All Forum Posts by: Scott Forbes

This is an update on the eviction process in Clayton County, GA:

Evictions in Clayton County, GA remain a nightmare for landlords. Clayton County Magistrate court judges are in no hurry to enforce the laws on the books. Instead, they continue to string out the eviction process as long as possible to allow deadbeat tenants to live rent free as long as possible on the backs of struggling landlords. Fox 5 news reported on this in September 2022:

https://www.fox5atlanta.com/news/court-backlog-prevents-clayton-county-landlords-from-evicting-tenants

My tenants ceased paying rent in August 2022. My property manager immediately began the eviction process using a highly reputable eviction service. The complaint was filed with the Clayton County Magistrate court in early September 2022. Finally after several months of waiting, we received a court date of February 15, 2023. Yes six months later! We went to court and were successful in winning our case. We received the Judgment against the tenants who continue to live rent free in the property. We filed for the Writ of Possession soon as it became available. In every other county in Georgia, the judge signs the Writ and the tenants are usually set out within 10 days. Not in Clayton County! It takes another 3-6 months. Our Clayton County Magistrate judge gave us a Set Out in September 2023. This gives the tenants another (4) months of rent free living while they continue to destroy the property and there is nothing we can do except wait. So, in September (yes 1 year later), the Marshall will oversee the locks being changed and direct (8) people to Set Out the tenants belongings into the front yard. Only then are we able to retake legal possession of the property. Property investors should think twice before investing in rental property in Clayton County. Beware, you have been warned!

I have a question regarding the IRS exclusion of taxes paid on the sale of a principle residence.

Here is the scenario: Tenant has been renting a condo for 7 years and it has been their principle residence.

The landlord has decided to sell this condo to the tenant. After the closing takes place, the title will be transferred giving ownership to the tenant. The tenant now wishes to sell this property taking full advantage of the exclusion of capital gain taxes on the sale of a principle residence as it has been their primary residence for the last 7 years. The conservative profit is estimated to be $40k.

Because the tenant is now the "owner", do they still get any credit for this being their primary residence for the last 7 years, OR does the clock get reset? I'm thinking because the tenant did not "own" the property until recently, the IRS will require the new owner must meet the 2 year criteria all over again. If this is the case and if the owner sells before the new 2 year criteria is met, to avoid the tax consequence, they would want to consider a 1031 exchange.

Your thoughts