All Forum Posts by: Scott M.

For 3+ years we have been helping many, many current / former clients of the topic of this thread. The stories their clients have told us, the information we have gathered in the transition to us for management (or not!), talking with tenants….needless to say it is mind blowing.

The takeaway’s I can share on an open forum: 

- Download everything from your portal today.  Doesn’t matter if you think you need it or not, get everything

- Knowing how you are being treated, imagine how your tenants and your assets are being treated (or not). We have seen examples of clients being charged for a new roof that was never put on. We have seen examples of clients being told they need a new furnace but all it required was a blower motor. Tenants having similar complaints to owners

- EVERY client that has come over has had identical or extremely similar issues. I don’t know if it helps to know you are not alone in your struggle, in your feelings, in your experience, but you are not. Sad to say, but it is the opposite

- If you signed the management agreement they made clients sign in mid-2022 you likely have a 60 day termination period. Read this section of your agreement and understand that you need to act NOW. 

- I know clients that have had to hire lawyers to try and get funds owed back.  Start early and start now.

The bottom-line advice I can share to everyone looking to move is to give notice sooner or later (but after you download everything from your portal). Knowing where you are going isn’t as important as starting the clock. It took you months to get to this point, the time for action is now. 

I would not waste one second today on filing complaints.  That is a secondary task.  I understand the anger and frustration, but you need to focus 100% of your attention on making the positive changes necessary for you to regain control of one of (if not the) largest asset(s) you have.  Kind of like when you are in an airplane and they tell you to put your mask on first before you help others.  In a week or three, after you know where you are going you can come back to filing complaints and warning others.  And trust me, for others out there looking, there are already plenty of warning signs about the topic of this thread.  You need to focus 100% of your attention right now on your own assets.  Then send up the flare warning others. 

Not saying we are the right partner for you, but it isn’t a waste of your time to have a call with a local real estate broker, licensed builder & owner of a full-service property management company in Metro Detroit.  I am also a client of our services as I am an active 22 year, very active investor myself. 

Here to help and assist those we can. 

Most property managers and landlords (myself included) consider this a red flag VS a good deal.  Often times (although not in your case by what was said) they will ask for a discount or a deal of some sort.  No SD or lower SD etc....

In those cases it is 100% no for us.  Never going to give a deal for cash up front because it isn't cash up front for the manager/landlord legally.  Any prepaid rent needs to go into your escrow account and only be paid out monthly when it is due.  Doing anything else with it will get you in hot water.  Also, if the tenant leaves early this causes issues for some landlords as they haven't followed the rules and now they have to figure out how to pay it back.  

This isn't a 100% no for us, but a proceed with caution, follow the law (as you always should of course) and do all of your checks per normal.  Because they are offering cash up front and that is a red flag, I would scrutinize them more carefully as we would anyone who had a red (or yellow as the great @Nathan Gesner correctly said) flag pop up.

Manny, instead of going around in the forums w/o details, just PM me the address of your home and I will be happy to give you the lowdown. W/O an address, you will just be going around in circles.  Details matter.  

Hye Manny, the guidance I would give is to gather the facts before you do anything.  By facts, I don't really mean about the process but about your home, your SEV and the SEV of the other similar homes in the area.

Once you determine if you have a case my suggestion is to hire a professional to rep you in this appeal.  Doing it yourself locally is a PITA and doing it from CA is moreso.  By hiring a firm that does this for a living it can go much smoother.  The process can be up to 2 years.  Generally 1-1.5 years.  After the city denies the claim you appeal the next level and so on.  You may even win a little at the first level but you need to go to the next step to really get discounts, if that is even possible.  This was very popular in the 2004-2009 era in Detroit but since has not really been an issue.  Again, you can PM me and I am happy to point you in the direction of someone that can file the appeal for you.

Not me by the way, Broker and Property Manager but not a tax appeal guy but do work with some.  So far this year they have not recommended anyone try as they have not had a solid case.  That is why you really need to take an honest assessment of the reality on your property.  

Hey Manny, send me a DM and I am happy to make a few suggestions for you.  Not sure the rules about posting names in the open forums.  

Manny, 

1)  Yes.  The building inspection step must be performed by one of the 4 approved companies.  3rd Party Home inspectors (what you likely used and are referring to) do not qualify.

2) Yes and no.  If you chose to use one of the 4 companies that are approved to do building inspections to also complete your lead inspection then yes, those are the prices you will pay.  However, for lead compliance you can choose any of the state licensed lead paint inspectors.  You can google to find a current list, here is one as of 3/2/22 

CertifiedProfessionalList (michigan.gov)

You will find prices ranging from 400+.  Be sure to check what that includes (initial and re or just initial) to make sure you are comparing apples to apples.

Have any other questions feel free to DM me..  Happy to help.  

Purchase agreement.  Same as purchase contract as I know it is called different things in different regions.  Agreement to purchase.  Contract to purchase etc..

@Abdul Azeez not sure why you are still looking backwards.  Need to turn 180 degrees and face forward and find a new PM.  Once a new PM is in place you and turn back and solve any of the issues need to be solved.  The current PM has a legal responsibility to send you or the new PM the security deposit.  No PM wants to mess around with a deposit.  That is a highly regulated item that if they do mess around with can land them in a lot of hot water.  

Assume the worst, they don't turn it over.  You want to sue them first?  You want to wait until you can get it from them before finding a new PM?

Need to rebuild your team first then you can go back and pick up the pieces.  

Most importantly @Nick Maniscalco thank you for solving the age old question of "what's for dinner tonight".  

@Abdul Azeez you are really putting your efforts in the wrong place.  You need to put 100% of your effort into finding a new PM.  It doesn't matter what your current PM is supposed to do.  You said in your first sentence "severe mismanagement".  What, you expect them do follow the rules now?  And if they agree to stay on board for an additional 3 weeks what do you gain?  More mismanagement?  

I get it is scary that in a few days you won't have a PM, but by the sounds of it you don't really have one anyway.

Put 100% of your focus into a new PM.  You can circle back to the disaster company and what to do about them later.  

Do not take your eye off the ball, get a new PM now, nothing else matters today.