Tenant Payment Performance Update v2024-01
We’re unaware of any other local management company sending their clients these updates! Please let us know if you hear of another company doing so.
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Courts are catching up on the backlog from the Xmas & NYE holidays! In January the court processing time for new cases averaged 4-6 weeks. We’ve already noticed faster turnaround times in February.
We are currently part of two lawsuits by attorneys suing the 36th District Court in Detroit. Both these lawsuits are intended to force judges to follow landlord-tenant statutes and STOP giving nonpaying tenants so many breaks.
We hope our clients appreciate our commitment to doing everything we can to protect their investments!
TENANT APPLICANT SCREENING CHALLENGES
Winter is almost over and we’re already seeing a noticeable increase in showings and applications.
We did experience a gang of crooks trying to rent out homes we had listed on Zillow. They were soliciting prospects that used the Zillow credit application, offering these prospects our rental listings. We were able to put a stop to it and to our knowledge, no one paid these crooks anything. It did require a decent amount of our time to investigate though.
We’re still dealing with many Legal Aid attorneys trying to “extort” Consent Judgments for their clients using the threat of jury trials. Jury trials may take 6+ months to resolve, allowing nonpaying tenants to stay longer. The Consent Judgments offer quicker property recovery but avoid an eviction being entered against a tenant. So, no eviction shows up on a background check of these tenants. For clients that won’t let us pursue Certificates or Compliance (CoC) for their property(s), Legal Aid attorneys are also getting judges to adjourn eviction cases several times due to repairs. So, tenants get to stay longer without paying. We highly recommend allowing us to get your property(s) certified with the City of Detroit to avoid this money-losing tactic.
RENT PAYMENT TRENDS 30-60-90+ Days Behind Update
The graph below shows our numbers stayed about the same as the previous month. We expect improvements next month as we’re already receiving requests from tenants to hold off on evictions until they receive their income tax refund in late February or the beginning of March.
We had a slight decrease in the number of tenants paying full rent, but a corresponding increase in tenants paying partial rent. As we’ve mentioned the last couple of months, this happens every year due to holiday overspending. We expect many of these tenants to get caught up when they receive their income tax refunds, but we are moving forward with evictions to keep the pressure on them.
Similar to Macomb County results.
Our numbers improved as the eviction courts were catching up from the holidays. We expect further improvements as tenants use their income tax refunds to pay and avoid eviction.