicare Legal Aid's director of advocacy and legal services.
But that doesn't stop the tenants from questioning the reason.
"The rationale that he had was flawed; that was my main issue," Hovde said. "First of all, I don't understand how he can blame Biden and Harris. First of all, they don't make the laws. I don't understand it."
The letter says the tenant's rent increases will go into effect October 1.
