- Communication & Records
- Innovative Rental Marketing
- Robust Tenant Screening
- Tracked Tenant Management
- Strict Evictions & Pay Plans
- Property Inspection Videos
- Transparent Maintenance
- Utility Management
- City Compliance
- Intense Financial Reporting
- Increasing Revenues & Repositioning
- Restructuring Debt
Have questions about a
specific step in our process?
Please click on an icon for an overview or read more for in-depth information.
We specialize in managing multi-family buildings too small to support on-site leasing & maintenance staff. Traditionally, the cutoff for this was around 30 units, but leveraging current technology has allowed this number to be increased significantly.
Contact us to discuss whether your building should be supporting the cost of on-site staff.
Communication & Records
In addition to standard Profit & Loss and Balance Sheet reports, we provide an online portal where all information regarding your property(s) is available. You have access to historical reports, Live Reports, maintenance work orders, invoices, a history of communications, etc.
Each screen of your portal has a video tutorial to explain its functionality. Many screens have filter capabilities so you can control the time period of data you see. Search functionality is also available on many screens.
Innovative Rental Marketing
We’ve found many properties have performance issues related to improper marketing. While For Rent signs may still attract potential tenants, online advertising statistically attracts better tenants and increasingly is the way to go. To compete and attract tenants a property’s unique characteristics need to be identified and properly promoted.
Our goal is to make your property stand out in its local marketplace, so it attracts the best tenants possible. We do that by studying your property and the local competition to identify your property’s unique features. Our marketing is then designed to promote those features.
To maximize turning inquiries into showings, we post every bit of relative information about your property online and have an online scheduling system which prospects can access 24/7/365. Qualifying prospects may also be allowed to view a property on their own, using software to validate their identity for security purposes. Otherwise, traditional agent showings are conducted.
We use analytics to monitor how your vacant property is doing in the marketplace by tracking the following data points:
- Web Views
- Online Inquiries
- Scheduled Showings
- Completed Showings
This data is analyzed and compared to our accumulated database to identify potential areas of concern. This allows us adjust our marketing efforts and address challenges faster.
Robust Tenant Screening
We have an exceptional screening process, requiring a YTD paystub, most recent W-2 and bank statement. We check national credit, eviction & criminal histories, verify past landlords and also video Tenant MoveIns.
Below is more information about what our Applications Department does to screen applicants and find the best tenants possible for your property.
We require the following from each applicant over the age of 18, that is not a dependent of another applicant (as evidenced on a tax return):
- Copy of acceptable state picture ID
- Recent YTD paystub
- Recent W-2
- Recent Bank Statement, all pages, no info blacked out
- Recent tax return if self-employed
Applicants are often slow about turning this information in, asking us why we need it and then taking several days to submit. Then they complain that our process takes too long!
Many companies use credit summaries, but we find these rarely tell the whole credit story. So, we obtain a full credit report and review collections, chargeoffs, age of credit accounts, active accounts, etc. to build an overall credit evaluation.
We also obtain data from national databases about evictions, convictions and sex-offender histories. These all require applicants to submit an acceptable Letter of Explanation addressing each specific issue and occurrence.
Because a current landlord may say anything to get rid of a bad tenant out of desperation, we also require information for the previous landlord of all applicants. Verifying rental history often takes a long time to complete due to applicants not giving us correct landlord contact information, landlords not returning our calls or refusing to give us any details.
We also deal with applicants trying to have family or friends pose as their landlords. To address this, we verify the property owner per government records and use this information to vet imposters.
Anything that seems suspicious will lead to us requesting an acceptable Letter of Explanation to address.
Many landlords require a month of paystubs from applicants and just use these to calculate a monthly qualifying income. In our opinion, this doesn’t result in a viable income amount or analyze income stability. We use a YTD paystub and last year’s W-2(s) to calculate income several different ways:
- Hourly or salary income calculated to a monthly amount
- YTD income divided by number of YTD months
- YTD + W-2(s) income divided by the corresponding number of months
If these numbers vary too much, then we investigate and require an acceptable Letter of Explanation.
Unless an applicant has exceptional credit, we strive to determine their stability of employment to make sure they’ll always be able to pay the rent on time. So, we require a detailed employment history for the last two years and verify as much of it as reasonably possible.
We are one of the few management companies that requires a bank statement as part of our application process. We think it’s important as it allows us to check for Non-Sufficient Funds (NSF) issues and to determine if an applicant is living paycheck-to-paycheck. Bouncing payments or only being an illness or accident away from not being able to pay the rent, are issues considered by our underwriting.
Letter Of Explanation
Any time there are credit issues or we discover an inconsistency, we require a written letter of explanation (LOX). Many applicants just want to tell us their excuses over the phone, but if they won’t take the time to put it in writing, we find they rarely end up being good tenants.
Traditionally, landlords have only looked at the income of applicants and approved those having income equal to three times the property rent. This crude method ignores all the other debt payments tenants have. Given that many tenants will make their car payment before their rent payment, we’ve copied the mortgage industry’s method of debt-to-income (DTI) ratios. We calculate rent plus all debt payments as a percentage of gross monthly income.
Our underwriters strive to analyze and balance all the information above to determine the statistical likelihood of a tenant paying their rent on time.
Once an applicant is approved, we require a nonrefundable Holding Fee to make sure they are serious and don’t change their minds. We actually keep marketing your property and accepting back up applicants until your property is actually occupied.
One last thing, because there is a significant increase in the length of time to find a tenant during the winter months, we do our best to avoid a lease term that ends during the months of November to February. We’ll offer an approved applicant a 13-15 month lease to avoid this. We even do this on lease renewals. Why set our clients up for longer vacancies than necessary?
Tracked Tenant Management
We cannot stress how important it is to have strict, yet fair, policies & procedures in place to manage tenants. Tenants must be consistently monitored to confirm they follow lease requirements. For accountability, we document all tenant communications in our online database & phone calls are recorded.
Tenants range from the autonomous, to those needing constant attention. So, we have extensive written policies & procedures for our staff to consistently enforce. Problems are identified and addressed or escalated to you as needed. Being strict, yet fair, usually results in most tenants following the terms of their lease and wanting to renew for additional years.
To that end, our lease is an evergreen contract, which means it auto-renews unless the tenant or landlord gives the other party proper notice. A 5% increase is included in each auto-renewal period, but the tenant and landlord can negotiate this if done so within the notice requirements. Instead of a traditional 30-day notice period, our lease requires a 60-day notice, which gives us more time to evaluate your property for advertising and market it for a new tenant.
Strict Evictions & Pay Plans
Nonpayment of rent is a major issue that must be aggressively addressed, so that potential losses are minimized. We keep pressure on tenants with past-due balances & require pay plans – to get them to pay or move expediently. Eviction Notices are sent no matter the excuse and calls made at specific trigger-events for more effectiveness.
When it comes to late rent payments, it’s tough to balance being understanding with being strict. The real challenge is you never know when a tenant is telling the truth, or desperately telling you what they think you want to hear to avoid eviction. The only logical way to address this dilemma is to have a well-thought out system that is strict, but compassionate with built-in, limited flexibility.
Our lease states rent is due on the 1st of each month, with a 5-day grace period. Eviction Notices are generated on the first business day 1-3 days after the 5th of the month. From thereon, we aggressively pursue payments while moving forward with the eviction process. We allow payment plans, but since desperate tenants will say anything over the phone, we require tenants to submit payment plans in writing, with specific payment dates & amounts, as well as proof of income to support the payments.
We make at least 6 strategic calls to tenants during the eviction process, giving them opportunities to pay and halt the process:
- When eviction notice sent to tenant
- When notice sent to attorney to schedule court date
- When court date is confirmed
- When court judgment obtained
- After 10-day court ordered time to pay expires
- When a Writ of Eviction is obtained, and bailiffs scheduled
Owners often want us to call more frequently, but no amount of calls will get a tenant to pay if they don’t have funds. We publish our Eviction Process Milestones to owners on their online Rent Roll Report.
Pursuing tenants for unpaid balances after they move out is dependent on being able to find them and personally serve them as required by Michigan law. This is beyond the capability of a property manager, so we hire outside attorneys and collection agencies. Instead of paying them by the hour, we hire firms that work on a contingency basis, where they take a percentage of what they collect. NOTE: Finding dependable firms is an ongoing challenge due to the limited number of accounts we can send them.
For more information about our system to legally evict tenants within Michigan statutes, please read below:
Michigan Eviction Process Explained
|Day 1:||RENT DUE: Rent typically due on first of each month.|
|Day 5:||GRACE PERIOD UP: Last day of Grace Period|
|Day 6-9:||EVICTION NOTCE SENT: Tenant has exceeded grace period of their lease. Proper Demand form is sent to all tenants to start the legal eviction process, so we force them to address their balance:|
|Day 13-16:||COURT DATE FILING: While waiting the required 7 days, we try to communicate with tenant to determine if they intend to pay and when. Tenants are offered option of Payment Plan. To keep pressure on them, we usually move the Eviction Process forward by sending the following to an attorney to file for a court date:|
NOTE: Only the property owner can represent themselves in court, we MUST use an attorney.
|Day 16-19:||FILING CONFIRMATION: We follow up (f/u) with attorney to make sure they received our email & are filing case with court.|
|Day 19-22:||COURT DATE CHECKUP: We f/u with attorney for court date if not received yet.|
|Day 20-25:||COURT DATE SET: When we get a court date, we try to determine if tenant(s) still in property:|
|Day 25:||COURT DATE: Our attorney appears in court to present case against tenant(s). Tenants are given opportunity to challenge the balance we are suing them for.|
|Day 35:||AFTER REQUIRED 10 DAYS: We contact tenant about their plans to move or pay. We try to be nice, but firm, keeping the pressure on them.|
|Day 36:||WRIT OF EVICTION ORDERED: The next step in the eviction process is to request an Application and Order Of Eviction (form dc 107, also known as a Writ of Eviction) which requires judge signature.|
|Day 43-46||WRIT OF EVICTION RECEIVED: Order of Eviction should be signed by now, if not f/u with attorney.|
|Day 46-53:||WRIT OF EVICTION POSTED: Bailiff will mail or post the Writ of Eviction with date they will physically remove tenant’s belongings.|
|Day 53-60:||BAILIFF REMOVAL: Court appointed bailiff(s) will remove tenant & their belongings and legally return possession of the property to us. Cost is at least $300, depending on city, number of bailiffs, size of home & amount of possessions and cost of possible required dumpster. We can then rekey the locks and evaluate damages to prep for marketing.|
|Day 91:||EXPIRATION DATES: If we agree to an extended payment plan with a tenant, the judgment expires 56 days after judge signs it. We can extend this deadline by requesting the Application and Order Of Eviction (form DC 107), which will usually extend our case another 56 days. Otherwise, we will have to start all over again.|
Please reference this great document for additional information: Tenants & Landlords, a Practical Guide:
Property Inspection Videos
We do periodic inspections to monitor the condition of your property(s). Inspections include Annual Interior, exterior Driveby, MoveIn Checklist, MoveOut and City Compliance Inspections. We video all inspections and provide you a copy.
Unfortunately, we’ve seen the pics that enticed owners like yourself to buy a property – only to discover later that the pics didn’t really convey the true condition of the property. Or you’ve paid for repairs and received pics that make it appear that repairs were done, but you find out those repairs weren’t really done – at least not at your property. We believe videos give you a much better understanding of the condition of your property.
We’ve also used videos to hold tenants accountable for damages they caused. Courts now have the ability to play videos, so they can be submitted as evidence.
Communicating maintenance issues & costs to you, so you understand what is needed and what you’re paying for, is always challenging. We have a unique solution – we provide you pics/videos to support bids, then provide actual invoices and completion pics/videos. Everything is published to your owner portal.
Please review the Maintenance Flowchart below that describes our maintenance process.
Is it an Emergency
Have questions about a specific service and our corresponding process?
Please click on an icon for an overview or read more for in-depth information.
To avoid miscommunications, we require tenants to submit all non-emergency requests in writing.
Work Orders are created on the portal, where we track all communications between you, our administrative staff and our ServiceTechs and contractors.
Our company policy defines an emergency as an issue that will result in injury to a person or cause severe damage to the property. If a maintenance issue meets these requirements, we will take tenant maintenance request via phone and address issues without your approval.
Some maintenance issues are more urgent than others, so we are constantly prioritizing the Service Requests we receive and then doing our best to address them in order of priority. Often, this may require that we reschedule an existing appointment.
Our staff reviews new Service Requests and assigns a ServiceTech with the skills to address the maintenance issue(s). We contact tenants to get as much information as possible from them to save you money by sending the correct ServiceTech the first time.
Once a Service Request is assigned to a ServiceTech, they will contact the tenant to schedule a service appointment. We document ServiceTech attempts to contact tenants, to curtail tenant complaints no one has called them.
Upon arrival, our ServiceTech will do their best to evaluate the Service Request issue(s) to confirm they have the expertise to proceed. Before proceeding, they are usually required to document the issue(s) with pictures or video and notes to show what needs to be done.
For non-emergency Service Requests, our ServiceTechs are limited as to how much they can spend on repairs without your approval. Often, they have to submit an estimate that office staff submits to you for approval.
Depending on the amount of an estimate and the work required we may obtain additional estimates. Tenants do get frustrated having multiple bid appointments and sometimes don’t cooperate. We then publish the bids to your portal for your review, discussion and eventual approval.
We cannot proceed with approved work until we have the necessary funds. If funds are not available we’ll contact you to discuss.
Often, especially with city required repairs, multiple ServiceTechs (electrician, plumber, HVAC) will require separate appointments. Our staff will do their best to coordinate the necessary appointments to stay on track and update you.
We confirm all city permits and inspections are finalized. As work is completed, we require our ServiceTechs to take pictures and/or video to document progress. We prefer they include tenants in their video, to document their satisfaction.
Monitoring utility usage is critical on a multi-unit property to quickly identify problems affecting your profits. Leaks and tenant abuse need to be monitored. Additionally, exploring options to transfer billing to tenants and improving energy-efficiency should consistently be done.
We’ve successfully transferred utility costs to tenants by coordinating the installation of separate gas meters and metered billing for water. We monitor local utility company and government energy-efficiency programs to determine the financial feasibility for your property.
Our goal is to make sure utility expenses are not only kept in check, but also improved over time to increase your bottom line.
Most cities in Metro Detroit require some type of periodic rental license/registration to legally rent a property and collect rent. Tickets are issued for noncompliance. We handle the city application and arrange required inspections for you, documenting everything.
Municipalities may require interior inspection of a percentage of your property units, along with fire-safety and water-supply tests. Not every city sends out reminders about their required inspections, so we’ve customized our software to track due dates, expiration dates, etc., and have auto-generated monthly reports for our own reminders.
One of the reports available to you on your Owner Portal shows the status of any city inspection in progress and the expiration date of any license/registration obtained.
Intense Financial Reporting
You should have 24/7 access to information regarding the performance of your property(s). On the 15th of each month, we email an Owner Statement for the previous month. We also provide a live Rent Roll Report, P&L Reports for previous & current months, and Monthly Comparisons for current & previous years.
Here’s a snapshot of what your Monthly Statement will look like:
And here’s what you live reports screen will look like:
Here’s a further explanation of the reports above:
Live Rent Roll Reports
We provide two reports to provide as much information on rent payments as possible:
- Rent Roll: Lists all your rented properties with columns for: Status, Lease Name, Total Unpaid, Rent Unpaid, Monthly Rent, Last Payment Amount, Last Payment Date, Public Assistance Program, End Date (lease), Notice Given Date, Start Date (lease), Reason for Leaving, Deposit Held, # Late (fees), # NSF, and numerous dates/information related to eviction proceedings, plus more.
- Tenant Payments this Month: A supplement to the Rent Roll Report (which only lists the most recent payment). If a tenant makes multiple payments in a calendar month, you will see them listed here.
Live P&L Reports
We want our clients to have access to transparent financial information, even when we haven’t published an Owner Statement yet. So, we provide the following reports:
- Owner P&L (Current Month): We think it’s important that you have access to how your portfolio of properties is performing financially at all times.
- Owner P&L (Previous Month): We publish Statements for the previous month on the 15th of each month. Until then, you can access this report for financial information.
Monthly Comparison Live Reports
Wondering how your property(s) is performing overall? It’s often very insightful to look at multiple months of financial data side-by-side for comparison. TO do so, we provide the following:
- Current Year Monthly Cashflow Compare: A month-by-month comparison of Cash Flow data for current year
- Last Year Monthly Cashflow Compare: A month-by-month comparison of Cash Flow data for previous year.
Annual Statements & 1099
To make tax season easier for you, we provide an Annual Statement and 1099-MISC by January 31 for the previous year. Just hand these to your tax professional and you should be all set.
Increasing Revenues & Repositioning
Property management can make or break the profitability of even the best properties. Our goal is to avoid that and find ways to increase revenues and lower expenses. While that is an obvious goal, we actually have systems in place designed to make it happen.
Often a multi-family building has been marketed the same way for years or decades, while the local area has gone through significant changes. Repositioning a building involves analyzing the local marketplace for current demographics, economic developments, employment trends, etc. All of these are used to create a target-tenant profile.
We then analyze what the amenities this target-tenant profile expects and the amount of rent they’re willing to pay. When possible, we create an amenity versus rent matrix to identify and rank options.
A building analysis is done to determine what expected amenities can be added and an amenity versus cost matrix created.
Finally, a marketing plan outline is developed, and tenant turnover projections made.
All of this is then discussed with you and an implementation plan agreed upon.
You’d think every property owner raises rents, but many are afraid raising rents will negatively affect their occupancy rates. While this is sometimes true, most tenants are used to small annual rent increases. Going too long without a rent increase can actually lead to tenants believing they are entitled to no increases, ever. We bring a systematic approach to the when and how much of rental increases, with an eye on occupancy rates.
Repositioning a building also usually leads to higher rents for new tenants. Existing tenants are given reasonable options to increase their rental rates.
As discussed under the Utility Management area, we can often find ways to transfer utility costs to tenants and explore options to lower overall utility expenses via increasing energy-efficiencies.
New Revenue Streams
We’ve successfully increased building revenues by adding additional income streams like onsite coin laundry, building out & renting storage units, assigned premium parking and more.
Repositioning buildings and adding new revenue streams usually requires investing funds in renovations. To fund renovations, you have two options:
Pay out of pocket: if you have the cash available, this is the fastest way to fund renovations. Once the work is done and revenues increasing, you can refinance your building to recover your funds. Lenders will want all expense documentation and proof of increasing revenues, which we can easily provide.
Finance: the other option is to get a loan to finance renovations. Again, we can assist by providing projected expenses and revenues documentation that a lender will require. This option is usually more difficult to obtain than refinancing after renovations are done.