Eviction Horror Stories: Episode 2
In the latest edition of our Eviction Horror Stories series, we’re looking at an MFR property in Detroit that took nearly 5 months of insanely hard work from our team to sort out – but sort it out, we did.
Here’s how:
In late October 2023, we got a call from a potential new client who was at his breaking point with a multi-family rental property in Detroit.
The property had been under another property management company’s care for several years, but they were about as effective as a leaky umbrella in a rainstorm. So, on October 21, 2023, he handed us the keys to his problem child.
The Setup
Our client’s budget was tight, giving him limited options, but he needed serious help. He’d been managing almost everything himself, including utilities—that’s what you pay a PMC for, right? Apparently, not his previous company.
Because of his PMC’s negligence, one of his tenants was doubling as the building manager, handling maintenance and even mowing the lawn. And this was all based on a handshake agreement with the landlord.
Yep, no formal contract. Recipe for disaster, right?
Ending the Verbal Agreement
The first thing we did when we officially took over as the property managers in November was to terminate this shaky “verbal agreement” officially.
We met with this so-called manager. He handed over all the keys, including those to the maintenance room. His rent was supposed to be $850, but he insisted that his role exempted him from paying rent. On top of that, he claimed he was owed a salary! Up until then, he’d been living there for free.
Come November, we started billing him for rent. Unsurprisingly, he refused to pay.
Of course, the manager-turned-tenant claimed he had something in writing confirming his rent-exempt status, but never showed us a single scrap of paper.
Off to court, we went.
By December 28, we filed for eviction, knowing full well this was going to be a messy process, which we also informed the owner of. We sent it to our attorney on January 3, giving him the legal one-month window to vacate before filing.
The Eviction Process
On February 1, as soon as we legally could, we officially filed for eviction. You’d think that would solve the problem, but not quite. At first, he refused to leave, then once he finally did move out, he moved one of his friends into his unit and started charging them rent!
By mid-March, we had the signed writ of eviction. We confirmed with the owner to proceed, got the funds, and hired the bailiff on March 26.
April 4 was D-Day—the bailiff came, changed the locks, and tossed out everything inside. We finally had possession of the unit again.
Crisis averted, right?
The Break-In and Further Complications
Just when we thought we were done, our nightmare tenant broke back in and caused damage. And during all this chaos, he dared to pitch an investment in his weed operation to the owner. You can’t make this up. We are being serious!
But at least he was finally gone.
In the end, we had to evict all but two tenants from this multi-family property, because most had similar issues.
We then renovated all the units, which needed serious updates, and brought in new tenants—better quality and better revenue for our client.
And, after all this turmoil, we helped our client sell the building at a significant profit!
The Happy Ending
The moral of the story?
Property management isn’t a walk in the park. It demands time, effort, and constant vigilance. There are no shortcuts.
When other PMCs cut corners, you end up with horror stories like this. If you’re a landlord like our client who doesn’t have the bandwidth to manage everything yourself, you need a top-notch property management company. Vet them thoroughly before handing over the keys.
A great PMC can save you headaches, time, and money in the long run.
Talk to us if you want to know what it’s like to work with a property manager who fixes problems like these, not creates them.