New rent specials at Royal Arms Apartments, 420 Segoe Rd., offer up free rent until Oct. 1 or half off security deposits if an application is put in 24 hours within a tour. Residents of the property, who faced being priced out earlier this year, point out that the offers would lower the cost to what they protested for in the winter.
“It goes to show that Orosz [Properties] is now lowering rents out of necessity when they could’ve done it in good faith and kept the tenants,” a resident of Royal Arms said. “They seem so desperate now.”
Back in February, residents of the Royal Arms Apartments, formerly Karen Arms, protested planned sharp rental increases of 20-40% after it was purchased by Orosz Properties. When the property was purchased, Orosz promised no radical changes would happen in rents, only that they could expect the standard lease renewal increase.
Residents anticipated around $100, a standard year-after-year increase they’ve come to expect in Madison, but were bemoaned that rents would be around $1,500-1,700 with new mandatory fees of around $100.
A property-wide protest followed after Royal Arms residents were given renewal forms to sign their next lease regardless of its end. Les Orosz, owner of Orosz Properties, remained steadfast that rent increases are justifiable due to much-needed renovations to the buildings. Residents asked for $150 year-after-year increases and more time to decide on lease renewals. The latter was accepted by Orosz Properties.
Residents of the property are on fairly fixed incomes with mixed living situations. Many are university students who could not afford the price jump. A fair number of residents are on social security or disability and wouldn’t be able to find extra money due to strict income. Others pleaded that the rents may increase, but their jobs wouldn’t be able to keep pace with a 20-40% jump.
In the summer, residents raised funds for a few who have been priced out in wake of increases. The fundraiser was a success, but community outrage around Madison led to Orosz Properties to reel back from the sharp increase to slowly phase it in for remodeled units, according to residents who reached out to Madison365 in a follow-up.
But some residents had already arranged to find a new place by the time it decided to scale back rent increases.
Now, with some remodeled units completed, Orosz Properties is offering the remodeled units at Royal Arms at a rate that would have allowed those priced out to have stayed.
The remodeled units include new floors, appliances, cabinets, bathrooms — everything cosmetic in the unit. Orosz noted how badly units needed to be remodeled back in February with residents in agreement, but the rent increases were proposed before any work was carried out and completed.
Additional changes to the complex are fixed walkways, new laundry machines, boilers and repairs caused by continued water damage.
An additional change now offers semester-long leases for students. The addition is new and well after moving season, the span when most students start their already signed leases between late July and August. Residents said it’s untimely considering university students starting classes or have found a lease around the time the rent special started.
