If you are buying properties as an investment, you will want to ensure that the property is properly maintained, even if you are renting it out. This could mean a lot of work or, alternatively, you could hire a professional property management company to take care of it for you, saving you a lot of time and trouble. You would want the property management company to be a local one so that they are aware of current rental prices in the area for that type of property and will charge tenants accordingly, ensuring the property is occupied as much as possible. In Detroit, a Detroit property management company will probably charge similar rates to property management companies elsewhere in the country and so expect to pay an average of 10% of the rent collected but most property investors consider this a reasonable cost considering all the things the property manager will be responsible for.
The management company will be responsible for deciding what rents are paid and they will also be responsible for collecting those rents. It is therefore ion their interests, as well as the owner’s, to only accept tenants that would appear to be the most capable of paying regularly. They can do this by advertising the property is for rent and thereby attract as many applicants as possible. They can then check for those that are currently working and collecting a regular wage. They may even choose to do a little research on the applicant, perhaps checking their credit score or if they have had trouble paying previous landlords.
Any complaints or questions that a tenant may have regarding the property, will be addressed to the manager to answer and take any actions where appropriate. The manager may decide to only deal with maintenance problems as they arise or may decide to carry out regular maintenance checks but either way the property will be maintained in good order, ensuring the property’s value does not deteriorate. A manager will also carry out an inspection of the property every time there is a change of tenant. As well as checking for any damages the tenant may have caused and therefore have to pay for, the manager will also check for cleanliness and if the property is not up to the high standard the manager insists on, they will hire, at the tenant’s expense, a professional cleaning company to come in and get the property up to the high standard before a next tenant moves in.
To ensure the most income from a property, the owner would like the property rented as much as possible rather than have it sat empty for months. When it does come time for the owner to sell, often the buyer will buy the property with tenants still in place as they too will probably want to receive rent on the property. As to whether the new owner keeps the same property manager is up to them but in many cases, they do.