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All Forum Posts by: Sri Thod

Sri Thod has started 1 posts and replied 6 times.

Post: NNN Dentist Office

Sri ThodPosted
  • Posts 6
  • Votes 0

Tenant turnover for the commercial property could take months, even years and you could give up many months of rent in advance to onboard a new tenant compared to multifamily.

Quote from @Thomas Garrison:

View report

*This link comes directly from our calculators, based on information input by the member who posted.

First time home buyer.
My initial plan is to house hack this property & add an exterior entry to all basement units.


12k/month rent, is that estimate or actuals? Numbers look terrific. Make sure PT is accurate. 4.8% mortgage may not be correct?
Quote from @Denise Evans:

I'm in Tuscaloosa.

Best way to protect self re student damage is to always require parents as guarantors.  You are limited to one month's rent as security deposit under Alabama law, but you can require guarantors to pay a deposit for their own liability, in my opinion. That idea is untested in the courts.  Frequent inspections and immediate repairs or cleaning and then immediately charged to tenants will help prevent a complete mess at lease end that exceeds deposit amount to repair. 

Legal age in Alabama is 19. If student is under 19, include a clause in guaranty agreement saying guarantor is liable for full term of the lease, even if the student disaffirms the contract upon reaching age 19.

You can require tenants obtain renters insurance with liability coverage in pre-determined amounts.  As long as you don't discriminate (such as, only foreign students or only students with disability animals) then it is legal.

Please clarify what you mean by recent restrictions on STR in area? There are some historic districts that limit number of unrelated persons residing on the premises, if that is what you mean.

Eviction is easy and fast, with service via posting lawsuit papers on the door, only 7 days to answer otherwise default judgment. If there is an answer the case gets priority setting on the docket for hearing. If the tenant loses and appeals it must post an appeal bond equal to all past due rent and continue paying rent each month to stay in the premises during the appeal. 

Judges here have heard it all and not fooled by sad stories.  Claims of landlord not meeting its responsibilities might allow tenant to cancel lease without penalty, but statute says it is not grounds to stay in premises rent free.  Cancelling lease for landlord failures requires written notice of default from tenant and 14 calendar days to cure, and the default remains uncured within that time. Of course, it must be a legitimate default. 

Unlike Jefferson County (Birmingham area) turnout orders in Tuscaloosa are executed fairly quickly.

Most student leases are signed in October for the coming August.  

Automatic renewal clauses are legal and enforceable.

Hope this helps.


Thanks for the very detailed response Denise.

Post: Finding an investor

Sri ThodPosted
  • Posts 6
  • Votes 0

Please send me a message. I'm interested to work with you.

I'm considering a couple of properties near UA (University of Alabama). Hoping to get a few questions answered by the community. Thanks in advance.

Damage Control: Assuming students rent it, the odds of them trashing the place are high. What's the best way to protect the owner from the potential damage that could be caused by the tenants? 

Insurance: What type of insurance can the owners mandate that tenants take to protect the property from damages. Alternatively what type of Insurance can the owners if the tenant's insurance fails to cover the damages or exceeds the limits?

Lease: I understand there have been recent restrictions on STR in the area. Does the student rentals come under STR?Any other gotchas that we need to be aware of renting to students?
Eviction:
If the students fail to pay the rent, how easy/hard is it to get the evicted?

Quote from @Nathan Jackson:
Quote from @Clayton Smith:
Quote from @Srini Murthy:
Quote from @Clayton Smith:
Quote from @Srini Murthy:

Hi All

I was looking at a property right now in Tuscaloosa and saw Jennifer's comment below

"STR for about 10 years and did well until the city imposed restrictions that just made it too much of a hassle". 

What restrictions are these?

If you are inside the city you have to apply for a zoning ordinance that will allow for STR. They are very strict and monitor to find and shut down unauthorized STRs. Just went through the process and it was not terrible but it was a pain. They only granted us 10 true STR stays for the 1st year. Said if everything went fine they will extend it next year. In my opinion it's more of it being new and not knowing what to do than being against STRs. They of course want their tax cut.

- Srini



Thanks Clayton! What is considered STR? is month to month STR or STR means the VRBO kind of couple day stay?


They consider anything less than 30 days a STR.


 I know a way around the AirBnB restrictions in Tuscaloosa! 

Also, I have a property under contract in Tuscaloosa , SF 3/2 . Numbers are solid. Would like to assign or JV with a money partner.


Nathan,I'm interested. Please unicast me.