Tenant Payment Performance Update v2024-03


Tenant Payment Performance Update v2024-03

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We’re not having many issues with evictions in the suburban cities of Metro Detroit. The courts in these cities are pretty much back to normal and most tenants also have seemed to figure that out and more are paying as opposed to needing to be evicted.

In the City of Detroit, we were able to recover possession of 6 properties from nonpaying tenants in March. Detroit’s 36th District court is still taking on average 4-6 weeks to process a case but is slowly getting faster.

We’re still dealing with Legal Aid attorneys trying to legally “extort” Consent Judgments for their tenant 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 tenantSo, 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 until repairs are made.

Our attorneys have also warned us about another disturbing Legal Aid trend. Legal Aid is helping tenants sue landlords if the rental home doesn’t have the required rental license. Tenants are claiming the homes are not in habitable condition to try to squeeze landlords and insurance companies with whatever money they can obtain. Unfortunately, some eviction judges will see the lawsuit case in circuit court and will adjourn the eviction case until the lawsuit case is resolved. 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 tactic.

RENT PAYMENT TRENDS 30-60-90+ Days Behind Update

We continue to see improvements with tenants paying full and partial rent. We expect this trend to continue as tenants continue to get income tax refunds.

Macomb County:

We’re excited to see continued improvement in the number of tenants paying full rent. The graph below shows this March’s number is slightly higher than it was last March. So, we’re hoping to see continued improvement that exceeds last summer’s numbers!

Oakland County:

Oakland County tenants are also showing better numbers than this time last year. We look forward to exceeding last summer’s results.

Wayne County:

While we saw a slight decrease in the number of tenants paying full rent, we are pleased to see that more tenants opted for Payment Plans and continue to make payments instead of not paying anything. Overall, the numbers are significantly higher than at the same time last year!

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