Chicken or Egg Question: Eviction or Cash-for-keys?

[Marc M.]

Hello BP,

This question may only make sense for Detroit landlords...in other markets it will sound idiotic. I have an occupied property I bought in the tax auction. I had initially worked out a deal with the previous owner to do a cash-for-keys arrangement where she would pay $200 / mo. and I would reimburse her the funds at an agreed upon move out date so long as the water bill current. I wrote a lease spelling it out, and she made one attempt to pay on through eRentPayment and her debit card was denied, and I never heard from her again. She is still living in the property, and I am fine to let her stay a two more months until I have time to deal with the renovation of the property because she is effectively a house-sitter, but as of now she is unresponsive to email and text message (I live out of town). I started the eviction process by sending a 7-day notice, but now I'm wondering what the best strategy is....should I follow through with the eviction and get a the judgement as a bargaining chip to work out a new cash-for-keys arrangement.... and is it possible to still exercise the judgement if she breaches that new contractual agreement? I'd rather avoid getting the mandatory bailiff and dumpster, and would prefer to use the cash I'd spend on setting someone out to find an arrangement for a cash-for-keys deal that would actually work instead. What's my best move here?

Best,

marc

[Sidel Murray]

I have experienced this dilemma a few times in Detroit.  Legal eviction may seem like the right thing to do however from mine and the experience of others I would go the cash for keys route. The reason being you don't know the mindset of the person occupying your property and what they may do to it out of spite, if evicted. I have investor friends that have had tenants put cement in the main drain in the basement and leave the water running damaging the foundation.  Another partner of mine had his rental set ablaze. These are the worst case scenarios but they do happen.  I would recommend finding someone in Detroit willing to  negotiate terms with the occupant on your behalf. This has been what has worked for me. If the tenant doesn't answer the door, no problem just have your person leave a note stating your proposal with a local phone number. If the tenant doesn't respond to this then you have no choice but to go through the courts, just make sure the place is insured.  Good Luck!