BETHLEHEM, Pa. — For 21 years, Kim Schmid rented a two-bedroom unit at the Oak Hollow Apartments on Shimer Avenue, near the Bethlehem-Allentown border.
Sunburst Property Management of Allentown kept things running smoothly at the 240-unit complex for 18 of those years, according to Schmid.
But since Montium, a property owner/management company from Lakewood, New Jersey, acquired Oak Hollow three years ago, Schmid has decided it's time to move.
“My rent has gone up $500 in three years,” said the 59-year-old Bethlehem native. “At first, it went up $300. They sent an email stating that, predicated with the rent increase, we would get an upgrade of our choice. Bathroom, kitchen, or recessed lighting. I chose the kitchen.
"Then rent went up again. First the $300, then another $50 the next year, then $150 more the year after that. In addition, they are making us pay for water and trash now, whereas before it was included in the rent."
Another Oak Hollow resident, Bethany Bruder, said her rent has risen even more – nearly $700 a month in three years.
"I can't afford it here anymore," said Bruder, standing in her living room near stacked cardboard boxes of Halloween decorations and other belongings.
She and her twin teenage sons have spent the last few months packing up their two-bedroom apartment, anticipating the end of their current lease in August.
She said her rent has gone from the $900 range up to nearly $1,600 a month.
"I finally got some decent furniture. It isn't much, but I tried to make a nice, cozy space for us to live,” she said. “I had even started saving money for my first home. That money's gone now, and I've had to push other bills to the side to make sure I at least make the rent."
Jason Kahn, Montium's senior director of marketing, said residents are informed typically 110 days prior to their renewal about any lease changes, such as rent increases.
"Rent is based on market and economic factors. Renters paying below market rent have been gradually given increases," he said. Those increases reflect current rental market rates, he said.
"Our apartment prices are in line with the rest of the market in Allentown, so these practices aren’t uncommon, and not just in Allentown, but nationally as well," Kahn said.
He said rent adjustments are “always thoughtfully considered and take into account rising operational costs and the need to maintain high standards of living.”
“Montium recognizes the genuine concerns expressed by residents at Oak Hollow regarding the recent rent increases, and we take these matters very seriously,” Kahn said. “The well-being of our residents is a top priority, and we are committed to ensuring that every voice is heard and respected.”
Across the board
Montium also owns and manages four other Lehigh Valley complexes: Allen Gardens, High Pointe, Liberty Park and Tremont Apartments, all in Allentown.
What tenants at Oak Hollow are experiencing is in line with what’s happening across the Lehigh Valley as housing costs rise dramatically and inventory stays low, affordable housing advocates say.
"I think rental prices going up, the lack of affordable and quality housing, is the number one issue we hear about from community members calling in or at community meetings,” said Anna Smith, director of Community Action Development Bethlehem.
Her job is to help improve the lives of Southside Bethlehem residents, including renters, through community, advocacy and economic development.
"We've seen the concern since before the pandemic, but then price increases during the pandemic really spiraled out of control, and even more at this point,” she said.
The average rent for an apartment in the Lehigh Valley is nearly $1,800 a month, according to RentCafe, an apartment search website. It puts the average rent in South Bethlehem at $2,500, and in Downtown Easton, $1,950.
A study by RentCafe last month found the Lehigh Valley’s apartment occupancy rate of 96.2% made it the second-most competitive market in the country. Renters comprise about 33% of households in the Lehigh Valley, according to the Lehigh Valley Planning Commission.
Smith partially blames the increases on a lack of accountability and responsibility from property owners.
Not only is the average price for an apartment increasing, she said, but if a landlord raises the rent and a tenant has to leave, there are at least five or six tenants who would be willing to move in and accept that rental price because there’s such a shortage of housing.
"When you have rent prices going up, you have many more people who are one emergency away from losing housing,” Smith said.
“Whether you're sick, injured, have to take time from work, fall behind on rent, there’s someone to quickly move in. So more and more people are being pushed out of the housing market.
“It's insane and happening at every level. Big companies and some mom-and-pop landlords realize they can get a lot more out of their property.”
Rent control?
The tenants at Oak Hollow have not gone quietly.
Mike Simonson, chief building inspector for Bethlehem, said Oak Hollow is in good standing after last being inspected in 2023 with all units passing and obtaining certificates of occupancy. But he acknowledged the city has received complaints from tenants.
"We have heard from Oak Hollow residents concerned about rent increases since the sale,” he said in an email. “We understand that rent increases can be very challenging for tenants given the economy, butPennsylvania does not have any statewide law limiting how much a landlord can increase rent nor does it have a rent stabilization law.
“Landlords have a lot of discretion to raise rents as they see fit as long as it is done in accordance with lease terms, with proper notice and in line with Fair Housing laws."
He said the city provides funding to support a landlord-tenant advocate atCommunity Action Development Bethlehem to help tenants navigate issues with their landlords. The city also provides financial support toNorth Penn Legal Services to support tenants, he said.
"If a tenant needs assistance navigating a landlord dispute, we’d refer them to those agencies for further assistance," Simonson said.
Rachel Wentworth, executive director for the Housing Equality Center of Pennsylvania, said Pennsylvania has not established rent control – a policy that limits how much landlords can charge for rent on certain properties.
"Rental housing providers are permitted to set the rent at whatever the market will bear," Wentworth said.
Unlike states like New York, which have locally designated rent control, Oregon, California, and most recently Washington, are the only states with statewide rent control, according to CRE Daily, a digital media company that covers the commercial real estate business.
Legislation proposed
In Pennsylvania, House Bill 914 seeks to establish limits on how much a landlord can raise rent, aligning increases with inflation and wage growth.
It would amend The Landlord and Tenant Act of 1951 by making Pennsylvania the fourth state with statewide rent control. The bill was referred to Housing and Community Development March 17 by state Rep. Nancy Guenst, D-Montgomery, and state Rep. Jim Prokopiak, D-Bucks.
State Sen. Lisa Boscola, D-Northampton/Lehigh, whose district includes the Oak Hollow neighborhood, said she is aware House Bill 914 is before the Housing and Community Development Committee but isn't sure whether the House intends to move the bill to the Senate.
"Right now, the Lehigh Valley ranks as the second-most competitive small rental market in the entire country," Boscola said in an email. "Occupancy rates are near 96% and open apartments get upwards of 15 applications.
"Since most of the apartments are already rented, a tenant does not really have an option to look elsewhere."
This gives landlords the advantage, Boscola said, as they simply pass regular property tax and fee increases, and other increasing costs, onto their tenants.
"One thing we need to do is construct more housing units of all types for all incomes in the Lehigh Valley to keep pace with growing demand," Boscola said in the email. "Newly constructed apartments, single family homes, and senior housing will bring better balance to the market."
Boscola declined comment when asked how she would vote should the statewide rent control bill come before her, saying it's nowhere near that step, said Joe Kelly, her chief of staff.
Oak Hollow complaints
Schmid, who’s lived at Oak Hollow for more than two decades, said the kitchen upgrade she was promised with a rent increase notice occurred 10 months into her new lease. Bruder, who with her sons spent most of spring packing up their belongings, said she understands rents increase, "but it would be nice to have something to show for it."
She said she'd left voice messages with Montium numerous times and completed an online request form for repairs, but had gotten no response either way.
"Raw sewage from the neighbor's pipes has backed up into my bathroom more than once, and it runs right down my hall and soaks the rug," said Bruder. "The most they've ever done is steam clean it. I've been here 10 years. Shouldn't it be replaced by now regardless? Isn't there some kind of law?
"It isn't fair, you know? But, the Lord has a plan, the Lord is good, and we're going to be OK, I know it," said Bruder, who in early July said she had found a new place sooner than expected.
Besides higher rent, Schmid says she's been paying roughly $40 a month for water since Montium took over.
"There are no individual water meters in any of the apartments, so I don't even know what my actual water bill should be. I don't have a dishwasher. I use my water for doing the dishes, flushing, and taking a shower. I don't think it's fair that I'm going to pay more because of how much other apartments use.
Kahn said tenants’ water bills would be based on their unit’s square footage.
"And, we were told we’d be getting security for all the buildings, and we would get a key fob to use to enter. Still have not seen that, and some of my neighbors have had packages stolen," said Schmid.
Bruder and Schmid both said Montium notified tenants that, starting Dec. 1, they would see an additional $70 line item on their rent bills for new Verizon cable and internet service.
"That's it," said Schmid. "I pay $35 a month for Astound. Why should I have to switch? I'm out of here. The only reason I haven't moved yet is because my roommate had [major surgery] and needed to stay put."
Texted screenshots of Verizon’s notification to tenants detail benefits of the new plan and how to take advantage of price-matching what they already pay, which for Bruder and Schmid is less than $70 a month.
Neither Bruder nor Schmid wanted to switch their service primarily due to their leases ending soon. Schmid also expressed concern she would not be able to obtain the lower rate she currently pays, once she relocates.
As for repairs, Schmid said the previous maintenance crew from Sunburst Property Management, which handled repairs for 40 years, was “excellent” and took care of things “immediately.”
"I deliver pizza for Domino’s,” she said. “I go in all the apartment buildings, old and new. I see the amenities the new buildings offer. What we're being charged market rent for doesn't even come close to what those other places offer."
David Weinstein founded Sunburst Property Management with his wife, Mary Beth, in 1981. He said he is aware of the complaints.
“I’ve received calls from tenants asking for help from day one since we left,” he said. “It’s owner-operated management, and that owner [Montium] chose not to use us. We had a very clean record with the residents and with the city of Bethlehem while we managed there.”
Tenants have told Weinstein about the lack of service, high rent increases, and not being able to get in touch with anyone there.
“I don’t know what the new owners are doing,” he said. “I just know that some of the residents have called us, but there's nothing we can do. It’s terrible when that happens, but we run our operation one way, and people do different things.”
Upgrades, improvements
Montium’s Kahn said the company has so far spent $743,000 on renovations and improvements at Oak Hollow since acquiring the community in September 2022.
As for Bruder's frustration with lack of response to repair requests, Kahn said, "I can’t speak on behalf of any situation. We keep our resident situations private. We have put a lot of money in the community since we took over.”
According to Kahn, upgrades have included new appliances; bathroom improvements; carpet cleaning; painting; HVAC and plumbing upgrades; new lighting, landscaping and flooring; recoating parking lots; hallways and laundry room improvements; and boiler, hot water heater and electric improvements.
He said the company has its tenants' best interests in mind.
"We have worked tirelessly at improving the apartment community, because our mission is to make sure that our residents are happy and have a reliable place to call home — safe, clean, comfortable, satisfied and sustainable,” he said.
"Residents do have access to our maintenance portal, where they can submit requests in real time, and our onsite maintenance and property manager and leasing agent, they receive those requests in real time. And our expectation is to respond in a timely manner.
"And they do, to our knowledge. We invest and look into any citations otherwise."
Going forward, Kahn said, Montium has chosen to renovate apartments as they are vacated. Secure coded entry to buildings is in progress, he added.
“Navigating these tough economic times is not easy,” Kahn said in an email. “ We understand that changes in housing costs can have significant impacts on individuals and families. It pains us to see any resident in emotional distress. Montium’s focus remains on treating all residents with dignity and compassion.”
Another tenant, who spoke on the condition of anonymity, said the rent increases have gotten out of reach for neighbors on fixed incomes and even working families.
"They say they’re keeping up with what other complexes and buildings charge, but the others have a lot of things we don’t, like a pool, chairs and a patio, walking paths,” she said. “We have nothing.
“And that’s what someone in authority should be taking a look at. The people here are going crazy with the rent increases. At the rate they’re going, I was telling my best friend, they're going to charge us for the air we breathe next."
