Finding Renters In Detroit: Is It Hard, Landlords?

Lately, I've had a few landlords approach me to tell me that they have a property (if not more than one). They're concerned about being able to find someone to rent it from them.

Is it hard to rent out a property in Detroit?

We all know that there are a lot of people who are afraid to live in Detroit. There are all sorts of abandoned buildings. Crime is rampant. Many businesses keep leaving Detroit.

How can we find ANYONE to live in our properties?

First, let's discuss the state of Detroit.

Didn't we do that, already?

We did, but we didn't discuss the IMPORTANT stuff.

Throughout the nation, we all know that home prices dropped DRAMATICALLY. This was true for Detroit, but it was WORSE than most other places--by a lot. There are many downsides to this. However, for a landlord trying to find a renter, this is a benefit.

Let me explain!

Since the home prices dropped SO MUCH in Detroit (i.e. from $85K to $25K), many landlords owned properties worth far less than the owed in loan amounts. They could not charge enough rent to cover their monthly loan charges. So even when the renter pays his or her monthly rent, many times the landlord wasn't current with his or her loan payments.

Suddenly, the sheriff knocks on the door. The tenant answers. Wow! What a surprise to learn that YOU'VE been paying your rent, but the place where you live is going into foreclosure, anyway. You'll have to leave--very soon! Now, where are you going to live?

This is happening ALL over Detroit. So there are a lot of renters that need a place to live. Plus, you have your normal turnover, as many renters like to change addresses more often than most homeowners. These combine to make it pretty easy to find a renter for your property.

You need to make sure that

• you are charging FAIR market rent value (people don't want to overpay, even in good times)

• your home is in a desirable neighborhood

• you treat your renters with respect (don't let them walk over you, but nobody wants to be bullied, either)

• you market your property correctly (if nobody knows, nobody goes!)

• your property is prepared and available for showing prospective renters

If handled correctly, you shouldn't have any problem finding a tenant who really wants to rent from you, even in Detroit. In fact, this is especially true for Detroit.