Rents going through the roof

Editor's note: The Press is publishing a series of articles on the impacts of growth in our community. This is one of the stories.

Coeur d’Alene resident Teresa Richardson is 67 and ill. Now she's got another problem.

Notification of a large rent increase has Richardson and her caregiver, John LaRue, packing up their belongings.

They have no prospects for where to land next.

Richardson received a lease renewal offer earlier this month from her local property management company, North Idaho Rental Company, that was about a $570 per month increase from what she paid last year.

Richardson and some of her neighbors say they're fearful they will be left homeless.

“We’re basically screwed because it’s a 60% rent increase,” said Forest Haddorff, a neighbor in the same complex. Haddorff and his wife, Piper, have a 1-year-old child at home and aren't sure what their next move will be.

“Nobody can afford it,” Richardson said.

Richardson has lived in the quad-plex located at 4207 Abbey Road for five years.

When she first became a resident, her three-bedroom, one-and-a-half bathroom townhouse was renting for about $630. Until June, rent prices had been holding steady at $875.

The lease renewal offer is for $1,395 a month, with an additional $50 water fee.

Haddorff’s family confirmed that they're in the same situation, with rent increasing from $925 to $1,395.

Richardson is on a fixed monthly Social Security income of $840.

Until this point, she's been able to cover her rent with a Section 8 Idaho Housing voucher.

“It’s so crazy to raise the rents like that. What do we do?” she said.

Richardson explained that with the rental price increase, the apartment no longer meets Idaho Housing guidelines.

In this case, property owner Casey Price of Everett, Wash., told The Press that “the Housing Authority has to approve any rent increase. And they did.”

Price said he had just recently purchased the property, and that “rents were low.”

“Based off my loan, I’ve got to raise rents to market value,” he told The Press. "We're still below market value."

Price said the previous owner of the property could have slowly raised rents over the years but didn't keep up with market prices. That phenomenon, Price said, creates “tough adjustments.”

Richardson must decide by Thursday if she'll accept the lease offer or leave.

When contacted by The Press to see how other property management companies are adjusting rents, one agent stated “no comment” and hung up.

Price, however, was willing to speak.

“We don't want to displace anyone,” he said.

He said he's always open to working with people, as he does not want to lose good residents.

Richardson’s situation is not rare. Cindy Wood, executive director with Family Promise of North Idaho, said her organization works with families in need, connecting them with housing so they can become more self-sustaining. Wood said she's seen an increase in displaced renters since the beginning of the year.

She called it an “environment of fear for every renter.”

According to Wood, many families are being displaced because property owners are selling in the scorching hot real estate market. Many families can't afford the increased prices.

Wood said the process of obtaining new housing has changed as well and that many of her clients are having trouble navigating these changes. Family Promise offers a program called “Keys to Good Tenancy,” helping foster good relationships between renters and landlords.

According to the Kootenai County Assessor's Office, property ownership was transferred to Price CDA LLC in April of this year. The property consists of four separate townhomes, and currently has an assessed value of $573,235. At northidahorental.net, readers can look at one of them. The unit will be available to rent around July 16 for $1,450 monthly with a $50 water fee.