Welcome to Millennium Realty, LLC

If you’re a new rental property owner, things can seem pretty overwhelming at the beginning. From screening prospective tenants to insurance policies to city inspections, monthly accounting, bill paying and more, there’s a lot to do and remember.

The most useful tip for a new landlord is to get organized from the start, which will increase your chances for rental property success.

Learn the Laws of Your State

Set aside time to study your state’s laws regarding tenant-landlord relations and what is allowed versus what isn’t. This will prevent you from accidentally overstepping some boundaries of regulations you weren’t aware of.

And remember that you will likely have separate city and state laws to know besides federal laws that apply to everyone. This is where hiring a full-service property management company can be beneficial.

Imagine You’re the Tenant

You probably had an inspection done when you first bought the rental property. However, now it’s time to take a look at the property with a different set of eyes, examine it as if you were a tenant yourself. Are there any updates that need to be made for attracting and keeping quality tenants long term? Does anything need to be replaced, such as carpeting or appliances? Would a new coat of paint update and help the living space appear brighter? What about the exterior?

Make Sure You’re Covered

Make sure you get insurance right away if you didn’t include it in your purchase. Insurance is crucial to protecting your investment in the case of damage. Remember, liability coverage in the case of damage or injuries to guests or tenants on your property. A property management company, like MRE Property Management carries a million dollar umbrella policy for all of their rental properties. If you choose to hire a property management company, be sure to ask if an additional umbrella policy is offered.

If you obtained a policy when purchasing the property, take time to review it and be sure it’s correct for your situation.

Meet Current Tenants

If the rental property you purchased already has tenants living there, introduce yourself and ensure they understand how best to contact you.

Set a Clear Payment Schedule and Maintenance Plan

From the beginning, you’ll want to set up systems for maintenance and payment. Will you handle maintenance issues yourself or hire someone to do it? Make a list of companies to call for plumbing, heating and cooling, electrical problems, and more.

Also, set up a payment system that will work for both you and your tenants. Typically rent is due on the first of the month with a 10% late fee that is accessed for all payments received after the 5th of the month. If you own or plan to own several rental properties, you’ll need an accountant for dealing with finances, year-end statements and bill payments. You might also consider working with a property management company for managing payments, late notices, evictions, tenant collection and other duties.

If you have further questions, we would love to help. Call MRE Property Management today at 248.394.0464. Serving Oakland County, Macomb County, Lapeer County and parts of Wayne County.

Do city inspections, water bills, evictions, late payments and 2 a.m. service calls keep you awake at night? Oakland County Property Management is a very demanding job that is best left to the experts. Although owning rental properties can be financially rewarding it also requires a large commitment of time and effort. By having a property manager take care of the day-to-day aspects of running your income property, your free to spend your time identifying further investment opportunities or otherwise furthering your career.

DO YOUR RESEARCH – find out exactly what you will be getting for your money. Most property managers charge a percentage of your property's monthly rental rate in exchange for their services. The rate typically runs anywhere from 6-10%, which is generally less than the money you save by hiring a professional to take care of your property.

NOT EVERY PROPERTY MANAGEMENT COMPANY IS THE SAME - Don’t let fees be the deciding factor when selecting a Property Management company to take care of your investment. Hidden fees for additional services can quickly add up. Below you will find a list of questions to ask when comparing one company to the next:

1. Is the company full service? In other words, is their primary focus Property Management or is it just a service offered. Be aware of companies that dabble in Property Management part-time.
2. Is there a vacancy fee? This is one of the hidden costs that can cost you a bundle.
3. Is the Property Management rate for collected rent only? Some companies charge a monthly percentage whether rent is collected or not.
4. How are tenants screened? You want to make sure the tenant screening process is thorough and includes county records and previous judgements.
5. How is maintenance handled? Do you as an owner have a say? Are you able to complete the repairs yourself if you choose? Are all maintenance requests approved by you?

There is a multitude of applicable laws and regulations to abide by when renting and maintaining your rental property. These include local, state and federal regulations, as well as fair housing regulations (such as the ADA). A property manager can help you avoid lawsuits by keeping your property up-to-date and in compliance with these regulations.

To find out more about Property Management in Oakland County, Macomb County and Lapeer County, visit the specialist at MRErent.com.