We have a rental property in which the tenant was kicked off Section 8 right before COVID hit. Tenant wouldn't answer calls, email or text, and hasn't paid a dime. We took tenant to court (36th district). Hearing was in Feb and judge granted a 3 month adjournment without even hearing the plaintiff (our attorney)..SMH. Next virtual hearing is this month. Now that the moratorium has been extended until June,(thanks Joe) we anticipate tenant may get yet another adjournment. I've heard landlords may be eligible for landlord assistance programs providing about 80% back rent. However, even if offered this assistance we are skeptical about taking it. Additionally, we are almost positive tenant is receiving unemployment, stimulus checks, and other income but just wont pay. Really feel like knocking on the door but was advised by attorney not too as this could cause "tension" and favors toward tenant. Anyone other landlords experiencing this?
The eviction stories just keep getting worse. If the tenant is not paying rent, they have to prove its due to COVID and they have to sign a form. I am pretty sure you are already aware of this since you are consulting a lawyer.
I am also going through an eviction right now and my county just came out with landlord assistance programs but I wouldn't qualify because the tenant is getting evicted. The tenant owes 4 months of rent totalling $6000 but I still wouldn't qualify. Just have to eat up the costs. Don't you love Real estate investing :)
Sorry to hear that. I invest in Detroit, too; thankfully, it hasn't happened to me. I was close though, relationship’s have been vital for me. I did knock on the door, I was able help the tenant get back on track; I comprised for a short time, but I got them out while still keeping some income coming in. I know they don't all work out like this, the court was helping me. I had to jump in. Good luck!
@ Aj, best of luck in your eviction situation; I hope you're able to get your $6K back. We are approaching $10K loss on this particular property, fortunately for us other tenants are paying on time, so this helps a bit. Guess we need to tighten up our screening process.
@ Tim, agreed, relationships are vital, and glad to hear you were able to work it out with your tenant. We've tried offering help to the tenant such as waiving late fees, offered free rent for a month so tenant could use those funds to find another place and move, but didn't work. Tenant claimed no one would accept her application, and after research we found tenant had been evicted before, didn't tell us and we didn't know. So we have learned a lot from this experience and will definitely be tightening our shot group. So right now, just waiting it out. Thanks for the feedback.
@Phil Parris so much to cover, so little time to type!
TENANT SCREENING: you may want to read our blog here on BP about better screening practices:)
EVICTIONS: you can still take tenants to court and 36th is SLOWLY issuing judgments, just not Writs. Technically, if the tenants don't follow CDC Affidavit requirements, they can still be evicted.
CERA: COVID Emergency Relief Act pays up to 12 months past rent + 3 months future + utilities. The previous EDP program required a 10% landlord haircut, not 20%. Easier to qualify for too.
NONPAYING TENANTS: you would not believe how many won't pay, yet won't apply for free rent! They have an entitlement mentality not tied to reality.
@Phil Parris I don't think its the screening process. We couldn't have known that the tenants will lose their job due to COVID. I have been reading a lot of eviction stories in the past month or so and the usual trend is that tenant stops responding to texts, calls or emails after they stop paying rent.
You guys noticed Duggan put a little spin on those landlord funds right? If you don't have all your certs you aren't getting it. That knocks out 98% of landlords in the city
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