Looking for Property Management in Royal Oak, MI
Hey Bigger Pockets,
New listener here I've lived in a home in royal oak for a little over 3 years. I'm moving out of the area and wanted to see if I could rent this home and use it to start my investing side hustle. I'm talking to a couple property management companies currently but wanted to post on the forums and see if I could get some recommendations from anybody in the area from the BiggerPockets community. Also, any information about city ordinance for rental properties or any other experiences in the Royal Oak area would be greatly appreciated. Thanks for any help in advance!
#2 Managing Your Property Contributor
- Property Manager
- Royal Oak, MI
- 3,638
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#2 Managing Your Property Contributor
- Property Manager
- Royal Oak, MI
Even if someone give you a referral, what meets their expectations, may not meet yours.
In our experience, the #1 mistake owners make when selecting a Property Management Company (PMC) is ASSUMING instead of CONFIRMING.
It's often a case of not doing enough research, as they don't know what they don't know!
Owners mistakenly ASSUME all PMCs offer the exact SAME SERVICES and PERFORM those services EXACTLY THE SAME WAY, so price is the only differentiator.
So, the first question they usually ask a PMC is about fees - instead of asking about services and HOW those services are executed.
EXAMPLE: PMC states they will handle tenant screening – what does that specifically mean? What documents do they require, what credit scores do they allow, how do they verify previous rental history, etc.? You’d be shocked by how little actual screening many PMC’s do!
This also leads owners to ASSUME simpler is better when it comes to management contracts.
The reality is the opposite - if it's not in writing then the PMC doesn't have to provide the service or can charge extra for it!
We have a 14-page management contract that we've added our real experiences to over the years, with the intent of protecting both us AND the landlord. Beyond the Monthly Management, Placement & Maintenance fees, all other fees in our contract are IF EVENT -> THEN fees.
We don’t know any PMCs to recommend in the area mentioned, but since selecting the wrong PMC is usually more harmful than selecting a bad tenant, you might want to read our series about “How to Screen a PMC Better than a Tenant”:
We recommend you get management contracts from several PMCs and compare the services they cover and, more importantly, what they each DO NOT cover.
EDUCATE YOURSELF - yes, it will take time, but will lead to a selection that better meets your expectations & avoids potentially costly surprises!
P.S. If you just hire the cheapest or first PMC you speak with and it turns into a bad experience, please don’t assume ALL PMC’s are bad and start trashing PMC’s in general. Take ownership of your mistake and learn to do the proper due diligence recommended above😊
P.S.S. note we do NOT use the DM feature here.
#2 Managing Your Property Contributor
- Property Manager
- Royal Oak, MI
- 3,638
- Votes |
- 7,028
- Posts
#2 Managing Your Property Contributor
- Property Manager
- Royal Oak, MI
@Dominic Busacca Royal Oak requires an exterior only rental inspection every two years.
You need a rental license. it's like 100$ every year or two. Short term rentals are very popular in this area and can offer good return. Let me know if you need help in that arena.
Quote from @Drew Sygit:
Even if someone give you a referral, what meets their expectations, may not meet yours.
In our experience, the #1 mistake owners make when selecting a Property Management Company (PMC) is ASSUMING instead of CONFIRMING.
It's often a case of not doing enough research, as they don't know what they don't know!
Owners mistakenly ASSUME all PMCs offer the exact SAME SERVICES and PERFORM those services EXACTLY THE SAME WAY, so price is the only differentiator.
So, the first question they usually ask a PMC is about fees - instead of asking about services and HOW those services are executed.
EXAMPLE: PMC states they will handle tenant screening – what does that specifically mean? What documents do they require, what credit scores do they allow, how do they verify previous rental history, etc.? You’d be shocked by how little actual screening many PMC’s do!
This also leads owners to ASSUME simpler is better when it comes to management contracts.
The reality is the opposite - if it's not in writing then the PMC doesn't have to provide the service or can charge extra for it!
We have a 14-page management contract that we've added our real experiences to over the years, with the intent of protecting both us AND the landlord. Beyond the Monthly Management, Placement & Maintenance fees, all other fees in our contract are IF EVENT -> THEN fees.
We don’t know any PMCs to recommend in the area mentioned, but since selecting the wrong PMC is usually more harmful than selecting a bad tenant, you might want to read our series about “How to Screen a PMC Better than a Tenant”:
We recommend you get management contracts from several PMCs and compare the services they cover and, more importantly, what they each DO NOT cover.
EDUCATE YOURSELF - yes, it will take time, but will lead to a selection that better meets your expectations & avoids potentially costly surprises!
P.S. If you just hire the cheapest or first PMC you speak with and it turns into a bad experience, please don’t assume ALL PMC’s are bad and start trashing PMC’s in general. Take ownership of your mistake and learn to do the proper due diligence recommended above😊
P.S.S. note we do NOT use the DM feature here.
Super good information. I really appreciate the honest and direct answer. This guide has much better questions than what I have noted down as I have been screening property managers. I have about 3 I'm shopping around with right now so I am taking my time and trying to vet them right in line with your advice. I got a general list of questions about all the services from one of the episodes of Real Estate Rookie podcast but those are all valid points about the tenant screening process. Yes, they could be screened but what does that actually entail. That same principal can be applied to other services(more in-depth description of what that service provides and how they go about doing so). Also, I noted the information about the Rental inspections and License. That is good information to have up front. I liked the property for a long term rental but I never explored short term. I assume royal oak is a good market for it due to it's lively downtown and close proximity to downtown Detroit. Something to definitely consider. Thanks @Drew Sygit @Matt Borton
#2 Managing Your Property Contributor
- Property Manager
- Royal Oak, MI
- 3,638
- Votes |
- 7,028
- Posts
#2 Managing Your Property Contributor
- Property Manager
- Royal Oak, MI
@Dominic Busacca if you like Standard Operating Procedures, check out those on our website as a guide.
I've managed properties in Royal Oak and am a Realtor. I'll send you a message and see what your thoughts are.
There are some great replies in here already but I would also want to suggest the use of virtual management software as a supplement to traditional management as well.
There are some powerful software tools out there that essential manage all of those units from your computer screen (collect rent, process maintenance tickets).
Hire a local handyman and they can act as your boots on the ground in case of notices or emergencies.
This may help you save a couple hundred bucks down the road from the rising prices that management companies are charging now.
Here are some of my software suggestions: Marble, Apartments.com, Avail, Buildium
#2 Managing Your Property Contributor
- Property Manager
- Royal Oak, MI
- 3,638
- Votes |
- 7,028
- Posts
#2 Managing Your Property Contributor
- Property Manager
- Royal Oak, MI
@Lisa Wright you need a brokers license to manage rentals in Michigan:)
@Drew Sygit I need a real estate license to be working under a broker. And actually so long as you are working directly for the owner, you don't need a license at all.
"When do you need a real estate license to manage a property?
Every situation is unique, so it's always advised to consult with your state's department of licensing. Under the Michigan Public Act, anyone who engages in property management* MUST obtain a Michigan real estate license under the definition of either salesman or broker.
Exceptions:
- No license is required for direct employees acting on behalf of the property owner.
- If activities are limited to areas such as property upkeep or bookkeeping functions, and do not include leasing or renting of the property, a license is not required.
*By definition, property management is the leasing or renting (or offering to lease or rent) a property for another (individual or business) for a fee, commission, or other valuable compensation pursuant to a property management employment contract."
#2 Managing Your Property Contributor
- Property Manager
- Royal Oak, MI
- 3,638
- Votes |
- 7,028
- Posts
#2 Managing Your Property Contributor
- Property Manager
- Royal Oak, MI
@Lisa Wright we're actually trying to be helpful as in our 22 years, we've found many agents that didn't know the state laws:)
@Dominic Busacca focus on services and then price. Anyone can ‘manage’ anything for 1% but what service are you really getting ;)
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Property Manager
- G3 Management & Investments
- 810-844-1104
- http://www.G3Manage.com
Quote from @Drew Sygit:So you corrected me by commenting with misinformation? Just very odd. I've found a lot of agents as well as property management companies that do not know the laws. Actually 2/3rds of the management companies I worked for had no clue. I also notice a load of owners who are going to rent it out for top dollar who don't understand the rules or even how to keep the house not vacant and in good working order. Education with correct information is so important.
@Lisa Wright we're actually trying to be helpful as in our 22 years, we've found many agents that didn't know the state laws:)