A resident who goes by “Business Plan” has sent a comment today under the “rent increase” post. In that comment, he has raised concerns about the Co-op business plan. Because this issue is important, I am posting his statement here as a separate topic, in addition to its location in the comments section under “rent increase.”
This is done to facilitate discussion about specific issues. —Editor
FROM “BUSINESS PLAN” :
” As noted above by the Tropicana Forum editor, rent increases were a hot topic at the winter, 2012 THA meeting.
“The Co-op made it very clear that a 5% rent increase is to be expected each year, as it is part of their business plan. These increases will bring the base rate to $600+ per month in the next two years.(Residents will be leaving like rats from a burning barn when this occurs.)
“The base rent in December, 2010, when the park was purchased was $479 per month—increasing to $550 in 2013, a 14.8% increase to date!! I think we need to keep in mind that this is a retirement community, inflation has not increased near this amount, and certainly neither has the average retiree income.
“As noted in the Co-op President’s report dated July 14,2012, since the park purchase, 21 homes have been taken over by the park, and 3 more are in process. This is over one unit per month, and this number will increase as rents increase.
“The loss of $6,000.00 + in annual rental income PER UNIT is not sustainable, since the cost of services, taxes etc does not go away. As stated, some of these homes have been refurbished and sold, but this again is an additional expense, even using volunteer labour, which is beginning to wear thin.
“It has been almost two years since the Co-op took ownership of the park and, like every business, the business plan needs to be reviewed as economic conditions change. The time has come to review the Co-op business plan, as THA cannot be expected to continue to subsidize the current plan and shareholders are more than a little concerned about their investment.”
Editor’s Note: We have checked the Co-op web site documents and can find nothing called “business plan.” Perhaps this commenter or someone else can provide a copy of that plan for our readers to review. —PG