War stories from the front lines of Detroit investment property
Recently our team had the pleasure of meeting an out-of-state owner who has a few rental properties in Detroit.
He was great, his partners were great, but the tenant was a nightmare.
This tenant had accumulated thousands and thousands of “antiques” to sell. As far as we could see, most of it was just junk, but we won’t disrespect anyone’s livelihood.
Each room was piled high with so much stuff that only a small pathway could be used in order to get around.
On top of being a hoarder of the highest order, the tenant was behind several months on rent !
What’s an owner to do when faced with this type of situation?
Well, there are several options that can provide a solution:
- Evict the tenant, clean up the property, rent to another tenant
This is an expensive option, but it will keep the property in an owner’s portfolio and get the rental income back on track.
Expect a few month’s delay in the eviction process, costs of $900-1000 for eviction, $4000-6000 for multiple dumpster rentals, rehab costs to turn the property over for a new tenant, and marketing costs to find a new tenant. Phew!
- Offer the tenant cash to move out
This is a great option if you have a fairly cooperative tenant.
However, no money should be exchanged without a cash-for-keys agreement in writing that has a deadline for move-out and specifies that the property must be completely empty of all personal items.
This stipulation is important because without clarity, tenants could leave behind all of their junk, causing more headache for the owner.
- Sell as-is, where-is
If other solutions are proving too time-consuming, expensive or complicated, reduce the price and sell the property to a cash buyer or fellow investor. The money and headache owners save by doing this completely justifies making the decision. Some local group (like us!) may have more resources on the ground to appropriately deal with these scenarios and quickly relieve the owner of the time and hassle .
If you’re struggling with problem tenants, give us a call at (248) 905-1531 or email MyRealEstateTeam1@gmail.com.
Let’s talk over some option that may help asap.
Good luck and happy investing!