Home Buying in Detroit>Question Details

Eddy Foster, Home Buyer in California

I intend on buying several homes in Detroit as Investment properties. What do I look for in a Good Management Company, what sort of fees wilI i pay?

Asked by Eddy Foster, California Wed Aug 10, 2011

I have seen that some charge 8% and others charge 10%. Can a realtor manage a property?
Or does it have to be done by a specific management company?

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Answers

16
He probably got his answer as this questions was asked three years ago.
0 votes Thank Flag Link Wed May 21, 2014
These guys charges 8% http://www.metro-detroit.realpropertymgt.com.
Call them up if they cover the area your thinking of getting.
0 votes Thank Flag Link Wed May 21, 2014
Contact the Shea Woods and he will give you a true, down to earth and real answer and will video any properties for you too.

He handles and manages hundreds of properties for USA and overseas property investors.

Tell him Stephen the CCTV / Network guy suggested him to you, his number is on 1-313-808-8771

Also see

http://www.thesheashow.com and http://www.SecuritySystems.withusnow.com

http://www.youtube.com/channel/UCEqVp61hElXovxtE26PMeDQ
0 votes Thank Flag Link Tue Jan 7, 2014
If you're looking to buy turn-key properties in Detroit, you may want to find a "full service" property management company, who can handle payments, tenant screenings, evictions, in addition to repairs. Some of the best deals on properties can be found through real estate auction websites ( such as http://realtybargain.net/page/buy-turn-key-properties-in-det… ), which offer $1 starting bids with no reserve.
0 votes Thank Flag Link Sat Dec 28, 2013
Hi Eddy. In my experience, realtors are not in the property management business. As far as the fees, I own a company that buys, renovates, and rents properties and sells them as a package to investors. Our preferred property management company charges 10%. I have found this to be pretty standard in the Detroit area. You can find it cheaper, but please consider how much you are saving. Example:

-Typical Detroit rent 1000 sq ft house (in a solid neighborhood): $850
- 10% management fee= $85 per month
- 8% management fee= $68 per month
- Savings per month= $17

Assuming the purchase price + rehab is on average between $30,000 - $40,000 is $17 per month enough of a savings for you to go bargain hunting for the company that is overseeing your investment and making sure it is secure? If a $17 savings means that your property is vacant an extra month per year you would be loosing much more that the $17 dollar savings.

Property management is not the area to try and cut corners in real estate investing. Go with a proven company and happily pay the 10%. Having peace of mind that they will be in business a year from now and that your house stays rented is far more important that saving a few dollars a month.

Mike Simmons
Managing Partner
Detroit Cash Flow Properties, LLC
586.275.7122
Mike@DetroitCashFlowProperties.com
http://www.DetroitCashFlowProperties.com
http://www.facebook.com/DetroitCashFlowProperties
0 votes Thank Flag Link Tue Jan 3, 2012
Best advice any one can give you is don't buy in Detroit buy in the suburbs of Detroit. Superior Properties of Michigan can help you, they manage in Detroit and suburbs and will give your real honest answers to pros and cons of buying and managing portfolios in the metro Detroit area. Call Andy 313-656-7672 or email rentdetroit@gmail.com Cheaper is not always better when it comes to house investing keep in mind in this market!!
0 votes Thank Flag Link Thu Oct 27, 2011
Wow! There are lots of good answers in these comments. I'll have to keep all of that in mind.
0 votes Thank Flag Link Wed Oct 19, 2011
Hi Eddy, I own a Property Inspection & Investor Services Company in Detroit. I work with overseas and out of state buyer’s specifically buying investment properties in the Detroit market. If you need some unbiased and honest help looking at potential properties or helping you navigate the hurtles of investing in Detroit I can help. Check out my trulia profile or click on the web references link below.

Best Regards,

David Frizzell
Inspect Detroit
0 votes Thank Flag Link Wed Oct 19, 2011
Hi Eddy,
God I wish someone would have answered this question for me when I started buying investments in Detroit. I have been burned too many times by too many property management companies. I would suggest that you call Linda over at Premier Property Management. They do a great job, and they actually live up to what they say, 248-838-3811
0 votes Thank Flag Link Thu Oct 13, 2011
Eddy,

The company I represent, Real Living Kee Realty does handle propery managent with an in house company called Gold Shield Services, LLC

> Gold Shield Services, LLC (GSS) currently manages over 80 rental properties in the Detroit Metro area.
>
> Here is a list of the Property Management (PM) services we provide:
>
> 1. Find qualified tenants
> -We will list your home on the MLS and Craig's list -Schedule and show the property -Screen potential tenants, verify income and pull their credit report -Sign the lease, and all other related documents
>
> 2. Collect rent (includes sending late notices, filing with the court if necessary and eviction)
>
> 3. Handle all repair calls from tenant
>
> 4. Handle all city inspections and city registrations (client pays city fees)
>
> 5. Provide owner with two monthly reports: a tenant and an owner report that details all income received and expenses paid.
>
> 6. Send owner a check monthly for anything over the minimum balance.
>
> The charges for the PM service are:
>
> -10% of the gross rent collected
>
> -1st months rent to place a new tenant (this pays all real estate commissions)
>
> The owner is also billed for all expenses, including repairs (you can do the repairs yourself if you prefer) and any utility bills. Utility bills are paid by GSS while the property is vacant and charged to the owner's account. When the property is rented the tenant pays gas & electric, GSS pays the water bill, charges the owner and bills the tenant. When the tenant pays the water bill, the owners account is credited.
>
> The owner account must maintain a minimum balance of $1,000. Checks are sent to the owner monthly for everything over the minimum balance, the entire balance is refunded when the account is closed (contract expires). You do not have to send us money, we will collect and hold the rent until you have obtained the minimum balance.

I hope this helps, please contact me for additional information or to review our contract. We would be happy to asist you with all your property needs.

Real Living does have over 600 office nationwide.

Thanks
Pam Bava, Realtor
Real Living Kee Realty
realteellc@hotmail.com
0 votes Thank Flag Link Wed Oct 5, 2011
hi....call my freind mark heppard..he owns mutual management in farmington...great, guy..honest....
best regards....
bob mcclure
0 votes Thank Flag Link Wed Sep 28, 2011
Eddy,

Give me a call. I'm a licensed attorney and real estate broker. I will tell you exactly what to expect. You should be able to get real time information on your investment. My team can certainly assist.

Eddie Hudson
(313) 701-5828
Web Reference: http://www.hudsonwhite.com
0 votes Thank Flag Link Mon Sep 26, 2011
Hello Eddy,

Typically your average property management company will charge 8% to 10% depending
on the company and sometimes the volume.Whomever you decide to go with make sure
that they are transparent in the managing of your properties.Meaning making sure you have
access to the rent payment history,tenant info,repair estimates and so on.Knowing you have
that information at your disposal is great for a peace of mind and makes you a more effective
investor.

Good luck,

Chris Shaw
248-569-1486
Metro Detroit Rental Experts
16250 Northland Drive suite 202
Southfield,MI 48075
0 votes Thank Flag Link Wed Aug 17, 2011
Eddy,
Do me a favor and email my CEO Ryan Burk about this question: Ryan@InTheNowInvestments.com - He has done over 300 deals in Detroit over the past 3 years and has gone through a few management companies. He would be a great person to talk to about what to look out for in a management company. Yes, 8-10% is very typical here in Detroit. Hope that gets you started. Check out http://BuyHomesInDetroit.com for more updates on the Detroit real estate market as well as turnkey properties for under 40k. Take care!
Matt
0 votes Thank Flag Link Fri Aug 12, 2011
Hi Eddy ,

My name is Tedd Hamilton and I consult internationally for a company called Smart Homes Investments LTD.

They offer home buying for investors world wide with property management companies they own as well.

They have sold over 400 homes they partner withand manage for inveswtors during past 16 months.The City of Detroit works closely with them because every investment home is rehabbed and provided section 8 renter and land contract tenants allready in place for you.Plus you get monthly rental return from $600-$1,200 per month all inclusive turn key with property management in place for only $20,000 USD

Please contact me to know more plus website I will send you if interested.

Thank you

Tedd Hamilton 778.708.3682 tedd@smarthomesinvestments.com
0 votes Thank Flag Link Thu Aug 11, 2011
Eddy your best option would be to get a list of all the property managements in the area you plan to invest call a few to find out what they offer. Be sure to find a professional that knows a bout property management. When you speak to them they should be able to tell you just about all that they offer. Ask them how long they have been managing property in that area. Be sure to do your homework ask many questions upfront. Many property managements also have websites in which some mail out information on their property management office, while some place their information online.

Best of luck Eddy I hope that I was able to help
0 votes Thank Flag Link Wed Aug 10, 2011
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