Helping Renters

A $24,000 loss of revenue in January has forced a manager of a Wayne apartment complex to work with residents and prospective tenants on paying their rent.

Unemployment has reached about 10 percent for 2009, according to the Detroit News. Because of people losing their jobs, many families lost their homes. Many businesses have reached out to individuals to make a profit in Michigan’s economy.

Manager Janet Austin decided to help residents by allowing them to be late with rent payments. The occupant must call in advance to explain why the rent payment is going to be late. The plan is based on a private payment schedule created by Austin. Austin goes to court once a month and the Family Independent Agency weekly to deal with broken contracts.

“In a complaint, I show a created payment plan,” Austin said. “I realize it is hard for people to find jobs, but the minute the payment schedule is broken, I terminate the lease agreement.”

The defendant is responsible for all legal fees and late rent payments. If the resident is evicted, Austin has to call the bailiff to make sure the former occupant leaves the property. The eviction process costs Midtown Square Apartments about $600. The former tenant is also responsible for any damages to the apartment.

The rules to find perspective tenants have also changed. Management accepts a renter with a credit score of 500 or higher, breaking the lease agreement by 100 points. A renter’s gross income is supposed to be 3 times the cost of the rental property, but the rule has been relaxed to 2.5 times an individual’s gross income.

“With the bad Michigan economy you have to make ends meet and help people in the process,” Austin said. “As a Christian, I want to help people find a place live because of the current job market. I am also trying to keep my job. It is a struggle just to pay bills.”

With the changed leasing rules at the complex, management has made budget decisions. The loss of revenue has forced many repairs to be put on hold. Midtown Square Apartments has one employee for maintenance issues.

“Residents are not able to get some of things they want such as a refrigerator,” Austin said. “The lack of revenue creates conflict because the tenant has to wait, and he or she becomes impatient.”

Service Technician Michael Blade is responsible for the repairs of the complex.

“I wish I had another person to help with projects,” Blade said. “To get help with things, residents are paid in decreased rent. For example, a resident does grounds and gets $140 taken off his rent for the month. I am able to fix more apartments because of the help.”

All the changes at Midtown Square Apartments have created some conflict with Austin and Peak Management LLC.

“I am a little too caring at times, and my boss talks with me about collecting money,” Austin said. Austin creates a sheet every Monday to show her boss the late rent payments for the complex.

With all the changes and conflicts at the property, management is hopeful about the success of Midtown Square Apartments.

Austin said the changes should eliminate most of the $24,000 debt and make the complex better for everyone.