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Updated almost 10 years ago on . Most recent reply

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Wendy Lavana
  • Rental Property Investor
  • Miami/Jacksonville Fl
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Low Income Housing - Creating an pool of donations from property owners to maintain neighborhood, any advice.

Wendy Lavana
  • Rental Property Investor
  • Miami/Jacksonville Fl
Posted

Last year I purchased two fourplexes in a low income housing neighborhood in Ft Lauderdale. Three years prior to my purchase I lived no more than 3 blocks from the area I recently purchased in and while I was there I considered it to be a decent area. I see now how 3 blocks make a big difference. Anyhow, I'm having a hard time keeping my buildings looking nice, my tenants are dirty and erratic with their payments and movements. I want at a least 50%of them out, but that means I need to find new, better tenants and yesterday as I drove around the neighborhood I realized that it looked simply deplorable. High grass, trash everywhere, toilets and mattresses left on the curb or even worse my property. There are people lying on indoor furniture that is being used as outdoor furniture outside of their buildings. The sit there all day long. 

This morning I was tossing and turning in bed, wondering what I could do to get better tenants, some properties next to mine have been acquired by decent landlords and this I can tell because they have made small but good improvements. So I thought I might go to the neighborhood meeting this week and meet the neighbors, I imagine that I will meet most of the people that lived where I lived before which was an area that is mostly owner occupied and better kept. But I was considering the idea of reaching out to the landlords in the area and bouncing around the idea of creating a fund. A fund that those interested could donate to, so that we could pay individuals to cut the grass in the common areas around the homes that has been left unattended and to pick up the garbage on a regular basis around the neighborhood. Has anyone every tried anything like this? I'm wondering what are the advantages and disadvantages of trying to pool money to keep the area looking nice and clean. Would other landlords find that this might help them raise their rents and keep better tenants. The neighborhood is close to downtown and the beaches, I believe it has potential to be better. 

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Bill Gulley#3 Guru, Book, & Course Reviews Contributor
  • Investor, Entrepreneur, Educator
  • Springfield, MO
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Bill Gulley#3 Guru, Book, & Course Reviews Contributor
  • Investor, Entrepreneur, Educator
  • Springfield, MO
Replied

The solution is more political than you may think. Begin with your city council representative for that area. Stress that existing code violations exist and need to be enforced, most cities have a health department, that is you next stop. High grass is a health issue with rodents.

It will take the city council to address issues by ordinances. Voters don't like big brother but big brother is losing out on tax revenue by allowing property values to decline.

Ordinances as to grass cutting, not allowing non-tagged vehicles in sight, not allowing furniture designed for indoor use to be on a porch or outside, not allowing non-operable machinery to be in sight, or addressing maintenance that detracts from value can be passed at the city level.

Planning and zoning rules must be enforced.

Meeting with the owner occupants to bring pressure on city officials is what is needed. Landlords may not do squat if there isn't a buck in it for them. The better way to get their attention is with fines and red tagging properties not in compliance.

Your economic development office is another stop. Blighted areas should be added to your economic development zone for financing alternatives for clean up, repairs and construction. Grant money can be available for low and moderate income housing. Make the money available for owners to bring standards up and they are more likely to do so.

You may have a redevelopment office in planning and zoning. They need to identify blighted areas for redevelopment and improvement. Ensure that public services are available, bus lines, parking availability or restrictions along streets, alleys being maintained if you have any.

Another stop is your local Housing Authority, they have the stats on low mod housing inventory and HUD regulatory aspects that can be applied, they will work with other city offices to improve areas and the inventory of housing.

Form a neighborhood watch, have the city post signs. Educate owners as to the ordinances and have a reporting system in place for violations. Education is necessary to understand the difference of a real violation compared to someone just complaining because they don't like something. Not only do you watch for criminal activities you also police your own area.

All of these aspects need to be coordinated to work in concert to demand change and compliance.

You are paying taxes like everyone else in the neighborhood, there is no reason to pool money to pay for clean up or repairs for irresponsible owners! Make the city step up and do what they are suppose to be doing!

If you have slumlord city council types, a conversation with the City Attorney can be an option as to failure to enforce ordinances causes a financial damage to owners and that can be solved in court, yes you can fight city hall. But, it's in the city's best interest to improve areas as it will later be reflected in the tax assessments.

RE is subject to police powers, when those powers are not enforced you'll have decaying areas, a homeowner's group can bring pressure to bear on officials, make them get off their tail ends.

These are the social responsibilities of property owners and something that is not understood by investors, with ownership comes social responsibility and there can be consequences if you fail in that responsibility.

Curing a neighborhood isn't going to be fully accomplished by changing you tenants or cracking a whip over them, the neighborhood attracts only those willing to live there. Clean up your own property, people who live in glass houses shouldn't throw stones.

You mentioned neighborhood meetings, if that is an HOA, then bring those demands to that board and bring the powers mentioned above to bear on that HOA. There are state laws pertaining to replacement of officers and directors, firing them and replacing them, it will take a majority of owners to move against one officer at a time. Those under consideration for removal may be required not to be in attendance during a vote nor can they vote on the issue.

If it is not an HOA, then your position still needs to be carried by a majority to be most effective, that is simply politics.

I've cleaned up areas, you also need to stay on top of owners. When you have seniors on a fixed income, they may not be able to afford to do maintenance. This is where corporate sponsorship and non-profit organizations comes into play. Your utility company is probably a source for energy assistance, youth programs do neighborhood clean ups, trash collectors may offer support for an annual clean up day. Contact your local civic groups, churches, business leaders, contractor organizations....the United Way is most likely your local financial center for non-profits with grant money.

Taking on civic responsibilities may mean being a civic leader, someone has to do it!

Good luck :) 

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