Section 8 - Property management - repairs - Please help!!!!!

[Anil Villamkandathil]

I am Newbie into Land lording. I ended up buying a section 8 duplex while I was looking a house for myself. The GMI looked great at that time -  it was 1800  for a  price of 123,000.

The problem is that the property upraised at 122,000 and I did not get any deal. 

I have  a full time Job. So I signed up with Property management. I am having a hard time with them. At least I think. 

Here is the issue I have:

My tenant reported mold issue. So I asked my Property manager to provide a estimate. They came up with a Price tag of 16,000 dollars with a small paragraph write up. 

He provided a huge list from roof to changing the old Bryant electric panel and fixing some electrical problems ( I am not sure what). The lights in the basement don't work, I think its mainly because the bulbs have passed their lifetime and the tenant has not cared to change it. 

Question 1. They say the old Bryant electrical Panel is a health hazard. Is it true?

After a couple rounds of text and emails with my Property manager we agreed to meet and then they split the amount into 3 groups as I had requested, that brought down the total from around 16,000 to around 15,000.

The first group was the ones with highest priority. It had a price tag 8000 dollars.  Which had replacing the molded sheet rock, changing the electrical panel, replacing the front door, cutting a big tree ( which they itemized as 300 dollars) and some other small things. They were not ready to itemize after my repeated request, they just said it would cost more and would need to mark up to 12%.

I told the property manager that one of my handy man would be looking at the work needed, which obviously was not taken positively, it was not a professional experience.

I am also telling my property manager I have home warranty for my electrical problems. For some reason she is was not considering it.

I got my handy man go in and I had a price tag of around 1500 for lot more things. It did not include changing the electrical panel. I had my home inspection done and the inspector never told me that the panel needs to changed.

Now my property manager tells me that the handyman needs to have business insurance otherwise all their section 8 contracts would be at stake and may be revoked by session 8. My handy man who is self employed 1099 handyman. I have not  a clue of what they are talking. It  is something like their policy or section 8 policy I don't know.

I know I have to fire my property manager but I am on my H1B and I can only legally work for my employer. I am having a hard time finding a descent property management company in my area. some of them where even horrible from the reviews I saw.

I want have a good living condition for my tenants as much as I can turn around this deal into profit. 

Please excuse my long  description. It only looks I am in big trouble. How do I turn around this situation. Does section 8 care about whom I use to work on my property to fix the problems. I have a meeting with the owner of the Property management company on monday so I have to have some information before than. 

[Marcia Maynard]

@Anil Villamkandathil Our local Section 8 program focuses on the habitability of the rental unit, not on the contractors we use. Choose your vendors well and keep in mind your ROI (return on investment) and Cost-Risk tolerance.

Look into the mold issue yourself... most of the time mold issues reported by tenants are just surface mold that can be easily cleaned. Give your tenants the EPA "A Brief Guide to Mold, Moisture, and Your Home" booklet. Read it yourself too and build up your knowledge for addressing mold and moisture problems. If you find mold, determine the root cause and address that immediately.

About the other needs... did you have the property properly inspected prior to purchase? What did the report show then? Have you had the property inspected since? What does the more recent inspection show?

The property manager may be bringing to your attention items of real need or may creating work for themselves. Become more involved in understanding your investment and what it takes to keep it in good repair and safe. Some people use PM for full service, others use PM for specific services. Determine your real needs and evaluate how the PM might serve your needs better.

As to the roof, hvac, electrical and plumbing.... have these inspected and serviced by licensed, bonded, and insured professionals. Minor electrical can often be handled by a handyman, but for the electrical panel you need a professional electrician. Remember that you are providing housing for others and have greater liability now. What works fine for maintaining your own home may not be enough for maintaining residential rental property.