When you own a rental property in the Detroit metro area, it's critical to understand landlord and property management laws in Michigan. Whether you know the rules or not, you're responsible for everything required of a landlord and rental property manager. 

Remember that laws can change: whether you're just getting started as a landlord or you consider yourself a veteran, know where to find current laws to stay up to date. 

As property managers in Michigan, we hear frequent questions about specific elements of landlord-relevant laws. Here's a quick overview of a few critical things to know about property management in the Detroit metro area.

Ascertaining the exact value of a rental property can be challenging. Working with your property management company can make the process easier. For investors, weighing the ROI requires combining a few calculations, doing some research, and reviewing your PM’s sources and listening to their recommendations. 

Where you set your rent will ultimately determine who you attract and how much cash flow you can expect after expenses. If the rent is too high, you may limit your prospects considerably. Your house could stay on the market longer than expected. 

What happens, however, if you set the rent too low — particularly below market value? 

Several things:

• You could attract less-than-desirable tenants.
• You could tip the scales of the rental market in the area.
• You could miss out on tax breaks since the IRS classifies below-market rental homes as personal properties instead of rental properties.
• You decrease your property’s market value.
• You decrease your net operating income (NOI), thus putting less money aside for operating expenses. 

As you can see, it doesn’t benefit you or anyone else to maintain too-low rental rates. So, what is the best way to raise your rent in a way that doesn’t alienate your current tenants or prospective renters? Let’s take a closer look.