Landlord Tenant

Skilled Eviction Attorneys Ensuring Property Rights

For the average American, real estate is one of the most common ways to build wealth. Many people purchase income properties as a way to increase their income and assets. When analyzing the market to make a first purchase, the investor calculates how much income should be generated, taking into account some lag between renters, and finds a property that will generate more revenue that the cost of financing the purchase. Property investors should also consider other costs when making an investment. Closing costs, realtor expenses, and attorney fees can increase the cost of an investment by tens, or hundreds of thousands of dollars.

In Michigan, the 2020 Covid-19 pandemic has had a variable effect on property values, complicating the calculation that property owners and landlords must use to determine if an investment is appropriate. The rental income that landlords in Michigan can command for their properties is influenced by real estate market conditions. In a strong market with high demand and rising prices, landlords may be able to charge higher rents. The cities of Cadillac, Traverse City, and Saginaw are projected to have the highest growth rates through 2024. During economic downturns or when real estate prices are stagnant, landlords may struggle to maintain or increase rental rates, impacting their cash flow.

In addition to market conditions, the availability of quality tenants has a significant effect on landlord tenant relations. The rental market in Michigan is currently competitive. According to the Federal Reserve Economic Data database, Michigan’s rental vacancy rate was 5.5% in 2022, which is the lowest that number has been since 1986. The competitive Michigan rental market should benefit property owners by allowing for higher rents and more favorable lease terms for landlords. Even with this favorable market, many first-time investors fail to recognize how disruptive a poor renter can be to the entire financial calculus. If the tenant misses one or two payments, suddenly, the landlord is forced to dip into their own income to pay a second mortgage. This is excluding the chance that a bad renter will do serious damage to the property through negligent or reckless behavior.

Fortunately, Michigan law provides mechanisms through which a landlord can eject tenants. Summary eviction proceedings to recover possession of property are a specialized type of action. With the help of an experienced eviction lawyer, these summary proceedings can progress much faster than ordinary proceedings—although, sometimes not fast enough for the landlord to keep the revenue stream flowing.

There are a number of very technical procedural rules that must be followed when enforcing a rental contract and evicting a delinquent tenant. Since the action is expedited as a summary proceeding, all those rules must be followed precisely. If a Michigan landlord tenant attorney makes even a small mistake, it could cause the entire proceeding to fail, and the landlord will have to file a new action, further extending the amount of time the property will be occupied without generating revenue.

Making matters worse, there are a number of litigation “strategies” that can be employed by a tenant to prolong the eviction process. There are websites dedicated to frustrating landlords when trying to obtain possession of their property, some of which are quite effective. Tenants may try to make untrue claims about the condition of the property, or unfairly allege discrimination against a blameless landlord. Individual tenants fighting residential evictions regularly get away with bad-faith conduct that lawyers or corporations would be sanctioned for. Do not assume that an eviction will be as simple as telling the court the tenant has not paid rent and expecting a sheriff to go remove the tenants.

Ultimately, eviction matters can require experienced legal assistance. If you are in need of assistance with any landlord-tenant related issue, contact the experienced attorneys at Neumann Law Group for a free consultation.

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