Our Management Agreement outlines these common expenses, we will break down the costs below:

9% -- of the collected Rent Income is paid to Baker Street monthly to manage the property.

50% -- of the first month’s rent is collected to advertise, lease, and place new tenants in the property if vacant. This one-time fee is collected at the time of the lease signing.

$250 -- one-time fee if the current tenants stay in the property and we sign a renewal lease with them. This one-time fee is collected at the time of the lease signing.

$500 -- one-time initial set up fee. Paid to Baker Street upon signing the Management contract or taken from rent if the property is occupied.

$500 -- refers to the dollar amount threshold above which prior authorization from the Owner is required for Baker Street to repair. This amount is held by Baker Street for the duration of the Management Agreement.

$500/$750 -- Rental license inspection fee. This fee is for Baker Street to coordinate and manage first-time ($750) and renewal ($500) city rental inspections.

$300 -- per door- approximate one time cost to install electronic keypad deadbolt to exterior entrance door to property.

Property Licensing

The City of Ann Arbor, Ypsilanti, Ypsilanti Township, and Pittsfield Township require Rental Licenses or Certificate Of Occupancy (COO). For Baker Street to manage and coordinate a renewal city inspection, we charge $500, for first-time city inspections, we charge $750. Please read more information about City Inspections in our Inspection Guide.  

Maintenance

All properties will require regular maintenance. You can find more information about our maintenance rates in our Maintenance Guide for Owners.

We see the largest common maintenance expenses: Furnace Replacement, A/C Replacement, and Water Heater Replacements. All of these need to be installed by an HVAC contractor, and a license must be pulled. Kitchen appliance replacements are the next most common considerable maintenance expense.

Turnover

Cleaning and maintenance between tenants are what we refer to as turnover. Under Michigan law, we cannot charge tenants for the cleaning of a property. We can also only withhold money from the Security Deposit for damages and not everyday wear and tear. We recommend that Owner's budget 1 month's rent to cover these costs. Please read more about these expenses in our Property Turnover Guide.

Maintenance Threshold

The maintenance threshold refers to the dollar amount threshold above which prior authorization from the Owner is required for Baker Street to repair. Most maintenance thresholds are set at $500.00. This amount is held by Baker Street for the duration of the Management Agreement.

Seasonal Landscaping

Seasonal landscaping including spring and fall cleanups, as well as gutter cleaning, should be budgeted for by owners. We will coordinate these services for Owners with our landscaping vendor and communicate with Owners for approval.