All Forum Posts by: Denise Evans

@Chris Fillingham, the PHA wants the voucher recipient to pay 30% of their income to housing and utilities.  The rest is made up with voucher. Sometimes they will approve housing that will require a tenant to pay up to 40% of income to housing and utilities, but that does not leave very much for food, medical, transportation, savings for emergencies, etc.  Approving someone for a voucher amount and a rental property that ends up forcing them to pay 40% of their income to housing and utilities puts a strain on the family finances and makes it more likely they will have a default event.  Nobody wants that.

@Jennifer Donley is certainly the expert, with great advice. I would just add some market considerations, such as distance to public transportation. Many times people who need Section 8 assistance cannot afford a vehicle and insurance.  If your property is within easy walking distance of public transportation, you will have a larger pool of applicants to choose among.

There are several commercial services that will act as your registered agent for service, with a physical address in Alabama. The physical address is necessary so if your LLC is sued, the Sheriff's deputy or constable can have a location to deliver the lawsuit papers, inside the state of Alabama, and you will be served on that date. You can do an Internet search for

Alabama Registered Agent Service

you will probably get a number of them to choose among.

Question 3: The books have to balance. There is no way to overlook making payments.  If you have not paid a client, then you have too much cash in your account.

Question 4: It is NOT typical to pay some vendors in cash. It messes up the entire paper trail for accounting purposes. Vendors who want cash either (1) want to hide it from the IRS or from some creditor waiting to garnish their bank account or (2) need to cash right away so they can pay their workers in cash right away. Both of those are signs of a vendor in trouble. That is not someone a property manager should use.

@Louis Aller, you have to possess the property for three years.

I think Volunteers of America helps people in the group homes, and so would know the agency that rents them.

When I saw the words "River Oaks" I immediately wondered what Section 8 housing would be in River Oaks, and then remembered that was the ritzy part of Houston, not DFW.  How funny that Turtle Creek in Houston (at least when I lived there) was kind of an undesirable part of town and ritzy in Dallas, and same for River Oaks ritzy Houston and much more modest Dallas! Those two cities really try to be opposites, don't they?

@Louis Aller, overbids come into play when there is a bidding war at the auction.  If there are not bidders at all and the property goes onto the state inventory as a result, then there is never an overbid. Once on the state inventory, there is no bidding. You pay the stated price of all taxes plus interest, or you make a counter-offer for a smaller amount, if allowed. You will never be able to pay $15,000 for a $500 tax certificate or deed on the state inventory. More and more Alabama counties are switching from tax certificate auctions to tax lien auctions. Unsold tax certificates go on the state inventory, not the county. Unsold tax liens are retained by the county and can be sold by them for up to 45 days after auction and then any remaining ones that are not redeemed are sold with the next year's tax lien.  In other words, the winning bidder gets two years of tax liens instead of just one.

An overlooked payment is not normal. If payments are not made, then the books and bank account don't balance.  If the bank account balances, then somebody ELSE got the money and there is embezzlement going on.  Yes, file a complaint.  Also, under TN law, real estate licensee records must be preserved for three years.  There should be no problem getting info to you.  

T.C.A. § 62-13-312(b)(6), real estate licensees must preserve records relating to any real estate transaction for three (3) years following the consummation of said real estate transaction.

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.