Why should I choose Great Day Property Management?
Your Money: We minimize the risk while you receive a 10 to 15% net cash flow on your investment properties.
Our stats: The lowest vacancy rate, eviction rate, average days to replace a tenant, average yearly maintenance costs
Our Transparency: Log in any time and see your financials, maintenance photos, inspection reports, leases.
Our Screening: We really take the time to do this screening process so we are not evicting later. Owners and Managers lose if not done properly.
Our Maintenance: We do regular inspections so we can protect your asset.
Our Ethical Team: Pat who is at the houses, Monique who is in the office, and Terry who is our financial and business leader.
How do you choose your neighborhoods? We have a very specific model we follow when choosing where we invest in Detroit. We carefully choose certain streets that we know to be thriving neighborhoods. The lawns are well kept. Children play outside. The house size is affordable for us to maintain, for tenants to qualify for Section 8 government rental subsidies, and for tenants to afford to pay the utilities.
How do I know I'm buying a good house from you? When you buy a house from us, we have already assumed this risk. We have already purchased it and renovated it When we prepare a house for a tenant, we don't do "patch work." We do it all with the long term investment in mind. If it needs windows, we do windows. If it needs a roof, we replace the roof. We want to make sure the tenant has no need to call us for repairs, so we make sure everything is done right. When you buy it from us, you will get a disclosure report on the property so you know exactly what you are buying.
How do I know I'm getting a high quality paying tenant? We have a three-part tenant screening process. It starts with the initial phone call interview questions. The second interview is at the house. The third interview is at the tenant's current home if possible. If the tenant is difficult during any of this process, they can also be eliminated. When we list our houses on our desirable streets, we never have a shortage of calls. When we show our houses, the responses are always positive. The feedback is that we excel compared to our competition. Once we have our selection narrowed down, our team discusses the final decision. We consider this our eviction-prevention process and we take it very seriously. So far it has helped us have a very low eviction rate and a very high tenant retention rate.
Can you explain Section 8? The federal government helps low income people pay rent through a program called Section 8. Most of our tenants on the program receive around half of their rent paid directly to our bank account by Section 8. The tenant has to come up with the other half of the rent. If a tenant has an eviction on their record, they can lose their Section 8 voucher. The tenants on the program are very careful to live within their budget and keep their vouchers. As a property manager, the difficulty lies in getting the rent started. It is a lot of paperwork, a home inspection, follow up, a massive red tape mess before the first rent checks arrive in your bank account. It can be anywhere from two months to three months. We usually have this process started before we sell you a house with a Section 8 tenant.
How hard is it to find home insurance in Detroit? It depends how much you want to spend! When we started we were paying around $1,500/year. We were told Detroit is high risk and the insurance companies just don't want to deal with us. But then after a few years of networking and researching, we found a company for around $500/year.
What's going on with the property taxes? There used to be a huge discrepancy in the taxable and assessed values and the actual values of houses in Detroit, which caused excessively high tax bills. The mayor, Mike Duggan, was able to reassess all the properties in Detroit and have the taxable and assessed values more fair. Our property taxes are on the average around $1,200/year.
What do you mean about marketable title? In Detroit the houses are often purchased from the Wayne County Auction on a quitclaim deed. Quitclaim deeds do not promise clean title. A warranty deed does. When you sell the house if it still has a quitclaim deed, a title company will either refuse to warrant (insure) the title or they will have you use a lawyer to file for what is called quiet title. That is a two or three month process and legal fees. When we sell you the property, we have already run the title to ensure that we can sell it to you on a warranty deed. If we are not able to, we assume the cost with the attorney of quieting the title. We only sell houses with marketable titles.
How do I know you're a trustworthy property management company? Besides that we do all that we can to be transparent with our bookkeeping and our billing, you may find our story helpful. We are a husband and wife team that started with our own dozen investment properties. Then we started managing properties for my brother. Then we added another investor from Washington, DC, who had been badly burned by a property manager in Detroit. He sold his properties and started buying houses with us. He has been happy since then. Most recently we met Terry from California. He started buying properties here via my real estate license. My husband renovated the houses. I placed the tenants. He came out here to meet us. He liked us so much he decided to buy into Great Day Property Management. So what you see here is a company basically designed by investors to meet the needs of investors. We are the local boots on the ground making it all happen.
What is included in the 10% management fee? We manage maintenance issues, handle regular rent collection and do bookkeeping. We also do preventative inspections; three months after move in, six months later, then yearly as well as regular drive-by inspections.
Why do you recommend Detroit? Buying property right now in Detroit is so affordable that you can get a 10-15% return on your investment when you use that property as rental income. Buying property in the right neighborhoods attracts several applicants from which to choose so we are able to choose the best ones. Being part of the revival of Detroit is personally rewarding as stated in the National Geographic article on my news page, "Tough, real, and cheap, Detroit, with the nation's largest municipal bankruptcy behind it, is suddenly attractive to investors, innovators, and would-be fixers, especially young adventurers." We encourage you to come for an investor tour and see for yourself. Why Detroit
Do you put new listings on the website? Our properties are in such high demand with our investors that we have not been putting them on our website. Instead, we will email you specific flyers per house that we have available at the time you call. If we do not have any available, we will put you on a waiting list. All our houses typically follow our model: our neighborhoods we choose, brick, three bedrooms, bungalows, occupied and collecting rent. Where We Invest
What sets you apart from your competition? We are ethical and we are local. We only sell you properties in neighborhoods that meet our specific criteria. We only sell you houses that have been thoroughly inspected and usually rented and collecting regular income. We are the only property management company we know of that publishes its tenant retention rate, eviction rate, average days to replace a tenant, and yearly average cost to maintain a property. (see Owner page). Our leadership team consists of Pat who knows construction and is a Detroit native and Monique who is a real estate agent and operates the management company and Terry who is a financial and business expert who knows how to work with foreign investor concerns. We are the only property management company we know of that offers investor specific tours that include our houses being renovated, a tour of our neighborhoods, and some gems of Detroit. All of your financial documents are available to you at any time online. We believe in as much transparency as possible. We have the most rigorous tenant screening process we know of. We feel it is our up front eviction prevention and we take it very seriously.
How does Great Day Property Management make a difference? Our goal is to make every day a great day by helping the most people possible. We help our investors by securing their investments while they enjoy watching their money grow. We help our tenants by showing them a working relationship that involves trust and respect. We are especially satisfied to move them from a slumlord situation into one of our houses. They are so grateful. Once in our house, we help them by maintaining it to acceptable standards. We only hire people to work for us who are deeply appreciative of the job and what we are doing in Detroit. We feel we help Detroit in its revival by infusing it with investor money to make it more beautiful one house at a time. This is a city filled with pride and we enjoy being part of its come back.
What is the purchasing process? If you are interested in being part of Great Day Property Management, please give Monique a call. We will discuss how many houses you would like to buy and when you are thinking of buying them. I am a real estate agent so I can make the transaction simple. You really do not need to be here for any of it. But we do like to show off our city, our neighborhoods, and our houses, so you are more than welcome to come visit. Investor Tour
Will I have an inspection report? Yes. We believe in transparency. We will provide you with a report that will show you projected future expenses.
Do you have a property management agreement? Yes, we do. It is unique and straightforward.
Is there an exit strategy? Some property management companies have you sign that you are required to use the real estate property manager as your real estate agent when it comes time to sell your house. We do not require this. You are welcome to sell your house at any time. Our property management agreement is month-to-month as well.
Should I open an LLC? An LLC is a Limited Liability Company. Most investors use LLCs to own their properties. Michigan is one of the least expensive states in which to have an LLC. You just need a Michigan address to hold your corporate papers. We provide that. We can also help you set this up.
Can you help me open a bank account? Yes, I've done this many times for other owners. The bank I use is local but has free online access that my owners use from other states.
How do you determine a rental rate for our property? - Since we specialize in single family homes, we have our finger on the pulse of this local market. Between driving the neighborhoods, and previous properties that rented in the area, and the condition of your home, we formulate a rental rate that will typically attract quality tenants in 30 days with a full deposit.
How will my property be shown? - No keys will be given out! Unlike other management companies that give tenants the lockbox code or keys, your property will only be shown to phone-pre-qualified tenants by one of our professional leasing agents who has access and in-depth knowledge about your home.
How do I know you will find a qualified tenant? - Once the prospective tenant calls, we have a series of prescreening questions. If the tenant qualifies, we then show the unit. We have a few more questions at the home showing as well as observations we make before we offer an application. We then observe how the tenant does returning the application to us. Once we have the application, we do our due diligence and check all the references including income verification. We usually have a few applications so we make it a practice to have a team meeting to discuss whom we choose. Then if possible we meet at the tenant's current residence as a final part of our interview. Tenant Criteria
How do I get my rent money? - Tenants know that rents are due between the 1st and the 5th of every month. The income is collected and posted to your account. We make direct deposit payments on the 15th and the 30th of each month. You receive a detailed summary report emailed on the 23-25th of the month. You can also access your account online at any time. Owner Portal
How do you keep maintenance costs under control? - We have specialized vendors that are qualified to handle any issue that may arise with the home. We do not mark up parts like other companies so you receive the best work at the best price, if any issues occur. Three months after a tenant moves in, we feel it is important to do an inspection of your home with the intent to protect your investment from possible future damages that can be headed off early with repairs. We also do another inspection six months later and then yearly. If there are any tenant caused damages, our lease is such that the repairs become part of the rental payment. Maintenance Services.
Will the tenants take good care of my home? - There is always a risk that your tenant will not treat your home as well as you would. In general, though, damages past normal wear and tear are the exception. Between tenants we typically need to paint and replace bedroom carpeting and make miscellaneous minor repairs.
Do I need to take care of the lawn and snow? - Tenants typically handle all lawn care and snow removal.
I see other agents renting out homes. How do you differ from them? - Unfortunately there are many agents and brokerages that have NO property management experience and definitely do not specialize in the rental of single family homes. There is little money in it for an agent to take the time to find a qualified tenant versus taking the time to sell another client a home.
What is all this going to cost? - The good news is it will not cost you anything up front. Great Day Property Management has competitive rates and the most comprehensive service in the area. For covering the initial evaluation, photos, professional ads, distribution of those ads to several top targeted websites, showings, tenant pre-screening, and document preparation, our rental commission is equal to the first month’s rent. Thereafter, the fee is only 10% of rent per month.
Are there any other costs to get started? - No.
What if I want to sell my house? - We can simultaneously market your home for rent, rent to own, land contract, sale, or any other terms that are suitable to you that will provide the fastest possible solution in your current real estate market. We are real estate agents specializing in this area, but if you have another agent you prefer to sell your home, we will not compete for your business. Agent Referral.
How are maintenance and emergencies handled? - For non emergency calls, tenants can call the office Monday-Friday during normal business hours. Outside of normal office hours, our maintenance emergency line is staffed 24/7. When an emergency call is received, we will determine the severity of the problem and if it truly is an emergency. To keep the expenses as low as possible, Great Day Property Management makes every effort to complete any maintenance during business hours. We define an emergency as an immediate health or safety issue. For all other non-emergency maintenance requests, our tenants can also submit work orders online. Maintenance Services & Maintenance Request.
How are utilities handled? - Tenants are responsible for all utility charges, unless otherwise agreed upon in advance and in writing. They must also change all utility billing information to their name and mailing address as of the move-in date stated on the lease. When the house is vacant, the utility bills will be paid by you.
How much money do you collect from tenants before allowing move-in? - When a tenant is approved, we normally require one month's rent and a security deposit equal to one month's rent. If pets are allowed, an additional $250 per pet fee is collected. The security deposits are placed in a savings account and belong to the tenant. Pet Guidelines.
How much notice does a tenant have to give before they can properly vacate a property? - Our lease agreement provides that the tenant give a minimum 30 day written notice that the lease will be terminated.
How will Great Day Property Management help improve my long term property value? - Our experience has shown that maintenance issues addressed early prevent more serious and costly property damage from occurring later, thereby keeping your long term cost lower and maximizing profit. We have yearly inspections done with your investment in mind. Also when our maintenance crew enters the property, they always look around for potential damage that could impact your investment. Additionally, we watch for potential problems with tenants. We also have a contract with our heating company to inspect furnaces and change filters regularly. On the 6th of each month, eviction notices are sent if the tenants are in any kind of lease violation. We follow through.
Should I allow pets? - Great Day Property Management abides by the wishes of property owners when setting pet policies. Most of our owners accept pets because most tenants have them. It gives you more tenants from whom to choose. The pets that are not allowed are what the insurance companies deem as vicious breeds. We can never deny a doctor verified service pet as well. Pet Guidelines.
What are the costs involved with an eviction filing? - Court costs are determined by the court system and are different depending on the number of defendants. Even though the owner is charged for the court costs when incurred, the courts allow most fees to be added to the judgment and they are returned to the owner when paid by the tenant.
What does Great Day Property Management do before a new tenant moves in? - The tenant is given a Commencement Inventory upon move in. We fill this out together. We both sign and date it. We make sure that whatever area the tenant wants to note, that this is also photographed. This form is not for maintenance work orders. This form is for notification of property condition only. We utilize this form upon move out to determine preexisting conditions which may have existed before the tenant moved in. With our notes and photos, we are able to validate pertinent charges to the tenant.
What happens if tenants break their lease? - When the tenant breaks his or her lease before the lease period is over, by State law they are responsible for all expenses incurred to re-lease the property. The expenses may include the rent amount up to the time the property is re-leased or the expiration of the lease, real estate commissions for a new lease, all advertising costs, and any other costs directly relating to the re-leasing of the property. When tenants violate their lease, they are sent a lease violation letter with remediation expectations.