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I have never heard of a management company doing more guarantees than we will manage the property and this is what it entails. NO PMC will ever put that guarantee in a contract. I had a PMC and I much prefer to keep the money I was giving them in my pocket but I'm close to all my rentals except for two that I made investment in out of state. I got burned on those but I was lucky they were within 800 miles. Went there fixed both and put them up.
It CAN work to use a PMC but you have to find a good one. Your return will be lower but its still income and you won't have to field calls.
I guess we just have some excellent PMC in Michigan.
I guess we just have some excellent PMC in Michigan.
You must have because its unheard of here in California. That's one crazy guarantee. Maybe they go after the tennt for repairs and attach wages? Either way if you get a PMC to guarantee the rental will be returned only with normal wear/tear no other damage yeah you're getting a hell of a deal
You must have because its unheard of here in California. That's one crazy guarantee. Maybe they go after the tennt for repairs and attach wages? Either way if you get a PMC to guarantee the rental will be returned only with normal wear/tear no other damage yeah you're getting a hell of a deal
I am sure I am not the only one that googled the heck out of and couldn't find a single PMC in MI with a guarantee. They must keep it a secret too. I did find something where they guarantee you that the place will be leased within 60 days or they pay...and I never read the rest. But nowhere there did it say they guarantee the place back in original condition of move in. Maybe the OP will share with us this wondrous PMC?
Marketplace Homes guarantees to return your home in the condition that it was given to them in. At least they did when I talked to them last year.
For the record, I opted against using any PMC and manage the home myself. Every PMC has too much say in billing major repairs.
Thanks, I just looked at them. It isn't listed on their site but they do seem like a premium PMC, probably have to pay top dollar to have them manage your properties! I did see a guarantee to keep tenants in your property and a guarantee that if after you pay for a repair and it has to be repaired again, they will eat the cost. (saying they only use the best repair services) Good choice in doing it yourself.
Marketplace Homes guarantees to return your home in the condition that it was given to them in. At least they did when I talked to them last year.
From their website:
"What happens if a tenant damages my home? Marketplace Homes will cover up to $ 1000 worth of tenant damage."
I see no sort of guarantee such as the one they described to you.
Like many PMCs they do have relationships with all sorts of contractors to fix anything which needs fixing but, as I pointed out earlier, this would be on the owner's dime, not theirs. If it sounds too good to be true ...
"What happens if a tenant damages my home? Marketplace Homes will cover up to $ 1000 worth of tenant damage."
I see no sort of guarantee such as the one they described to you.
Like many PMCs they do have relationships with all sorts of contractors to fix anything which needs fixing but, as I pointed out earlier, this would be on the owner's dime, not theirs. If it sounds too good to be true ...
Yeah 1k can be eaten up in a few repairs. You get some animal in there and 1k will be a joke in repairs.
As far as aim concerned if you have a house that's paid off or almost paid off it will be better than almost any if not any other investment. Its cash flow. You need money you can borrow against it ( sensibly) you have a higher net worth, and you can ALWAYS sell it if you just gotta get rid of it.
As for renting your dream house yeah ok it's your dream house. Anything can be repaired. When I get my next place as hard as it s for me to rent my current place which I completely remodeled top to bottom I will. Ill just charge going rate, and it just becomes a rental. I still own it and I can always fix it. At first we said no were selling it but looking at the larger picture it would be stupid to sell. Makes absolutely no sense. Even if you had to use a PMC its still good cash flow. You can always find one one you trust. I have a few friends who have me take care of their rentals. You don't need a PMC.
Like I said, I spoke with them over a year ago. It appears they have changed their policy since then, so I stand corrected. Indeed, $1,000 in repairs is a pittance given what tenants can do in a year.
And yes, while Marketplace seems reputable, the property management service costs and arm and a leg. They also lock you into a price on your home that they reserve the right to sell it at. Too many red flags for me.
I do stand by what I said regarding reading the fine print on repair policies. Many PMC that I looked at reserve the right to make the decision on hiring a contractor for almost every type of repair. Lots of opportunities for collusion.
One other red flag with Marketplace Homes: They offer the guarantee on rent for the first year only, and then re-negotiate yearly based on the market. They also require you to tell them how much your monthly mortgage is. The monthly rent they guaranteed me for the first year was like $10 less than what I was paying on my monthly mortgage. Too good to be true, right? My guess is they hook underwater homeowners by guaranteeing their mortgage gets fully covered the first year, get them in their dream home, and then gouge them in subsequent years with significantly lower rental guarantees. I didn't like that they required me to tell them what my monthly mortgage was since that is completely irrelevant to what the house could rent for. They were the only PMC that asked for that information.
There are lots of different PMCs out there. As far as I know they have to put any major repairs up for bid they can't just tell you who they are gonna use and you are stuck. Now for everyday leaky facet repair they have a handyman person but for anything more than a normal wear and tear repair they have to go for bid. It's still YOUR house. I have never heard of some of the stuff you said. When I used one I simply told them this is what the place rents for and my requirements for a renter. They found a renter passed background willing to pay rent price and they took the equivalent of one month rent after that was jeez I think 6-7% of monthly rent minus any repairs. Unless it was a emergency repair they had to call and tell me the repair and if I wanted it done.
I manage my own now, I have a good handle on things, my tenants know they can approach me with any issues without begin afraid of retaliatory action. If I ever find a good PMC I may go back to using one but so far my tenants prefer dealing with the homeowner not a PMC. And the majority of people who come look at the rentals when it comes up first thing they ask is if they are dealing with the homeowner or a PMC. Totally different vibe when I say the homeowner
OP, there are a few good management companies out there, but they are few and far between. You are going to be halfway across the country and not able to check up on the house. You won't really know what is going on.
So, I suggest that you sell the house and if you want to be a landlord, purchase a cheap house just a few miles from where you live. Even if you decide to use a management company, you can drive by and look to see what is going on.
Some tenants are destructive, so rental houses should be plain and cheap and easy to repair. I've had exactly 2 tenants in a 50 year time period that took good care of the yard and lawn. Drive by any neighborhood and you can pick out the rentals because the yards look crappy.
That means you buy a rental house that has plain easy care landscaping.
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