Alabama: landlord friendly?

Question

Hello everyone,

I'm in CA, new to real estate investing, and due to my budget not being CA-sized I'm looking for investing out-of-state. Not through turnkey companies but through a real estate agent and property management company I have received a referral to.

I've read and heard about different states being landlord-friendly or not. Any opinions on where Alabama falls?

I'm planning to buy a single family home in the $100K range.

Thank you!

Nav.

Denise Evans · Answer

Alabama is relatively landlord-friendly.  Maximum 1 month security deposit; some states allow more. But, you can collect all the prepaid rent warranted and able. Fair Housing laws mirror federal laws, nothing additional. You must give 7-days notice of default and opportunity to cure, but if they default 4 times in 12 months, you do not have to cure the 5th time. With careful attention to deadlines and doing everything exactly when you are able, you can get a default eviction order in 30 days, and turn-out fairly quickly after that.  Eviction trials have to be set as priority cases.  Motion for summary judgment is available, so continuances usually not a problem.  Most claimed landlord defaults allow the tenant to terminate the lease, NOT to quit paying rent. If tenant appeals eviction, it must pay all past due rent into court or the eviction can proceed. "Nail and mail" service available for the eviction order itself, although you must get actual service if you are suing for damages.  Judgments are good fro 10 years and can be renewed for an additional ten years. Alabama does not have generous bankruptcy exemptions.

Jason Hollon · Answer

Alabama is certainly going to be more landlord friendly than California, though when all is said and done in court the judges are known to take it upon themselves to administer "social justice" and rule as they see fit.  As always, it's best to avoid court altogether.

Here is a link with additional information on the Alabama Uniform Residential Landlord and Tenant Act.

http://codes.lp.findlaw.com/alcode/35/9A

Note there were several changes enacted in 2014 to move it more towards the landlord's favor.  Here is a summary of those changes:

http://www.alabamalegalhelp.org/resource/alabamas-...

Nav Singh · Answer

Thank you Jason and Denise, very helpful.