Section 8, Evictions, and Property Management

Section 8, Evictions, and Property Management

Member since 2022 · 5 posts · 1 vote

I'm in my first year of out-of-state investing and have a single-family home in Birmingham that is rented to a Section 8 tenant.  The tenant has stopped paying rent and my property manager says they will begin the eviction process.  Unfortunately, the property management group has given me plenty of reasons to question if they are acting swiftly and appropriately to remove the tenant. So I have a couple of questions for those of you who may know. 

1. How long are evictions taking in Birmingham these days from filing to removal?

2. Is there a large need for section 8 in the area or is this a more straight-rent city? 

3. Does anyone have a solid property management team they recommend? 

I would love to be able to invest in this city but without a solid property manager, I can't purchase more investments.

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Bryan HartlenPro Member
Investor · Phoenix, AZ · Member since 2018 · 313 posts · 157 votes
3y
Quote from @Stacy Santini:

Thank you, ill check out the link to try and find my next pm and the questions to ask are very helpful. I too researched the eviction timeline online because my property manager told me it's 6 months to a year and that didn't align with what I saw. 


We have several section 8 rentals and currently use two different property management companies.  First of all, I don't believe you'll ever be truly satisfied with a PM company but they are a necessary evil for out of state investors. 

As for eviction timelines in Birmingham:  the online timelines you are reading are the fastest possible given the various laws / rules required to evict.  We've been told by multiple PM companies that the actual timelines are much longer because of the sheriff dept short staffing.  It's taking weeks to months to get them to serve notice. 

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  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    3y
    Quote from @Stacy Santini:

    Your PM should be able to answer the first two questions. From what I've read online, Alabama evictions take a minimum of one month, up to three months.

    Here's some help for finding a new Property Manager.

    Start by going to www.narpm.org to search their directory of managers. These are professionals with additional training and a stricter code of ethics. It's no guarantee but it's a good place to start. You can also search Google and read reviews. Regardless of how you find them, try to interview at least three managers.

    1. Ask how many units they manage and how much experience they have. If it's a larger organization, feel free to inquire about their staff qualifications.

    2. Review their management agreement. Make sure it explicitly explains the process for termination if you are unhappy with their services, but especially if they violate the terms of your agreement.

    3. Understand the fees involved and calculate the total cost for an entire year of management so you can compare the different managers. It may sound nice to pay a 6% management fee but the extra fees can add up to be more than the other company that charges 10% with no additional fees. Fees should be clearly stated in writing, easy to understand, and justifiable. Common fees will include a set-up fee, leasing fee for each turnover or a lease renewal fee, marking up maintenance, retaining late fees, and more. If you ask the manager to justify a fee and he starts hemming and hawing, move on or require them to remove the fee. Don't be afraid to negotiate, particularly if you have a lot of rentals.

    4. Review their lease agreement and addenda. Think of all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.

    5. Don't just read the lease! Ask the manager to explain their process for dealing with maintenance, late rent, evictions, turnover, etc. If they are professional, they can explain this quickly and easily. If they are VERY professional, they will have their processes in writing as verification that policies are enforced equally and fairly by their entire staff.

    6. Ask to speak with some of their current owners and current/former tenants. You can also check their reviews online at Google, Facebook, or Yelp. Just remember: most negative reviews are written by problematic tenants. The fact that a tenant is complaining online might be an indication the property manager dealt with them properly so be sure to ask the manager for their side of the story.

    7. Look at their marketing strategy. Are they doing everything they can to expose properties to the widest possible market? Are their listings detailed with good quality photos? Can they prove how long it takes to rent a vacant property?

    This isn't inclusive but should give you a good start. If you have specific questions about property management, I'll be happy to help!

    The DIY Landlord Book4.7248 Reviews
  • Member since 2022 · 5 posts · 1 vote
    3y

    Thank you, ill check out the link to try and find my next pm and the questions to ask are very helpful. I too researched the eviction timeline online because my property manager told me it's 6 months to a year and that didn't align with what I saw. 

  • Residential Real Estate Broker · Birmingham, AL · Member since 2015 · 138 posts · 43 votes
    3y

    Hey Stacy, 

    From the time of the initial 7 day posting for non payment of rent until set out is taking a minimum of 3 months. If your tenant contest the eviction and ask for a court date this adds more time. We recently completed an eviction (Jefferson County) and the length of time was roughly 5 months. 

  • Bryan HartlenPro Member
    Investor · Phoenix, AZ · Member since 2018 · 313 posts · 157 votes
    3y
    Quote from @Stacy Santini:

    Thank you, ill check out the link to try and find my next pm and the questions to ask are very helpful. I too researched the eviction timeline online because my property manager told me it's 6 months to a year and that didn't align with what I saw. 


    We have several section 8 rentals and currently use two different property management companies.  First of all, I don't believe you'll ever be truly satisfied with a PM company but they are a necessary evil for out of state investors. 

    As for eviction timelines in Birmingham:  the online timelines you are reading are the fastest possible given the various laws / rules required to evict.  We've been told by multiple PM companies that the actual timelines are much longer because of the sheriff dept short staffing.  It's taking weeks to months to get them to serve notice. 

  • Michael SmytheBusiness Member
    Real Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes
    3y

    @Stacy Santini so, the tenant has stopped paying their portion of the rent? What about the utilities?

    What specifically has the PMC done wrong to this point?

    Encourage you to learn from the mistakes of others - by reading posts here on BiggerPockets about owners not having their expectations met by their current Property Management Company.

    To avoid going through the same poor experience, keep reading.

    Even if someone give you a referral, don’t make the mistake of assuming that PMC will meet your expectations, just because they met the expectations of the referral source.

    We also can’t believe how many owners hire the first PMC they speak with!

    Then they complain their expectations aren’t being met!

    In our experience, the #1 mistake owners make when selecting a Property Management Company (PMC) is ASSUMING instead of CONFIRMING.

    It's often a case of not doing enough research, as they don't know what they don't know!

    Owners mistakenly ASSUME all PMCs offer the exact SAME SERVICES and PERFORM those services EXACTLY THE SAME WAY, so price is the only differentiator – and they often select the first PMC they call!

    So, the first question they usually ask a PMC is about fees - instead of asking about services and HOW those services are executed.

    EXAMPLE: PMC states they will handle tenant screening – what does that specifically mean? What documents do they require, what credit scores do they allow, how do they verify previous rental history, etc.? You’d be shocked by how little actual screening many PMC’s do!

    This also leads owners to ASSUME simpler is better when it comes to management contracts.

    The reality is the opposite - if it's not in writing then the PMC doesn't have to provide the service or can charge extra for it!

    We have a 14-page management contract that we've added our real experiences to over the years, with the intent of protecting both us AND the landlord. Beyond the Monthly Management, Placement & Maintenance fees, all other fees in our contract are IF EVENT -> THEN fees.

    We don’t know any PMCs to recommend in the area mentioned, but since selecting the wrong PMC is usually more harmful than selecting a bad tenant, you might want to read our series about “How to Screen a PMC Better than a Tenant”:

    https://www.biggerpockets.com/member-blogs/3094/91877-how-to-screen-a-pmc-better-than-a-tenant-part-1-services-and-processes

    We recommend you get management contracts from several PMCs and compare the services they cover and, more importantly, what they each DO NOT cover.

    EDUCATE YOURSELF - yes, it will take time, but will lead to a selection that better meets your expectations & avoids potentially costly surprises!

    P.S. If you just hire the cheapest or first PMC you speak with and it turns into a bad experience, please don’t assume ALL PMC’s are bad and start trashing PMC’s in general. Take ownership of your mistake and learn to do the proper due diligence recommended above😊

    Logical Property Management4.9453 Reviews
  • Real Estate Investor · Philadelphia, PA · Member since 2010 · 283 posts · 81 votes
    3y

    You should also reach out to the housing department to see what they can do for you.

    You will need to make sure that the PM company has complied with all proper notices not only with local laws but also the housing department.

    Sometimes it is cheaper just to give cash for keys.  This has worked for me in the past.  In my state if you evict someone with a housing voucher, it puts their voucher in jeopardy.  So they will rather move out.

  • Hunter TerrynPro Member
    Birmingham, AL · Member since 2021 · 79 posts · 68 votes
    3y

    Have you considered (or has your PM suggested) Cash for Keys? It can be an effective alternative to gain back possession of the home sooner and avoid the costs and headaches of an eviction for both parties. 

    For those not familiar, essentially you'd offer to waive part or all of the past due rent, and/or provide some sort of small stipend for the tenant to help with moving expenses, in exchange for them returning the keys and the property immediately. It would be a mutual release from the lease. Tenant gets to avoid an eviction on their record and you get the property back sooner to avoid vacancy/the eviction process. The amount you waive/offer would be dependent on the situation of course. 

    We've found that strategy to work at a pretty decent rate. 

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