All Forum Posts by: Denise Evans

Prepare an RFP and submit it to multiple lenders.

How are you reaching out to lenders? Do you send a detailed RFP or do you simply place a phone call and leave a message for someone to call you back?

If there is a police report about the assault and a conviction or a guilty plea, Alabama law says it is a non-curable default if there has been a criminal assault.  You can also terminate without the need for a Notice of Default and Opportunity to Cure if when the second similar default in six months has occurred, or when there has been the third default of any kind in twelve months.  It sounds like you might have both of those grounds. The statute is reprinted below. Feel free to reach out for a more detailed discussion, if you want.

(a) Except as provided in this chapter, if there is a material noncompliance by the tenant with the rental agreement, an intentional misrepresentation of a material fact in a rental agreement or application, or a noncompliance with Section 35-9A-301 materially affecting health and safety, the landlord may deliver a written notice to terminate the lease to the tenant specifying the acts and omissions constituting the breach and that the rental agreement will terminate upon a date not less than seven business days after receipt of the notice. An intentional misrepresentation of a material fact in a rental agreement or application may not be remedied or cured. If the breach is not remedied within the seven business days after receipt of the notice to terminate the lease, the rental agreement shall terminate on the date provided in the notice to terminate the lease unless the tenant adequately remedies the breach before the date specified in the notice, in which case the rental agreement shall not terminate.

(b) If rent is unpaid when due, the landlord may deliver a written notice to terminate the lease to the tenant specifying the amount of rent and any late fees owed to remedy the breach and that the rental agreement will terminate upon a date not less than seven business days after receipt of the notice. If the breach is not remedied within the seven business days, the rental agreement shall terminate. If a noncompliance of rental agreement occurs under both subsection (a) and this subsection, the seven-day notice period to terminate the lease for nonpayment of rent in this subsection shall govern.

(c) Except as provided in this chapter, a landlord may recover actual damages and reasonable attorney fees and obtain injunctive relief for noncompliance by the tenant with the rental agreement or Section 35-9A-301.

(d) Notwithstanding Section 35-9A-141, no breach of any of the terms or obligations of the lease may be cured by a tenant more than two times in any 12-month period except by the express written consent of the landlord. The following acts or omissions by a tenant or occupant shall constitute a noncurable default of the rental agreement, and in such cases the landlord may terminate the rental agreement upon a seven-day notice. The tenant shall have no right to remedy such a default unless the landlord consents. Such acts and omissions include, but are not limited to, the following:

(1) Manufacture, cultivation, importation, transportation, possession, furnishing, administering, or use of illegal drugs in the dwelling unit or in the common areas.

(2) Illegal use, manufacture, importation, possession, furnishing, or discharging of a firearm or firearm ammunition on the premises of the rental property, except for the use or discharge of a firearm or firearm ammunition in cases of self-defense, defense of a third party, or as permissible in Section 13A-3-23.

(3) Criminal assault of a tenant or guest on the premises of the rental property, except in cases of self-defense, defense of a third party, or as permissible in Section 13A-3-23.

(4) Any breach involving substantially the same acts or omissions as a breach for which a notice to terminate has previously been provided for by the landlord and cured by the tenant, if the second breach occurs within six months of the first breach.

1) What city is your property in? for most, you should be able to find a property management company.

2) Require tenant to get tenant insurance. It includes liability. Average cost $19/month. You can usually charge $25 per month higher than market and give away "free" tenant insurance.

3) Pay someone to do it for you.  You'll avoid a huge number of problems.

4) Look for other ways to increase cash flow through additional services.

There will be an original document granting the easement. While it is technically possible for Owner A to sell property to Owner B and reserve an easement, that is commonly done only with rights of way.  It would be very rare for Owner A to deed property to Owner B and reserve a billboard easement in A. But, rare is not the same thing as "never happens."  It is always best to read every deed and instrument in the chain of title, fully, to see what is being conveyed and what is being retained.

Easements are recorded in the real estate records, just like deeds.

@Shane H., I don't know how common it is. I've seen a number of them. I think it might be because long term leases are separately assessed and have to pay ad valorem taxes, but easements do not, in Alabama.

It is probably personal property. There is no Alabama appellate decision on this point. Many states have statutes clarifying, but Alabama does not.  The IRS treats billboards as improvements to realty. Appraisers treat them as personal property. Most billboards either have lease with definitions about the structure itself and what happens, or a permanent easement.  Many leases are prepaid, so there is no income stream.  Permanent easements are almost always prepaid, so there is no income stream. The company who paid to erect the billboard, or their successors, has redemption rights.  Even if there is a monthly or quarterly lease payment, you cannot simply demand they now pay you. It is illegal for a tenant (residential, commercial, billboard, etc) to basically throw the landlord under the bus and "attorn" to someone like the tax sale investor. You will have to go through ejectment. But, if done improperly, it could end up costing you lots of money and you get nothing in return, not even legal fees.  In short, you can't rely on Google for an answer. It is complicated.

Thanks @Wayne Brooks. @Donny B Robinson the answer is complicated and depends on a lot of factors. I'll send you a connection request. Just because the property is vacant and has been for along time does not mean it is legally abandoned and you are automatically entitled to enter. Like I said, it is complicated. For now, do nothing.

Thanks, Will.