Owner FAQs
Answers to your frequently asked questions
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Will you inspect properties I am considering buying?
Yes- As a licensed real estate brokerage, we are happy to represent you for any part of the purchasing process which includes the searching and analysis. We are happy to drive by or walk through prospective purchases, and give our straightforward opinion on the many factors that might affect your investment including rental rates, repairs/updates needed or overall appeal. -
Do I need to keep a reserve?
We have a banking trust account for you and you will need to fund this account with what is commonly referred to as a reserve. This money is used to fund your account and may also be used to pay expenses on the property that are incurred before or after you receive the rental income each month. Reserve amounts vary, but you should expect this amount to be anywhere from a few hundred dollars, up to one full month’s rent. -
When do I need to be involved in maintenance decisions?
One of the reasons you hire a property management company is so that YOU don’t have to be bothered with the day-to-day issues and problems that happen – including routine maintenance and repair items. Eventually, general wear and tear or the effective age of any property will require repairs or replacement of all components – large and small. From a leaking gutters, broken handrails, running toilets etc, it will likely need attention. For the protection of your property and to comply with health and safety laws, your property management company MUST have strong maintenance protocols in place. These protocols should clearly define when repairs are tenant vs owner responsibility, what constitutes a maintenance emergency, when to repair vs replace, and when you (as the owner) should be involved. We handle all repair issues and don’t bother you for items under $500. -
Who handles evictions?
Although evictions should be rare or if a legal problem must be addressed, you’ll want to be sure that the property management company will handle ALL legal problems on your behalf including preparation and service of the many legal documents required to initial the eviction process in Michigan. If an eviction is necessary, through counsel, we oversee the entire legal process from start to finish. -
How easy is it to cancel the management agreement?
This is one of the most important parts of the management agreement because it shows the property management company’s willingness to give you flexibility in allowing you to leave if you are ever unhappy with their service. A property management company should not handcuff you or force you to work with them, nor should they charge you termination fees or penalties if you leave. Ideally, you want an agreement allowing you to potentially leave anytime you want – and without penalty. Our management agreement has NO termination fees or penalties. We simply require a 30 day notice of cancellation in order to do so. -
I'm interested in selling my rental property in southwest Michigan – Can you help?
Yes! We are able to market your specific rental property or portfolio of properties to our current client base AND a private list of investors that have reached out to us over the years that we have curated. We can place it on the MLS and represent the property like other local brokerages would do as well. With our specific focus on income properties, we can represent your asset having the expertise that makes an income property unique from a standard listing. If you’re in the decision-making stage, use this calculator to determine if you should rent or sell your property. -
Must Michigan property management companies have a real estate broker's license?
YES. Property management is considered a real estate activity under existing Michigan real estate licensing laws. Under the Michigan Public Act, anyone who engages in property management must have a real estate broker's license, unless they are a real estate salesperson employed by a real estate broker to engage in property management. Property management is defined as:The leasing or renting, or the offering to lease or rent, of real property of others for a fee, commission, compensation, or other valuable consideration pursuant to a property management employment contract.
However, if the activities provided do not include leasing or renting services, a license is not required. Most property management companies meet these requirements, but many individual property managers do not. Be sure to ask your property manager if they are personally and individually licensed to practice property management in Michigan.
https://www.michigan.gov/lara/bureau-list/bpl/occ/prof/real-estateMichigan real estate broker licensing requirements include:
- Trustworthiness: must provide evidence of good moral character
- Experience: Minimum of three years full-time experience in real estate
- Education: 90 clock hours of approved broker level education
- Exam: pass the broker licensing examination
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Does Lukeman Group offer short term rentals management?
No – Lukeman Group manages only LONG TERM property management services. -
Do I have to pay a management fee if my property is vacant?
No. We believe we should only be paid if you get paid. So our management fee is a percentage of the actual rent we collect. If we do not collect any rent, or if the property is vacant, you don’t pay us anything. -
How much does it cost?
You can find an overview of our pricing here. If you have specific questions, or would like to discuss the management of your entire portfolio, contact us. -
How do you screen tenants?
In depth tenant screening is the foundation of a good property management experience. Our in-house screening process utilizes technology plus ‘landlords references’ to ensure we place quality tenants in our properties. We comply with all federal and state laws governing applicant screening. -
Do I have to accept “Section 8” tenants?
Yes. Michigan state law includes ‘source of income’ as a protected status. This means landlords may not discriminate based on where tenants receive their income (including government subsidized programs). -
How do I receive my rent money each month?
We close out the monthly accounting cycle and process a direct deposit by the 15th day of each month. -
What if the tenant does not pay rent?
We handle the entire rent collection process. Although it is rare - should a tenant not pay rent, we handle the entire legal eviction process on your behalf. -
Who takes care of maintenance?
We will handle all repair requests (even the middle of the night emergencies) and we use pre-screened, high quality vendors. -
Can I do my own property repairs or use my own vendors?
While a property is vacant, you are welcome to do whatever make-ready work you would like to do on your property. When a tenant is living in the property, we do need to screen who is accessing the property for the protection of the tenant-residents. Therefore we will use our maintenance staff or pre-screened/pre-approved vendors. If you have a favorite vendor please give us their contact information – we are always looking to add new high quality vendors to our group! -
Can you help me buy or sell rental property?
Yes! We offer sales services exclusively to our owner-client group and we can help you buy another rental, or sell your current property when the time is right for you. -
How do I access my financial reports?
Our owner-clients have a secure on-line portal which gives 24/7 access to financial reporting. -
How long does it typically take to find a tenant?
Vacancy timelines vary based on seasonality, property condition, rental price, and market demand. Our goal is to minimize vacancy through strategic pricing, professional marketing, and proactive leasing efforts. -
What areas do you serve?
Lukeman Group provides property management services throughout Kalamazoo and the surrounding Southwest Michigan communities, including Portage, Vicksburg, Richland, Mattawan, Schoolcraft, Paw Paw, Allegan, Battle Creek, and nearby markets. -
What types of properties do you manage?
Lukeman Group manages a wide variety of residential rental properties throughout Kalamazoo and Southwest Michigan, including single-family homes, multifamily properties, apartment buildings, historic homes, newly constructed rentals, and off-campus student housing. Whether you own a single rental property or a larger portfolio, our team provides professional management solutions tailored to your investment goals. -
How do you market vacant properties?
We utilize professional photography, online advertising, rental listing syndication, social media marketing, local market exposure, and tenant screening tools to help attract qualified applicants quickly. -
What does a property management company do?
A property management company handles the day-to-day responsibilities of operating a rental property on behalf of the owner. Services typically include marketing vacant properties, tenant screening, lease preparation, rent collection, maintenance coordination, property inspections, financial reporting, lease enforcement, and ongoing communication with tenants. At Lukeman Group, our goal is to simplify property ownership by protecting your investment, minimizing vacancy, maintaining positive tenant relationships, and helping maximize your property's long-term performance.