Investing in Detroit
As a retired landlord (13 years as an inner city landlord in Detroit and outlining areas) and so many people asking questions about investing here, let me say this......
YES there are still some sections in Detroit that have beautiful homes.
YES they are selling pretty cheap.
Tons of Property Management Companies are popping up day by day, their chops drooling with the though of all the money they can make by managing all these wonderful properties for outside investors who don't have a clue as to what Detroit has to offer.
Despite the fact that I physiclaly, lived and breathed being a landlord in the City of Detroit all these years, 24/7, seen it all, that most of you will never see in your entire landlord career, I am still challenged by some , and asked, "Why do you try to discourage people from investing here". Questions from people who are from out of state, trying to relocate others to a City that is in bankruptcy and full of crooks and yet think they know it all. They call me bitter and angry because I write about the truth, whereas they write and advertise to gain money.
Listen Folks, I have no skin in the game, no money to be made by me saying the truth. I say these things because I know how exciting it can be to dream the dream! But I also know how hard you worked for that invest money. I don't want to see you lose it! And everything you worked hard for!
So when I came across this Owner Agreement Contract with a Property Management Company that handles Detroit Properties, I laughed and said, Yep, this says it all...and here it is. (It's post online on their webpage for Owners to download and read. So I downloaded it)
.Q&A for Owners to Property Management Company
Question: My property has become vacant, what needs to be done?
Answer: If the property has become vacant it must be secured and cleaned as quickly as possible. (Property Management Company) is not responsible for damage to a property at any time, however, we take aggressive steps to ensure it is secured and protected.
Question: How is the property secured?
Answer: In most cases the properties appliances are removed and stored to protect from loss. This includes the hot water tank and the furnace I bolded this paragraph because it says it all. Yep, I've been there and done that. Dispite the fact that Security Bars are on every door and window, they put the little kids through the milk shuts and then the little rascals open up the door from inside.
Question: Is there a cost to remove the appliances?
Answer: Yes, depending upon the amount of the components that need to be removed. The labor cost is roughly $300 to $500 for removal and reinstallation.
Question: Can I request the appliances not be removed?
Answer: Yes, However, it is highly rcommended at least the furnace be removed from the house. We had just installed a $4,000 furnance, absolultely new, and the creeps broke in and stole the furnace, and it was a boiler unit for one of our old three plexes we had. Huge sucker. And they took it. Where there is a will there is a way.
Ask yourself these questions:
Do I want to have rentals in a place where I have to remove my water heater and my furnace after every tenant moves out?
And if this is such a good deal, properties in Detroit, then why aren't Michiganders buying up these properties right and left? Really, are we so stupid that we don't know a good deal when we see it. Look there are a ton of Investors in Michigan, but they stay away from Detroit.
Okay, I'm just trying to help. Do I care about Detroit? Absolutely! But ya gotta get rid of the crime first, get rid of all the Politicians in Detroit, clean house, start all over and then invest, but I'm telling you now, you do so at your own risk.
On this Property Managements Web Page I goodgled complaints and found one from an out of town investor. He said this placed couldn't keep a tenant there and he always had vacancy, but had to pay PM Fees all the same.
Just Sayin. Just trying to help. In answer to the challenging questions of why do I try to discourage people from investing in Detroit, my answer is, "You're absolutely right", why would I if it weren't true!
Nancy Neville