Anyon doing rental business in detroit?

Question

Hi,

Is it normal for the buyers agent to ask an agency fee and contract fee?  $395 plus $1000

Any good Property Managment companies in Detroit and what percent to expect?

Thank you!

Keyonte Summers · Answer

I've worked with my agent for 5 years buying several properties she never have asked for such a fee but they are not uncommon ask Keith said their commission are sometimes sub-par with purchase prices that are under 100k. @Keith Jourdan I've seen many of his rehabs he does great work.

Steve Rozenberg · Answer

@Paul Darrigo I think it depends on the area and what the market bears. I know in different cities that we manage properties in Texas the leasing fees are different, the management fees are different and the splits that agents make are different. I am sure if you look around enough you will find a company that aligns with your business model.

It is very important that you make sure you take the time to interview and have candid conversations with a PM company. Let them know your strategy, your goals and what your business plan is to ensure that your business plan aligns with theirs and you can both work towards the same goal. If they are not aligned then simply keep looking till you find one that is.I would look up NARPM and start with them..Below are some questions I would think would be a good starting point for you to see who really treats their company like a business or a hobby.

My business partner is a regional VP for NARPM and I am happy to help if you need anything please reach out

Questions to Ask prospective management companies

• What are your average days on market for vacant homes?
• What is your average rent amount for all properties managed?
• What is your average work order cost for the owner?
• What is your average make ready cost for the owner?
• Are all my invoices uploaded to my owner portal?
• How do you advertise your vacant units?
• Do I receive video of my pre and post make ready?
• Do you have a setup fee?
• Do you upcharge on maintenance?
• When do you make owner payments? How often?
• Are you a Certified Property Manager?
• Are you a member of NARPM?
• What is your Guarantee?
• Do you provide move in and move out reports
• How many pictures do you take of the property prior to tenant moves in and after the tenant moves out
• Do you get weekly reports when the property is vacant what prospective tenants are saying about your home
• Do you provide monthly newsletters to your tenants
• Do you hold investor education classes to help me become a better investor
• Do you have single point portfolio based management services?
• How many properties do the owners actually own themselves?
• What do you do to ensure that the tenant is responsible for security deposit disputes since that is the largest reason for owner lawsuits
• How familiar are you with the newly changed laws that can affect you the owner if they are not used correctly?

Gary Carver · Answer

@Paul Darrigo  It’s normal. A lot of Listing and Buyers agents add an additional fee on top of their commissions

Joseph Keller · Answer

@Paul Darrigo, I am curious to hear what you discovered about this. We had an agent show us a property and tried to have us sign a similar contract. It stated that we would exclusively use that broker and that she would receive a one time payment of $395 and 50% of the rental income. This was  huge concern to me and I declined to sign anything.

Paul Darrigo · Answer

Maybe I confused people.

I was asking about my Real Estate agent in the first question. Do buyers agents charge a fee? Usually the seller pays the RE fees.

Anyon doing rental business in detroit?

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