Property Management Michigan Requirements

Property management isn't worth the money to some investors.One important note, even if you choose to manage your own properties it pays to have a backup plan in case you're no longer able to handle them. For others investing in real estate, there's no way they'd choose to manage their own rental properties.

A property manager costs approximately 7-10% of your total rental income, however the services and expertise offered by a good property manager is worth much much more than this fee, plus in many cases the agents service fee is tax deductable.

Property management isn't worth the money to some investors.One important note, even if you choose to manage your own properties it pays to have a backup plan in case you're no longer able to handle them. For others investing in real estate, there's no way they'd choose to manage their own rental properties.

It is well settled under Michigan law, anyone who engages in property management must have a real estate broker's license, unless they are a real estate sales person employed by a real estate broker to engage in property management.

Management fees cover a number of ongoing services that keep your property occupied and operating well, while leasing commissions pay for just one thing putting a tenant in a space.

The property manager will not generally spend money out of their own pocket without being funded by the landlord. Some managers may charge a percentage of repair costs often 10 percent to compensate them for the hours spent dealing with repairs, meeting with vendors, etc. Others don't.

The management fee is intended to compensate the managers for their time and expertise for selecting stocks and managing the portfolio. It can also include other items such as investor relations (IR) expenses and the administration costs of the fund.

The fee covers the time it takes to make any adjustments to the leaseincluding performing a Comparative Market Analysis to recommend rent changes (if any)and obtain the tenant's signature. Whether the property managers charge a set fee or a percentage, the lease-renewal fee is typically around $200 or less.