09 February 2008

Tenants, Landlords, and Rights

One of the things that my father used to tell me was that investing in land was never a bad thing. I think he was probably correct; however, I don't believe he had rental property in mind when he made this statement.

The State of Alabama enacted the Alabama Uniform Residential Landlord and Tenant Act of 2006 to ensure that tenants rights are protected and that there is a uniform process for evicting tenants. From what I can tell, this new law has made it easier than ever to "live free" in the United States, at least in our fair state. From what I hear from circuit court clerks, other landlords, and at least one judge, is that we have made owning a home almost unreasonable. As long as you don't mind moving every few months, and especially if you don't mind writing bad checks, you can live for free in rental property in this state.

Prepare for entertaining reading, following are the rules from one Alabama county clerks office (scanned from actual handout):

"Filling Out Eviction
First: Give the tenant a written eviction notice. You can serve this
personally, tape it to the door or by mail. After 7 business days of serving this eviction, you can now file an eviction through the clerk's office. This is called an Unlawful Detainer.
If you want to get tenant out ancl claiming NO MONEY.
Fill out the Unlawful Detainer form. This will cost you $237.00 if single person, $247.00 if husband & wife. We will send it to sheriff's office, and this will be served or taped to the door. The tenant will have 7
business days
to file an answer or get out from the day it is served or taped to the door. If the tenant does not file on answer, you can come in and file a Default Judgment and this will cost you $50.00. Then the tenant will have 14 additional business days to appeal. If the tenant still does not get out, then you can call us and Judge at his discretion may do a Writ of Possession to get them out (you may want to call the sheriffs office to see if they require you to actually get the tenant out).
If you want to get the tenant out and CLAIMING MONEY.
Fill out the Unlawful Detainer form. This will cost you $237.00 if single
person, husband and wife it is $247.00. We will send it to sheriff's office,
and this will be served ( it must be personally served on the defendant
in order to claim money-NOT taped to door) on defendant.
Defendant will have 14 days to file on answer. If defendant does not
file on answer within the 14 days, you can come in and file a Default
Judgment ($50.00). Then you will have to wait 14 additional days
for the defendants right to appeal-If defendant does not appeal you
can call us on the 15th day and Judge at his discretion may do Writ of
Possession. Then (on the money) you can file to garnish their wages
($30.00)-if they make enough money to garnish or file on execution
to pick up personal property (you will have to have the proper
information for the sheriffs office to execute).
** In both cases if defendant answers the complaint Judge will set case
for trial and both parties will be notified. Both parties will come before
a hearing and tell your side-Judge will make a decision and you will
be notified.
Filing Fee's
Unlawful Detainer $237.00
Husband & Wife $247.00
Default Judgment $50.00
Garnishment $30.00
* Forms are available at clerk's office."
Notice, that nowhere in here, does it cost the tenant a thing. If you decide to try and recover your money, that gives the tenant extra time. So, if you are a tenant, and can count; you just need to be ready to move every few months and you're not out a single thing.
If, after inspecting the premises, you decide that between any damages and money owed, you want to try for your money, then you try for Small Claims Court. This also requires that you keep up with where the teant goes - almost impossible to do. Small Claims Court is also probably throwing good money after bad - if the tenant intended to pay the rent to begin with, then the landlord wouldn't be in this situation.
Bet that my father would rethink his position about investing in real estate - unless it is acres of open or wooded land, with no restrictions, and definitely no tenants.

2 comments:

Anonymous said...

Having observed both side personally I have to agree and disagree. Having lived in rented apartments for several years and suffered the arbitrary demands and studied inaction of the owner's agents, I have some considerable sympathy for renters. Having watched over family rental property, I have considerable sympathy for owners.

I would advance that there are more people who rent than people who have property to rent. Hence we may expect a certain bias on the part of legislature lizards.

I will offer you a less expensive means of getting rid of tenants. Go to the local government and get a permit of destruction to raze the building. Send a letter to the tenant informing them that their lease/rental agreement is terminated in (however many days is in the agreement) because the building is being destroyed. Post the certificate as required. A week before the date go out and put stakes and twine around the building with taped on signs announcing that the building will be razed on such-and-such date.

Anonymous said...

I like your idea - unless I actually have to raze the building. :-)

I understand both sides of the coin; however, it should not cost a landlord who has lived up to their agreement, this much time, effort, and money; while costing the tenant nothing, just giving them free time to live there legally.

That's why your idea is better. I hadn't thought of that.