Can’t find descent property management in Detroit
Member since 2021 · 1 post · 0 votes
Can’t find descent property management in Detroit
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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
5yDetroit is a very difficult market so you will really have to work hard to find solid investments, a solid manager, and solid renters. Remember: cheaper doesn't mean you'll make more money.
You can start by going to www.narpm.org to search their directory of managers. These are professionals with additional training and a stricter code of ethics. It's no guarantee but it's a good place to start. Regardless of how you find them, try to interview at least three managers
1. Ask how many units they manage and how much experience they have. If it's a larger organization, feel free to inquire about their different staff qualifications.
2. Review their management agreement. Make sure it explicitly explains the process for termination if you are unhappy with their services, but especially if they violate the terms of your agreement.
3. Understand the fees involved and calculate the total cost for an entire year of management so you can compare the different managers. It may sound nice to pay a 5% management fee but the extra fees can add up to be more than the other company that charges 10% with no add-on fees. Fees should be clearly stated, easy to understand, and justifiable. If you ask the manager to justify a fee and he starts hemming and hawing, move on or require them to remove the fee. Don't be afraid to negotiate!
4. Review their lease agreement and addenda. Think of all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.
5. Don't just read the lease! Ask the manager to explain their process for dealing with maintenance, late rent, evictions, turnover, etc. If they are professional, they can explain this quickly and easily. If they are VERY professional, they will have their processes in writing as verification that it is enforced equally and fairly by their entire staff.
6. Ask to speak with some of their current owners and current/former tenants. You can also check their reviews online at Google, Facebook, or Yelp. Just remember: most negative reviews are written by problematic tenants. The fact they are complaining online might be an indication the property manager dealt with them properly so be sure to ask the manager for their side of the story.
7. Look at their marketing strategy. Are they doing everything they can to expose properties to the widest possible market? Are their listings detailed with good quality photos? Can they prove how long it takes to rent a vacant property?
This isn't inclusive but should give you a good start. If you have specific questions about property management, I'll be happy to help!
The DIY Landlord Book4.7247 Reviews
6 Replies
- Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes5y
Detroit is a very difficult market so you will really have to work hard to find solid investments, a solid manager, and solid renters. Remember: cheaper doesn't mean you'll make more money.
You can start by going to www.narpm.org to search their directory of managers. These are professionals with additional training and a stricter code of ethics. It's no guarantee but it's a good place to start. Regardless of how you find them, try to interview at least three managers
1. Ask how many units they manage and how much experience they have. If it's a larger organization, feel free to inquire about their different staff qualifications.
2. Review their management agreement. Make sure it explicitly explains the process for termination if you are unhappy with their services, but especially if they violate the terms of your agreement.
3. Understand the fees involved and calculate the total cost for an entire year of management so you can compare the different managers. It may sound nice to pay a 5% management fee but the extra fees can add up to be more than the other company that charges 10% with no add-on fees. Fees should be clearly stated, easy to understand, and justifiable. If you ask the manager to justify a fee and he starts hemming and hawing, move on or require them to remove the fee. Don't be afraid to negotiate!
4. Review their lease agreement and addenda. Think of all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.
5. Don't just read the lease! Ask the manager to explain their process for dealing with maintenance, late rent, evictions, turnover, etc. If they are professional, they can explain this quickly and easily. If they are VERY professional, they will have their processes in writing as verification that it is enforced equally and fairly by their entire staff.
6. Ask to speak with some of their current owners and current/former tenants. You can also check their reviews online at Google, Facebook, or Yelp. Just remember: most negative reviews are written by problematic tenants. The fact they are complaining online might be an indication the property manager dealt with them properly so be sure to ask the manager for their side of the story.
7. Look at their marketing strategy. Are they doing everything they can to expose properties to the widest possible market? Are their listings detailed with good quality photos? Can they prove how long it takes to rent a vacant property?
This isn't inclusive but should give you a good start. If you have specific questions about property management, I'll be happy to help!The DIY Landlord Book4.7247 Reviews - Member since 2019 · 248 posts · 248 votes5y
Originally posted by @Account Closed:
Hi BP!
I am an investor in Detroit. I have great difficulties in finding a descent property management company or property manager. My last one went MIA... I would love to know if anyone had any recommendations.
Thank you!
What you need to realize - WHAT ALL DETROIT INVESTORS NEED TO REALIZE, is you will NOT find a good PM in Detroit. The tenant base is so incredibly difficult to deal with a PM is not going to do that for free. The little 10% they are collecting is not worth the challenges of working with Detroiters. The only way is it worth it for a PM to manage your properties is if he can hose you for $1000 a month in repairs to the property.
Sure, you can spend 3x market rate for a property in Dan's man made bubble and rent to quicken kids and it may be easier... but you'll make no money there either. You want to make money in Detroit? You must have YOUR boots on the ground. Can't do that? Stick to the burbs
- Investor · Arroyo Grande, CA · Member since 2014 · 1k+ posts · 1k+ votes5y
Originally posted by @Paul S.:
Originally posted by @Account Closed:
Hi BP!
I am an investor in Detroit. I have great difficulties in finding a descent property management company or property manager. My last one went MIA... I would love to know if anyone had any recommendations.
Thank you!
What you need to realize - WHAT ALL DETROIT INVESTORS NEED TO REALIZE, is you will NOT find a good PM in Detroit. The tenant base is so incredibly difficult to deal with a PM is not going to do that for free. The little 10% they are collecting is not worth the challenges of working with Detroiters. The only way is it worth it for a PM to manage your properties is if he can hose you for $1000 a month in repairs to the property.
Sure, you can spend 3x market rate for a property in Dan's man made bubble and rent to quicken kids and it may be easier... but you'll make no money there either. You want to make money in Detroit? You must have YOUR boots on the ground. Can't do that? Stick to the burbs
Sir, can I hire you to manage my properties?
- 5yDrew SygitBusiness MemberProperty Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
@Ana Be Despite what @Paul S. states, there are a few good ones and we like to think we're one of them:)
Logical Property Management4.9459 Reviews - Shawnee Mission, KS · Member since 2016 · 719 posts · 313 votes5y
More problems more money seems simple maybe it is .Any one willing to charge 10% with no add on for service calls jump on it . Older homes are going to need service calls then you have to shuffle all the fees for each service calls from the manager not worth it!
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