Detroit Property Management Disaster

[Matt Franklin]

So I purchased a "Turnkey" single family home in Detroit (specifically Taylor) last year. Things started going south almost immediately. Rents were late almost every month, then the renter decided to move out, and since then, it's gone from bad to worse. The property managers failed to remove garbage that was left in the yard, and I was issued a "notice to appear" in court as the owner of the property. 

Now I'm in Oregon, so clearly I can't pop out to Michigan to appear in court. I called the PM and was told they would go to court and get this managed by giving the judge the tenant's name and getting the violation re-assigned. Today I received notice of a default judgement, since nobody ended up appearing on my behalf.

On top of all of this, I just received another notice in the mail from the City of Taylor. This time it's for noxious weeds in the yard.

Needless to say, the property manager is NOT managing the property. So now I need to find a new PM. Based on semi-recent (within the last year or so) experience, can anyone recommend a decent property manager in the greater Detroit area who does even a marginal job managing single family homes?

Thanks in advance -- any advice would be greatly appreciated!

[Nathan Gesner]

@Matt Franklin If you give them a chance to make it right, I hope you did so in writing, set a deadline, and laid out consequences if they fail. It sounds like they've cost you money and you deserve to be reimbursed for that.

You can start by going to www.narpm.org to search their directory of managers. These are professionals with additional training and a stricter code of ethics. It's no guarantee but it's a good place to start. Regardless of how you find them, try to interview at least three managers.

1. Ask how many units they manage and how much experience they have. If it's a larger organization, feel free to inquire about their different staff qualifications.

2. Review their management agreement. Make sure it explicitly explains the process for termination if you are unhappy with their services, but especially if they violate the terms of your agreement.

3. Understand the fees involved and calculate the total cost for an entire year of management so you can compare the different managers. It may sound nice to pay a 5% management fee but the extra fees can add up to be more than the other company that charges 10% with no add-on fees. Fees should be clearly stated, easy to understand, and justifiable. If you ask the manager to justify a fee and he starts hemming and hawing, move on or require them to remove the fee. Don't be afraid to negotiate!

4. Review their lease agreement and addenda. Think of all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.

5. Don't just read the lease! Ask the manager to explain their process for dealing with maintenance, late rent, evictions, turnover, etc. If they are professional, they can explain this quickly and easily. If they are VERY professional, they will have their processes in writing as verification that it is enforced equally and fairly by their entire staff.

6. Ask to speak with some of their current owners and current/former tenants. You can also check their reviews online at Google, Facebook, or Yelp. Just remember: most negative reviews are written by problematic tenants. The fact they are complaining online might be an indication the property manager dealt with them properly so be sure to ask the manager for their side of the story.

7. Look at their marketing strategy. Are they doing everything they can to expose properties to the widest possible market? Are their listings detailed with good quality photos? Can they prove how long it takes to rent a vacant property?

This isn't inclusive but should give you a good start. If you have specific questions about property management, I'll be happy to help!