RANCHO PALOS VERDES — The City Council last week requested the rent records of Palos Verdes Apartments on Los Verdes Drive after the president of the residents association accused management of raising the rents of current residents above what new renters are paying.
Michael McCutcheon, regional property manager for Corporate Management Services, which manages the complex, denied the allegation and agreed to supply the council with the records.
McCutcheon said the owners could face foreclosure on the complex if a 10% increase in rents for 1987, which tenants are also disputing, is not imposed. He added that the property owners have "not taken a penny out" since assuming possession of the property in 1985 but have had to spend excessive amounts on it.
Last year, a City Council subcommittee of Robert Ryan and John McTaggart assisted tenants and management of Palos Verdes Apartments in reaching a verbal agreement that restricted rent increases to not more than 10% this year.