All Forum Posts by: Denise Evans

@Mike Cumbie, that is excellent advice to inspect and require repairs immediately. It avoids the problem of repairs mounting up in excess of the deposit, and is also "trains" the tenant to take better care  of the property.

@Andy D., a "service animal" is highly trained and probably a very low risk of injury to property or others. An "assistance animal" requires no training or certificates.  A puppy, snake, kangaroo or gorilla can be an assistance animal. Only a trained and licensed dog can be a service animals. Please do not make rental decisions based on assumptions about the animal's character or training.

Assistance animals are usually the emotional support animals.

Under Fair Housing laws, landlords cannot discriminate against people with service animals OR assistance animals.

Under the Americans with Disabilities Act, public places cannot discriminate against persons with service animals. Assistance animals are not protected under the ADA.

@Thomas S., It is not my desire to discuss the moral or ethical facets of the fair housing laws. Instead, let's put this on a business basis. We all take risks in business.  You choose to take a risk that you will be hit with fair housing and discrimination complaints, fees, and penalties, but you think that risk is worth the benefit you gain by retaining complete control over tenant selection. People might or might not agree with your motives, but that is your business decision.  For other readers who wish to disregard the moral and ethical issues, or who disagree with prevailing views on those things, then you must make the same cost/benefit analysis as Greg.  "How likely is it that I will be caught, and what are the consequences of getting caught?"

In the United States, Fair Housing testers are very active. They typically earn $25 to $50 for each "test" contact. This is how they earn their living. HUD and the local housing authorities are very experienced and sophisticated investigators, and will often "set up" a landlord by sending in 4 or 5 testers at a time. Some are in a protected class, and some are not. All have detailed records of their contacts, what was said, what was submitted, when it was all done, and what follow-up occurred. They research the online forums looking for comments people share about how it is their business practice to illegally discriminate. You cannot be glib and think you will not be caught. You might not, but you can't count on it.

In the United States, a first offense fine is $16,000 per discriminatory event.  There is usually also a requirement of education, advertising, and other time consuming and expensive activities.  You are then a target for future testers. A second offense carries a minimum fine of $42,500.

Landlords, choose your actions carefully, after consideration of the consequences, and the availability or non-availability of insurance coverage.  In addition, if you are going to do anything illegal, keep your thoughts to yourself. US Senators are not the only ones who find themselves embarrassed by "private" written thoughts coming into the light of day.

Finally, for everybody, talk to your insurance agent about Fair Housing coverage. Sometimes it is included as part of the standard landlord policy. Sometimes it is a separate rider.  You can run afoul of the Fair Housing laws even with the best of intentions, or someone could misunderstand something you said, or someone might just outright lie about their interaction with you. You need coverage to pay the lawyers to defend you, even if you are innocent.

@Amanda S., it is a matter of routine inspections to discover if they are complying. If you do not have property management software that includes a module for inspections, i recommend SnapInspect.com   They have a cloud based and phone app system that is incredible, very reasonably priced, and easy to use. They also have a free trial period.  

For animal urine smells, I recommend one of the enzyme based sprays, such as Rug Doctor Platinum Urine Eliminator. The enzyme products work chemically to change the urine into something that is harmless and does not smell bad.  It is not "snake oil."

Good luck!

Greg, You probably have different laws in Canada. This is a United States legal issue.  If someone in the United States did what you do, they would be subject to a Fair Housing complaint, unless they fit within the size limitation exemption.

You should not enter the rent increase conversation with any hesitation, doubts, or unease. The price of things goes up every year. Just be very matter of fact, as if you were Charmin, increasing the price of toilet paper.  Especially if the rent increase is not major, and it occurs in hot months in the South or cold months in the North, nobody is going to move rather than pay a small rent increase.  If rents have increased dramatically, then it is a landlord's market. Increase the rent to market, or find another tenant. Shouldn't be a problem.

Hi @Josh Anders. I know the Hartselle area, and I know Sara. She is a very solid and respectable and conservative investor. Connect with her. I think Hartselle will become more of a bedroom community for people who work in SE Huntsville, so there are some good growth opportunities.  You might want to look at entire mobile home communities to purchase. Maybe between Hartselle and Lacy's Springs.  People get fed up with the management headaches and just want the mailbox money. As a result, they are willing to sell and hold the financing.  Reach out to all of those owners. Today's mobile home community might be tomorrow's Target or Lowes.  Plus, cash-on-cash, mobile home communities provide the best returns. Also the most management headaches.  Reach out to me via private message if you want to talk more. Good luck!

I went to undergraduate school in Dallas. When I practiced law in Houston, I lived out in Cypress.

It all depends on which city/town.  In Tuscaloosa, for example, there is normal zoning and then there is the university overlay. I'm sure Auburn is the same. Popular right now are the 5/5 units--one building with five bedrooms, each with their own bathroom, and shared common areas.   One "suite" of five upstairs, one "suite" of five downstairs. In Tuscaloosa, at least, they are renting for upwards of $750 per bedroom. That model would be much better than your 2/2 units. Contact me privately via a message if you want to discuss further, and I'll send you my phone number. I live in Alabama, but I'm a Texas attorney.  I might be able to give you some insights if you can confidentially give me more information.

"Choice of law" rules are very complicated. In most law schools, this is an entire two- or three-semester hour course. If a decision affects the entity itself, then the court must follow the law of the state where the entity is organized. That is why so many corporations incorporate in Delaware, because it is a corporation friendly state. If the decision is about a contract to be performed in Alabama (such as a lease) or land located in Alabama, or a tortious or negligent act that occurred in Alabama, then Alabama law will be used.

If your entity is organized is some other state, you must register as a foreign corporation in Alabama. Otherwise, you will not be allowed to use the Alabama courts to protect your rights or obtain remedies such as eviction.  That is because your entity will be a "stranger" to Alabama. Registering to do business in Alabama is a simple form and a filing fee. You go to the website of the Alabama Secretary of State, at http://www.sos.alabama.gov/

If I lived in Utah and were obtaining Utah investors, I would form my entity in Utah.  That way, your lawyer and you and your investors will be familiar with the law regarding the entity itself, instead of having to learn about Alabama entity law AND Alabama real estate law.