FARMINGTON HILLS, MI – Homes for Sale in Farmington Hills MI owner Darrick Scruggs gave a talk at a local college. He gave lots of tips, including important points for real estate investors who are looking to rent their property. While Scruggs’ company caters to investors with properties within Farmington Hills, he acknowledges that many of his tips apply to investors in Detroit, Southfield, Oak Park, Livonia, and other areas outside of his region.
He said to watch your repair budget, because it is easy for any investor, especially a beginning investor, to underestimate the amount or repairs costs. Scruggs said, “If you do not have enough money to complete your repairs, you will not pass inspection, and you are not very likely to get a good quality tenant.” He continued, “You might get a few people who try to get you to agree to have them pay a lower amount of rent in exchange for them finishing the repairs for you, but those of you in here who have done that know that doesn’t usually work.” People who are desperate to find a place to live often will tell you anything to get you to let them inside your property. When you have more repairs than cash, you lose control of your property.
The Homes for Sale in Farmington Hills MI also suggested, “Begin showing the property while you are repairing it. This cuts down the time that your property is ready to rent versus actually being rented.” He realized that some investors would be concerned about an unfinished property not being ready for people who need a place to live now, and he acknowledged, “Even though you won’t be able to rent your property right away when you start showing it when you’re still repairing it, that’s not always a bad thing. Often, the people who make plans ahead of time are your best tenants, anyway.”
This leads to another one of his suggestions, “You need to screen your tenants, but it’s really important that you have criteria that you can document and use consistently.” He added, “Some beginning investors panic and accept the first person who agrees to pay them rent, but you don’t want to put just anyone into your property. The wrong tenant can cost you money.”
Scruggs added that you need to be fair. If you don’t have definite criteria to select a tenant, you can get in a lot of trouble with Fair Housing or be slapped with a discrimination lawsuit. He noted, “You can use your own criteria, but we require that the tenant’s monthly income is 2.5 times greater than the rent. Check their credit; people’s past history is the best prediction of future actions.” They also do a criminal background check.
Scruggs gave these tips and a lot more. For more tips and information about rental property and other ways to invest in homes for sale in Farmington Hills MI, send an e-mail to FarmingtonHillsHomes@gmail.com, or call (248) 796-8616.
