All Forum Posts by: Denise Evans

If the case worker told her not to sign a lease until the paperwork is complete, that means she has not yet been approved for a voucher. Do not show anybody any Section 8 properties until they have that voucher in hand. Too many people are out window shopping based on high hopes they will be approved, and you just don't need to waste your time.

I see many comments denigrating Section 8 tenants.  Many of them are good long-term solid tenants. It does require clear communication, though, about what you will and will not do, and what will cost extra.  Leases can sometimes get long and involved. I use a FAQ sheet in plain English, and also a video for those people who prefer that type of delivery system. It avoids a lot of issues. 

In Alabama, the Alabama Uniform Residential Landlord Tenant Act allows us to have separate Rules and Regulations that are not part of the lease.  They can be changed at any time, and require only two days notice. The tenant does not have to agree to them.  They are bound by them, anyway. You might check to see if such a tool is available in your state. I adds a lot of flexibility to your management practices, and really helps on your learning curve if you can add new ideas to your Rules and Regulations whenever needed, rather than having to draft new leases and get new signatures.

@Brian Garlington, they pay their own utilities.

@Brian Garlington, it is a matter of personal preference if the tenants pay for water and power. Whichever the landlord prefers. Most landlords here prefer for tenant to pay (for obvious reasons) PLUS there is a statute that says if the power has been disconnected for seven consecutive days, the landlord may consider the premises abandoned and re-enter without the need for an eviction lawsuit.  Local municipalities used to hit landlords with unpaid tenant water bills, and make landlord pay bill before water would be connected for new tenants.  A statute was passed recently that made that illegal.

You can buy on the 1% rule, easily, as that rule is defined generally. I would not get hung up on the 2% rule. Those are available, but if you stick to that, you overlook a lot of opportunities. Many investors buy on a GRM of 100, which works out to monthly rent = 1% of purchase price, and they do very well with that. In fact, one of my friends is a real estate multi, multi millionaire with SFR, apartments, retirement communities and office buildings, and the GRM of 100 is the ONLY investment analysis he has ever used.

Alabama is a landlord friendly state. Real estate taxes are the 3rd lowest in the nation. Income taxes are very low. Cost of living is low, which means repairs and maintenance are low. Rents are fairly high and stable in most markets. Your NOI will be larger in Alabama than in most other markets.

@Suzanne Player, default is to specific to each state, that I probably can't help you with that.  Many states have their own residential landlord tenant laws, separate from regular landlord tenant law.  I suppose you could make death an event of non-curable default, if allowed by your statutes.  Assuming something short of death, an Alabama landlord who requests access to the premises but is stonewalled by the tenant (because just not there, for example) can claim that alone as an event of default with seven business days to cure. In that way, they would not have to wait until the next month's rent comes due. The tricky arguments revolve around abandonment. You might want to claim that when a person dies, they have "abandoned" the property.  That makes sense in Plain English, but not in Legalese. Legally, abandonment requires an act of departure and an intention to never return. If you are dead, you probably didn't intend that unless it was a suicide, so you are missing a vital element of abandonment.  On the other hand, if they are in the wind and can't be found, you might be able to argue abandonment and retake possession. It is state-law specific, though, so be sure to talk to a local attorney with significant residential landlord/tenant experience.  If you don't know anyone, call the local court where eviction lawsuits are filed, and ask them for the two lawyers who file the most evictions recently. Stress you are not looking for a recommendation, because they are not allowed to do that. BUT, they can tell you who has the largest volue, which pretty much tells you who the experts are.

@Nathan Gesner, my leases have a clause that tenant completes with the names of two people who can be given the keys if the tenant dies, or is incarcerated, hospitalized and simply missing for more than 14 days. Those persons are also given authority to declare the premises abandoned on behalf of the tenant, or the tenant's estate.  Usually one of the two people cleans out the premises so they can be turned over and rented to someone else.  If that is not a possibility (because stuck with older lease forms) then legally all you can do is wait for probate to be opened or wait until the next month's rent is unpaid and proceed with eviction. That is usually a quasi in rem proceeding that does not require personal service.

@Andy Giles, things like a successful Fair Housing complaint filed against you in the past, a current Fair Housing complaint under investigation. A recent felony conviction involving moral turpitude is probably a disqualifier.  You might be approved as a landlord but if you want to rent to a parent, child, grandparent, grandchild or sibling, there are special rules to follow that basically have to do with your relative being disable and having no other choices.

@NA NA, according to most zoning ordinances and appraisal rules, a room must have at least 70 square feet, a closet and a window to be a bedroom.

@Samir Alrubayai Refinancing has no tax consequences to you except that SOME of the closing expenses can be written off on your income taxes, while others must be capitalized.  Whatever depreciation schedule you have on your rental unit is not affected by any refinancing, especially since it seems like you are refinancing your house. The two have nothing to do with each other. You cannot write off depreciation on your personal residence.

@Andy Giles Did you apply to the local Public Housing Authority to be approved?  You don't get approved for voucher payment just because you bought a property that had a voucher tenant. Some people are disqualified from being Section 8 landlords, which is why new owners must go through the process. But, yes, most PHAs prefer direct deposit of voucher checks. That does not cover any additional rent due from the tenant.

thanks @John McKee, that's useful information I can pass along to other people. Thank you for sharing.