Just like everywhere else, properties in Detroit need good management if they are to maintain their value and be a profitable investment. Responsibility for Detroit property management is usually therefore placed with professional property management companies rather than being managed by the owners, perhaps property investors. Properties, as an investment is an age old practice as it is one that will almost certainly provide a profit, once it is professionally managed. A property management company will set the rates to be charged for rent, collect the rent and maintain the property so that it does not lose value.
Usually a property management company will manage properties in one area so they know the prices which are charged for rent in that area and apply a rate accordingly. So as to get as few problems collecting rent as possible, a property manager will usually screen potential tenants before allowing them to rent. The screening may include confirming employment details and checking with previous landlords to see if there was ever any trouble collecting rent from the prospective tenant. They may also opt to do a credit check, all in order to ensure that the rent will be paid promptly and in full.
Although property managers and owners could make more money by charging a high rental fee, if they charge too much, the property may stand empty for long periods and so it is better to get not so much all the time than it is to get more just some of the time. A property manager will ensure that all tenants pay for any damages they cause and if on handover, the property is not properly cleaned, the manager will make the departing tenant pay for a professional cleaning company to come and clean the property to a professional standard.
Sometimes, when an owner is ready to sell their property, they will sell it to someone that accepts it complete with its current residents, ensuring that they collect income from the very start. Often the buyer will also use the same property manager as they are already aware of all the tenants. With a professional property manager overseeing all maintenance, a property rarely decreases in value and so when the owner is ready to sell, they should be able to sell it for more than they paid for it.
As long as there are people that need to rent properties, there will be people prepared to invest in properties and rent them out. This can be one of the best ways to invest money in order to make a handsome profit but the property must be managed properly and professionally, ensuring a regular income from tenants and that the property is properly maintained. There are some property investors that manage their own properties and so keep the 10% of rental fees that the property manager will usually charge however, most investors prefer to pay the 10% and not have the hassles that come with property management.