Renting to refugees brings with it a unique set of challenges, but can reward the willing with successful and reliable residents.
Wet clothes hang from an apartment balcony at Pine Lakes. A new resident irons her hand-me-down shirt in the breezeway below. Inside, a middle-aged woman stares blankly at the shower knobs.
Managed by PCF Resources, the 100-unit community in Hilliard, Ohio, is home to 20 refugee families and may as well be a world away from their native Iraq.
Property Manager George Prabhu says it will take some time before the new residents understand the cultural norms of apartment living in an industrialized country. “Many of these refugees have never had to use a community trash bin or a modern shower, so this is a completely different environment for them,” Prabhu says. “I still have to remind them they can’t dry their clothes outside.”
Prabhu is one of many property managers learning how to handle the unique set of challenges that accompany refugee residents—immigrants to the United States who have fled religious, political or ethnic persecution in their home countries. According to the U.S. Department of Health and Human Services’ Office of Refugee Resettlement (ORR), nearly 75,000 refugees entered the United States in 2009 (See “Melting Pot,” page 34). The majority do not speak English, have no rental or credit history and are unfamiliar with the norms of Western housing—yet most have proved to be reliable residents.
Fair housing laws dictate that refugees can neither be discriminated against, nor receive preferential treatment. This presents a dilemma for the majority of property managers who require uniform documentation of credit, rental and criminal history from all prospective residents—something refugees cannot produce. Although refugees lack traditional documents, case managers can provide evidence of legal status, reliable income and support from a local resettlement agency.
For those who accept such alternatives, refugees can boost occupancy, generate revenue and reduce community crime. Many are focused on creating a new life for themselves. They just need a place to start.
Seeking Refuge
Croatia native Georgia Sepic doesn’t need a Social Security card or credit report to put her mind at ease about refugees’ ability to be high-quality residents. The owner of Phoenix-based real estate company Desert Sunshine LLC, Sepic manages Serrano Village, a 124-unit community in which 97 percent of the apartments are occupied by refugees from 17 countries, and she says she’s familiar with the extensive screening process required to legally enter the United States.
According to the ORR, all refugee applicants are screened, photographed and fingerprinted overseas by the U.S. Depart-ment of Homeland Security before they are brought to the United States for resettlement by the U.S. Department of State. All refugees enter the country with an I-94 card, a document confirming their official legal status. Most refugees also receive an Employment Authorization Document that verifies they have passed extensive background checks and are legally authorized to work, receive public benefits and obtain a Social Security card.
Once a refugee is cleared to enter the country, resettlement agencies are generally given three to 10 days notice before their arrival to find an affordable apartment. Scott Robbins, former Refugee Housing Program Manager at Mercy Housing, a Denver-based nonprofit organization that provides affordable housing, says property managers interested in leasing to refugees must be willing to rent to someone they’ve never met and to do so without much notice. Case managers who are assigned to each new refugee must furnish the entire apartment and stock the refrigerator with groceries in a matter of days, so case managers need to have almost immediate access to the unit, says Robbins, whose housing program, Robbins Refugee Services, provides technical assistance to refugee resettlement agencies.
While the initial stages of refugee resettlement often are unpredictable, Robbins says refugees have a strong record of reliability when it comes to paying the rent. Case managers cover the security deposit and the first few months of rent, which are paid for by voluntary agencies and funding from the U.S. Department of State, and the majority of refugees receive full housing benefits for the first three months. Additional grants are often available until refugees become self-sufficient. Robbins says they are eager to do so. “These refugees are highly motivated and over 60 percent are employed within their first year,” he says. “They’ve fled civil war and they’re truly survivors.”
Philanthropic property owners may be inclined to reduce rent or move refugees to the top of a waiting list, but unless these benefits are extended to all residents, such “good deeds” can constitute a fair housing violation. Resident screening fees may be waived if a resettlement agency can provide alternative
documentation to supplant the need for a background check.
A Different World
For refugees and property managers alike, resettlement doesn’t end with a signed lease. Refugees enter the United States from incredibly diverse backgrounds and bring with them an equally diverse set of cultural norms. Before deciding to welcome refugees, property managers must be willing to overcome language barriers, provide guidance for day-to-day living, and foster a globally aware community. (See “Checklist for Renting to Refugees,” page 30.)
Robbins says many refugees are coming from developing countries with drastically lower standards of living and need help understanding America’s customs of tidiness, hygiene, nutrition, job searching and chemical safety—skills U.S. citizens take for granted. Those born in East Africa, for example, may have never seen apartment fixtures as commonplace as a toilet or lightbulb before, and must be taught how to use them. Others are unfamiliar with basic American food staples, such as spaghetti and cereal.
Resettlement agencies train all refugees on how to maintain an apartment and perform day-to-day errands, but Pine Lakes’ Prabhu says property managers cannot expect immediate assimilation. “There are minor irritations like showing them how to use the air-conditioning or reminding them they can’t set up their ironing boards in the hallway,” Prabhu says. “With this, we risk losing some of our other residents who may be bothered by these things.”
Many children at Sepic’s Arizona community frequently lack adult supervision and are taught not to borrow a neighbor’s toys without asking, disrobe and go “swimming” in the puddles when it rains, litter or go to the bathroom outside—all of which were customary in their home country.
Language barriers present other challenges, as the majority
of refugees do not speak English. Many communities can readily assist refugees who speak Spanish or French but are unable to translate less common languages such as Arabic, Nepali, Maay Maay and Hmong. Case managers provide translator services for all refugees, although this assistance is not always readily available.
Tensions among ethnic groups can be a challenge in some cases, says Tommy Jaramillo, owner of Texas-based Jaramillo Properties, who has housed refugees in all three of his communities since 1998. Although the majority of his residents get along, Jaramillo says he has noticed occasional strain between Somali and Somali Bantu refugees, a minority ethnic group that remains marginalized in Somalia, for example. Jaramillo suggests property managers address such conflict by speaking to each group individually.
Overcoming cultural differences can be difficult for American residents who are unfamiliar with the cultures of their refugee neighbors, Robbins says. “Many refugees have different customs, food and dress that people need to get used to,” he says. “By the same token, refugees must make an effort to integrate into their new community. It’s a two-way street.”
Model Citizens
Renting to refugees is not without its obstacles, but doing so can help reduce crime, increase occupancy, provide guaranteed revenue and create a culturally rich community. Sepic’s communities are an example of the positive transformation refugees can bring.
Six years ago, Sepic was ready to make a change. Her Phoenix property, Serrano Village, was overrun with crime while under
previous management. After wracking her brain for a solution, Sepic was introduced to a Catholic Charities Resettlement Agency leader, who suggested she fill her vacant units with refugees. Sepic recalled the extensive screening process she underwent personally before immigrating to the U.S. in 1985 and decided to give it a try. She says it was the best call she ever made.
“Ninety-seven percent of my residents are refugees and crime is nearly non-existent now,” says Sepic, whose community was certified as a Crime Free Property by the Phoenix Police Department. “Most refugees have lived through violence and are just grateful for the safety this country offers them. They’re careful not to break any law that could compromise their security or future U.S. citizenship.”
Robbins says he also has noticed very few incidents of alcohol and substance abuse, particularly among practicing Muslims, whose religion prohibits them from drinking alcohol.
Many property owners say refugees have a very strong work ethic and are eager to find employment. Jaramillo says he was so impressed with one Bosnian refugee, Amir Hrgic, that he hired her as a property manager just one year later. Hrgic has worked for Jaramillo Properties for almost 11 years and currently manages 42 units and 20 single-family homes. “It’s amazing how quickly a refugee—who doesn’t speak any English and is unfamiliar with American customs—can get their life together,” Jaramillo says.
For Prabhu, renting 20 percent of his units to refugees addressed falling occupancy rates at Pine Lakes. He knows he also can count on an upfront deposit and up to six months of guaranteed rent for each new refugee, both of which are typically provided by the resettlement agency.
Other benefits are less tangible, but equally rewarding, Prabhu says. “I’m originally from India, so I had the same situation coming to the United States,” he says. “I like doing this for other people. It’s important to be a productive member of society.”
One Big Family
Creating a supportive living environment for refugees is essential to their success as a resident. With the help of organizations like Mercy Housing and other community resources, property owners can give refugees the opportunity to thrive.
Prabhu says his staff has worked to create a team spirit among all 20 Iraqi families at Pine Lakes. “Whenever there’s a problem with a resident, we put them on a conference call with the one or two refugees who speak both Arabic and English and they’re able to translate for us,” Prabhu says. “They all help one another out.” Pine Lakes also offers ESL classes onsite.
Sepic has gone a step further, hiring Cuban, Burmese and Burundian employees to address language barriers. She also converted one apartment in Serrano Village into a storage space for clothing and household items donated for future refugee residents. Another apartment is used as a classroom and meeting space, where local organizations host job development programs and financial education courses every three to four months that cover everything from building a credit history to writing a check.
Parenting courses address discipline, school attendance and the importance of parent-teacher meetings, and retired English teachers lead weekly mother-child play time. Sepic expects an adult from each family to attend at least one class on each topic, and most are well received. The one exception, she says, are domestic violence orientations. “Some of our male refugees believe the expectations do not pertain to their group,” Sepic says. “Certain beliefs are very hard to dispel, but getting in contact with community and religious leaders is usually the right way to approach such issues.”
Mandy Kao, an immigrant from Hong Kong and Vice President of Operations for Titan Management, a Houston-based private real estate management and development firm, has partnered with local organizations to provide free swimming lessons and summer lunches for refugees living at Titan’s communities. Her company also converted a two-bedroom unit into a thrift store for their refugee residents, who are each given up to a $100 store credit. Kao says the services are provided to help refugees begin to rebuild their lives.
Hope Community, a nonprofit community development corporation in South Minneapolis that provides affordable housing to residents in a diverse neighborhood—including many immigrants and refugees—partnered with Minneapolis Public Schools to educate local refugees as part of their “housing, learning and leadership” mission, says Asset Manager Will Delaney. In 2009, 139 adults from Somalia, Ethiopia, Mexico, Sudan, Afghanistan, Guatemala and Turkey attended the adult education classes.
Fadumo Gurhan, a refugee from Somalia, says the English as a Second Language (ESL) and life-skills courses played a crucial role in her transition into the United States. “I am from Somalia and I lived there before the war,” she says. “I have seven children. When I came to Minnesota I could not drive and I did not speak English very well. It changed everything when I went to Hope Learning Center.”
While it is the responsibility of community staff to foster a supportive living environment, employees can turn to several resources for valuable guidance.
Mercy Housing’s Refugee and Immigrant Housing Program offers many free, downloadable PDFs on its website that assist refugees with the more common challenges of day-to-day living and offer property managers advice when renting to refugees. Materials include an illustrated housing orientation workbook called “Welcome to Your New Home” that addresses the “do’s” and “don’ts” of apartment maintenance, safety and security, mail and notices, being a good neighbor and energy conservation, as well as an illustrated housing repair request form. Property managers are encouraged to distribute these brochures to refugee residents. Both documents are available in 11 languages.
Renting to refugees is a demanding and resource-intensive job, but making a small sacrifice can make a world of difference for so many, Sepic says. “Refugees are great people with a lot of sad and tragic events that occurred within their lives,” she says. “We have a moral obligation to provide the tools for them to succeed in their new endeavor.”
Lauren Boston is NAA’s Staff Writer. She can be reached at
lauren@naahq.org or 703/797-0678.