What to Do if You Live in a RealT Property in Detroit
Dealing with a negligent landlord is a nightmare.
It can feel like you’re screaming into a void—sending maintenance requests that go unanswered while living in conditions that are frustrating at best and unsafe at worst.
As a property management company, we’ve seen firsthand how bad management can ruin an investment for a landlord and make life miserable for a tenant:
- Many of our landlord and tenant clients have come to us from nightmare scenarios, and you can’t believe the stories we’ve heard.
- We’ve had to terminate some owner clients, who couldn’t or wouldn’t, provide us funds to address tenant maintenance issues.
But the ongoing saga with RealT, a crypto-based real estate firm, is undoubtedly one of the worst we’ve seen in a while.
Now, after months of tenant complaints and investigations, the City of Detroit has taken major legal action. For tenants living in RealT properties, understanding these latest court rulings is critical.
Disclaimer: We do not manage any properties owned by RealT, but we do believe in empowering tenants with information.
This article is designed to provide a clear timeline of events and explain what these legal decisions mean for you, but is not to be taken as legal advice.
Timeline of the RealT Legal Rulings
The legal battle between the City of Detroit and RealT has moved quickly. Here are the key moments:
July 2025: The City of Detroit Files a Lawsuit
The City of Detroit filed a sweeping lawsuit against RealT and its affiliated companies, citing them as a public nuisance. The lawsuit alleged that RealT had allowed hundreds of its residential properties across the city to fall into disrepair, creating blighted and unsafe living conditions for tenants.
Key allegations included:
- Persistent health, safety, and building code violations
- Ownership structures designed to evade responsibility
- Endangering public health and safety through issues like rodent infestations, fire hazards, and structural decay
Late July 2025: Judge Issues a Temporary Restraining Order
In a major victory for tenants, Wayne County Circuit Court Judge Annette Berry issued a temporary restraining order against RealT.
The order had two main components:
- Rent Collection Halted: RealT was prohibited from collecting any rent from tenants in properties that did not have a Certificate of Compliance (C of C) from the city.
- Evictions Prohibited: The company was barred from pursuing evictions against tenants living in properties without a C of C.
The court instructed tenants to begin paying their rent into an escrow account.
The idea was simple: the landlord could only access these funds to pay for repairs needed to bring the property up to code and receive a C of C.
October 2025: A Critical Update for Tenants
At a hearing in early October, Judge Berry clarified her previous ruling with a significant update. While the protections remain, they now come with a condition.
The judge signaled that RealT can resume eviction proceedings against tenants who are not paying their rent into a court-ordered escrow account.
This ruling puts the responsibility on tenants to follow the court-mandated process to maintain their protection from eviction.
What Does This Mean for RealT Tenants?
If you live in a property owned by RealT, these rulings directly impact you.
Here’s the 4 biggest things you need to know:
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You MUST Pay Your Rent Into a Court Escrow Account
This is the most critical takeaway from the October ruling.
To protect yourself from eviction you can no longer simply withhold rent. You must set up an escrow account with the court and deposit your full monthly rent payment into it on time.
An escrow account is a neutral third-party account that holds the funds until certain conditions are met. In this case, RealT can only access the money to make necessary repairs on your home. This system ensures your rent money is used to fix the very issues you’ve been living with, just like it does with a security deposit.
Failure to pay into escrow could result in RealT legally filing for eviction for non-payment of rent.
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Your Protections Are Conditional
The initial restraining order was a powerful shield for tenants. That shield is still there, but it now depends on your compliance.
- If you pay into escrow: You are protected from eviction while the case proceeds, and your landlord is still legally obligated to use those funds for repairs before they can collect rent freely again.
- If you do not pay into escrow: You lose your protection against eviction.
The city reported that of nearly 250 households contacted, only 125 had set up escrow accounts.
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The Goal is Property Compliance
The entire point of the lawsuit and the escrow accounts is to force RealT to bring its properties into compliance with city codes. A Certificate of Compliance (C of C) is issued only after a property passes a city inspection, proving it is safe and habitable.
RealT’s attorneys argued they need access to the escrow funds to perform renovations. The court’s process is designed to allow this, but only under supervised conditions that ensure the money is used for its intended purpose—repairs.
Until your home is brought up to code and receives a C of C, your landlord cannot profit from your rent.
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The Court MAY Release the Funds to You!
At this time, the court is only giving RealT a limited amount of time to make repairs. If they fail to obtain a C of C in that time, the court MAY release your rent back to you. But, then the cycle of depositing your rents with the court starts all over again.
Resources for Tenants
Navigating this process can be confusing and overwhelming. Fortunately, there are resources available to help you.
- City of Detroit Assistance: The City has committed to helping tenants set up escrow accounts. Reach out to the city for guidance on the specific steps you need to take.
- United Community Housing Coalition (UCHC): A non-profit organization that provides a wide range of housing assistance services to Detroit residents, including legal aid for tenants, eviction defense, and help with landlord-tenant issues.
- Website: uchcdetroit.org
- Phone: (313) 963-3310
- Lakeshore Legal Aid: Offers free legal services to low-income individuals, including help with housing problems and tenant rights.
- Website: lakeshorelegalaid.org
- Phone: (888) 783-8190
- Michigan Legal Help: An online resource that provides information on tenant rights, the eviction process, and how to handle escrow accounts in Michigan.
- Website: michiganlegalhelp.org
Know Your Rights and Take Action
The legal battle against RealT is a significant step toward holding large-scale landlords accountable.
But tenants are still a big part of making this victory a lasting success.
We encourage you to stay informed, document everything related to your housing situation, and lean on the community resources available to you.
While Logical Property Management is not involved in this case, we stand with tenants who are fighting for the safe and habitable housing they deserve.
If you’re looking for a rental home managed by a company that truly prioritizes communication, property condition, and tenant experience, take a look at our available rental units in Detroit and Metro Detroit.
We’re committed to making renting as hassle-free and transparent as possible—because that’s the Logical way to do property management.