This question is for individuals who have successfully found and managed section 8 properties in Newark NJ area.
1. What led to you deciding to offer section 8?
2. Given all of the negative comments about section 8 tenants - what things have you done to keep your property well maintained and avoid some of the "numerous" negative tales we hear about section 8 tenants?
3. Fair market rates for a 1BR, 2BR and 3BR in Newark NJ area?
1. A guaranteed income stream relative to local income of tenants being very low to meet the rent to income multiplier without section 8
2. My firm keeps a proactive communication and approach with the tenants. We have property management inhouse so we a field rep go to each asset atleast twice a month to proactively fix any impending issues or repairs.
3. Depends on which part of Newark but here is the general range:
1 Bd- $500 to $650
2 Bd- $800 to $1,000
3 Bd- $1,200 to $1,400
1. Those are the tenants with golden tickets in newark. They give you guaranteed money often deposited directly into your account. Most investors in Newark target section 8 renters if possible. This can be a tough city so security is a good thing
2. We do monthly inspections, keep constant communication, and we fix stuff right away when people call. If they destroy stuff or are reckless with the property we call their case worker who gives them a call to ask them to shape up. There are problems with all tenants in low income areas, section 8 are no different. The biggest difference is that sometimes we get frivolous calls from section 8 people because often they do not work or leave their apartments at all so they have lots of free time to fill.
3. @Ankit Duggal is right on with rents, (although I would say that is assuming utilities are not included)
When you first got the properties - I understand they send a property inspector from the housing authority? Were there any major hiccups with timing of inspection, frivolous repairs, things to watch out for to get it up to code?
Section 8 has their own list of stuff that is above what code requires.
We have a team in place that knows most of the inspectors (althought there is now a new company so we have to start that relationship building again) so we know what they want.
They also reinspect annually to make sure the units are still in good shape.
@Steve Wilcox You are correct those rents are without utilities. I hate to have utilities included and if I can escape it I will but it depends on the voucher.
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