All Forum Posts by: Michael Smythe

Have never heard of this.

Only logical defense is if the PMC installed an electrical stove instead of gas and needed to run a new electrical line.

suggest you attend Oakland REIA, MREI or Renegade Detroit Investors meetings

what's the cost of NOT hiring a PMC and dealing with vacancies, lawsuits from mistakes, etc.?

only way unless property owner reports to the credit bureaus.

your partners are like so many other owners, who are, "penny-wise, but dollar-foolish".

Ask them if they plan to handle all the tenant calls about maintenance, chasing tenants for nonpayment of rent, etc. If they want to do it let them - they'll soon tire or find out they no longer have time to pursue additional investments.

Pretty sure you already know the answer to this question.

Trying to skirt the laws only works until an owner or tenant throws you under the bus.

@Cory Pippen property needs to be certified? What specific city is it in, Detroit?

Buying Class C- properties in Detroit can be way more challenging than renting rooms in a Class A or B property.

Who's going to do the repairs? 

What are your plans to protect the property from theft and squatters when it goes vacant?

@Matthew John if you properly disclosed the situation, in writing (preferably in the lease), to the lower tenant and they signed the contract, then they are legally bound.

That doesn't stop them from protesting if and withhold rent - as you've learned. 

Your only other recourse is to start eviction process for nonpayment of rent. Make sure you have an experienced eviction attorney handle your case so a judge doesn't rule for the tenant.

You better be getting a screaming deal on this property for all the work you are putting in.

Also, did you check Colorado requirements for managing a property you don't own? You may have opened yourself to liability.

@Thong Dang are you sure your PMC received the updates from the HFA? Usually they are NOT sent to the owner and PC, just one or the other.

If your PMC got it, then you should review your contract with them to see what their duties are. 

We handle all this for our clients, so why didn't your PMC?

Should you replace your PMC?