Owner Update "Question of The Month"

Q: One of my units had an annual inspection, and there are some things that need to be repaired. The tenant will do this work in exchange for a one-time rent reduction. Does TMHA allow this?

Good question. The staff at TMHA sometimes hears about an arrangement like this, usually when it has gone wrong.

First, we don't disallow this arrangement, but we don't encourage it either for this reason. On issues of HQS (Housing Quality Standards) inspections, the responsibility for repairs is the owner's, with one exception given below. If the unit doesn't meet HQS standards as a result of a failed inspection, the housing authority must require the owner to get the repairs completed accurately regardless of who actually completes the work.

The one exception mentioned above is when the unit fails HQS because of the actions of the tenant. This might be some sort of damage that exceeds normal wear and tear. For example, a bedroom requires a working door for privacy reasons, and someone in the tenant family has ripped the door off its hinges. In this case the inspector would cite the tenant, and the tenant would have to repair the damage, or the owner can repair and bill the tenant for the work.

Generally, however, the responsibility for repairs is the owner's. So let's say the unit has some relatively minor electrical work that needs done, and the tenant says he/she has some experience with electrical work and offers to do the work in exchange for some reduction in rent. Should you do this?

Well, you need to ask yourself some questions? Have you any knowledge that this tenant can actually complete the job adequately AND SAFELY. Even minor electrical work can be dangerous without adequate precautions. 

Next, are you going to be able to follow up on the work the tenant has done before reinspection? Remember, TMHA is requiring YOU to get the repairs done, regardless of who actually does the work, so you'll want some way of tracking when and how the repairs are done.

Lastly, if materials are needed for the repair, who is paying for that? This is an area where many of these arrangements seem to go wrong. We'll hear from the tenant that he/she has spent some sum of their own money for things the unit needs, and now they are disgruntled because they feel cheated when they aren't, in their opinion, adequately reimbursed.

On the other hand, we've also heard from owners that they trusted tenants to go out and buy needed items and were flabbergasted when the tenant spent - or charged on the owner's account - some amount higher than the owner expected. In other words, the owner thought the tenant was buying beer, and distressed when they actually purchased champagne.

So, if you decide to allow a tenant to make units repairs, get it in writing. The key to this is communication, as noted in the tips of the flip side of this issue. The problem seems to arise when the owner agrees to one thing, and the tenant believes they agreed to something else. If you write out a simple statement of what work is being done, who is going to supply materials in what price range, and what type of payment - whether rent reduction or money for work - is being agreed to. Both owner and tenant should sign it, and have a copy. It's a good way to head off any misconceptions before they occur, and have an agreement that works for both parties.

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