Owning rental property can be an excellent financial investment, but managing it effectively requires a different kind of investment—one of time, knowledge, and a hands-on approach.
That’s where property management comes in. Whether you own a single rental unit or a portfolio of properties, hiring a property manager can save you from the headaches and complication of handling tenants, maintenance, and legal compliance on your own.
So, how does property management in Michigan actually work?
1. Onboarding & Assessment
One of the first steps in the property management lifecycle is onboarding and assessment.
Before a property management company can effectively oversee a rental, they must conduct an initial assessment and set up the necessary systems for success.
Property Evaluation: The manager inspects the property, noting any repairs, safety concerns, or upgrades that may be needed to attract quality tenants.
Rental Pricing Analysis: Using market data, they determine competitive rental rates to maximize income while keeping vacancy rates low.
Owner Consultation: Property managers discuss goals, expectations, and specific needs with the owner, ensuring alignment on policies and financial objectives.
Lease & Documentation Review: Existing leases, property records, and compliance requirements are assessed to ensure everything is legally sound before new tenants move in.
The Biggest Task
A comprehensive onboarding and assessment process is crucial in property management, as it sets the foundation for effective oversight and tenant satisfaction. According to a survey published by 99 Firms, 80% of property managers identify maintenance and repairs as their top tasks, highlighting the importance of thorough initial property evaluations to identify necessary repairs and upgrades.
2. Property Marketing & Tenant Acquisition
Before a property starts generating income, it needs tenants. Property managers handle the entire process of attracting and securing the right renters.
Professional Listings: Property managers create high-quality listings with photos, videos, and compelling descriptions to showcase the property.
Advertising Strategy: They distribute listings across rental websites, social media, and local platforms to reach the right audiences.
Showings & Open Houses: Property managers schedule tours, answer questions, and highlight key property features to prospective tenants.
Tenant Screening: This is a crucial step. Property managers run credit checks, verify employment and rental history, and assess tenant reliability to minimize risk.
3. Rent Collection & Financial Oversight
A major benefit of hiring a property manager is having a structured rent collection system in place.
Payment Processing: Property management firms set up online rent payments, automatic reminders, and multiple payment methods to help ensure on-time rent collection.
Late Fee Enforcement: If a tenant misses a payment, the manager enforces the terms of the lease, including late fees and eviction proceedings, should they become necessary.
Financial Reporting: Owners receive detailed reports on rental income, expenses, and overall property performance.
Automated rent collection systems enable tenants to set up recurring payments, helping them avoid late fees and deliver timely rent payments to property owners. Not to mention that implementing digital rent payment systems can yield significant annual savings.
4. Property Maintenance & Repairs
Keeping a rental property in good condition is essential for tenant satisfaction and long-term profitability. Property managers handle maintenance in 2 ways:
Preventative Maintenance: Regular inspections, HVAC servicing, and seasonal upkeep to avoid costly repairs. Landscaping is also crucial, especially for multi-family properties.
Emergency Repairs: When a pipe bursts or the heat goes out, good property managers respond quickly with vetted contractors to fix the issue.
Studies show delaying maintenance can increase future expenses by as much as 600%. A good property management partner can help you avoid such delays.
5. Tenant Relations & Conflict Resolution
From minor disputes to major lease violations, property managers serve as the intermediary between owners and tenants.
Routine Communication: They handle tenant inquiries, complaints, and maintenance requests, helping to foster a positive landlord-tenant relationship.
Lease Enforcement: If tenants violate lease terms (e.g., unauthorized pets, excessive noise), the manager steps in to resolve the issue.
Evictions (When Necessary): If a tenant fails to pay rent or repeatedly violates the lease, property managers handle the legalities surrounding the eviction process.
The average turnover cost ranges from $2,000 to $3,000 per unit, depending on the property and market conditions. Maintaining positive, efficient, tenant relationships can help significantly reduce unnecessary tenant turnover.
6. Legal Compliance & Risk Management
Rental laws vary by state and city, and have a tendency to change over time. Failing to comply can lead to legal trouble. Property managers stay up to date on landlord-tenant laws and handle compliance-related tasks, including:
- Ensuring fair housing laws are followed during tenant screening.
- Keeping the property in compliance with safety codes and inspection requirements.
- Managing security deposit regulations and proper lease documentation.
A survey revealed that 19% of landlords with a single property found compliance with landlord/tenant laws challenging, while this figure rose to 43% for those with 25 or more properties.
7. Lease Renewals & Tenant Retention
One of the most overlooked aspects of property management is tenant retention. The longer a tenant stays, the lower the costs associated with vacancies, marketing, and turnover.
Lease Renewals: Property managers proactively negotiate lease renewals and advise on market-appropriate rental rates, helping to maintain smooth, professional lease-renewal processes for tenants and owners alike.
Proactive Communication: Maintaining communication with tenants throughout their lease helps support satisfaction and familiarity, and can help property managers address any concerns before they lead to major issues and dissatisfied tenants.
Given all of this, working with a property management company is ideal for:
- Owners with multiple rental properties
- Investors who live far from their properties
- Landlords who prefer passive income without daily involvement
- Those less familiar with landlord/tenant laws and tenant relations
While property management comes with a cost (we recommend flat-rate property management), the time savings, legal support, and peace of mind often far outweigh the expense.
If you’re looking to maximize your rental property’s value while minimizing the workload, working with a professional property manager is one of the best investments you can make.
Would you like assistance in finding the right property management company for your needs? Contact us today.