Tenant Payment Performance Update v 3rd Quarter
NOTE: we originally started publishing this data monthly back in April of 2020 to assist our clients in understanding the developments & corresponding challenges related to the Eviction Moratorium. With most landlord-tenant courts pretty much back to normal, and very little feedback from our audience about the data, we’ve decided to save our staff time and switch to publishing the data quarterly. Please let us know your thoughts!
We’re unaware of any other local management company sending their clients these updates!
Please share this with anyone interested in real estate investing or looking for a better property manager, so they can see what they are missing!
GENERAL EVICTION UPDATE
We’re still experiencing free legal-aid attorneys for tenants using legal extortion tactics to “encourage” landlords to accept a Conditional Dismissal settlement. They threaten requesting a jury trial, which may take 6 months or more, to avoid an eviction being entered against a tenant.
Some good news is judges seem to be tiring of this tactic and are not giving tenants much leeway if they do not follow the terms of the agreement.
Funding for legal-aid is running out, which will lead to fewer free attorneys for tenants facing eviction. We hope this leads to the remaining attorneys only assisting tenants facing valid landlord issues, as opposed to assisting tenants that just can’t or won’t pay their rent.
We’re pleased to share an important update regarding our efforts to protect our clients’ interests. We paid one of our attorneys to file a judicial complaint against the 36th District Court for not properly enforcing landlord-tenant statutes. As a result, our attorney told us that one of the most tenant-friendly judges has been removed from the landlord-tenant docket. This change is expected to lead to fairer hearings and a more streamlined process for cases moving forward.
What other property management company has taken similar proactive actions to advocate for their clients? We had contacted several of our competitors to go in on this with us – and they all refused.
RENT PAYMENT TRENDS 30-60-90+ Days Behind Update
Overall, we’re seeing around 85% of tenants paying full rent payments, over 90% if we delete leases we’ve taken over that already have a past due balance. As we head into the holiday seasons, we do expect our numbers to follow the normal pattern of slightly worsening – due to tenants overspending for the holidays.
Macomb County Tenant Performance
Interesting development of those paying partial rent staying the same, while those paying zero increased a bit. We systematically offer nonpaying tenants Payment Plans, Cash-for-Keys and multiple payment options to get them back on track.
Oakland County Tenant Performance
While our track record of tenants paying full rent remains strong, we did experience a slight increase in the number paying zero rent. You can see this via the Paid Partial Rent declining and correspondingly, the Paid Zero Rent number increasing. Of course, we are aggressively addressing these situations with Payment Plans, Cash-for-Keys and multiple payment options.
Wayne County Tenant Performance
Steady numbers is the big news here! We’d like to see constant improvement, but these are really good numbers for this mostly Class C pool of tenants.
Watch for our next update in January!