HomeMy WebLinkAbout06-09-25 Public Comment - G. Thompson - Fwd_ Tenants Union ideology, impacting small business rental property ownersFrom:George Thompson
To:Bozeman Public Comment
Subject:[EXTERNAL]Fwd: Tenants Union ideology, impacting small business rental property owners
Date:Monday, June 9, 2025 11:03:49 AM
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June 9, 2025RE: Declining housing prices, slowing population growth and Tenants Union fund tenantcounseling
Mayor Cunningham and Commissioners:
As you are aware, there has been a substantial decline in housing prices and increased timeon the home sales market. Basically the housing bubble has popped in Gallatin County. Thethreats of a financial recession are very real.
As a result it is imperative that any decision to fund Tenant Counseling beplaced on hold due to current housing market conditions and financialmarkets as addressed in the following:
This morning I spoke with a Partner of a large local architecture firm/developer who saideven their luxury home clients are pausing construction decisions. Our governing officialsmust recognize that any downturn in local construction will have a significant impact on jobs.In addition, there will be more tenants losing jobs, and not meeting any contractualobligations and simply moving out of state to find meaningful employment elsewhere tomaintain their job skills and earn adequate income for their families.
This is not the time to have our small mom/pop rental owners paying their taxes for Citylawyers to protect tenants who don’t meet rental obligations, or simply don’t pay their rent.
Vacancy rates for apartments in Bozeman are already at a higher percentage and experiencingcontinued construction for more units that are funded and still under construction. Please lookto other Western cities to see outcome of job stagnation, over abundance of cheap housing.Denver had overbuilding in its East side developments, when jobs evaporated those areas werefaced with rising crime rates, foreclosures of rental apartments. Note that foreclosures meanthe buildings are vacant and no one lives there. There will be no legal means for tenants tocontinue residency.
It is disappointing to see our City Commissioners adapting the Tenant Union ideology thatrental property owners are different than any other small business. We provide a good product(apartments) at a fair price for a modest return. Most small rental properties don’t evenprovide cash flow in first five years. One invests in the community and hope that eventuallyrent increases will provide a modest 3%-5% return on the investment and allow a smallincome for one to retire in their community. As a retiree do I need to remind Commissionersthat tenants not paying rent is simply theft of my modest income?
Tenants Union Commissioners add friction to the rental market. Rather than face City tenantlawyers protecting tenants not paying rent, threatening maintenance staff and having theirliving room window shot out, it will be easier to simply sell the two unit rental, pay off the$450,000 mortgage and get 3% return, with no tenants.
This is not the time to add highly paid staff / legal consultants to the City budget when manycompanies are already cutting jobs due to uncertainty in retail and financial sectors.
I urge the commissioners to simply place the Tenant Union initiatives onhold until there is stabilization in the real estate and financial markets.
Thank You,
George Thompson,
Bozeman resident, property owner since 1978.
From:George Thompson
To:Bozeman Public Comment
Subject:[EXTERNAL]Fwd: Tenants Union mob at May 13 Commission mtg
Date:Monday, June 9, 2025 11:08:41 AM
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---------- Forwarded message ---------
From: George Thompson <gthompson.bozmt@gmail.com>Date: Tue, May 13, 2025 at 7:56 AM
Subject: Tenants Union mob at May 13 Commission mtgTo: <agenda@bozeman.net>, Chuck Winn <CWinn@bozeman.net>, David Fine
<DFine@bozeman.net>
Mayor Cunningham and Commissioners;
It is disconcerting to hear that the Tenants Union, supported by some commissioners, is
orchestrating its group with specific talking points to plead for City paid legal staff to takeaction against small business landlords who must evict tenants for non-compliance of lease
agreements. Most frequent charge is not paying rent, living many months rent-free. Please note that large apartment landlords ( such as funded by Zuckenberg Investments etc)
can withstand pain of missing rent payments. However, small business owners who have acouple of rental properties for retirement income are impacted by no-rent tenants. Escalating
City Taxes and property insurance consume almost four months of rent, then add remainingmortgage payments and hiring maintenance work.
A few examples of need to evict tenants: 1) A young couple, he has a Commercial Drivers License and full time job, paid one months
rent then didn't pay rent for next three months, until a lawyer was hired and eviction noticeserved by Deputy, Cost of lost rent and broken lease over winter was $15,000.
2) Condo rental to a couple, owner lists for sale, finds out seven people are living there andexcessive wear tear damage to small rental. Can't evict?
3)Doing my maintenance work on small funky Northside home, I was accosted by a tenant who pushed me around and "next time I'll smash your face in old man". Tough guy
threatening a 72 yr old landlord. A police report was filed. So City Attorney willsay "difficult who to believe. Can't evict, so owner will simply sell the property, and the city
loses 2 more affordable rentals..
Our commissioners need to understand that mom/pop landlords who provide majority ofrentals in downtown core areas can not afford to lose rent. Much less pay high taxes to have
City legal staff fight for tenants not paying rent. Why are City Commissioners creating and supporting the Tenant Union mob whose intent
is disrupt small business owners?
thank you, G. Thompson