Looking for Advice: Rental house in Ypsilanti

Looking for Advice: Rental house in Ypsilanti

Jess HammersleyPro Member
Traverse City, MI · Member since 2023 · 9 posts · 0 votes

Hey everyone, I have a 5 bedroom 2 bath house with a two car garage and fenced in yard in Ypsilanti, MI. In 2019 after some life changes I went to work with full-time travel. At the time I was very new to everything so I reached out to my Real estate agent and she was also doing property management. She took on the property management side for a reduced rate as I purchased the place recently through her. Fast forward to now we have had the same tenants in the place since 2019. They originally signed for 3 years and then year to year. They have now asked to do another 3-5 year long term lease. My property manager hasn't been taking care of things as much as I hoped, failing to even show up for the last city inspection. So going forward I am going to take over managing it myself. Please let me know how to price this properly for a lease term that would extend over those 3-5 years. They have been fairly good tenets and paid on time every time even through the pandemic. Market rent from what I can see in the area is about $3,000 per month for that size place, they are currently paying $2,000 per month as my PM was advising me she doesn't increase that much. Rent had gone up significantly since 2019 but the three year lease had them locked into that rate.  Thank you all for the advice in advanced!

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Nicholas L.Pro Member
Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
2y

OK - totally valid.  I find my PMs free me up to do other things though.  

Can you find a friendly local agent who will pull a CMA for you to help you sent the rent?

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  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    2y

    why not hire a professional PM

  • Jess HammersleyPro Member
    OP
    Traverse City, MI · Member since 2023 · 9 posts · 0 votes
    2y

    I have had one, and now that I have been taking care of many aspects I feel more comfortable taking care of this myself. When I first put it up for rent I was in a place that I didn't want to nor have the time to take care of all of it. 

  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    2y

    OK - totally valid.  I find my PMs free me up to do other things though.  

    Can you find a friendly local agent who will pull a CMA for you to help you sent the rent?

  • Michael SmytheBusiness Member
    Real Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes
    2y

    @Jess Hammersley your agent was NOT a professional PMC!

    Otherwise, your rent wouldn't be so far under the market.

    We’ve found the best way to raise rent is:

    • Determine market rent
    • Share the proof with the tenant
    • Tell the tenant, given your rent is $x and market rent is $y, what do you think if a fair increase?
    • Often, they may volunteer a higher amount than you were hoping for.
    • Those that respond “$0” or something ridiculous, you can request income documentation from them to justify.
    • Don’t be afraid to share with them how much your property taxes & Insurance increased and that YOU cannot afford to absorb them.

    ALWAYS get an increase or something of value annually or tenants will start thinking they should never have an increase, making future increases that much more difficult to negotiate.

    Logical Property Management4.9453 Reviews
  • Member since 2023 · 7 posts · 0 votes
    2y

    Jess, Tykey is in Willis and can help you out

  • Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
    2y
    Quote from @Jess Hammersley:

    Hey everyone, I have a 5 bedroom 2 bath house with a two car garage and fenced in yard in Ypsilanti, MI. In 2019 after some life changes I went to work with full-time travel. At the time I was very new to everything so I reached out to my Real estate agent and she was also doing property management. She took on the property management side for a reduced rate as I purchased the place recently through her. Fast forward to now we have had the same tenants in the place since 2019. They originally signed for 3 years and then year to year. They have now asked to do another 3-5 year long term lease. My property manager hasn't been taking care of things as much as I hoped, failing to even show up for the last city inspection. So going forward I am going to take over managing it myself. Please let me know how to price this properly for a lease term that would extend over those 3-5 years. They have been fairly good tenets and paid on time every time even through the pandemic. Market rent from what I can see in the area is about $3,000 per month for that size place, they are currently paying $2,000 per month as my PM was advising me she doesn't increase that much. Rent had gone up significantly since 2019 but the three year lease had them locked into that rate.  Thank you all for the advice in advanced!


     Fire them and hire a new PM simple 

  • Member since 2023 · 7 posts · 0 votes
    2y

    I manage about 20 properties between Detroit and Jackson and rents have gone up quite a bit. It's good to use a management company as the will typically have a proven process for raising rents.

  • Logan LaperriereBusiness Member
    Real Estate Agent · Grand Rapids, MI · Member since 2023 · 333 posts · 124 votes
    2y

    I agree with @Michael Smythe, Determine the true market rent for the property, show it to your tenants, and discuss with them a fair increase that works for both of you. Turnovers cost you money in repairs and lost rent. 

    Tenants that pay on time and would like to stay another 3-5 years that sounds great to me as a landlord. Just make sure that your new lease agreement has yearly rent increases. 

    If market rents truly have gone up 50% they may not be able to afford the increase. You may need to find new tenants. 

    Good Luck!

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