Waiting to Close

I’ve been trying to do research on removing squatters from a property and struggling to find relevant information. Squatter’s rights are a way that law makers could allow property to be put to use. If a landowner has not used their property for years, but someone else makes use of that property, eventually they can come to own it. (check out the Stuff You Should Know podcast on how squatting works, it’s a great resource and really fascinating.) In Alabama, if a person can prove they have been paying property taxes and utilities on a property for 10 years, they can claim legal ownership of that property. We know that this is not the case at our squatter house, so the problem is finding out how to remove squatters that don’t have these ownership claims yet. I’ve talked to people that said they were able to have the sheriff immediately remove people for breaking and entering. I’ve talked to some people that said they had to go through the full eviction process. It seems that legally we’re in a gray area.
So I called Jefferson County Sheriff, where the property is located and explained the situation. They said they don’t do evictions (even though this shouldn’t be an eviction since they have no rights to be in the property) and that we should call the Birmingham Police Dept. When I called Birmingham Police, they told me I needed to call Jefferson Sheriff (of course, haha)
After talking further with the police dept., they told me they wouldn’t remove the people from the house, but they would accompany me to do it myself. Better than nothing!
We had discussed breaking in to the house via a window (since they need to be replaced anyways) and removing all the personal items on to the curb while the police were there to supervise. This would obviously be the easiest route, we could go during the day when no one was there, remove the items, change the locks, and drill some plywood over the broken window until it can be replaced. However, we ruled out this option after driving by again and realizing it looks like an entire family living in the property. Though we haven’t been able to see inside, it could take hours to remove all the furniture and personal items from the house. I really wouldn’t feel comfortable having anyone from this family arrive while I’m kicking all of their stuff to the curb, even if there is an officer there. It didn’t sound feasible and it definitely didn’t sound safe. So moving on to plan B….

Plan B is going to the “cash for keys” strategy. I’m hoping to go knock on the door (with police back up there just in case), kindly explain who I am and ask for them to leave, offering them $500 if they can be out of the house in 24 hours.

Currently, we are still awaiting closing as the seller was missing some entity paperwork. As soon as we close I’ll head over to the property and see what happens! Stay tuned for an update and see if we need to move to plan C.

Squatter House

Some of you are aware that we also have real estate investments in Birmingham, AL. We love Mammoth and it is a such a joy to invest, live and play there, but we also have taken advantage of the low cost of entry and high returns in the Birmingham market. Shelby grew up there and her family still lives there, so it’s also a great excuse to visit family regularly! We currently own two cash-flowing single family homes there and are hoping to close on a third very soon!This home is definitely going to be very different than our first two units, which were turn-key properties that we purchased with tenants already in them.

This new residence is for sale one block away from a house we currently own in a transitional area of town that I really like. The property was listed on the MLS for $40,000. I drove by and saw this adorable yellow house with a white picket fence and a large porch and fell in love. I called my agent and asked how much the tenants were paying. When she called me back, she said the property was vacant, there was no tenant. Funny thing is, there was DEFINITELY someone living there. When I drove by, there was a barbecue grill on the front porch, a bag of trash out front, and kids toys in the yard. The agent offered to go over there to double check, so I sent my dad with her (I had already gone back to Mammoth). When they arrived, they had found that there were actually people living there, they had changed the locks and installed a security camera. There was also a brand new HVAC system and vent installed.

My initial instinct was to immediately walk away and forget about this property. Wes, however, mentioned that maybe we should make an as-is offer on the property for significantly lower than asking price and take care of removing the squatters ourselves. I did a little bit of quick googling about squatter’s rights in Alabama and realized that could be a good idea. We ended up making an offer of $16,500 with no contingencies, which was accepted!

Setting Up New Listings

We’re in the process of adding three new listings this month! We’re very particular about the units we take on, and have a waiting list right now, so finding the perfect combination of unit, owner, and help to make it happen has been wonderful. I thought now would be the perfect time to talk about the process we go through when setting up a new listing.

Step 1- Purge

A lot of units in Mammoth have been around and in the same family for many years. It’s wonderful that our owners are building equity and have that special family gathering place, but often their vacation condos also become a gathering place for years of junk that never gets tossed. Think, VHS tapes, stereos, giant old tvs, lots of extra bedding and blankets that have seen better days, random knick knacks that collect dust. It all needs to go! Toss it, donate it, sell it if you can, but we’re looking for a fresh start. A unit shouldn’t feel sparse and bare, but when it’s cluttered with stuff it doesn’t make a good impression on guests.

Step 2- Repairs and Deferred Maintenance

Now that we’ve got all the unnecessary stuff out of the unit, we’re going to go through every room to look for deferred maintenance or repairs that need to be made. Almost always, we’re going to recaulk everything in the bathrooms. This is often neglected for years and mildew in the bathroom caulk is always a turn-off, making the unit look dirty even if it’s just been scrubbed. Check all the plumbing and drains, make sure all the light bulbs work. Clean the heaters and make sure they’re working properly. Check the blinds and curtains to make sure they move easily and aren’t ripped or torn. Once you’re sure everything is in good working order, then it’s time to clean!

Step 3- Deep Clean

Scrub it all. You know the drill. Shampoo the carpets, wipe down the walls, wash the inside and outside of the windows, wash all the pots and pans. Pro Tip: you can buy the same material that magic erasers are made out of in bulk on Amazon for dirt cheap. They’re ahhhhmazing, especially for things like wall scuffs and the grime around the bathtub. recaulking

Step 4- Staging and Supplies

Now that everything is working and clean, it’s time to bring in the fresh linens, bedding, paper products, toiletries, etc. New, crisp duvet covers  that match if you have more than one bed in the room are great. We provide coffee beans and hot chocolate mix in every unit, so placing out those items. Prep as if you have your first guest arriving and it’s the Queen of England. Here is a list of things we provide to help get you started.

  • toilet paper with extras
  • paper towels
  • dish soap/ sponge
  • dish detergent
  • laundry detergent/ dryer sheets
  • coffee filters
  • creamer and sugar
  • salt, pepper, olive oil
  • coffee beans and hot cocoa mix
  • bath towels, wash cloths, hand towels, kitchen towels
  • hand soap
  • shampoo, conditioner, body wash
  • sign with wifi information
  • information binder

Step 5- Photos and Listing

Get a professional photographer. Just do it.
Take extra time setting up the listing by reading other units reviews and descriptions. I recommend going on to Airdna.com to check out the top listings in your area and see what they look like. Is there anything you can learn about their success to apply to your own listing? Use both a mobile device and a computer when setting up the listing, as Airbnb’s process actually gives you different options on each. Make sure every section is filled out. Before opening up the calendar, make sure to check the pricing of other units for the same dates. You want to price yourself very low for the first few weeks to attract guests to your listing even though it won’t have any reviews. This is where having other listings and being a superhost comes in really handy. Guests who otherwise wouldn’t book a property without any reviews will see the badge next to your name and be able to read all the other good reviews for your other properties.

Step 6- Get Those Reviews!

Price yourself low and then make sure your guests have an amazing experience. Check in with each one and ask for feedback. Be honest that they’re one of the first guests and see if they have any suggestions. If there’s something you missed, guests will be less likely to leave a bad review if they feel like they’re helping you out and that you legitimately care what they think. I will ask the first handful of guests to let me know what could be improved, and if they had an amazing stay, to leave a review. The first 10 reviews need to be stellar!! Once you’ve got these under your belt, you’re off to the races! Keep up the momentum and you can begin to raise prices. Good luck!!