@Kash Tacke legally, you would need architect drawings to get approval from Detroit Zoning Board.

Hey Santosh,As of right now you're extremely exposed regarding insurance and I'm going to assume legally as well.If the home isn't registered as a legal multi-family with the town that's something you'll have to correct ASAP and make sure the home is up to code.Insurance wise as soon as they find out what you're doing they'll cancel you as the risk has changed from a single family owner occupied home to a multi family owner occupied home.

This is assuming the way you notified the tenants of the new rent was considered legal notice in your market. 

- You've got to go to the property for showing- Many do not show up, so you waste your time- Then you have to have a legally compliant rental application & lease- Some approved applicants disappear the day before or day of lease signing!

If you need financial help, ask under the "Finance, Tax, and Legal" forum.

Talk to the management company and if you're not feeling things are right or legal, then take legal action.

.- but the advertising company still gets paid.He has to pay for accounting services, payroll services, tax services, legal services, etc.- they all get paid whether he makes money or not.So, what's your point?

Quote from @Michael Smythe: @Sean Gallagher legally you are correct, but many tenants do NOT know this.We take over properties all the time and close 80% of existing tenants sign a lease with us.True! 

If you need financial help, ask under the "Finance, Tax, and Legal" forum.

And the cost of legal defense , even if successful, will drive the company out of business.