Television flipping shows intimidate me. Designer colors and finishes that all go together, walls removed, windows added, stairs moved and roof pitches changed entirely. One designer always paints the brick, another one always strips the paint off. Don’t even get me started about the insanity of California homes of 1,100 square feet with 4 bedrooms and 2 baths on 1/5 of an acre, miles from the beach, and $800,000 price tags.
Which kind of proves my point in this article. People in California, New York, Chicago, London and Tokyo might have $100,000 in cash and good credit for real estate investments, but they cannot afford anything in their own back yards. Investor money is pouring into Alabama for single family rental houses up to four-plexes. They don’t care about trendy tiles for the backsplash or mid-century modern light fixtures. The only question that matters is, “Do the numbers work?”
I can deal with that type of flipping! Experts say we are seeing an explosive demand for single family rental properties. Older people were traumatized by the Great Recession and an inability to sell their homes. Younger people want maximum flexibility and near-instant gratification. That means rental housing, but not apartments. Start investing now, so you don’t miss this opportunity.
Do you want to learn more about flipping rental houses? How to find properties, how to find investors, and what they need in order to making buying decisions sight-unseen? There’s an app for that! No, not really. But there is a class for that, coming to cities all over Alabama. Check out the schedule and see if there is a date and time convenient for you, or order the video if that will be more convenient. Click HERE for details.
If you think it is necessary, you can collect a SEPARATE security deposit from a lease guarantor. By law, you are limited to one month’s deposit from the tenant, but guarantors are not covered by the residential landlord/tenant act. They can agree to be liable for legal fees (which tenants cannot agree to) and they can be required to pay any amount of security deposit IN ADDITION TO the one month you get from your tenant.
Why would you require that? Suppose tenant is not financially strong. Maybe guarantor is, maybe they aren’t. But, you don’t want to chase down the guarantor and sue them and try to collect if the tenant defaults or damages the property. The additional security deposit gives you added protection.
Interested in more legal tools and ideas for Alabama residential tenants? Click “Resources” tab above to see when the 6-hour Landlord Tenant Law or the 3-hour FAQ Landlord Law classes will be in a city near you. Both earn CE credit and also open to public. If you cannot attend in person, both classes can be taken live but over the Internet and are also available by streaming video. There is no CE credit for classes you do not physically attend in person.
Requests for emotional support animals cause the most Fair Housing anxiety among landlords. If the person has a letter saying they have a disability and need an ESA to assist with the disability, then Fair Housing says we must allow it. There are many legitimate claims and needs, but there are also a lot of con artists gaming the system. Some landlords will (incorrectly) say, “I am exempt from the Fair Housing laws. No animals allowed. Period. End Of Discussion.” Which would be good for them, if only they were really exempt!
Watch our YouTube video for an explanation for the exemptions. Yes, there is one for landlords of single family residences. BUT, it is extremely limited and can be lost. Learn the exemptions, and learn how to protect yourself so you don’t accidentally lose them. Click HERE for video.