Tenant Payment Performance Update v2023-07

Tenant Payment Performance Update v2023-07

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EVICTIONS UPDATE

All courts continue to catch up on their eviction caseloads, even the City of Detroit’s 36^th District Court. We successfully recovered control of 10 properties by either having bailiffs remove nonpaying tenants or by getting nonpaying tenants to vacate before we sent bailiffs (saving owners money!).

We are starting to hit pre-covid processing times for most courts. This is good news for landlords as most eviction cases are becoming simpler to process and prepare for.

TENANT APPLICANT SCREENING CHALLENGES

Summer is halfway over! We have noticed that there is an increasing number of vacant homes as more and more landlords are finally able to get rid of troublesome tenants. This means owners have recently seen more competition in certain markets than what they would typically see this time of year. 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

We have seen an increase in tenants paying full rent. As we continue to remove non-performers, we have been able to move in more tenants that are performing. We hope to see this trend continue.

Macomb County:

Our numbers continue to either slightly increase or decrease with the number of tenants paying full or partial rent. This is due to a few that fall behind but we help them get on track the next month. As you can see, our number of non-performing tenants has been maintained.

Oakland County:

We saw a 3% decrease in the number of tenants paying full rent. This is mostly limited to nonperforming Pontiac tenants. We will continue to contact the tenants and offer payment plans while at the same time keeping pressure on them with the eviction process.

Wayne County:

Overall an improvement in Wayne County. While we had a slight decrease in the number of tenants paying full rent, we continue to see the number of non-performing tenants decrease. This is due to our eviction team working hard to remove the non-performing tenants.