Royal Rose Properties (Detroit) review

Royal Rose Properties (Detroit) review

Silver Spring MD · Member since 2015 · 198 posts · 116 votes

      I used Royal Rose Properties to manage my properties in Detroit because they had a very good reputation on here.  My experience with them was less than awesome, so I'm posting this so that others know what they're getting involved with in advance.

      Here's the TL;DR (If you want the gory details, read below):  They are honest,  but inefficient, snarky and poor communicators. 

      First, the good:  

      • They don't steal from you.  It's unfortunate that this has to be called out, but this was actually better than my first management company, which charged me for work they didn't complete, and never transferred my tenant's security deposit. I should really be taking that company (Cameron Group of MI) to small claims court, but I don't have the bandwidth to deal with that. 
      • They also provided video proof as well as invoices for work completed, which was great. 
      • They use propertyware, which gives very nice reporting and statements. 

      Now, the not-so-good:

      • Their communication left a lot to be desired.  This both with the tenant and with me.  
        • The tenant that was in the property had an eviction judgement that required her to pay an extra $200/month until the balance was even.  When I transferred to Royal Rose, it took a few months until I got them the correct documentation to justify the increased charge.  When that was cleared up, they just added it to her bill, without calling to let her know that it would be coming, and why.  The tenant called up really angry and gave 30 day notice.  Now, she may have left anyway, but I think a little communication would have gone a long way.  
        • With me: there were many, many times that questions I would ask via their owners portal would not be responded to for days at a time, and sometimes not at all.  
      • It took about SIX MONTHS to do a basic renovations/make ready on my property. (Six of those weeks were my fault, it took me a while to approve the work because I wasn't sure about my strategy for the property) This despite initial estimates of make-ready and placing a tenant being accomplished within 2-4 weeks. 
      • Even after the work was done, they were extremely lethargic about getting it tenanted.  
        • The listing only went up about a *month* after the work was completed, despite my prompting 3 days after the work was done.
        • They listed it for more than I thought was appropriate without consulting me.
        • They sent me a marketing report every other week telling me the level of activity.  However, after 6 weeks when they said the level of interest was sufficient, so they weren't going to do anything different, the property was *still* not rented.  
      • They are snarky, rude and condescending.  I can give numerous examples of this, but I will just share the one that broke the camels back.  I was considering selling this property, which I acquired with a quick claim deed.  To do that, I first wanted to clear the title.  I asked for assistance with this.  Royal Rose told me they would find a real estate attorney to help me out with this, and get a bid.  They eventually came back and told me they had someone who could do it for $1500.  I asked what the name of the attorney was so that I could do some research.  The response I got was:  

    Now, if their response would have been something like "It is against our policy to share the information of our providers until you sign xyz" or whatever, I would have completely understood. But I don't think I was unjustified in double checking their choice, and this response was just unprofessional and uncalled for. 

    So that's my experience.  If you have any questions, you can reach out to me.  All in all, investing in Detroit was definitely a learning experience, and one that I am not eager to repeat. 

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Specialist · Kiryat Motzkin, Israel · Member since 2014 · 266 posts · 159 votes
9y

Thanks for sharing @Rivy S.

I never used Royal Rose- but used 3 others in succession when I was in the Detroit market. In the end they were all disasters. I have said before that if there is a good PM working in Detroit I havent found them . Now that I know all too well what owning C-D class properties in Detroit entails- I also understand why there are no decent PM's- It cannot be done properly and profitably- its one or the other. After a long and hard learning experience I do not believe that SFR investing can be effectively done in Detroit from out of state.

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  • Specialist · Kiryat Motzkin, Israel · Member since 2014 · 266 posts · 159 votes
    9y

    Thanks for sharing @Rivy S.

    I never used Royal Rose- but used 3 others in succession when I was in the Detroit market. In the end they were all disasters. I have said before that if there is a good PM working in Detroit I havent found them . Now that I know all too well what owning C-D class properties in Detroit entails- I also understand why there are no decent PM's- It cannot be done properly and profitably- its one or the other. After a long and hard learning experience I do not believe that SFR investing can be effectively done in Detroit from out of state.

  • Silver Spring MD · Member since 2015 · 198 posts · 116 votes
    9y

    @Saul L. It it can be done effectively from out of state, I haven't seen the way.  I'm in the process of getting out now, and I'm just hoping I don't come out too  much in the red.

    On the other hand, though, the barrier to entry is so low that it makes it easy for newbies to jump in. These were my first properties, and got me over the "analysis paralysis" stage.  Since then I have acquired other, more profitable, properties.  So while these have been a constant headache, I'm not sure I regret taking the leap on them. 

  • Las Vegas, NV · Member since 2017 · 1 post · 1 vote
    8y

    I hired royal rose properties to managed my portfolio and it was a desaster! His portal is old and not efficient, he never gone to the properties and only send tenants eviction process ! No discussion or meeting with tenants. He charged so many repairs never done and never been agreed by owner and he was very rude if you request explanation or invoices. After 1 year of the worst managing ever i decide to leave Drew and his company and many issues started as he became upset and put illegaly lien to most of my properties. Please stay far from that company !!! Or be ready to spend much money on attorney s fees to sue RRP and its fraud methods.

  • Member since 2018 · 1 post · 1 vote
    7y

    STAY AWAY! First off this place will charge you $935 to terminate their services! This place is a rip off if you're an investor! Their web portal is outdated and ugly and hard to navigate. They are sloppy with everything and you'll waste all your time correcting their mistakes in an endless email chain that will have you doing emails all damn day. Their employees are very polite but horrible at looking at things from an investors perspective. They come to you with half answers that force you to tell them what they need to look for. A good manager is someone who is an investor and can think like one. Their employees are just that. Employees! They don't really know how to make your job easy. I end up having to manage them! Not to mention the people they send out overcharge. So many times I'd have another person come and the job was next to nothing compared to what their contractors charge. They sent someone who said it would be 4K of work because he had to go to the 'basement' to replace a pipe! NEWS FLASH: The house has NO BASEMENT! It's on a slab! I ended up having to spend my entire day stressing over some person almost ripping me off!! And I had to catch that. And I had to manage them once again! Stay away. I'm pulling out of this company ASAP. There are plenty other managers that will charge you less, have contractors that won't rip you off and -- make you money! This company is a time and money suck. Stay away.

  • Real Estate Professional · Tampa, FL · Member since 2017 · 104 posts · 47 votes
    7y

    @Mike Ishaq I have a SFH property that is being managed with R.R and I thought they were doing fine ,but reading your and the reviews on this thread,I am beginning to doubt them. What I found unusual is that in the last 3-4 months they have been coming up with things to repair and also simultaneously we have been working on the lead mitigation which I began 6 months ago. I receive a ticket from the City just last week about the lead and I asked R.R.why they diverted my fund and attention to issues that could wait for a couple of weeks vs the lead mitigation that had a cut off date by the state. Another weird thing I found is they way they do accounting..the rent money they give me always changes every month even thought when they ask me for funding for repairs I always pay them. The do this wierd kind of accounting where they first adjust it against the rent , and then if there is excess left they will send you the balance later etc. For example assume the rent I should receive is $650 after they take their 10%, and in that month there is a agreed $200 repair task and I fully fund that expense...what they do is pay me 450 and then sometime later when the accounting catches up , they return me the 200 . Not sure why they do this and if this is a result of how their accounting is done. So if I pull up from their portal the rents received,it can vary all over the place. Do all P.M companies operate this way with their accounting?

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