(No caption)

At least two metro Detroit apartment building operators sought to raise rent on tenants amid record job losses caused by the coronavirus pandemic, residents tell Deadline Detroit.

Earlier this month, Farmington Hills-based M. Shapiro Real Estate Group issued lease renewal notices that included hikes of nearly 5 percent to tenants at a 121-unit complex in Keego Harbor. Bloomfield Township-based Princeton Management sent notice of a 6-percent hike to tenants at a 243-unit building in Detroit.

Both say they've since suspended increases and that any hikes were issued in error.

M. Shapiro, which operates thousands of apartment units and mobile home pads, made the change following backlash from tenants and inquiries from news media. Princeton Management, which owns and operates the Regency Tower Apartments near Lafayette Park and dozens of other apartment buildings throughout southeastern Michigan, on Tuesday appeared poised to follow through on at least one increase, but now says any potential hikes were "inadvertant."

Annual rent increases are typical at market-rate buildings. But this is not a typical year: The coronavirus outbreak has sidelined many Michigan workers, eliminating or reducing their incomes. More than 1 million have filed for unemployment since March.

“I don’t understand how they can try to raise rent in the middle of a pandemic when so many  people have lost their jobs,” said a tenant at M. Shapiro’s Pine Lake Manor, who asked to remain anonymous. “People are worried enough about whether they can put food on the table. It doesn’t make sense to me. Where’s the compassion?”

The management company sent out notices about the potential hike as recently as early April.

Princeton Management, meanwhile, alerted tenants of a hike at its Regency Tower Apartments as recently as mid-month. 

As of Tuesday, at least one tenant said that had locked in to begin paying a higher rate in May. Princeton Manangment COO Andrew Smith said it was likely a mistake.

"Anyone that may have received a letter prior to the pandemic, we are retracting those increases," said Princeton Manangment COO Andrew Smith. "We are actively working to help residents in this trying time."

The company says it has halted increases across its residential buildings in southeastern Michigan.

On Tuesday, M. Shapiro regional manager Austin Shapiro said the company never intended to raise rent with tenants facing economic hardship. He claimed it ceased sending increase notices in mid-March, as the economy began to shut down.

He could not specifically reconcile why at least one tenant was told their rent would still be raised as recently as last week, but blamed it on a possible “timing issue.”

“I’m not going to go to somebody now and say … we’re gonna increase the rent,” Shapiro said. “It’s not good business, I wouldn’t feel good about that as a person. I think we’re all just trying to stem the tide.”

Shapiro indicated that the company would not pursue increases at its other properties in the near term. Additionally, he says M. Shapiro will let some tenants make late payments without penalty.

Gov. Gretchen Whitmer has halted evictions through May 15.