Detroit Real Estate Investing - Property Management Made Easy

Investing in Detroit foreclosure real estate can be very successful and lucrative if done correctly. The right property manager is essential. Here are 5 things to look for in a property manager:

1). Zero Tolerance Policy: That may sound harsh, but a good PM enforces a strict collection policy. It is human nature for tenants to "test the waters" with their PM to see where the boundaries are when it comes to due dates, late fees, 7 day notices, evictions, etc. I have found that if a strict policy is adhered to, tenants always seem to find a way to make their rent payments.

2). Communication: It may sound obvious but both parties need to thoroughly understand the level of communication between owner and PM. Expectations should be discussed, mutually agreed upon and understood at the onset of the relationship. The PM needs empowered with a certain amount of decision making to be able to do his/her job effectively. Some owners are reluctant to give up any control and want to make every decision or expect a "play-by-play" update on what's going on preventing the PM from doing his/her job. it is reasonable for the PM to give weekly updates.

3) Full Service: Be sure the property management scope of work is full service. For example, they should take care of annual rental registrations and inspections with the municipalities. They should handle section 8 paperwork and inspections. They should make sure the tenant is paying the water bill each month, etc.

4). Rent Ready Properties: Once a property becomes vacant, the PM should coordinate getting the property "rent-ready again. This often means paint touch up and any other repairs so that it is ready to show and rent out again.

5). Experience: Be sure the PM is experienced but not overloaded. be sure to find out how many units he/she manages and and make sure your property will get the attention it needs to be successful.

Overall, when investing in Detroit real estate always, always, always use a property manager. Dealing with tenants detracts from the lifestyle that income property investing should provide.

Jerry Norton has sold over 150 fully renovated and rented investment properties in Metro Detroit since January 2007 to investors from all over the world.