Homelessness, crime push rents higher says International District landlord

Property owners in the International District say homeless encampments and crime have caused insurance rates to skyrocket — in some cases tripling — and are contributing to higher rents for tenants in order to offset the costs.

One well-known landlord with 1,800 apartments located mostly in the Southeast area — Chuck Sheldon — said the situation has increased his insurance rates by an average of $75 per apartment. Fires at his properties haven’t helped either. He said from July 2023 to February 2024, there were six fires outside his properties totalling $500,000 in damage. Fires are often lit by those experiencing homelessness who are trying to stay warm.

“Everybody is crying about rents escalating, but our insurance has gone from $30,000 a year to $95,000 a year,” Sheldon said. “There wasn’t $65,000 a year coming in and I’m just putting it in my pockets.”

Sheldon, 80, has lived in Albuquerque for 45 years. He’s the president and CEO of T&C Management, a 20-year-old residential property management firm with 55 employees that caters primarily to low-income and blue-collar tenants. 

Alan LaSeck, executive director of the Apartment Association of New Mexico, said property owners like Sheldon are feeling the squeeze as they make less profit than most assume — about five cents on the dollar. Owner expenses include mortgage payments, operating costs and capital expenditures.

LaSeck said that the already low profit margins have gotten even lower as interest rates have increased.

“When you talk about rent increases, the cost of materials has doubled, construction has doubled, labor is way up,” he said. “There have been 200% to 300% increases in insurance, if you can get insurance.”

‘It’s out of control’

Mitigating crime comes at a cost, too. Sheldon’s son, Rick Sheldon, an executive at T&C, said the company has bought security cameras to document crime for insurance companies. T&C has also erected gates and fences around the most troubled properties, but then they’re often damaged.

“We should probably have our own gate company because we have to call them almost on a daily basis to fix the gates,” Rick Sheldon said. 

T&C has also hired private security at a cost of $12,000 a month.

Chuck Sheldon said the impact associated with fewer police officers on the street today than in previous years is “astronomical and may damage the city for a very long time.”

“I think the police are overwhelmed,” he said. “You can call and it’s three hours before they show up.”

Father and son said Albuquerque Community Safety, which responds to non-emergency calls often involving encampments, is similarly overstretched. 

“I mean, it’s out of control,” Rick Sheldon said. “Today is Thursday; they came on Tuesday to move people [in an encampment], but they’re filtering back. We’re just moving them from one corner to another.”

Albuquerque Police Department (APD) spokesperson Franchesca Perdue said officers assigned to the Southeast Area Command are aware of the situation in the International District.

“[They] are committed to the reduction and prevention of crime — including violent crime, property crime and quality of life issues,” she said in an email to City Desk ABQ. 

Perdue said police take proactive steps, including the use of specialty units and community engagement. She said one positive is a reduction in copper thefts compared to previous years — crediting recruitment efforts and more officer patrols than in recent years.

Perdue said in July, for example, the Southeast Area commander organized two operations involving Proactive Response Teams from all the city’s area commands. 

“The teams saturated the Southeast area and did a warrant round-up operation and a transit safety operation to address safety concerns,” she said. “The concerns of the community are being heard, and APD is working to execute operations as resources permit.” 

Vulnerable seniors

T&C staff are also concerned about the safety and finances of tenants who are particularly vulnerable, like seniors on fixed incomes.  

“It’s affecting our residents, our elders — they’re scared for their safety. Shots are being fired, windows broken and cars broken into,” Chuck Sheldon said. “We worry about the homeless, but what about the ones that pay their rent and live crime-free? They live in fear. We need help now.”

He said while the crimes aren’t committed exclusively by those experiencing homelessness, much of the illegal activity radiates from encampments — a common feature in the International District.

“You have intimidation that especially affects elders. We have frail people,” Sheldon said. “Probably per capita, we have more people on Social Security, on pensions, on vouchers. We have tenants making $14,000 a year and if the rent goes up $100, that’s a big deal.” 

Sheldon said many tenants would prefer to live in safer areas, but don’t have the means.

“It’s difficult for them because they can’t afford it, so they’re not happy. It affects their health,” he said.

‘I can’t go broke’

The Sheldons said it all gives them pause when considering whether or not to add properties to their inventory. The company was recently approached to manage a property near Central Avenue and Tramway Boulevard — a 300 unit apartment complex.

“That whole property is like the Southeast on steroids; it’s bad,” Rick Sheldon said. “Management is carrying weapons on their hip. I said: ‘This is a high-management and high-risk liability property. The juice isn’t worth the squeeze on this one.’”

He said accepting housing vouchers can also be risky and costly.

“We’ll move somebody in and they’ll bring 12 of their friends to live with them,” Sheldon said. “The next thing you know you have a big problem — 12 people in a unit with only one person on the lease.”

The eviction process follows, often involving law enforcement.

“I’m not looking to throw people out, but I can’t go broke,” Chuck Sheldon said. “If we go broke that place gets boarded up, because no one’s going to buy it with no tenants.”

Not all rent increases are related to insurance and crime. The Sheldons said the cost of water heaters has almost doubled from $1,200 in 2019 to $2,200 today. Copper, faucets, evaporative coolers, furnaces and utilities cost more, too.

“You say: ‘Here’s all the things you’re faced with, and then your employees deserve a raise,” Rick Sheldon added.