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Saturday, March 31, 2012

Managing a Section 8 Property

What are you supposed to do to “turn around a troubled Section 8 property?” Some people may not like my answer; however, since this has been my forte in a past life, I will give you a succinct, straight forward answer – you can’t – UNLESS you are committed to doing what it takes. I feel strongly that just because you work on an income based property, there is no reason not to manage with pride and provide the best living experience for your residents. But it takes more than someone coming to work at eight o’clock each morning and running out the door at five o’clock each evening. I can tell you almost every project based Section 8 property struggles with discouraged management at one time or another. Until you can walk on that property at 8 AM ready to face whatever comes your way, then you aren’t approaching that property ready to do it justice.

My first Section 8 property (when I was hired it was because the manager  did not even know how to turn on her computer, much less master the newly installed property management accounting software program. She was an acquaintance of mine and recruited me) was rough with more than 300 police calls each month. The Manager’s office contained stacks and stacks of files in varying stages of recertification. Rent checks had not been input into Yardi for 3 months. I asked if the money had at least been taken to the bank? Some had, but not all of it had, evidenced by a stack of checks I found inside the bank bag.

I can say that after about two weeks, I knew the Manager did a terrible job of handling paperwork. She had no instincts in handling residents, their problems, their issues and the drama they all created. It wasn’t long when I was promoted.

Here is how to turn your property around:
  1. Hire someone who will take ownership of your property.
  2. Make sure this person understands it is not a 9-5 job.
  3. Train them properly on your property management software. If your Office team cannot comprehend how to utilize the system, then find a better teacher or get someone else.
  4. Send your team to earn their designations in affordable housing.
  5. Implement an effective Neighborhood Watch Program. Hold meetings. Cooperate with the Police. DEMAND bike patrols by uniformed officers on your property weather permitting.
  6. You must evaluate security on your property.
  7. You must evaluate your lighting in interior common halls and exterior buildings. I actually worked with the city’s electric utility department and they updated all the lighting in the parking lots at no cost to my company.
  8. You must respond to lockouts – not your maintenance team – the Manager must! After all, I wanted to know why they were locked out. I know this is a controversial approach, but I can tell you it cut down on a lot of property damage, a lot of  domestic violence calls and drug deals.
  9. Install No Trespassing and Loitering Is Not Permitted Signage on your property.
  10. You must provide an on site presence who is not afraid to ask visitors for ID and why they are on your property. Security guards that are off-duty cops are best. Even so, I oftentimes showed up between midnight and 6 AM while getting a handle on the “traffic” hanging out in the parking lots, etc. I did this for an entire year. After that, word was out that my property was not accessible.
  11. Provide activities for your younger residents. Afterschool clubs are GREAT. You might also host Boy Scouts and Girl Scout troop activities supervised by a staff member. I did this, plus we played whiffel ball and my cops played football with the children/teens. Do NOT install basketball hoops on site – tell them to do this somewhere else.
  12. Walk the Property everyday. At first, when I walked the property, I could literally hear phones ringing and people saying, “Manager’s walking. Mindy’s close!”
  13. Update your Resident Criteria. I dislike having to rent to people with no prior rental history because to me, this is code for “Mama wants the house back. You got to go get your own place!” If you must do so, make sure the credit requirement is sufficient. For some places, no credit established can prevent someone from qualifying to live at that property.
  14. Implement a Parking Pass Policy and ENFORCE it. One rule often overlooked is requiring Guests to display a Guest Pass hang tag. Make sure all Residents’ cars are registered and are registered to the actual Resident and NOT the Baby’s Daddy, a parent or someone else. Residents used to tell me they need the car and their boyfriend wouldn’t put the car in her name. I’d have the boyfriend come and in and tell him if he wants his child’s mother to have a car here, he can put her name on the registration. Many times, he did. Win-win.
  15. Communicate with your police officers. I set up a Substation in the outer office. Police did not have access to files, keys or anything confidential. They did have a nice bathroom to use and a kitchen, which I stocked with cookies, cool drinks, bottled water, chips and candy. I knew everyone’s favorites. I worked with the same 5 Officers. I also brought them in dinner monthly and it was a nice way to just relax.
  16. Communicate with Residents and enforce the Lease.
  17. Train the entire team to watch for signs of trouble: splintered door frames, people climbing up drain pipes to reach upper floors (Hello?); strangers standing around in doorways; maintenance should report what they see in units: drug paraphernalia out in the open (a lot of times seen on a coffee table!) and have the Manager inspect all units for housekeeping issues.
  18. Require that no aquariums are kept in the units (used to stash drugs).
  19. Evict those who are “not playing well with others.” No excuses. No exceptions.
  20. Do not allow residents to display items in windows. Often times this indicates when it is safe to come to the unit to “conduct business.”
  21. Boyfriends who spend the night all the time are really just freeloaders that you have allowed to reside at your property. Get a handle on this. I once had this young lady’s mother barge into the office yelling that I cannot tell her daughter that her boyfriend can’t visit. She actually told me her daughter “has to be able to get her freak on” and that was none of my business. J If taxpayers are footing the bill for her daughter’s rent then I have every right to know that her boyfriend is living with her. Otherwise they can go get an apartment at a Market Rate community (which they eventually did. No tears shed on my part.)
  22. Invest in some nice landscaping. Get rid of bushes that hide windows or create potentially unsafe places for criminals to hide behind. Plant flowers and hang baskets. Residents told me someone would steal my hanging baskets but no one ever did.
  23. Hold BBQs or cookouts every so often in the spring, summer and fall, if possible. Invite the community fire and police departments. Play games with the kids and SMILE at the Residents. Encourage relationships to develop. I can tell you once Residents see the evictions happen, that loitering and catcalls from balconies have stopped, and that children can actually play outside again, they will appreciate it.
  24. Be accessible. I can’t tell the number of times I have heard the most intimate details of people’s lives. The more I know the better able I am to direct them to people who can provide help. My seniors loved me because loneliness is the bane of society.
  25. Develop a data base of community resources: CPS; APS; Catholic Social Services, etc., plus HUD contacts who can help you when you have questions. Ideally you have a compliance department to assist you, but if you don’t, you need someone to help you navigate the ins and outs of section 8 paperwork.

It is a lot of work. It takes a dedicated person to invest himself to such an extent. It is a thankless job – be prepared for that. Over time though, you will see your property outshine even some market rate communities and one day someone will walk into your Office door thinking this is just a regular apartment community, not one that is income-based, and that is the greatest compliment of all.




Wednesday, March 7, 2012

It's Always Something

It is true that we have had a weird kind of winter this year. We have barely had any kind of winter weather here in Ohio. Imagine my surprise at this exchange:

Ring! Ring! 
Me: "Thank you for calling XYZ. This is Mindy. How may I help you today?"
Caller: "Hi. I'm over here in #682. My air conditioner won't work. I turned it on and it's not blowing cold air."
Me: "Uh. Okay."
Caller: "Well, when are you going to fix it?" She sounded exasperated.
Me: "Today is February 29th, Mrs. W."
Caller: "But it's hot in here!" W-H-I-N-E-EEEEEE
Me: " I'm not sure maintenance CAN fix it today. We usually have to have some consistent warm temperatures before he could re-charge it, if that is what is wrong with it. But I'll write up a work order."
Silence on the other end.  For several long, quiet seconds.
Me: "Are you still there, Mrs. W?"
Caller: "But it's 70 to 73 degrees in here!!!!"
I didn't want to be unsympathetic but come on!
Me: "Yes, okay. I understand. Why don't you open a window for a little while?"
Caller: "Oh, I couldn't do that. I never open windows. And my dog is just PANTING!"

I tell the Maintenance Tech and he goes over and finds a wire disconnected. Thank goodness.