Tenant Payment Performance Update v2023-07 thru 2023-06v2023-07 thru 2023-06
We’re not aware of any other local management company sending their clients these types of updates! Please let us know if you hear of another company doing so.
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EVICTIONS UPDATE
All courts continue to catch up on their eviction caseloads, even the City of Detroit’s 36th District Court. We successfully recovered control of 16 properties by either having bailiffs remove nonpaying tenants or by getting nonpaying tenants to vacate before we sent bailiffs (saving owners money!). We also obtained another 6 Writs of Eviction which should lead to additional property recoveries in July.
While we initially didn’t like 36th District Court, and several other courts, going back to in-person eviction hearings, we have noticed that cases are being processed quicker. Court clerks are misplacing less paperwork, resulting in faster processing times. Also, fewer tenants are showing up to the in-person hearings leading to more default judgments. So, now we’re fans of in-person hearings as they’re leading to faster evictions!
TENANT APPLICANT SCREENING CHALLENGES
Summer is here and it is the perfect time to fill a vacancy. With this comes some challenges. There has been an increase in the number of applications we are processing. The more applications we process, the more cases of fraud we are seeing.
We continue to see applicants submit fraudulent documents, and references, and do anything to hide an eviction. We have gotten better at screening applicants to see what is the situation and process each application accordingly.
Due to concerns about being accused of Fair Housing discrimination, and getting sued, we have to proceed carefully with every application we receive. As a result, it’s taking us longer to process each application.
RENT PAYMENT TRENDS 30-60-90+ Days Behind Update
There has been a sharp decrease in the number of non-performing tenants as we finally evict more & more of them. Tenants behind in their rent are also more cooperative with Payment Plans and communicating in general. The number of tenants paying full rent pretty much stayed the same.
Macomb County:
We continue to see a positive trend in the number of tenants paying full rent! Our hard work is paying off as the number of tenants paying partial or no rent is also declining.
Oakland County:
We’re almost at a 100% success rate of tenants paying full rent! We do have a few tenants that won’t commit to a Payment Plan that we will have to evict, but overall, the results are very positive.
Wayne County:
Another positive trend is the number of tenants paying full rent! The number paying partial rent, via Payment Plans, also increased. The only negative news is that after 6 consecutive months of declines, there was a small increase in the number of tenants paying zero rent. This is due to our aggressive efforts to force tenants to either agree to a formal Payment Plan (many want very casual agreements) or face eviction.
