Detroit Property Management ?'s

[Justin Beavers]

These questions will be helpful when your seeking a PM company. 

1. How long have you been in business?
Call references prior to hiring the company.

2. Which property management services do you currently offer?
Be sure that this company offers all services that meets your needs!!!!!!!!

3. Can I cancel my contract without penalty if I'm unhappy?
Avoid! companies that try to lock you into a contract. You should be able to switch management companies if the service is TRASH!.

4. What's your procedure for qualifying tenants?
Learn whether the company uses background, employment, credit, and landlord reference checks as part of their screening process.

5. What is the average vacancy rate among the properties you manage?
Determine if this vacancy rate is above or below the area average.

6. How often will you provide me with updates about my property?
You should be able to obtain information about your property as often as you'd like. THEY should send a update/notice EACH Quarter!!!!!!!!! 

7. What's your process for handling service requests?
You'll want to know what the process is for tenants to communicate service requests to the PM, as well as your role in the process. Will you be making final decisions about repairs and maintenance? Can you require authorization for any expenses above a certain amount? Look for a company with a well-thought-out process.

8. How long do units typically stay vacant after turnover?
Look for companies that will have units rent-ready and leased up again within 30 days, which should give them plenty of time to refresh the unit and perform any repairs.

9. Are there miscellaneous fees that I should expect to incur?
Some companies charge EXTRA! for marketing units, evicting tenants, turning over units, etc.

10. Do you collect management fees when a unit is vacant?
If so, RUN RUN  RUN

[Drew Sygit]

@Justin Beavers:

Decent list, but not thorough and as @Paul S. pointed out, easy to misrepresent.

1. How long have you been in business?
Call references prior to hiring the company.
EASY: can do Michigan Business Lookup on company name.

2. Which property management services do you currently offer?
Be sure that this company offers all services that meets your needs!!!!!!!!
DIFFICULT: You Don't Know What You Don't Know! 
Some examples: Evictions, lawn/snow maintenance, utility handling, utility bills, property tax & insurance bills, court appearances, City inspections, general maintenance...

3. Can I cancel my contract without penalty if I'm unhappy?
Avoid! companies that try to lock you into a contract. You should be able to switch management companies if the service is TRASH!.
N/A: Be careful what you wish for.

4. What's your procedure for qualifying tenants?
Learn whether the company uses background, employment, credit, and landlord reference checks as part of their screening process.
DIFFICULT: doesn't matter what they check, how they INTERPRET that data is what matters!

5. What is the average vacancy rate among the properties you manage?
Determine if this vacancy rate is above or below the area average.
DIFFICULT: how are you going to prove this?

6. How often will you provide me with updates about my property?
You should be able to obtain information about your property as often as you'd like. THEY should send a update/notice EACH Quarter!!!!!!!!!
DIFFICULT: how are you going to prove this?

7. What's your process for handling service requests?
You'll want to know what the process is for tenants to communicate service requests to the PM, as well as your role in the process. Will you be making final decisions about repairs and maintenance? Can you require authorization for any expenses above a certain amount? Look for a company with a well-thought-out process.
DIFFICULT: We've seen dozens of management contracts and many are very vague when it comes to this topic. Many PM's hide their actual maintenance fees to owners by marking up maintenance invoices. And many owners are foolish if they think a good PM is going to babysit maintenance workers and verify the quality of their work for free.

8. How long do units typically stay vacant after turnover?
Look for companies that will have units rent-ready and leased up again within 30 days, which should give them plenty of time to refresh the unit and perform any repairs.
DIFFICULT: how are you going to prove this?

9. Are there miscellaneous fees that I should expect to incur?
Some companies charge EXTRA! for marketing units, evicting tenants, turning over units, etc.
DIFFICULT: most property management contracts are very deliberately vague when it comes to these expenses. A good PM cannot afford to stay in business if they do evictions and turn-over repairs for free.

10. Do you collect management fees when a unit is vacant?
If so, RUN RUN RUN
NAIVE: depends on what they owner expects a PM to do while a property is vacant. How are you going to secure the property against theft and squatters? They will be a cost to do so.

What about:
1) Does the PM have a Michigan Real Estate Broker's license as required by state law? Many PM's operating in Detroit think a real estate agent license meets the state's requirement - it doesn't.

2) What is the quality of the PM website? If it's not easy to navigate and thorough, it's not a good sign for how they run their business - and your properties.

3) Have they invested in setting up their own email exchange or are they using a <>.gmail.com or other general email?

4) Do they offer online owner & tenant portals and ACTUALLY use them? Owners & tenants should be able to log in 24/7/365 to check on status of issues.

5) Do they provide professional monthly Owner Statements every month, or are they using cobbled together Word, Excel, Google Sheets or Docs forms?

6) Do they ask owners for the everything the IRS requires for proper tax reporting: Articles of Org & Operating Agreements for LLC's, EIN Assignment Letters, a W-9, W-8BEN or W-8 ECI for foreigners, copy of government issued photo ID, etc.?

7) Do they require property owners to provide proof of liability insurance or is the PM so unorganized they unknowingly assume all the risk of a lawsuit?

There's so much more, but adding these to yours should help!