Detroit Property Management
American Real PM Detroit Property Managers
American Real PM is dedicated to serving all of our property owners with the same service we would expect if it was our own asset being managed. This is what makes us stand out and why we’re the top-rated source for Detroit Property Management Services. As Property Managers, we are here to find a great tenant, handle all maintenance, suggest upgrades to the asset when appropriate, handle rent collections, and more. We strive to make sure our owners’ net income is optimized so they can rest easy and focus on the next investment or simply enjoy their lives. As a top Detroit property management team are passionate about real estate and even more passionate about our people and our clients.
ROTI – Return On TIME Invested: By taking advantage of our Property Management services geared specifically for passive investors, you will free up a great deal of time that you would otherwise spend dealing with your rental. Instead of handling maintenance and rent collection, you can pursue ventures and spend more time with family and friends.
We Boost Your Properties ROI: Most property managers charge a percentage of your property’s monthly rental rate in exchange for their services. The standard rate runs anywhere from 8-10%. If you decide to “go it alone” as a landlord, you will quickly find that these fees are far less costly than the time and money you will spend trying to manage by yourself.
Enabling You to Invest in Geographically Distant Properties: If you manage your own properties, you’re pretty much limited to investment opportunities within a tight radius of your own home. By hiring us as your property manager, you can take advantage of investment deals in Detroit even if you live out of the area, out of state or even out of the country.
Making Sure You Remain Within the Law: There are many applicable laws and regulations to abide by when renting and maintaining your rental property. These include local, state and federal regulations, as well as fair housing regulations (such as the ADA). Our team of experienced property managers from top to bottom will help you avoid lawsuits by keeping your property up-to-date and in compliance with these regulations.
Detroit Property Market
Detroit Real Estate Properties
Owning a residential rental property in the Metro Detroit area can be a lucrative investment, but it also carries with it its share of headaches and worries. Finding a skilled, dedicated and knowledgeable Metro Detroit residential property manager can save you a lot of time and money.
With our full service Metro Detroit property management solution, you get much more than just one overworked property manager. You get a full team of skilled professionals with the expertise to provide you with the highest level of service and the maximum return on your investment.
Metro Detroit rental properties are some of the best and highest performing opportunities in the entire nation. When comparing the Metro Detroit market to other major metros in the US you will find the quality of property, returns and areas are unmatched. There are several things we consider when evaluating a property, such as the neighborhood and surrounding area. We take into consideration many important demographic statistics when selecting a market to manage properties in. Some of the factors we consider are population density, median income levels, and vacancy rates.
Historic Price Changes & Housing Affordability
Two of the best ways for forecasting the potential returns of investment real estate over the long-term is by analyzing the historic change in home prices and the affordability of housing in a specific market.
The increase in home prices is an indication of potential value appreciation, while housing affordability is an indicator of the potential demand for rental property in Detroit and other real estate markets.
Each month Freddie Mac publishes a house price index report (FMHPI) that updates the short- and long-term trends of home prices in all major markets in the U.S.
The most recent FMHPI from Freddie for the Detroit-Warren-Dearborn, MI MSA reveals:
- May 2016 HPI: 99.1
- May 2021 HPI: 144.9
- 5-year change in house prices: 46.2%
- One-year change in house prices: 16.9%
- Monthly change in home prices: 1.4%
Buy-and-hold real estate investors in Detroit also research housing affordability to help forecast the current and future demand for rental real estate. Affordability compares the amount of annual income needed to purchase a median-priced home in Detroit.
Business forecast and personal finance publication Kiplinger publishes a housing affordability report for the top 100 metropolitan areas in the U.S. The firm ranks affordability on a scale of 1 to 10, with 1 representing the most affordable markets and 10 the least affordable.
Kiplinger’s analysis of housing affordability in Detroit reports:
- Since the last real estate cycle market peak in May 2006, home prices in Detroit have decreased by 10.1%.
- Since the last real estate cycle market bottom in March 2012, home prices in Detroit have increased by 138.6%.
- Detroit has an affordability index of 1 out of 10, meaning that while housing in the market is very affordable, there are still a high percentage of people renting in Detroit.
Detroit Housing Market
Detroit Real Estate Properties
The rental real estate market in Detroit has never been better, which is just the thing real estate investors want to hear. Investors have been flocking to the Metro Detroit area for good rental property investments and that is why American Real PM has decided to expand into the market. Demand for single-family rentals is skyrocketing, and the median price of a single-family home in the areas of Metro Detroit is well below $100K, offering an amazing opportunity for rental property with solid yields and cash flow.
The Motor City has been fabled in song and story for its innovation and work ethic, yet the decline of the domestic auto industry and the devastating effects of 2008 had some questioning whether Detroit could make a comeback.
The verdict? Detroit real estate investing has attracted many new investors, especially those who know where to look and prioritize quality property management.
With high-end retailers like Whole Foods moving in, and high tech stalwarts like Microsoft, Google, and Pinterest opening offices, Detroit’s future is looking bright. That’s good news for the housing industry and good news for investors.
We crunched the numbers to bring you a clearer picture of the upsides and challenges of investing in the Detroit real estate market in 2021.
Detroit Real Estate Market
Northern Michigan’s housing market is “on fire”, according to The Detroit News. The real estate market is helping to fuel the red hot market, with the median list price of a single-family home in Detroit well below $100,000.
Opportunistic real estate investors may find Detroit the perfect market to acquire very affordable rental housing for all cash, then refinance at a later date. As The Wall Street Journal reports, lack of credit is making it hard for local residents to buy a home. That may be one reason why almost half of the households in Detroit rent rather than own.
Key Market Stats:
- Zillow Home Value Index (ZHVI) for Detroit is $52,905 through June 2021.
- Home values in Detroit increased by 31.2% over the last year.
- Over the last five years home values in Detroit increased by over 102%.
- Median listing price of a single-family home in Detroit is $75,000 based on the most recent report from Realtor.com (June 2021).
- Median list price per square foot for a home in Detroit is $63.
- Days on market (median) is 56.
- Median selling price of a single-family home in Detroit is $43,500.
- Sale-to-list price ratio is 88.9%, meaning that homes in Detroit are selling for over 11% below the asking price on average.
- Of the 175 neighborhoods in Detroit, the most expensive neighborhood to buy a home is Brush Park where the median listing price is $450,000.
- Most affordable neighborhood in Detroit to buy a home is Regent Park where the median listing price is $45,000.
Strong Renters’ Market
The rental market in Detroit is at an all time high. Homes have been renting within a week at most if they are priced accordingly and are kept in good liveable condition.
Key Market Stats:
- Median rent in Detroit is $1,025 per month for a 3-bedroom home, based on the most recent research from Zumper (July 2021).
- Rents in Detroit have increased by 14% year-over-year.
- Renter-occupied households in Detroit account for 44% of the total occupied housing units in the metropolitan area.
- Millennials and Generation Z make up 38% of the population in Detroit.
- Most affordable neighborhoods in Detroit for renters include St. Jean, Coleman A. Young International Airport area, and Chene where rents go for less than $615 per month.
- Most expensive neighborhoods in Detroit for renters include Downtown Detroit, Macomb, and University where rents can go as high as $3,000 per month.
Detroit Housing Market
Detroit Real Estate Properties
Although the population of Detroit has been slightly declining, the city is seeing an influx of millennials. As the Detroit Chamber reports, over the last decade metro Detroit saw the second highest growth among peer cities for populations between the ages of 24 and 35.
Key Population Stats:
- Detroit is home to about 670,000 people in the city and more than 4.3 million residents in the metropolitan area.
- Population of Detroit declined by 0.3% last year.
- Counties in metropolitan Detroit include Wayne, Lapeer, Livingston, Macomb, Oakland, and St. Clair.
- Detroit is the most populous city in Michigan, the largest city on the U.S.-Canadian border, and the second largest metropolitan area in the Midwest after Chicago.
- Median age in Detroit is 39.9 years with 38% of the population between the ages of 20 and 49.
- Per capita income in Detroit is $35,315 while median household income is $63,474.
The 11-county Detroit region is home to more than 300 municipalities and 300,000 businesses, including 11 Fortune 500 companies and numerous educational institutions. As the Detroit Chamber reports, metropolitan Detroit is home to robust technology infrastructure and a workforce recognized around the world for its skills, expertise, and productivity.
Key Employment Stats:
- GDP of the Detroit-Warren-Dearborn, MI MSA is over $237 billion, according to the Federal Reserve Bank of St. Louis, and has grown by more than 28% over the last 10 years.
- Employment growth in Detroit is 1.77% year-over-year with the metro area home to over 2 million employees.
- Median household incomes in Detroit grew by 3.6% year-over-year while median property values increased by more than 5% over the past 12 months.
- Unemployment rate in Detroit is down to 8.9% (as of Nov. 2020) with the construction, information technology, and financial activities sectors showing the fastest signs of new growth (BLS).
- Key industry clusters in Detroit include automotive and mobility, defense, health care, information technology, and transportation, distribution, and logistics.
- Largest employers in the Detroit region are Ford Motor Co, General Motors, Ally Financial, University of Michigan, Beaumont Health, and Quicken Loans.
- Major colleges and universities in Detroit include University of Michigan, Wayne State University, and Lawrence Technological.
- 91% of the residents of Detroit are high school graduates or higher, while over 32% hold a bachelor’s degree or advanced degree.
- Detroit’s transportation infrastructure includes three major interstate highways, five international and reliever airports, the Port of Detroit, and a variety of public transit options.
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Detroit Property Management FAQ
Detroit Property Managers
Do you need a license to be a property manager in the Metro Detroit area?
In the State of Michigan to be a legal property manager you must have a real estate license and operate under a broker. We cover both of these criteria.
What does a residential property management company do?
Property managers do a lot more than just collect rent:
- Create rental property listings
- Detailed tenant screening
- Tenant placement
- Property inspection
- Help you deal with the coronavirus pandemic
- Minimize rental property turnover
- Manage regular maintenance tasks
- Emergency maintenance requests
- Help you make tax deductions
- Focus on maximizing rental income
- Avoid surprising liabilities
- Manage lease terminations
- Encourage qualified tenant lease renewal
- Manage tenant satisfaction
- Local emergencies
- Immediate response to maintenance requests
- Responding to natural disasters
- Handle the eviction process
- And much more
How do I find a good property management company in Detroit?
There are many property management companies in the Detroit area, and there are also many real estate agents who try to manage properties on a part-time basis. You must conduct your due diligence to ensure you find the right Detroit company to manage your investment and maximize the properties earning potential.
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Detroit Property Management
Detroit Property Management Questions:
Here are a few best practices for choosing a property manager:
- Ask for references.
- Request internal customer satisfaction scores.
- Check online reviews from several sources.
- Have a conversation with each potential candidate.
What questions should I ask a Detroit property management company?
It is crucial to understand how a property manager would react to particular scenarios. With that in mind, have a handful of questions specific to their real-world experience.
- How would they deal with a tenant who is regularly late with rent?
- What would they do if they got a call early in the morning or late at night with an emergency maintenance issue?
- How do they go about keeping tenants happy so they retain them when the time comes for lease renewal?
A property manager has to be ready for everything, but they also need to know who to go to when they need help.
What makes a good property manager in the Detroit area?
Expertise and level-headedness are crucial to good property management. You need to know how to talk with people, negotiate prices, and anticipate challenges.
You also need to maintain a professional, respectful, and amiable demeanor no matter what’s going on. Property managers see it all, from tenants excited to find a new home to residents in challenging circumstances facing eviction. Through it all, property managers need to be experienced in every facet of professional property management.
How much do property managers charge in Michigan?
This is usually a set fee depending on the number of properties you have. Management Fee This is the most common fee. It can be a flat fee or a percentage based on the value of the rent that’s coming in. Expect to pay between 8 and 12 percent and as high as 15 percent in some markets.
Do property managers need to be licensed in Michigan?
Property management agencies in Michigan are required to have an active real estate broker’s license. This is because leasing and renting, which are critical components of property management, are considered real estate activities by current Michigan real estate licensing laws.
Is Detroit a good place to invest in real estate?
Detroit is among the few American cities where renting is more reasonable than buying. … “A well-rounded economy, combined with low entry prices and favorable supply and demand conditions make Detroit one of the best places to invest in rental real estate this year.