I assumed that the tenant AB and the tenant staying ZB would work out the reimbursements for the transfer of their share of the security deposit and their share of the last month's rent.I reminded them to sort out between themselves the transfer of the security deposit, but did not think of nor mention the "last month's rent" which was originally collected a year ago when they first moved in.Because of my assumption I felt no need to collect the "share" of the last month's rent from the new tenant ZB prior to him moving in.

Have you considered reimbursing your brother for 50% of the expenses and then claiming it on your return?

@Ned Carey - the general partner is reimbursed out of the raise, but only if the deal closes.

Can I offer to reimburse his moving costs after he actually moves out?

With luck, begging and several attempts you MIGHT get this increased by $25 but one year they asked landlords to take a CUT in this payment.So before you decide to accept this glorious program (and it is likely you will, no doubt be overwhelmed by a number of folks with vouchers if you agree to this since many landlords will have nothing to do with this program for various reasons) make certain you are familiar with your local housing authority PLUS the length of time with the initial inspection process AND the amount of reimbursement you can expect for your properties.Gail

I was not as worried about repairs, other than the occasional, but Section 8 is supposed to reimburse damages.

And on the upside I was reimbursed the cost of the title transfer for one of the properties since a mistake was made when the title was recorded.

If your tenants stole money from someone would you reimburse the victim?  

It's up to you to work it out to resolve it with the PM in regards to getting re-imbursed.

With inspections,write-up fees, and outside expenses paid by "reimbursement " from loan proceeds, and needed cash to cover " bidding-up" - This type of Deal requires more than minimal funds available for a Buyer to Close!