How Eviction Works For Your Detroit Investments

Updated February 3, 2022

Legal Note: This article is not a substitute for legal counsel. If you need direct assistance for your Detroit investments, reach out to Own It Detroit Property Management for a rapid, professional response!

As an investor, you may find yourself thrust into situations where you may need to evict a renter.

Under most circumstances, the eviction process in Michigan can take between four and eight weeks. However, timelines vary depending on court dates and when sheriffs are available to enforce such measures.

If your renters contest the eviction, that could cause the eviction process to be delayed by several additional months. Under Michigan's Eviction Statute (Section 600.5714), investors must give their residents at least seven days' notice before filing for eviction for nonpayment of rent.

It's critical for investors considering neighborhoods in Detroit as potential portfolio picks to understand what eviction is and how it works here in Michigan. As a result of the pandemic, Governor Whitmer signed an executive order to extend temporary suspension on evictions to July 15th and created the Eviction Diversion Program (EDP). When the moratorium on evictions lifted, Detroit residents received an extension until August 15th.

A Brief Overview of the Eviction Process

• Property investors provide renters with a notice for nonpayment of rent or other lease violations.
• Renters must receive that notice seven days before investors file a complaint about nonpayment of rent, property damage, or illegal drug use.
• Renters must receive a 30-day notice if they are violating a lease provision, are trespassing, or are staying longer than the lease terms.
• Real estate investors must deliver the notice to the resident in person, to an adult member of their household, or via first-class, certified mail.
• If investors are unable to reach an amicable agreement with their renters, then they can file a court order for removal.

How Evictions in Michigan Work

If you currently own investment properties in Detroit or are considering Detroit investments for your portfolio, you should know that investors can only begin the eviction process for nonpayment of rent. However, property owners must deliver a notice before filing an action with the court for a legal eviction. It is illegal for rental property owners to remove residents from their rental properties without a court order.

This notice, the "Demand for Possession, Nonpayment of Rent" notice must be in writing and addressed to the resident. In that notice, rental property holders must describe the rental property using its physical address, and indicate how much rent the renter owes. That notice must also include a seven-day notice for renters to catch up on their rent or move out. Every notice must contain the rental property owner's name and the date.

If residents do not respond to the notice within the given timeframe, then investors can prepare and file an eviction complaint with the district court. Once that filing is complete, it's the responsibility of the investor to serve these documents to the renter.

Why You May Need to Evict

According to the state of Michigan, there are nine reasons under the law for starting the eviction process. These reasons include:

• Criminal trespassing
• When renters do not pay their rent
• Physical injuries to the property
• Constant and severe health hazards
• Illegal drug use or activity with a formal police report on file
• Lease provision allowing for termination following violations
• Remaining on the property beyond the lease's expiration
• Terminating mobile home park renters for "just cause"
• Termination of government-subsidized housing residents for "just cause."

How to Prevent Evictions

As with everywhere else in the real estate market nationwide, plenty of renters are having a difficult time paying their rent. This reality is especially true during a pandemic when many places of employment are unable to reopen. If renters fall behind on their rent due to COVID-19, Michigan now has the Eviction Diversion Program (EDP). This program operates under the Michigan State Housing Development Authority (MSHDA).

MSHDA is working in collaboration with the Department of Health and Human Services and the Michigan Supreme Court to uphold this program. Under the EDP, property investors can receive up to 90% of all unpaid rent as a lump-sum payment. If investors agree to accept this payment, they are required to waive late fees and allow renters to remain on the property.

After restriction lift due to the pandemic, property holders can prevent evictions by:

• Seeking short-term solutions for rent repayment, including allowing residents to remain on the property with the implementation of a payment plan.
• Communicating with renters about concerns regarding nonpayment or issues with the property in a non-combative manner.
• Following up with residents regarding repayment options or addressing property damages according to an agreed-upon timeframe.

Turn to Own It Detroit for Professional Help

At Own It Detroit, we have a substantial amount of knowledge regarding eviction laws and the process of eviction. We also can show serious investors how to avoid evictions by using our collection services. Even during COVID-19, we have a better rent collection rate for Detroit investments than our competitors—a whopping 98%!

With our efficient, professional, and experienced background, we deliver exceptional value for each of our clients. Invest in Detroit with BEST IN CLASS service provided by seasoned investors!