Home Buying in Macomb County>Question Details

59vwguy, Home Buyer in Macomb County, MI

My kids are thinking about purchasing a new Lombardo home and using Market Place Home to lease their condo for the next 6 years.

Asked by 59vwguy, Macomb County, MI Thu Jul 7, 2011

I am a skeptic as the initial lease amount is only locked in for the first year. After the initial year Market Place Homes can evaluate the rental market and adjust the rental payment up or down based on market conditions. So in theory they could collect $1200 a month during the first year and then get re-evaluated down to $800 per month in year two. There is no cap on the annual changes to this 6 year guarantee. So while the initial year would cover the existing mortgage who knows what they will do in year 2 thru 6. Is there anyone out there that has been under contract with Market Place Homes for at least two years in SE Michigan that can tell me about their annual re-evaluation with Market Place Homes?

Help the community by answering this question:


Hi I have bought a Lombardo home through the marketplace Homes program 2 years ago and our rent only dropped $100 after the first year but it was still the best decision for us as the monthly payments are Guaranteed. I have found no other property management company that has been able to guarantee the rent if there is a tenant eviction or even if there are maintenance issues, they cover it. Other property management companies leave you hanging and just take first months rent & 10% each month but Marketplace at least provided us with the ability to know that we wouldn’t lose out in the case a tenant stopped paying for months. We couldn’t sell our home and needed to move with a baby on the way so this was the best option for us because realtors couldn’t sell our home for what we needed & foreclosing/short selling was also not the best decision for us. So far so good but yes the rent did drop $100 but we are able to manage.
1 vote Thank Flag Link Wed Aug 3, 2011
Be skeptical.....Marketplace will tell you one thing and then everything changes....Its just a little thing here, then a little thing there...not enough to notice until you close on the home and you are asking yourself...."What just Happened?". Also, Lombardo pays Marketplace 20- 30k each deal.....thats money that could be off your house instead of 7% to marketplace to rent your house when any other reatlor does it for a fraction. Marketplace doesnt even gaurantee the lease amount.,...the second year and beyond they gaurantee "market price" ...which is whatever they say it is.

So it's not what they say it is, You the buyer pay for it in a higher house cost, and lastly, Marketplace will only send you to lombardo eventhough they work with other builders becasue lomabrdo pays them to steer you to a Lombardo Community.....which seems to be a violation of Fair housing.
0 votes Thank Flag Link Mon Jul 25, 2011
Hello 59,

I agree with the other realtors that have answered your question. I encourage my clients to work with a realtor, even when they are considering new construction in a planned community. Regarding your kids leasing their condo, they will want to get as much information as possible about the rental market in the area where their condo is located. Again, working with a realtor or property manager to help them to assess the market trends will prove helpful.

I would be happy to answer any questions. In addition to real estate sales, the company I work for also provides property management services.

Gaye Butler, Assoc. Broker
Robinson Realty & Managment Group
(248) 593-9494 ext 48
0 votes Thank Flag Link Thu Jul 7, 2011
Hi 59:

You are right to be concerned and a skeptic. Hopefully, someone with experience with Market Place responds. I've had 1 client who did sign with them and wasn't happy. With the current mortgage market being what it is rental properties are leasing rapidly as long as they are priced right and in good condition. Your kids should consider hiring a Realtor and lease the property on their own. That way they are in control.

Good Luck,

Karen Paytas, GRI, CMS
Real Living Kee Realty
0 votes Thank Flag Link Thu Jul 7, 2011
I have heard of a couple folks lately that did this, and it is so new that there really is no track record that I've had first-hand experience with just yet. I am very curious to follow your post and hope you will keep us informed. Thank you, and hope it goes well!
0 votes Thank Flag Link Thu Jul 7, 2011
Hi 59,
I understand your concerns and you you are correct in seeking additional information.
I work with investors who buy properties to rent. If you would like information on this please contact me by phone or email. The broker I work with does handle property management also.

Thanks for using Trulia

Pam Bava, Realtor
0 votes Thank Flag Link Thu Jul 7, 2011
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