PropertyManagementMaven: 7 Success Tips For ANY (Michigan) Landlords [REIA of Macomb]

7 Success Tips For ANY (Michigan) Landlords [REIA of Macomb]

I would suggest that landlords need Landlord LIABILITY insurance coverage since homeowner coverage is different for an owner-occupant property. Having good liability insurance coverage is very IMPORTANT!

Michigan land lords are sitting in the drivers seat since the Michigan Foreclosure Boom is over and values are coming back.  Not only were they able to buy great rental properties over the last 5 years but even right now there are thousands of houses in strong rental neighborhoods that are still available to cash buyers.  Most times if a property is appraised for less than $50,000 it becomes difficult for buyers to get purchase financing.  This is where cash buyers come in to sweep up cash flowing rental properties.  Remember one thing in business…Cash is KING.  

Here’s 7 quick tips to help you be a more profitable land lord;

Make sure you have a strong, legal lease that a competent attorney has gone through

Know the local laws

Take the time to call references and run credit checks

Set up an escrow account for security deposits

Attain proper homeowners insurance

Decide who’s managing

Treat it as a business not a hobby

BONUS: The one piece of advice I give anyone who’s decided to become a land lord is this…make sure you set the parameters with your tenants long before you sign any paperwork from them.  Assuming you haven’t overpaid for the rental house, and you have most of the items above checked off of your list, being a wimpy landlord is your last roadblock to success.

Don’t be a wimp!

See you at a REIA event soon,

Dylan Tanaka - Founder

 Wallace S. Gibson, CPM * GIBSON MANAGEMENT GROUP, Ltd.

LandlordWhisperer

View our available Charlottesville, Albemarle and Lake Monticello rental homes online with photos and floor plans


"...to be a Virginian, either by Birth, Marriage, Adoption, or even on one's Mother's side, is an Introduction to any State in the Union, a Passport to any Foreign Country, and a Benediction from the Almighty God...." Anonymous

 

Comment balloon 7 commentsWallace S. Gibson, CPM • February 26 2013 02:47AM

Comments

Wallace- Very good advice!

Posted by Scott Fogleman, New Home Team (New Home Team 804-573-9592) over 6 years ago

Hi Wallace.  Not having liability insurance is like playing Russian roulette with your money.

Posted by Conrad Allen, Webster, Ma, Realtor (Re/Max Professional Associates) over 6 years ago

Good morning Wallace, great tips, thanks for the info.

Posted by Kenneth Cole, NYS Licensed Real Estate Salesperson (Weichert Realtors Appleseed Group, 2043 Richmond Ave. S.I.N.Y. 10314. office phone 718-698-9797, Appleseedhomes.com -) over 6 years ago

It would never occure to me, that someone would go without liability insurance, when owning real estate. A really dumb idea.

Posted by Joe Petrowsky, Your Mortgage Consultant for Life (Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709) over 6 years ago

Excellent tips Wallace, being a wimpy landlord will make you a doormat soon enough.

Posted by Al Raymondi, Ormond By The Sea Florida - Home and Condo Sales (Ocean View Realty Group in Ormond By The Sea Florida) over 6 years ago

Wallace, all excellent tips (as usual). Better yet, your tips work for landlords in any location, not just Michigan. I especially appreciate your tip on taking the time to run a credit and reference check. There can never be enough said about the importance of tenant screening! 

Posted by Jake Walnut, Rocket Lease (Rocket Lease) over 6 years ago

Great advice, I like "dont be a wimp"

Posted by Bob Crane, Forestland Experts! 715-204-9671 (Woodland Management Service / Woodland Real Estate, Keller Williams Fox Cities) over 6 years ago

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