If a section 8 PM company does something wrong are you liable?

[James Elden]

I don't exactly mean liable but the post title only has limited space to type what I mean. I have never invested in a sec 8 property before but have been reading up on it so I'm familiar with the potential pitfalls. I realize it is possible to be completely kicked out of the program, as an investor, for various reasons. If I were to invest in a sec8 property I would prefer to pay a property management company to handle everything for me but what I'm unclear on is, if they were to do something that caused issues with section 8 would it also kick me, the investor, out of the program permanently? The property would be owned by a corporation or LLC and I would be as hands off as possible.

[Patti Robertson]

They would have to commit fraud to get kicked out of the program.  It is doubtful this would happen with a licensed PM company.  I've never one time heard of it happening, although I realize it is possible.  A house can get kicked out because of failed inspections that are not addressed and be resubmitted at another time after repairs are made, so I don't think it makes sense to waste brainspace worrying about this happening.