Q3 2026 Tenant Payment Performance
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Three Quarters Behind Us and One More to Go
With three quarters of 2026 behind us, Q3 gives us another opportunity to assess how tenant payment performance is developing across the portfolio. Following the short-term pressure noted in Q2, the latest results show encouraging progress in outstanding balances and suggest that more tenants are moving toward healthier payment positions. At the same time, performance is not uniform across the counties. Macomb continues to deliver consistently strong collection results, Oakland shows meaningful improvement from the prior quarter, and Wayne remains the primary area requiring closer attention. Looking at these county-level differences alongside the overall portfolio helps clarify where current collection strategies are working and where continued follow-up, payment plans, or other appropriate action may be needed as we head into the final quarter of the year.
General Eviction Update
As we close out Q3, compliance and documentation continue to play an important role in Metro Detroit eviction timelines. As we’ve mentioned in previous reports, delays are often tied to inspections, missing documents, and procedural issues. Detroit remains the main area of focus, particularly regarding rental registration and Certificates of Compliance. A missing Certificate of Compliance can lead to an adjournment of at least 30 days. Owners who keep their required rental licenses or registrations, inspections, and approvals current will be better positioned to avoid preventable delays if legal action becomes necessary.
Effective August 10, Detroit’s 36th District Court also resumed holding initial landlord-tenant hearings in person, with remote attendance subject to the judge’s approval.
Rent Payment Trends: 30, 60, 90+ Days Behind
The results show encouraging progress during Q3 following the short-term payment pressure noted in Q2. Approximately 94% of tenants owed less than one month’s rent, up from 92%, while fewer owed the equivalent of one to two months. Serious delinquency remained limited, with only four tenants owing two months’ rent or more.
Six tenants were listed on structured payment plans. These arrangements provide an opportunity to catch up, with regular follow-up focused on payment commitments and reducing outstanding balances.
Macomb County Tenant Performance
Macomb’s graph reflects another quarter of consistent rent collection. Payments in full held above 96%, compared with approximately 95% in Q2, with nearly every tenant paying the full amount due.
One tenant made a partial payment and one failed to make a rent payment. These exceptions remain limited within Macomb’s otherwise strong results.
Oakland County Tenant Performance
Oakland’s graph highlights a positive shift from Q2. Full-rent payments increased from approximately 85% to 93%, while partial payments decreased. Every tenant made a rent payment during the reporting period, continuing the encouraging pattern noted last quarter.
A small number of tenants in Pontiac still require closer attention through structured payment plans or the appropriate collection process. These cases remain isolated as the county’s overall payment performance improves.
Wayne County Tenant Performance
Wayne’s graph shows that most tenants continued paying their rent in full during Q3. Full-rent payments were approximately 86%, compared with 89% in Q2. Partial payments increased, while four tenants failed to make a rent payment, up from two in the previous quarter.
Detroit remains our main area of focus, with most of Wayne’s larger outstanding balances concentrated there. These tenants remain on payment plans or proceed through the appropriate collection process, while the broader portfolio maintains healthy payment activity.
What Should Property Owners Be Thinking About as We Head Into Q4?
As we head into Q4, owners should keep an eye on whether tenants are meeting their payment commitments and reducing what they owe. A partial payment is encouraging, but steady progress toward catching up provides a clearer picture.
Maintaining reserves also helps owners manage interruptions in rental income when collection or court proceedings take longer than expected.
Final Thoughts
The latest results give us a useful picture of where progress is being made and where more attention is needed. As we close out 2026, our team remains focused on protecting our owners’ investments through early intervention and consistent collection practices.