Tenant Payment Performance Update v2024-07
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!
CITY DETROIT EVICTIONS UPDATE
Detroit’s 36th District Court is still taking on average 2-4 weeks longer than suburban courts to process a case.
Despite the delays, we were able to recover possession of 3 Detroit properties in June, 2 of them being squatters.
We’re still dealing with Legal Aid attorneys trying to legally “extort” Conditional Dismissals 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 Conditional Dismissals 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.
An example of this was a recent case involving a Section 8 tenant not paying their portion of the rent, with an accumulated balance of over $8,000 (the owner delayed us from starting an eviction for several months).
On top of this, the tenant was not cooperating with allowing our ServiceTechs access to address repairs the tenant documented to the court. Legal Aid made an offer of $800 to settle the case, with the tenant getting 30 days to move. Our attorney warned the owner that continuing to litigate the case would take months and even if the owner won, there’d be little likelihood of collecting from the tenant.
We think the laws that allow Legal Aid attorneys to legally extort owners like this are totally unfair!
NOTE: While these Payment Performance updates were useful during the Eviction Moratorium and the recovery period afterwards, were not sure of their benefit now. Overall, the numbers you’ll see below show that we’ve reached a “new normal” for tenant payment performance. Our evictions have dropped to pre-COVID and pre-Eviction Moratorium amounts.
So, please let us know if you think we should keep publishing this information. If we don’t hear from enough of our readers, we may discontinue providing them.
RENT PAYMENT TRENDS 30-60-90+ Days Behind Update
The number of tenants paying Full Rent was unchanged for July. We did have a slight increase in the number of tenants paying Partial Rent and the number of tenants paying Zero Rent dropped to almost zero!
Macomb County Tenant Performance
While there was no change in the performance numbers for July, the number of tenants not paying anything remained at zero.
Oakland County Tenant Performance
Not much changed with the number of tenants paying Full Rent, but we saw an increase in tenants paying Partial Rent, which drove the number paying Zero Rent to ZERO!
Wayne County Tenant Performance
Again, not a lot of change in tenants paying Full Rent, but a sharp spike in tenants paying Partial Rent and a corresponding drop in those paying Zero Rent.
