Renting out Property in Detroit

[48205to24]

Any landlords here?
I am thinking of purchasing a couple of properties. They are in an area we know and like and we have a couple of potential tenants.
The tenants are good people [[not related), however with the economy the way it is, I want the make sure the properties are available to those who can pay.
A co-worker mentioned renting out on week to week basis since its easier to evict someone. I had never heard of it until now. Has anyone ever heard of this?

[preserve]

Are you buying a motel? Are you renting out a completely furnished unit?

[48205to24]

Are you buying a motel? Are you renting out a completely furnished unit?

No, single family houses with basic appliances.
I was thinking this is set up would be more for a motel/boarding house too, but the guy said all of his houses are week to week. Its more work but you can evict a week. I had never heard of a landlord doing this.

[Honky Tonk]

No, single family houses with basic appliances.
I was thinking this is set up would be more for a motel/boarding house too, but the guy said all of his houses are week to week. Its more work but you can evict a week. I had never heard of a landlord doing this.

IMO, If this is a major concern for you, I would contact an attorney specializing in that field, and get the correct info. I don't think standing in front of a judge with "I read it in DetroitYES!" as a defense, is going to cut it.

[TexasT]

IMO, If this is a major concern for you, I would contact an attorney specializing in that field, and get the correct info. I don't think standing in front of a judge with "I read it in DetroitYES!" as a defense, is going to cut it.

I'm not sure what kind of tenant you are after, but FWIW I would never live in a place with week-to-week rentals. Any given time, I could get short notice to leave? No thanks. By doing this, you are not going to attract "quality" renters [[those who look at your place as home and plan to stay a while).

[48205to24]

IMO, If this is a major concern for you, I would contact an attorney specializing in that field, and get the correct info. I don't think standing in front of a judge with "I read it in DetroitYES!" as a defense, is going to cut it.

I dont agree with some things said here, but I noticed a lot of the information dealing with history, planning or urban law provide a good starting point. I plan to start with the Housing Commission, depending on what they say would determine if we even bring it up to the lawyer. I dont want to pay for advice i dont need.

As far as people renting week to week, there are a lot of people looking for quality properties in quality neighborhoods who can pay. The tenants are people I know and I want to maintain relationships. As long as they pay, there is no problem. However, I have seen a lot of drama with evictions and I dont like drama. If it happens so be it, but week to week seems to be a way to alleviate the drama that comes with the 60,90 day eviction process or longer depending on the judge.

[Spartan]

I would venture that if ease of eviction is a major concern, you're probably renting to the wrong people.

[48205to24]

I would venture that if ease of eviction is a major concern, you're probably renting to the wrong people.

Not really, I just like the flexibility and security with this idea. This guy has had the same people for 3 years in one of his properties- just week to week.
I did do some research online, some states view this action for properties like motels, and a contract such as this would make my property subject to same taxes, rules and regulations. I am unsure of what MI law states regarding this.
I plan to check with the Housing Commission, however I was curious as the feedback for you guys here. People are doing some 'creative' things in Detroit. I have always been 'by the book' with everything and it seems to my detriment. However, if this is illegal or will cause undo regulation, I wouldnt do it.

[Spartan]

Not really, I just like the flexibility and security with this idea. This guy has had the same people for 3 years in one of his properties- just week to week.
I did do some research online, some states view this action for properties like motels, and a contract such as this would make my property subject to same taxes, rules and regulations. I am unsure of what MI law states regarding this.
I plan to check with the Housing Commission, however I was curious as the feedback for you guys here. People are doing some 'creative' things in Detroit. I have always been 'by the book' with everything and it seems to my detriment. However, if this is illegal or will cause undo regulation, I wouldnt do it.

As TexasT said, offering week-to-week could definitely deter you from attracting a better crop of tenants. If I were to seek out a rental and they only rented week-to-week, I'd be scared away by the assumption that they're just waiting to evict me. I don't know anything about the procedures, but I don't think I'd ever rent anything less than m2m. I could see an offering of w2w as an alternative though. Keep in mind though that even if it makes it easier to evict, that would also make it easier for them to break away as well, potentially leaving you with an empty property with little warning.

[48205to24]

As TexasT said, offering week-to-week could definitely deter you from attracting a better crop of tenants. If I were to seek out a rental and they only rented week-to-week, I'd be scared away by the assumption that they're just waiting to evict me. I don't know anything about the procedures, but I don't think I'd ever rent anything less than m2m. I could see an offering of w2w as an alternative though. Keep in mind though that even if it makes it easier to evict, that would also make it easier for them to break away as well, potentially leaving you with an empty property with little warning.

I understand all the points made, I did not even consider this until I heard if for the first time today. As we were prepared to go month to month. When I heard of the week to week, I thought this would be the best forum to get immediate access a large number of landlords who may have heard of such a thing.
I am not really worried about tenants. We are targeting people or couples under 30 with 1 child or less who are interested moving up from one neighborhood to a better neighborhood. I wont bore you with the strategy. We do have quite a few middle income people and we havent purchased our first property yet. Right now there are two houses we are looking to bid on and hope to win at least one.

[Bham1982]

We are targeting people or couples under 30 with 1 child or less who are interested moving up from one neighborhood to a better neighborhood.

Keep in mind that you can't disciminate based on age or family type. I don't believe these factors can play any role in whether or not you rent to them.

[Honky Tonk]

As TexasT said, offering week-to-week could definitely deter you from attracting a better crop of tenants. If I were to seek out a rental and they only rented week-to-week, I'd be scared away by the assumption that they're just waiting to evict me. I don't know anything about the procedures, but I don't think I'd ever rent anything less than m2m. I could see an offering of w2w as an alternative though. Keep in mind though that even if it makes it easier to evict, that would also make it easier for them to break away as well, potentially leaving you with an empty property with little warning.

@ first I thought so too, but I think I understand where he's coming from. Let's say you're a shooter, [[businessperson) coming into town for a couple of weeks. A sports person, visiting, etc. I think that's what the poster means. Now, If they start inquiring about "renting" "by the hour".......

[48205to24]

@ first I thought so too, but I think I understand where he's coming from. Let's say you're a shooter, [[businessperson) coming into town for a couple of weeks. A sports person, visiting, etc. I think that's what the poster means. Now, If they start inquiring about "renting" "by the hour".......

No, there are young professionals in Detroit who cannot afford downtown nor want to live in the burbs, and since they grew up in Detroit arent afraid of a neighborhood as long as its nice.
Ex. Woman with one child recently graduated nursing school has a good job, moving from aunt house on Mack/Bewick to something better, may move to Houston if the offer comes. No need to move to another crap neigborhood or deal with a slumlord who doesnt like Detroiters anyway.
Nothing fancy like yuppies in midtown or adventurers in hostels.
For the record I am a she.

[48205to24]

Spoke with some people from BSEED and the Water Dept
Even with week to week you would would need police assistance to get tenants out which is iffy and you will still need to go to court.
You would not be able to obtain a landlord tenant agreement with the water department- putting water utility in the customer name.
So although it was a creative idea, I think we'll stick with the monthly lease.

[gvidas]

Spoke with some people from BSEED and the Water Dept
Even with week to week you would would need police assistance to get tenants out which is iffy and you will still need to go to court.
You would not be able to obtain a landlord tenant agreement with the water department- putting water utility in the customer name.
So although it was a creative idea, I think we'll stick with the monthly lease.

FWIW, the Water Dept makes it extremely hard to get water bills in the name of anyone but the building owner. I assume this is because they're set up to roll old bills onto your property taxes, and that's complicated if it's not the same name and billing address.

Instead, they allow you to do what's called a "tenant login" using just the acct # through their website, which is how I handle it at my studio -- the bill is in the landlord's name, but I'm responsible for it. In every other rental situation I or my friends have been in, however, the water bill is either a fixed price [[in multi-tenant buildings) or paid by the landowner / added to the rental cost.

[Honky Tonk]

Spoke with some people from BSEED and the Water Dept
Even with week to week you would would need police assistance to get tenants out which is iffy and you will still need to go to court.
You would not be able to obtain a landlord tenant agreement with the water department- putting water utility in the customer name.
So although it was a creative idea, I think we'll stick with the monthly lease.

I have limited experience with evictions. I can tell you this, legally, everyone will side with the tenant. This is why I suggest you spend $100, sit down with an attorney that knows rentals or leasing, and have them help you form a game plan. You'll need to know how to setup your lease or rental beforehand, so if it should come to that, you'll have all your ducks in a row. If you don't, you could end up on the wrong end of it.

[48205to24]

From what I was told, there is a landlord/tenant process. The landlord and the renter go into the customer service center and signs the appropriate documents. The landlord must bring documents of ownership and the tenant agreement/lease. This allows the department to set up an account in the tenants name and it stays with the tenant. If you rent the property to someone else, they will not be responsible for the portion from the old tenant.
Now, I am also told there are some issues with DWSD and collection of the monies if the old tenant doesnt pay. Ultimately the water bill is a still lien on the property and therefore the owner must pay. They advise the owner to use the affidavit to sue the tenant.
Finally, I am also told DWSD is seeking to attach water bills to people [[like DTE) so the water bill will follow the person and not the property. They also eventually want to be able to put it on your credit report, etc. The first steps in this endeavor has begun but I dont know how far along they are.

[Honky Tonk]

From what I was told, there is a landlord/tenant process. The landlord and the renter go into the customer service center and signs the appropriate documents. The landlord must bring documents of ownership and the tenant agreement/lease. This allows the department to set up an account in the tenants name and it stays with the tenant. If you rent the property to someone else, they will not be responsible for the portion from the old tenant.
Now, I am also told there are some issues with DWSD and collection of the monies if the old tenant doesnt pay. Ultimately the water bill is a still lien on the property and therefore the owner must pay. They advise the owner to use the affidavit to sue the tenant.
Finally, I am also told DWSD is seeking to attach water bills to people [[like DTE) so the water bill will follow the person and not the property. They also eventually want to be able to put it on your credit report, etc. The first steps in this endeavor has begun but I dont know how far along they are.

I don't know your game plan, [[none of my business), but do you want to go through THAT hassle, just to do a short term rent? Why not create a "business" account, put the water, or all utilities, in that name, and bake it into the rent? Also, if I was going to rent short term, and had to go through turning on untilities in my name, I might be dissuaded from choosing your place. One fixed price might sound better to the first timer.

[48205to24]

I don't know your game plan, [[none of my business), but do you want to go through THAT hassle, just to do a short term rent? Why not create a "business" account, put the water, or all utilities, in that name, and bake it into the rent? Also, if I was going to rent short term, and had to go through turning on untilities in my name, I might be dissuaded from choosing your place. One fixed price might sound better to the first timer.

I understand your point, however we have people who are willing to rent on a month to month, pay the utilities etc. We just need to get properties. We have been considering it for a while-recent developments have lit a fire under our butts. Depending on how this goes we will make adjustments. Thats the beauty of starting of short term.

[Honky Tonk]

I understand your point, however we have people who are willing to rent on a month to month, pay the utilities etc. We just need to get properties. We have been considering it for a while-recent developments have lit a fire under our butts. Depending on how this goes we will make adjustments. Thats the beauty of starting of short term.

Gilbert started out somewhere.....

[SDCC]

I have stayed at places that were week to week - and they were fairly nice.
http://jordanhousesandiego.net/

[48205to24]

I have stayed at places that were week to week - and they were fairly nice.
http://jordanhousesandiego.net/

I like this idea, but its not a good fit for the outlying neighborhood and this would eat up the cash we have for our initial investment. Maybe once we learn the ropes and interest develops in the neighorhoods. A Jordan House on the edge of Chandler Park Drive with access to I-94, St. Hospital, Grosse Pointes and its upcoming new and improved Mainstreet [[ala Royal Oak).

[softailrider]

Any landlords here?
I am thinking of purchasing a couple of properties. They are in an area we know and like and we have a couple of potential tenants.
The tenants are good people [[not related), however with the economy the way it is, I want the make sure the properties are available to those who can pay.
A co-worker mentioned renting out on week to week basis since its easier to evict someone. I had never heard of it until now. Has anyone ever heard of this?

Former landlord here - I've had dozens of rental properties in several different parts of the city over the past 3 decades. My advice would be to look for a different investment. While Detroit is very lax about inspections of rental properties [[ just about non-existent I think ) It's a horrible business now - insurance is sky high, property taxes are insane. Your average Detroit renter knows how to play the system like a piano - it's get the first months rent and security deposit and then the chase begins, the chase doesn't end until you throw them out then the cycle starts again. Of course when you have a vacant house you better pay somebody to stay there, if you don't your friendly neighbors will pick the place clean so fast it'll make your head spin.

I could go on and on, let's just say you better get your ducks in a row before you spend any money on rental property in Detroit

[48205to24]

Former landlord here - I've had dozens of rental properties in several different parts of the city over the past 3 decades. My advice would be to look for a different investment. While Detroit is very lax about inspections of rental properties [[ just about non-existent I think ) It's a horrible business now - insurance is sky high, property taxes are insane. Your average Detroit renter knows how to play the system like a piano - it's get the first months rent and security deposit and then the chase begins, the chase doesn't end until you throw them out then the cycle starts again. Of course when you have a vacant house you better pay somebody to stay there, if you don't your friendly neighbors will pick the place clean so fast it'll make your head spin.

I could go on and on, let's just say you better get your ducks in a row before you spend any money on rental property in Detroit

We chose the neighborhoods in Detroit because a lot of investors wont bother with it. Many that do already have a negative attitude toward the people and the area. We dont have that yet. We made some connections in some of the areas we like so we know the neighbors want the neighborhood to succeed. We screened potential tenants first and we will start with short term leases. People who do not need a place but want a place and/or people who will be leaving in a year or so. These tenants may not be available forever, but we have a couple of choices now. Hopefully we can get one the houses soon enough to get started.
Like I said we have family who own property in Detroit, they have good tenants now but went through a lot drama to get them. I am hoping doing things a little different from the beginning will change the odds.
Living in the neighborhoods with its high taxes, insurance, etc is not fiscally responsible either but I do it because I grew up here and I love the city.
Hopefully finding a strategy to successfully invest in the neighborhoods without banks and vouchers will encourage other young people to do so.
Pass or fail, as long as we dont owe a mortgage on the place I am good.

[Richard]

We chose the neighborhoods in Detroit because a lot of investors wont bother with it. Many that do already have a negative attitude toward the people and the area. We dont have that yet. We made some connections in some of the areas we like so we know the neighbors want the neighborhood to succeed. We screened potential tenants first and we will start with short term leases. People who do not need a place but want a place and/or people who will be leaving in a year or so. These tenants may not be available forever, but we have a couple of choices now. Hopefully we can get one the houses soon enough to get started.
Like I said we have family who own property in Detroit, they have good tenants now but went through a lot drama to get them. I am hoping doing things a little different from the beginning will change the odds.
Living in the neighborhoods with its high taxes, insurance, etc is not fiscally responsible either but I do it because I grew up here and I love the city.
Hopefully finding a strategy to successfully invest in the neighborhoods without banks and vouchers will encourage other young people to do so.
Pass or fail, as long as we dont owe a mortgage on the place I am good.

you are talking about putting something like this in a neighborhood then it will make the neighborhood become more transient,would you like to live next to a house that changes tenants weekly?

Lots of cities have removed the weekly rental aspect because of that as it is hard to stabilize a neighborhood with weekly rentals.

Been there done that back in the 80s Orlando ,take a house and chop it up into many sleeping rooms with shared baths [[flop house) nice return but rules are subject to change at any given moment.

Orlando in the 90s saw many a UK owner buying houses for weekly rentals up to $3000 a week ,rules changed and they ended up dumping the house and everything inside for pennies on the dollar.

Weekly rentals equaled hotel status and were subject to bed tax.

If you are baseing the numbers on weekly rentals then it takes three weeks to evict where is the gain?
With a hotel it is a closed end contract at 12 pm it is over,cops can remove but the trick would be how to classify a single family home as a hotel?

Neighborhoods need home owners not people comming in and creating more stress with weekly rentals,why not buy a house in a nice neighborhood ,charge a fair rent and credit check the tenants?

You may have interest now but what happens if they are gone you still have to pay the bills and when somebody maybe not so ice comes along with cash it may be not so easy to say no.

lots of old motels up for sale cheap,but still more of an investment then what you are trying to do but then you have to spend money to make money.
It is hard enough