Company Description
This 3 bedroom 1 bathroom single family home in Detroit was fully renovated just a few weeks ago in July, 2021.
The following repairs have been made: New kitchen, new bathroom, new hardwood floors, new carpet on stairway, new front door, new blinds, new electrical outlets & switches, repaired steps to basement, new vinyl plank flooring in basement, repaired gutters, repaired siding, new outdoor step railing, repaired porch ceiling, straighten garage, new garage door, new driveway, new sewer line, interior & exterior paint.
The tenant was on a month-to-month lease starting on 8/27/21 and was paying $1,200/month.
They recently signed a 1 year lease on 6/13/2022 at an increased rental rate of $1,250/month.
Updates:
Update 6/13/2022: The tenant living at 16171 Ilene St agreed to a lease renewal at $1,250/month, which is a $50 rent increase (4.2%). This rent bump increases the Annual Cash Flow of this property from $9,579 to $10,119. The Property Manager is also recommending to do weed & lawn maintenance in order for the tenant to be able to make use of the garage. The tenant cannot perform this on their own due to hazard liability. These funds totaling $1,000 will be taken from the maintenance reserve of $6,200 and the maintenance reserve will be replenished with 10% of the cash flow until it is full again.
Update 7/12/2022: The tenant living at 16171 Ilene St has backed out of the lease renewal they signed on 6/13/2022. They stated that they need more space and are looking for a larger house to rent. The tenant will continue to pay rent until they move out on 8/27, at which point the Property Manager will enter the property to change the locks and inspect the property for damages. The target rent for new tenant placement will be $1,250, a $50 increase from the current lease.
Update 9/8/2022: The tenant recently turned in their keys and moved out of the property as planned. A technician was sent to the property to write up a turn estimate and found that the door was kicked in. The Property Manager confirmed that the HVAC and furnace are still at the property. The PM recommends to add a SimpliSafe alarm and camera system. The cost to install the system is $150 and there is a $40 monitoring fee. These funds will be deducted from the Maintenance reserve. The service will be deactivated when a new tenant occupies the property. We are currently waiting on a turn estimate. The target rent for new tenant placement will be $1,250, a $50 increase over the previous lease.
Update 9/27/2022: The Property Manager (PM) has completed the move-out inspection and sent the estimate for turn services and compliance for the property. The work will be completed by in-house maintenance and will take 2-3 days to complete. The scope of work includes: Full paint to match existing colors - walls, trim, and doors. Identify and repair source of leak, and repair damaged ceiling in kitchen. Install new fire extinguisher under kitchen sink. Certify and seal off fire place, and secure loose flagstones. Repair/replace hardware and knobs for bedrooms and bathroom. Replace corroded GFCI near laundry tub in basement. Install new smoke detector and fire extinguisher in basement. Install sewer plugs. Trim overflow tube for hot water tank. Replace damaged rear exterior door. Replace light fixture for front porch. Repair cracks on front porch/steps. Repair/replace front porch handrail. Install 3 downspout extenders. Secure flashing on front bay window. Scrape and paint all peeling or chipped paint on soffits. Secure loose and replace missing siding. Repair/replace gutter. Trim vegetation overgrowth on property for compliance. Tuckpoint chimney. Scrape and paint bare wood on garage. Repair left wall of garage. The total repair cost is $3,765. These funds will be deducted from the Maintenance Reserve which will be replenished via 10% of the cash flow until it is full again. The maintenance team also noted that the roof and driveway may need to be replaced. They are currently working on getting a quote from vendors for these items. Both of these are not required at this time, but may come up in a city inspection. We are currently waiting on the PM to confirm the date that the property will be ready for marketing and target rent.
Update 10/19/2022: The Property Manager turn service crew was onsite working on the turn services. They lifted the left side of the garage and found that there was no foundation. The work requires the turn service crew to build a concrete strip foundation. They will use smart siding on the garage and repurpose the removed vinyl siding to repair the house siding. The additional turn service cost is $1,510. These funds will be deducted from the Maintenance Reserve which will be replenished via 10% of the cash flow until it is full again. The turn services should be completed by the end of this week. The target rent for a new tenant is $1,250, a $50 increase from the previous lease.
