{"id":94347,"date":"2018-01-03T05:00:37","date_gmt":"2018-01-03T12:00:37","guid":{"rendered":"https:\/\/www.biggerpockets.com\/renewsblog\/?p=94347"},"modified":"2024-01-27T10:04:30","modified_gmt":"2024-01-27T17:04:30","slug":"owner-management-metro-detroit","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/owner-management-metro-detroit","title":{"rendered":"Realities of Low-End Rental Markets: Owner Management in Metro Detroit"},"content":{"rendered":"

Our company operates out of the Metro Detroit area, which contains the second least expensive housing market in the United States as of this writing. That means we’ve got a solid perspective on low-cost rental markets that you won’t find much advice about online. This month, we’re going to talk a bit about how operating in a high risk\/high reward environment affects the property management process. Today, our topic is how Detroit’s property owners frequently differ from the nationwide norms.<\/p>\n

The Psychology of High-Risk Investment<\/h2>\n

Detroit is not a place where you can reasonably be judgmental about wealth or income\u2014we’ve all<\/em> been harshed on by economic circumstances that no one had control over. That’s part and parcel of any<\/em> investment process. In a high-risk\/high-reward environment like Detroit’s real estate market, having some owners who are reaping the high rewards while others struggle to withstand the sudden actualization of the high risk is normal.<\/p>\n

Part of our job is to mitigate the risk while making it easy to collect the rewards, but it’s definitely not <\/em>our job to absorb the risk\u2014so at any given time, there are some people signed up with us (or any other property manager in this kind of high-stakes economy) who are scrambling to find a way through a temporary financial challenge.<\/p>\n

\"detroit-evictions\"
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\nRelated:<\/strong> The Risks and Rewards of Screening Tenants in the Detroit Rental Market<\/a><\/em><\/p>\n

Problems Unique to an Owner\u2019s Financial Setback<\/h2>\n

Any owner who is experiencing financial issues, trying to turn things around before they go under, is obviously going to be under some significant stress. It’s perfectly natural that they will take some of that stress out on us, and we’re accustomed to it. That’s why we’ve developed robust systems<\/a> to track and report on our own internal processes: It helps assure scrambling owners that we’re not neglecting, abusing, or otherwise mistreating their properties, tenants, and remaining risk tolerance.<\/p>\n

\u00a0<\/strong>But even with those systems in place, we still have to deal with owners:<\/p>\n