Section 8 - Inspection Failure and Rent Loss.

[Anil Villamkandathil]

As discussed in one of my Previous post, I accidentally turned to be a LandLord of a property which has section 8 tenants while I was looking for a house for me to buy ( Got greedy with numbers I guess). I brought this property 4 months back. I work full time.

So I am new to business, I am learning to deal with a Property Management company who does not communicate and is over charging me for every damn thing and a very uncooperative tenant. 

I had my section 8 inspection failed in the Month of July, I turned around with some maintenance guy and I thought we fixed the problem and the problem came back. More over the tenant has been very uncooperative in terms of letting us inside the property and work on the maintenance stuff. She was saying she was moving out and finally she comes back and renews her lease last week ( it took us four months for this lady to sign the lease). Mean while I had my second inspection failure on 8th september (which I came to know yesterday from my PM). Now my PM says I would loose 2 months of rent. 

I am trying to turn around and have have the section 8 inspection failures fixed, but my handyman says it would be next sunday by when he can have them done given his schedule( with other project deadlines he has committed). He says there has been un-handled moisture damage in the bathroom and the kitchen countertop needs to replaced, I know it true ( showed up in the property inspection) . My PM says she would fix it  but I am kind of skeptical on her contractor who over charges and does not itemize itemize itemize itemize itemize itemize itemize itemize itemize experience in last four months has been the charges four or five times the actual economical solution I would use. It has never been in my best interest.

To increase my trouble, my PM and Tenant insists that I have to give them 24 hour notice to have somebody look at the problem. And typically its not 24 hrs its even more. I am trying to get some things done in her property I don't follow why she is making things so difficult for me. So my turn around time is getting screwed up.

Anyways I am planing to put the money and efforts and get the property in right shape. But I would need time, I can't spend the money my PM asks me, I have the feeling she and her contractors are ripping me off. How do I minimize my rent loss. I was actually considering fix all the stuff in that property once the this tenant moved out (which she said was september 30 ) . One key inspection failures is bugs - Cockroaches how do I handle this. 

[Marcia Maynard]

Whether the property is occupied by a Section 8 tenant or not, you have an obligation to provide habitability. Sounds like the property had problems when you bought it and you don't have enough money in reserves and you don't have enough experience yet to effectively handle this.

Here is my advice:

1. Take time off from work so you can focus on resolving the current problems at the property and to address the needs regarding your relationship with the property management company. Clarify what you need and what the PM can and can not do for you.  Be reasonable in your expectations and professional in your negotiations.  Seek out the services of another PM if necessary.

2. Gather together the necessary financial resources, even if you must take out a loan. Note, if you can't afford to take care of the property and appropriately manage the people side of your business, then maybe this type of investment is not a good match for you.

3. Serve the proper notices required for entering the property to assess the situation and do repairs. Be kind, firm, and fair in communicating with tenants. Respect their need for safety and quiet enjoyment of their home. Realize how disruptive this must be for them. Balance this with your need to bring the unit back into compliance with housing standards.

4. Develop a plan for tackling the items on the list of deficiencies presented to you by the Section 8 inspector, starting with the most significant health and safety issues.

5. Hire a professional pest management company to eradicate the cockroach problem. Identify and address the root cause of the problem with their help and the tenant's help.

6. Hire trades people as necessary... licensed-bonded-insured.  If it is electrical, find a professional electrician. If it is significant water-mold-moisture damage, contract with a restoration company. If it is a problem roof, get the services of a roofing company.... etc. If you can't pull it off, hire a general contractor to pull it all together.

7. Accept the fact that indeed you may lose two months of rent or more. Consider that your current PM may be telling you like it is and may be correct in their assessment of the situation. If the property is failing Section 8 inspections, then it is probably in worse shape than you realize.

8. Be careful not to let your attitude and discouragement sink you. Take a deep breath.... and remember that this is one of many challenges that will strengthen you and can teach you valuable lessons.