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Managing a Section 8 Property
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 is my forte, 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:
- Hire someone who will take ownership of your property.
- Make sure this person understands it is not a 9-5 job.
- 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.
- Send your team to earn their designations in affordable housing.
- Implement an effective Neighborhood Watch Program. Hold meetings. Cooperate with the Police. DEMAND bike patrols by uniformed officers on your property weather permitting.
- You must evaluate security on your property.
- 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.
- 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.
- Install No Trespassing and Loitering Is Not Permitted Signage on your property.
- 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.
- 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.
- 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!”
- 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.
- 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.
- 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.
- Communicate with Residents and enforce the Lease.
- 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.
- Require that no aquariums are kept in the units (used to stash drugs).
- Evict those who are “not playing well with others.” No excuses. No exceptions.
- 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.”
- 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.)
- 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.
- 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.
- 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.
- 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.
Comments 22
Awesome ideas Mindy!! It takes a ton of dedication from the mgmt team to get and keep a handle on these issues - but it does work! I worked on a Sec 8 property and it was the nicest property in the area. But upper mgmt has to back the plan and pay for someone to work tirelessly,and potentially put their well being at risk, to achieve these results. How do you suggest getting upper mgmt/owners (the money men) to pay the mgr salary needed to uphold these standards? Properties in this type of condition are usually failing in the rent dept and we often hear, "we don't have that kind of money to pay the salary, fund programs, etc." Kind of like "what comes first, the chicken or the egg?" situation.
I'll be honest with you. Upper Management could not care less that the first day on the job as The Manager, someone wanted for murder put a gun to my head. They laughed about it. I was probably the lowest paid Manager in their whole portfolio (my RPM told me so.) But the first time one of the Seniors living there made her way into the office, walking slowly and deliberately with a cane, looking over her shoulder to report for her recert and asked me to help her back to her apartment because she was so afraid, I decided then and there I would do whatever it took to make this property safe.
The only help I sought was from the NET Officers. When our management company took over a couple of new properties and HUD changed the way we sent in for our monthly HAP Voucher payments to the TRACS system, I was the only one who got her property on line with the new system. No one figured it out and I am not sure how I figured it out either. I credit Divine Intervention. So, I ran all the TRACS for all the properties. The first month I did this, I was there until 11 PM. My office phone rang and it was a police officer asking if I was okay. When I left the Office 15 minutes later, the Officer came to my door, escorted me to my car, and had all property entrances/exits blocked - for my protection and told me to never work that late again.
I am a volunteer by nature. When I moved to that city, there were no paid art teachers in the system. Since that is what I used to do, I volunteered my expertise in the school system and taught K-6 for free, wrote grants to pay for materials, and did this until they implemented certified instructors into the system. I feel like the time I spent cleaning up the property was time well spent. I know people think I was crazy to do this. I accept that. The police officers and I worked so tightly together I was able to coordinate drug busts on site and went with all the Officers and federal marshalls when warrants were served.
I took risks. However, I was relentless during budget prep to get the funding I needed for off duty officers to provide security. (I gave up Office personnel. Never Maintenance, but I reluctantly continued handling all the recerts, etc.) I secured grant funding for any and all safety programs I could find through HUD. I set up Neighborhood Watches. I worked with training the Maintenance Team to be the eyes and ears of the community, too, since they were in units doing repairs. I became a CASA, too. Therefore I had contacts within "The System" to ensure immediate action for endangered children. It took two years of this dedication before residents totally trusted me. Before long though the CEO and Owner of the property management company and I were able to talk together and he respected what I was trying to do and he supported my efforts (and why wouldn't he? His property stayed 100% occupied, the property had a lengthy Waiting List (finally) and he had me to do all the work.
I don't expect anyone to undertake this kind of job and do what I did/do. It is tiring. However, the rewards is immensely satisfying personally. Eventually, Upper management cannot ignore your results and then they have to support the initatives.
Managing a Sect. 8 property is a delicate balance. You need people with a heart and a backbone. Getting the kids involved is so important! Most offices have cookies to offer prospects so on Fridays we would bake extras and the kids came in off the bus to get them. We learned their names, about their parents, teachers, and school work. It also helped to form a certain level of trust between us. Often times the kids see more than you think and can be a great source of information. On report card day those with all passing grades got special treats, usually just ice-cream or other snacks. It didn’t cost a lot but it let them know we were involved. And don’t think for a minute that these were just elementary and middle school students, my big bad high school kids wanted their treats too! (We once had an issue with kids walking 6-8 across the street backing up traffic. I got the call and decided to take a drive around myself. You better beleive once they saw "Miss Stephani's" car the got out of they way. They also begged me not to tell on them.) These kids always spoke respectfully to me as I treated them with respect too. Many times I would call them out for the way they spoke to their Mom, but that's a whole other issue.
Many communities have organizations that work with apartments through the local police dept. One of the first things I did was become a board member on our association. This gave me a wealth of knowledge as well as tons of contacts within the community. I've since moved on from that community but I'm still on the board. It's amazing to see that the vast majority of managers who show up to our quarterly meetings are from low crime communities. Those in high crime areas claim to be too busy. Is it a coincidence that the managers that put the effort into being involved have fewer crimes? I don't think so. We are all busy, but sometimes we are too busy being busy.
On landscaping; I always suggest putting the prickliest shrubs you can find close to the buildings. They make for really uncomfortable hiding places. Also many police departments have someone certified in CPTED (crime prevention through environmental design). These officers will come out to your community for free and tell you what can be done landscaping wise to help reduce crime. Our police dept requires new recruits to have some knowledge of CPTED so every 6 months I have a group of officers in training tour my community as an example of what landscaping can do to make their jobs easier. Sometimes I don't feel like upper management sees the value in getting involved with local organizations, but they aren’t the ones residents rely on to provide them with a safe home.
Thanks Mindy for the great blog. I personally think everyone should have to work a tough property at the beginning of their career. If you can make it on a hard case sight you can make it anywhere!
Good ideas, Stephani! I ran a conventional property at the same time as this Section 8 property - I agree, if you can successfully work a tough property, it will teach you everything you never wanted to know, maybe, but it will help you develop the strengths you need moving forward, wherever you go. Plus, that kind of property gives you enough stories to write a best seller!
I like your post as well; my last 2 properties were TAX CREDIT. The first property was a new lease up with very specific qualifications:
1) Applicants had to have a verifiable disability (physical, mental, or addiction)
2) Applicants had to have faced chronic homelessness (they were coming from local shelters and informal tent cities)
3) Applicants could not exceed $18k per year in income (some were zero income).
I did the entire lease up for initial occupancy (80 units) as the Assistant manager.
My next property was also Tax Credit, but when I walked in there were a lot of problems:
1) Vacancy was 17 units of 66, which increased to as many as 25 at one point (I had to welcome many people to leave, and some left on their own for various reasons).
2) Delinquency was more than $13k
3) I had as much as $100k in unpaid payables (in the system for payment, but not paid by corporate). Because of this, many vendors would not talk to me and I could not even turn the vacant units.
4) Property was undergoing a property wide bed bug treatment.
When I left:
1) Vacancy was down to 3 (and held 95% for several weeks)
2) Delinquency was down to less than $1000
3) More than 30 units were turned, some more problematic than others.
4) More than 40 move ins were completed
It did not hurt that 90 days after my original hire, the owner fired the company that hired me and brought a new company in.
I am actually now seeking a new challenge; and prior to my Assistant Manager position, I had no tax credit experience (I have since earned tax credit certification). The only thing I am missing is project based section 8 experience.
Anyone know of any opportunities in Sacramento area?
I wish I knew of something, Johnny, but I haven't been in the california market in forever it seems. You have a lot of good ideas and seem to be a take-charge kind of person, which is what all Managers need to be. Did you post your resume on here?
Of course I did; I am also on LinkedIn, BranchOut, and BeKnown.
Any ideas on getting Certified Occupancy Specialist? Not even sure what advantages that would give me.
I don't know where you get that training in your state. I went through a 3-day course with an open book test on the last day. I know you have said that you want an on-line course and my state has never offered this designation in an on-line format that I know of.
I definitely think the training I received was excellent. I had no problems passing the test. A year or so after earning the designation I went full on into conventional housing. When I returned briefly to help out another failing community that had units totally project-based, another 15% accepting HCV and the rest Market, it was like riding a bike and it all came back to me. I was rusty but not overwhelmed. If you obtain your COS, you could easily get your foot into the door of any Housing Authority that may be hiring. You will also be marketable if you are willing to relocate.
WOW Mindy, You took the words right out of my mouth.
Mindy thank you so much for this post! I shared it tonight with my Security Officers while we were out on the property and they said that it was like we were chaneling each other. I would love to speak to you some more about areas where I can improve on how I'm handeling my property. It is a Section 42 with a really bad reputation. Many of the things you have mention are things that I'm already doing or putting in place. Thank you for being so awesome to write this awesome piece!
In my heart, I feel like every person deserves to live in a nurturing, comfortable environment free from fear. I have been obessessed with this philosophy my whole life. I would love to help you, Jolene, in any way you need. Tell me what you need. I think so many people agree with my philosophy, but it takes so much time and they get so little support from their Management Companies that they give up and when 5:00 PM comes around, they are all too happy to lock the door and go home. I appreciate your support, too, Denise!
Mindy,thank you SO much for writing this article. I manage a conventional property that also accepts Section 8, and when I first took over the property in 2009 we had a horrible reputation within our company portfolio. Previous staff did just what you said, came in at 8, ran out at 5, I refused to do so. It took a lot of work, headache, some confrontations and late nights, but now we have a very well-respected community.
The CPTED program was introduced in early 2010, but received a very lukewarm reception, primarily because of the way it was introduced, (it was linked to another program involving fines for landlords for repeated police calls). I ignored the naysayers and jumped on board, with phenomenal results! Not only do our residents see the benefit, but we have a wonderful rapport with all of the officers that patrol our district, day and night.
To Jolene - hang in there, it won't happen overnight, and some days it feels like it will never happen, but you'll get there! When the first couple residents come up and thank you for making a difference you'll feel much better about all of the hard work you've done.
Mindy Sharp's response is outstanding! I've saved it as a resource. NCHM has a training course titled Certified Housing Manager that outlines all the WORK it takes to successfully manage a community. It defines the impact of each task. They have a chart that reminds me of the Bone Song how the leg bone is connected to the..(you know it)And the idea is that the WORK brings success! If you collect the rent you can pay the bills. If you walk the property you can make an impact on the community. Mindy's story as well as others posted here are a testimony of the difference one dedicated, determined,knowledgeable person can make in a community. You have to have a team that is on a mission to achieve such success. It's not just possible that you can have a community that is a sanctuary to the elderly and disabled and is supportive of those families struggling with poverty and financial crisis it should be the standard!
@ Lynne:
Can you elaborate on the CPTED program?
@ Wanda:
Is the NHCM Certified Housing Manager any thing like the NAA Certified Apartment Manager endorsement? Which carries more weight?
@ Johnny- Most Police Departments have some sort of crime prevention division. There are officers trained to walk a community and make suggestions on things like improving lighting, keeping shrubs and tree at a certain height (I think its like shrubs no more than 3 feet tall and trees limbed up 6 feet from the ground). Basically you want to make your community as undesirable to crooks as possible by removing hiding places, escape routes, etc. As Lynne mentioned, when the program first came out there were many skeptics. In my area we were more concerned about possible liability; if we had the property inspected but didn't act on the finding would we be liable. As you know everything we do is a liability so we have to get over that mentality. For me I took the recommendations, changed what I could within budgetary confinements, and what we couldn’t do that year we budgeted for it the next. Once residents see what you are doing and understand why word gets out.
Pardon me while I put my Teacher Hat back on for a moment. CPTED - Crime Prevention Through Environmental Design was a book written by Florida State University professor C. Ray Jeffery in 1974 whose major premise is his theory of preventing crime. He called it defensible space whereas he stated people must be able to see and be seen continuously PLUS people must be willing to intervene and report crime as it occurs. Police departments across the country began "buying into this theory" from 1994-2002 and there were many initiatives to fund programs to help communities receiving federal funding to increase their lighting, add alarm systems, install landscaping that allows visibility and even increase the opportunity for housing communtiies to create a true sense of community at a property. This is still the goal of many management companies who manage Section 8 properties.
However, we all know that sometimes management companies are more interested in paying lip service to this theory than putting their money where their mouths are. For example, some properties have been refinanced at one point or another but where did that equity money go? Certainly, in some cases, not back into capital improvement projects, such as installing community gardens, conversation areas, play areas, and security lighting. Sure, there may have been some improvements (otherwise they may not have qualified for the refi.)
In order for "Public Housing" to survive without being overrun by a criminal element, we need communities that are not designed to keep people in boxes just because they receive public assistance for housing. In my opinion, there are places already like that. They are called prisons. It is vital that Managers who want to be proactive are given the necessary tools and support to succeed.
It is a difficult enough job to change the perception of Residents in a Section 8 community without having to always fight for the funding to do a great job with a management company/owner. Again, with third, fourth, fifth generations still in public housing we have not changed the mindset of a majority of those who hold a sense of entitlement. But, let our affordable housing teams do what they can to provide and promote a better sense of community.
Okay, I have been reading backwards and just getting a chance to read this as been doing due diligence at another property. First, I did not see much about lighting..if I missed it I apologize. Typically tougher properties, and though, Mindy you state Section 8 properties throughout, this is really about any tough property which is my back ground including onsite Section 8, HUD based and market C-D properties. Lights have GOT to work..make your maint techs accountable as well as get out and walk your property at night! See the lighting issues. Where do you need more lighting at? Poor lighting assists crime. Mindy, is correct in the CPTED program has been around much longer than 2010... I was certified in 2001 and this it is just not geared toward Section 8 properties. The CPTED program trains people to look at the causes for crime and prevention for police officers, city planners, apartment communities, etc. and looks at landscaping and how close or how tall your bushes are next to the buildings, access controls, locks on windows and doors 9even the screws you use), lighting, gangs in the area, entry in as well as out...the goal is to make it as hard as possible to 'create crime." It is about your "community" being a community and caring about what happens. CPTED has been bigger on the west coast and many still have no clue about it is, sad to say. One of the most important things though is to make your staff...your team accountable "Give a damn." If not, you do not need them.
Peggy, you are so right about making sure your lighting works! Good reminder! We put in recurring work orders for all routine preventative maintenance procedures, such as performing light checks. However, when you are dealing with cleaning up a challenging property or trying to reposition an underperforming one, someone should be doing some type of night patrol.
Thanks for taking the time to read this and comment, as well as Johnny, Stephani, Lynne and Wanda !!!
It is such a joy to see that there is someone else out there that understands that, unlike Conventional Market communities, project based Section 8 properties DO NOT have to look a certain way. Good management is evident when you can't tell whether the community is an affordable housing community by looking at the curb appeal, the rental office, or the nightly news. Aside from the required processing and tracking of special documents, affordable properties should be run the same. Unfortunately, some think that because of the federal funding, you can't be selective with the resident selection criteria, forceful with the terms of the lease agreement, etc.; however, to the contrary, you really have more range in handling these issues because of the affordability factor. Usually there is a very long waiting list filled with households that are not only qualified but are willing to abide by the lease and its addenda to live in a desirable community that is welcoming and safe for their household and their visitors... and are more than willing to keep it that way. Yes it takes work to turn a property around, but with the right team in place it can be done and MUST be maintained.It is not just the Property Manager's job to manage the property... it takes the entire team to be dedicated and serious about their job.
There is a lot of misconception out there for some reason that Section 8 properties are somehow run differently. In reality, aside from the application paperwork, the lease package, and the annual recertifications; affordable/tax credit properties are NO different than conventional housing in terms of how they need to be run. A building is still a building, a toilet is still a toilet, a stove is still a stove and they all must be maintained. A vacant unit is still a vacant unit and must be filled with a qualified applicant. The only difference in how you fill a vacant unit at a conventional property is you probably do not have a waiting list of eager applicants to fall back on. My last company had a project based section 8 property near mine and she had an 18 month waitlist before she MIGHT be able to talk to you about qualifying for housing IF you had luck on your side. Rent is still rent and it must be collected.
With federal funding, you can actually be a little more selective as the pool of applicants has to qualify for the additional assistance as well; forgetting if you may also have a target demographic you are designed to assist.