All Forum Posts by: Michael Smythe

@Jessie Dillon after 23 years of doing this, can agree with you BUT - a landlord should ALWAYS send an eviction notice to "start the clock" on the eviction process.

This keeps the landlord in control of the situation and let's the tenant know this is a serious matter they need to address.

Great customer service skills should be used to explain all this to a nonpaying tenant, so they don't panic or resign themselves to an eviction - basically, to get them into a reasonable payment plan.

Also recommend that tenants be required to supply a current paystub and give specific dates & amounts they will pay. We put this info into a timeline spreadsheet that also adds future rent payments, to show when they will be caught up. The amount of time has to make sense or what's the point of the payment plan for the landlord?

@Jamar Brown it would help if you'd share what specifically you're looking to get out of networking.

For some basic market info:

You might want to follow the "Deep Dive" series we're doing on our BiggerPockets blog about Metro Detroit cities, City of Detroit Neighborhoods and comparing Metro Detroit to other hotspots investors usually consider:

https://www.biggerpockets.com/member-blogs/3094/99854-deep-dive-into-metro-detroit-cities-ecorse

Our analysis is a template you can follow for any city, but doubt you'll find this much info for any other market in the US.

So, why would you invest remotely anywhere else?

How can we assist you further?

@Jose N. in theory, the difference between the two types of leases should matter.

The reality, at least for Class C properties/tenants in the City of Detroit (not the suburbs), is that there is really no difference.

When tenants stop paying you evict them.

Class C tenants will move whenever they want, and it's rarely worth it to pursue them for breaking a lease.

@Hyun Jin Kwon seller's only offer financing when it benefits them:

1) When they can sell at a higher price

2) When they can get market value for a property that needs repairs

3) When they can sell a property they no longer want

4) When they are trying to get a better return on their funds then other options

I don't feel comfortable recommending an agent to you without understanding what your approach will be - are you looking to abuse an agent's time and have them write 100 offers for you to get one accepted? Or do you have a more efficient methodology in mind?

@Nathan Love you can also attend Wayne Real Estate Investment Association who meets monthly

@Scott Ball

You might want to follow the "Deep Dive" series we're doing on our BiggerPockets blog about Metro Detroit cities, City of Detroit Neighborhoods and comparing Metro Detroit to other hotspots investors usually consider:

https://www.biggerpockets.com/member-blogs/3094/99854-deep-dive-into-metro-detroit-cities-ecorse

Our analysis is a template you can follow for any city, but doubt you'll find this much info for any other market in the US.

So, why would you invest remotely anywhere else?

How can we assist you further?

@Jim K. we should start a BP podcast to try to educate newbies!

No offense, but you're looking at typical rookie mistakes!

How much research have you done here on BP with all the info available at your fingertips?

What do you think your chances of success will be if you don't INVEST some time in research?

You may not want to hear this, but what criteria did you use in screening this PMC before hiring them?

Did you look at their rental listings on their website?

How many questions did you ask about their advertising process?

Encourage you to learn from the mistakes of others - by reading posts here on BiggerPockets about owners not having their expectations met by their current Property Management Company.

To avoid going through the same poor experience, keep reading.

Even if someone give you a referral, don’t make the mistake of assuming that PMC will meet your expectations, just because they met the expectations of the referral source.

We also can’t believe how many owners hire the first PMC they speak with!

Then they complain their expectations aren’t being met!

In our experience, the #1 mistake owners make when selecting a Property Management Company (PMC) is ASSUMING instead of CONFIRMING.

It's often a case of not doing enough research, as they don't know what they don't know!

Owners mistakenly ASSUME all PMCs offer the exact SAME SERVICES and PERFORM those services EXACTLY THE SAME WAY, so price is the only differentiator – and they often select the first PMC they call!

So, the first question they usually ask a PMC is about fees - instead of asking about services and HOW those services are executed.

EXAMPLE: PMC states they will handle tenant screening – what does that specifically mean? What documents do they require, what credit scores do they allow, how do they verify previous rental history, etc.? You’d be shocked by how little actual screening many PMC’s do!

This also leads owners to ASSUME simpler is better when it comes to management contracts.

The reality is the opposite - if it's not in writing then the PMC doesn't have to provide the service or can charge extra for it!

We have a 14-page management contract that we've added our real experiences to over the years, with the intent of protecting both us AND the landlord. Beyond the Monthly Management, Placement & Maintenance fees, all other fees in our contract are IF EVENT -> THEN fees.

We don’t know any PMCs to recommend in the area mentioned, but since selecting the wrong PMC is usually more harmful than selecting a bad tenant, you might want to read our series about “How to Screen a PMC Better than a Tenant”:

https://www.biggerpockets.com/member-blogs/3094/91877-how-to-screen-a-pmc-better-than-a-tenant-part-1-services-and-processes

We recommend you get management contracts from several PMCs and compare the services they cover and, more importantly, what they each DO NOT cover.

EDUCATE YOURSELF - yes, it will take time, but will lead to a selection that better meets your expectations & avoids potentially costly surprises!

P.S. If you just hire the cheapest or first PMC you speak with and it turns into a bad experience, please don’t assume ALL PMC’s are bad and start trashing PMC’s in general. Take ownership of your mistake and learn to do the proper due diligence recommended above😊

Most experienced landlords supply appliances for Class A & B properties, but put in their lease that they are, "as-is, where-is". Meaning, you don't have to repair them and you don't have to remove them (and deal with storage issues) if a tenant wants to install their own appliances.

Now, if you have a great tenant you want to keep, you MAY repair an appliance if you choose.