Tenant late on rent / eviction in Michigan

[David Castagna]

Hi BP friends, 

I have a tenant that has lived in my property for 6 months and has been late 4/6 months. Typically, she is just a few days late and pays the late fee. This month, it is the 13th and she has still not paid and is unresponsive. This is my first long-term rental and I have not come across this situation. Does anyone have any advice on what to do here? 

Thanks in advance, 

David

[Nathan Gesner]

Quote from @David Castagna:

Get rid of your friend.

Seriously, whether they are a friend or not, they are not abiding by your rules. She apparently doesn't feel your friendship is important enough to abide by the agreement and wants to take advantage of you. Now you're going to lose your tenant and the friendship.

She won't get better. Do what you can to get her out and start fresh. In the future, do not ever rent to friends or family.

[Jaron Walling]

@David Castagna If you haven't served a 3-day pay or quit notice or started the eviction process do it today. It's painfully clear this friend or tenant was showing bad signs from the start. 

[Joe Villeneuve]

Four rules regarding rent/tenants:

1 - Always have them sign up for some type of autopayment plan.

2 - Avoid renting to friends

3 - When the rent is late, establish the fact you will immediately send out late notices with late fees applied

4 - Never rent to friends or family.

[Michael Smythe]

@David Castagna

Please reference this great document for additional information: Tenants & Landlords, a Practical Guide:
http://www.legislature.mi.gov/documents/publications/tenantlandlord.pdf

Follow this process:

Michigan Eviction Process Explained

Day 1:	RENT DUE: Rent typically due on first of each month.
Day 5:	GRACE PERIOD UP: Last day of Grace Period
Day 6-9:	EVICTION NOTCE SENT: Tenant has exceeded grace period of their lease. Proper Demand form is sent to all tenants to start the legal eviction process, so we force them to address their balance: dc 100a: Nonpayment of Rent (most commonly used – also known as 7 Day Notice, if tenant pays they stay) dc 100c: Notice to Quit to Recover Possession of Property (also known as 30 Day Notice, use if you want a paying tenant gone) Forms can be found at: https://www.courts.michigan.gov/SCAO-forms/LTLC-forms/
Day 13-16:	COURT DATE FILING: While waiting the required 7 days, we try to communicate with tenant to determine if they intend to pay and when. Tenants are offered option of Payment Plan. To keep pressure on them, we usually move the Eviction Process forward by sending the following to an attorney to file for a court date: Copy of the signed eviction notice Copy of a ledger showing balance owing Copy of the lease Copy of any city required landlord license, rental registration, etc. NOTE: Only the property owner can represent themselves in court, we MUST use an attorney.
Day 16-19:	FILING CONFIRMATION: We follow up (f/u) with attorney to make sure they received our email & are filing case with court.
Day 19-22:	COURT DATE CHECKUP: We f/u with attorney for court date if not received yet.
Day 20-25:	COURT DATE SET: When we get a court date, we try to determine if tenant(s) still in property: If so, we try to contact them about paying their balance. We DO NOT STOP the process unless they pay in full! If they request a Payment Plan, we require it to be in writing, with specific dates & amounts, with income documentation to support the payments. If tenant appears to no longer occupy property, we cautiously proceed to secure the property and move their possessions to garage, basement etc. We must be careful as tenant can legally claim treble damages if we inadvertently dispose of their possessions too early.
Day 25:	COURT DATE: Our attorney appears in court to present case against tenant(s). Tenants are given opportunity to challenge the balance we are suing them for. Many tenants do not show up in court, resulting in a default judgment against them. Michigan statute requires tenant be given at least 10 days to pay their balance to stay in the property. If paperwork is not correct or tenant has story judge believes, case may be adjourned to allow additional preparation. Judgments are good for 56 days from judge’s signature date
Day 35:	AFTER REQUIRED 10 DAYS: We contact tenant about their plans to move or pay. We try to be nice, but firm, keeping the pressure on them. If they request a Payment Plan, we require it to be in writing, with specific dates & amounts, with income documentation to support the payments. We may discuss a Cash-For-Keys option with property owner to offer tenant to obtain property possession faster. If we cannot get ahold of them, we inspect property to see if vacated. If tenant appears to no longer occupy property, we cautiously proceed to secure the property and move their possessions to garage, basement etc. We must be careful as tenant can legally claim treble damages if we inadvertently dispose of their possessions too early.
Day 36:	WRIT OF EVICTION ORDERED: The next step in the eviction process is to request an Application and Order Of Eviction (form dc 107, also known as a Writ of Eviction) which requires judge signature. While the tenant can challenge this motion, this rarely happens.
Day 43-46	WRIT OF EVICTION RECEIVED: Order of Eviction should be signed by now, if not f/u with attorney. Once signed, we again try to contact tenant for an acceptable Payment Plan. We may discuss a Cash-For-Keys option with property owner to offer tenant to obtain property possession faster and avoid removal fees. Otherwise, we must legally contact the court assigned bailiff and schedule removal of tenant and their belongings from the property. We are not allowed to do this. Bailiffs are NOT required to give estimates. Most require an upfront payment and then submit a final bill when complete. Several cities require a dumpster at property before bailiff will schedule removal ($350-$450)
Day 46-53:	WRIT OF EVICTION POSTED: Bailiff will mail or post the Writ of Eviction with date they will physically remove tenant’s belongings. Many tenants will now contact us for Payment Plan, Cash-for-Keys or to negotiate for more time. At this point, they are just desperate to stay, but rarely have funds or income.
Day 53-60:	BAILIFF REMOVAL: Court appointed bailiff(s) will remove tenant & their belongings and legally return possession of the property to us. Cost is at least $300, depending on city, number of bailiffs, size of home & amount of possessions and cost of possible required dumpster. We can then rekey the locks and evaluate damages to prep for marketing.
Day 91:	EXPIRATION DATES: If we agree to an extended payment plan with a tenant, the judgment expires 56 days after judge signs it. We can extend this deadline by requesting the Application and Order Of Eviction (form DC 107), which will usually extend our case another 56 days. Otherwise, we will have to start all over again.

[David Castagna]

Thanks all. I ended up getting the rent. And now I have the documents ready to send right away if this happens again in the future. 

[Mackaylee Beach]

Happy to see you received payment. Always make sure to issue notices during required time frame. If you let it slide, it will continue to be an issue.