As with any professions, real estate agents included, there are good and bad.

Better an empty property than a bad tenant. 

People say they FEEL a property is right, or wrong, good or bad as an investment property.

All complimented with Amazon fulfillment centers, google, and more tech manufacturing jobs.The bad reputation of “Detroit” comes from OOS investors wanting sub $40,000, D class properties in poor condition, because they pencil out to 2-3% deals on paper.

Are there specific reasons you don't want to rent them out (e.g. bad previous experience with a tenant)? 

Unfortunately they are correct, but the policy is a bad policy for hosts.  

But it's a risk.If the PM is that bad, I suggest you do some research and find another manager.Remember: cheaper doesn't mean you'll make more money.Start by going to www.narpm.org to search their directory of managers.

It's throwing good money after bad.

If they have not, many landlords will give bad references and it will backfire on the tenant.

So if this was better it couldn’t be a bad idea.