Renting out Property in Detroit

**48205to24** · June-18-13, 11:44 AM

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** · June-18-13, 11:51 AM

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

**48205to24** · June-18-13, 11:57 AM

Originally Posted by preserve

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.

**Spartan** · June-18-13, 11:59 AM

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

**Honky Tonk** · June-18-13, 12:03 PM

Originally Posted by 48205to24

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** · June-18-13, 12:07 PM

Originally Posted by Honky Tonk

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** · June-18-13, 12:13 PM

Originally Posted by Spartan

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.

**48205to24** · June-18-13, 12:18 PM

Originally Posted by Honky Tonk

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** · June-18-13, 12:20 PM

Originally Posted by 48205to24

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** · June-18-13, 12:47 PM

Originally Posted by Spartan

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.

**48205to24** · June-18-13, 01:03 PM

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.

**Bham1982** · June-18-13, 01:04 PM

Originally Posted by 48205to24

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** · June-18-13, 01:07 PM

Originally Posted by Spartan

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** · June-18-13, 01:27 PM

Originally Posted by Honky Tonk

@ 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.

**Honky Tonk** · June-18-13, 01:33 PM

Originally Posted by 48205to24

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.

May I ask what end of Detroit you're thinking of doing this in?

**gvidas** · June-18-13, 01:35 PM

Originally Posted by 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.

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** · June-18-13, 01:44 PM

Originally Posted by 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.

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** · June-18-13, 01:52 PM

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** · June-18-13, 02:14 PM

Originally Posted by 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.

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** · June-18-13, 02:16 PM

Originally Posted by Honky Tonk

May I ask what end of Detroit you're thinking of doing this in?

Not a particular end or zip code, more like pockets of certain areas that we are familiar with. We are flexible depending on the location and condition of house that becomes available. For example Lanoo street on the east side or a certain section of Abington on the west. Depending on what streets you travel to get to this area you wouldnt know there was an decent area hidden in there.
Pockets of the city are being ignored for what is cool and hot. We have found an untapped market of young middle income native Detroiters who are in transition. They will either leave Detroit or buy in Detroit. They are familiar with the areas we want to purchase in. If we find a good tenant wants to rent long term on month to month basis that is good too.
There are other options if this doesnt work- but I wont entertain renting under those terms for now.

**SDCC** · June-18-13, 02:24 PM

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

**48205to24** · June-18-13, 02:44 PM

Originally Posted by Honky Tonk

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** · June-18-13, 02:46 PM

Originally Posted by 48205to24

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.....

**48205to24** · June-18-13, 02:56 PM

Originally Posted by SDCC

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).

**48205to24** · June-18-13, 03:03 PM

I think everyone who has a few dollars extra should skip that big vacation or car upgrade and take a chance on future independence.
Especially those of us under 35, since we may not have Social Security and pensions. Now or at least in the next 5 or 10 years is the time to do it. I for one do not want to dependent on anyones empty promises.

Lets change the discussion to transitional houses such as Jordanhouse. If your could own one where would you put it and who would you rent to?