Non responsive property management in Detroit

Non responsive property management in Detroit

Member since 2023 · 10 posts · 6 votes

Hello

I have worked with 3 property management companies in Detroit for my properties in Detroit. None of the management companies have been great but this one is the worst.

Assigned 2 properties with this management company last year, common problems were 

1. Owner statements were consistently delayed by 15-20 days, a Jan 1-31 statement which was due on 15 Feb would show up some time in March

2. Every month one or both properties will have $200-300 maintenance charges, which fall under the threshold of not requiring owner permission. When asked, they'd respond vaguely in couple of weeks. Keep following up and they stop responding

3. Rent roll and monthly statements were not aligned, when asked they'd correct it and update in next statement which would take another couple of months for me to check

With this I was not able to keep my books in order, and realized I am losing almost 30-40% of actual cash flow to unknown items every month. I did setup a zoom call with the manager, and the manager skipped the call. 

After few months, the monthly statements stopped updating on the owner portal. I have been emailing, calling, request for a zoom etc to management since last 4 months and no success. Frustrated with no response I asked another PM to take over the management, which they have been cooperating. 

Recently, the original PM disbursed around 60% of the money I would have expected during these months from the rent. But still no statement. I think they'd frame maintenance bills like the previous months if I was to ever see the statements.

What are my options to deal with this management company? They are on the way out, but most management companies have similar traits in the area.



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Drew SygitBusiness Member
Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
1y
Quote from @Balkrishna Agrawal:

@Drew Sygit there were couple of red flags when we interacted last year 

- Your office scheduled a phone call and no one called on scheduled time, this happened twice. Third time is when we talked and that's when I talked about fees. While management fees is not the only criteria, it is important aspect for my business and bottom line profits.

- Based on the your posts about items to check on for PMC, I did read your reviews as well as got in touch with one of your existing client at the time. Its no different than my current experience. I appreciate your posts helping investors like me to be aware of 'things to look for in PMCs'

Based on my experience, I have learned few things in last one year. I will use this forum as a way to communicate with fellow investors but not to give in to marketing gimmicks.


 You must have us confused with another company.

All of our notes show YOU set up a single call with us on June 4 @ 3pm, which I made that call and spoke with you. We sent you info on June 6 and after no response from you, a team member called you on June 19 @ 5:27pm and you stated it was not a good time to talk and would call us back tomorrow. After not hearing from you, our team member followed up with you on Jun 26 @ 11:14am, when you told us you were staying with your current PMC.

It's also highly unlikely you spoke with an existing client of ours. Again, you probably have us confused with someone else.

Good luck with your approach.

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  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    1y

    Sounds like fraud unfortunately. Not uncommon in property management in the class C/D property class. 

  • Jaycee GreenePro Member
    Real Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 727 votes
    1y
    Quote from @Balkrishna Agrawal:

    Hello

    I have worked with 3 property management companies in Detroit for my properties in Detroit. None of the management companies have been great but this one is the worst.

    Assigned 2 properties with this management company last year, common problems were 

    1. Owner statements were consistently delayed by 15-20 days, a Jan 1-31 statement which was due on 15 Feb would show up some time in March

    2. Every month one or both properties will have $200-300 maintenance charges, which fall under the threshold of not requiring owner permission. When asked, they'd respond vaguely in couple of weeks. Keep following up and they stop responding

    3. Rent roll and monthly statements were not aligned, when asked they'd correct it and update in next statement which would take another couple of months for me to check

    With this I was not able to keep my books in order, and realized I am losing almost 30-40% of actual cash flow to unknown items every month. I did setup a zoom call with the manager, and the manager skipped the call. 

    After few months, the monthly statements stopped updating on the owner portal. I have been emailing, calling, request for a zoom etc to management since last 4 months and no success. Frustrated with no response I asked another PM to take over the management, which they have been cooperating. 

    Recently, the original PM disbursed around 60% of the money I would have expected during these months from the rent. But still no statement. I think they'd frame maintenance bills like the previous months if I was to ever see the statements.

    What are my options to deal with this management company? They are on the way out, but most management companies have similar traits in the area.



     @Balkrishna Agrawal Do you mind sharing the names of the PMC's you've already used? Or at least their initials (for example, if it's Acme Property Management, then it would be "APM"). I have a recommendation for you in Detroit and I hope he's not one of the 3 PMCs you've already used. 

    • Member since 2023 · 10 posts · 6 votes
      1y
      Stay away from these 

      Sunbeam Property Management 

      NREMG : National Real Estate Management Group

  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    1y

    After the second time of vague responses to what the charges for repairs were for, I'd have started looking for a new PM.  I'd add up what you are owed and take them to small claims course.  If they have a real estate license, also talk to the board and find out what other options you have.

  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    1y

    @Balkrishna Agrawal we spoke to you May 2024, but you told us you were staying with your current PMC because we wouldn't meet the drastically reduced fees you requested.

    Sounds like you changed PMCs since then and it didn't go well.

    Going to guess you're expecting to aggressively negotiate lower management charges - but then expect the best services!

    Feel free to reach out to us if you've realized this approach won't work and you're willing to pay for great service...

  • Member since 2023 · 10 posts · 6 votes
    1y

    @Drew Sygit there were couple of red flags when we interacted last year 

    - Your office scheduled a phone call and no one called on scheduled time, this happened twice. Third time is when we talked and that's when I talked about fees. While management fees is not the only criteria, it is important aspect for my business and bottom line profits.

    - Based on the your posts about items to check on for PMC, I did read your reviews as well as got in touch with one of your existing client at the time. Its no different than my current experience. I appreciate your posts helping investors like me to be aware of 'things to look for in PMCs'

    Based on my experience, I have learned few things in last one year. I will use this forum as a way to communicate with fellow investors but not to give in to marketing gimmicks.

    • Drew SygitBusiness Member
      Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
      1y
      Quote from @Balkrishna Agrawal:

      @Drew Sygit there were couple of red flags when we interacted last year 

      - Your office scheduled a phone call and no one called on scheduled time, this happened twice. Third time is when we talked and that's when I talked about fees. While management fees is not the only criteria, it is important aspect for my business and bottom line profits.

      - Based on the your posts about items to check on for PMC, I did read your reviews as well as got in touch with one of your existing client at the time. Its no different than my current experience. I appreciate your posts helping investors like me to be aware of 'things to look for in PMCs'

      Based on my experience, I have learned few things in last one year. I will use this forum as a way to communicate with fellow investors but not to give in to marketing gimmicks.


       You must have us confused with another company.

      All of our notes show YOU set up a single call with us on June 4 @ 3pm, which I made that call and spoke with you. We sent you info on June 6 and after no response from you, a team member called you on June 19 @ 5:27pm and you stated it was not a good time to talk and would call us back tomorrow. After not hearing from you, our team member followed up with you on Jun 26 @ 11:14am, when you told us you were staying with your current PMC.

      It's also highly unlikely you spoke with an existing client of ours. Again, you probably have us confused with someone else.

      Good luck with your approach.

    • Real Estate Broker · Minneapolis, MN · Member since 2011 · 5k+ posts · 6k+ votes
      1y
      Quote from @Drew Sygit:
      Quote from @Balkrishna Agrawal:

      @Drew Sygit there were couple of red flags when we interacted last year 

      - Your office scheduled a phone call and no one called on scheduled time, this happened twice. Third time is when we talked and that's when I talked about fees. While management fees is not the only criteria, it is important aspect for my business and bottom line profits.

      - Based on the your posts about items to check on for PMC, I did read your reviews as well as got in touch with one of your existing client at the time. Its no different than my current experience. I appreciate your posts helping investors like me to be aware of 'things to look for in PMCs'

      Based on my experience, I have learned few things in last one year. I will use this forum as a way to communicate with fellow investors but not to give in to marketing gimmicks.


       You must have us confused with another company.

      All of our notes show YOU set up a single call with us on June 4 @ 3pm, which I made that call and spoke with you. We sent you info on June 6 and after no response from you, a team member called you on June 19 @ 5:27pm and you stated it was not a good time to talk and would call us back tomorrow. After not hearing from you, our team member followed up with you on Jun 26 @ 11:14am, when you told us you were staying with your current PMC.

      It's also highly unlikely you spoke with an existing client of ours. Again, you probably have us confused with someone else.

      Good luck with your approach.


  • Clare PitcherBusiness Member
    Property Manager · Milwaukee, WI · Member since 2024 · 162 posts · 97 votes
    1y

    I'm so sorry to hear that this has been your experience.

    When hiring a property manager, it’s incredibly important to review the terms of their contract. Ideally, you’ll want to work with a company that offers a month-to-month agreement or requires only 30 to 60 days’ notice for termination. That way, if issues arise, you have the flexibility to exit the agreement quickly and minimize potential financial loss.

    Unfortunately, there are quite a few poor-quality property managers out there, so it’s essential to thoroughly vet any company before hiring them. This article from BiggerPockets is a great resource and outlines 78 questions you can ask a property manager before signing a contract:

    👉 78 Questions to Ask a Property Manager Before Hiring

    I hope this helps for next time, and best of luck moving forward!

    Welcome Home Milwaukee4.4453 Reviews
  • Real Estate Consultant · Detroit MI, USA · Member since 2025 · 2 posts · 1 vote
    1y

    Hi Balkrishna,

    Thank you for sharing your experience. I'm sorry you've had to go through all of that. I've been on both sides of this as a investor and working in property management. Many people express similar concerns which is why companies like mine exist. I recommend self managing to almost everyone because there is no true way to have a complete "hands off" experience and its hard for these companies to keep you as informed as you would like. It sounds like a systems failure and operations failure. 

    Companies like mine help owners navigate the Detroit landscape and provide on-demand services when and where they are actually needed. Its normal to incur costs but you should be made aware of the expense prior to it being authorized and executed. With property management companies, their agency exists for a reason, but there is usually a delay in notification for a variety or reasons; however, the timelines you provided is unacceptable. In your situation, I recommend gathering all your statements, reviewing them, and try to negotiate with the management company. Understanding any property management agreement you sign fully. Otherwise, contact their licensing board and make them aware of how the company is operating and hopefully they are able to resolve the issue.

  • Member since 2023 · 10 posts · 6 votes
    1y

    @Adrian Night

    At this point I have not been provided statements for last 4 months, while I have already exited the current PMC.

    I am not looking for any more PMCs here, I just want to know from fellow investors how to deal when PMC is completely irresponsive in state of Michigan

  • Real Estate Consultant · Detroit MI, USA · Member since 2025 · 2 posts · 1 vote
    1y

    As an investor, if I was in your position, there are a couple of things I would consider. Its often easier to take the loss, file a complaint with LARA - usually regarding their legal obligations or pursue action in small claims court (and thats only if you have evidence that they violated the agreement you signed with them). Document everything and if you can prove harm was caused by their action or inaction; that puts you in a better position to have them respond. 

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