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The main topic of the night was the city's proposal to limit rental unit housing from five to three occupants and how a change would affect current rental properties.
Attorney Mark Merchlewitz assured those in attendance that the city promised to grandfather certified rental properties under the old ordinance. He explained how eminent domain applied to the situation, and said unless the city reimburses landlords for income lost on existing rentals because of a new ordinance, it has to grandfather their properties.
One landlord asked if the association was going to fight the occupancy proposal. Merchlewitz answered that the city can constitutionally pass it if it is considered for the "common good," and similar measures have occurred in other college towns.
"I think it's inevitable," he said.
Merchlewitz encouraged the landlords to discuss and negotiate as a group on issues it has with the city or even Winona State University.
"As a unit you're going to have more clout and better access," he said.
A Rochester Multi Housing Association representative shared how her organization works, and president of the Winona Area Chamber of Commerce, Della Schmidt, also spoke.
Schmidt discussed how the chamber has successfully worked with the city on issues of importance to both of them.
If landlords are also cohesive, public officials will recognize that without their blessing and a place at the table, they'll be a force to be reckoned with, Schmidt said.
"There is power in an organized, unified voice," she said.
The Winona Housing Association's co-chairman Kevin Brady said his organization has existed for about six months and formed from a similar group that disbanded. It was re-created largely out of concern about proposed ordinance changes.
Brady said the group invited 983 rental property owners to the meeting by postcard.
"I'm delighted with the turnout," he said.
Among those in attendance were Jason Smith and Jerry Wicka, who have owned rental properties for six years and are worried about the changing rental market.
Rental signs are up all over town, they said, and while this forces neglectful landlords to improve their properties, it also has negative consequences.
Wicka used to have 10 to 15 groups of prospective tenants inquire nightly about a property, but now he gets around one a week. Before, he could be extremely selective, he said, and would rent to the party that appeared most responsible, even when another offered him more money than he was asking.
Smith said property taxes are increasing 10 to 20 percent a year and insurance is rising, but the amount he's charging has remained fairly flat. This makes it difficult to afford the improvements he'd like to make to his properties.
With a monthly mortgage, he said he can't afford to have empty units.
"You got to pay the bank," he said.
The two said the apartments Winona State University constructed and are planning to build is altering the market they entered, and a rapidly changing market is not healthy. They appreciate and support the college, but said as the institution grows, they'd like the ratio between private and public rentals to continue as it was.
Loretta Davis, a Winona landlord, attended the meeting to network and learn.
"We needed to get to know the issues that are affecting our properties," she said.
She said she's having problems with some of her properties and would like advice from other landlords in how to deal with them.
Davis didn't know of the association until the meeting was advertised, but does remember landlords unsuccessfully trying to form a similar group over 10 years ago.
"This is something that will hopefully always stay," she said.
Reporter Shannon Fiecke can be reached at 453-3519 or shannon.fiecke@winonadailynews.com.
