Tenant paying late, making excuses and ignoring property management company

[Raymond Yan]

I recently purchased a property in the Warrendale neighborhood of Detroit, Michigan about a year ago. The property currently has a tenant who is paying below market rent at $850 per month. While the tenant had a good payment history before my purchase, I'm unsure about their timeliness.

Lately, I've encountered several issues with this tenant. They have received two blight violations for failing to store trash containers properly, resulting in costs of around $400. Additionally, they have been late with their rent payments and did not pay for July. I learned that they lost their job but have secured a new position that started on the 29th.

The property management company has advised me to get the property certified as a rental, but it failed inspection. Given these factors, I am considering a few options:

1. Selling the property, ideally without the non-paying tenants.
2. Offering a cash-for-keys arrangement (what would be a reasonable amount? I believe market rent is between $1000 and $1,200).
3. Evicting the tenants and moving in to perform repairs myself while I explore Detroit, as I have never been there before, but this process might take a long time.

I would appreciate any advice or insights on how to proceed.

[Drew Sygit]

@Raymond Yan so many issues!

1) Blight Tickets: chould be charge to the tenant with a processing fee. 
- Owner still has to pay and tenant unlikely to pay, but needs to be done. 

2) Eviction: why hasn't PMC started this already?
- We offer structured Payment Plans or we start eviction. Only two options unless owner wants to do Cash-for-Keys. 

3) Certificate of Compliance: why wasn't this starte last year?
- Detroit is making it more and more difficult on owners that do not get a CofC.
- It's usually not that difficult to make the required repairs - unless the wholesaler & their PMC have misrepresented the condition of the property!

4) When is tenant lease up as you've owned it for at lease 8 months?
- A "reasonable" rent increase should have already been done!

Get rid of this tenant via eviction or Cash-for-Keys and hire your own inspector when you visit the property to fully understand its condition and needed repairs!