The Paletz Law Blog

The Treacherous Landlord Plight in Detroit is Highlighted in a Rare Media Account 

January 6th, 2026 | By: Paletz Law Press

On the precipice of a cliff, Detroit’s rental market and its landlords are, in some cases, searching for a lifeline. While the city was once viewed as a viable rental investment haven, property owners and landlords are now facing unprecedented financial hardship. According to a revealing Outlier Media investigation, property developers managing thousands of rental units report that it has become nearly impossible to run a business in Detroit and actually make a profit. Some are now warning that the threat of widespread bank foreclosures could also devastate the city’s housing stock in the future.

Matt Temkin’s Greatwater Opportunity Capital, which has amassed a portfolio of approximately 2,200 residential rental units since 2015, now has 131 units on the verge of foreclosure with the company’s first missed mortgage payments in a decade of operation. This crisis isn’t an isolated example. According to Outlier, multiple large landlords told them that a perfect storm of challenges has made Detroit rental properties financially untenable.

The problems are multifaceted. Property insurance has doubled in recent years, interest rates have increased, making loans and refinancing more expensive, and construction and maintenance costs remain sky-high. Add to this mix Detroit’s property tax structure, especially when rental properties change ownership and new investors are shying away from stepping in to save the failing rentals. 

Landlords in the city report they need at least 90% occupancy with paying tenants to turn a profit. Still, Detroit properties often experience much higher vacancy rates and greater bad debt from noncollectibles, making already-thin margins non-negotiable in an effort to make a profit. 

The pandemic’s eviction moratoriums dealt a particularly devastating multi-year financial blow to Michigan landlords, many of whom were burdened with continuing their own mortgage payments and other monetary obligations while receiving no revenue from their properties. While the moratoriums protected tenants, landlords didn’t receive any relief from banks, leaving them carrying months of unpaid debt with no recourse.

Before the pandemic, evictions in Detroit’s 36th District Court took about 2 months to be resolved, but landlords now say the slow pace of evictions is cutting further into their margins. Obviously, this is not just a Detroit issue. 

The potential fallout extends beyond individual property owners. If these landlords decided to throw in the towel and exit the market, Detroit could see a sizeable drop in housing quality, increased instability for tenants, and the long-term loss of thousands of market-rate units. The city may also lose diligent and responsible property owners who are willing to invest in maintenance and improvements, replaced by absentee speculators or abandonment.

While tenant advocates argue landlords exaggerate the danger and point to gains in affordable housing protections, the financial reality for property owners cannot be ignored. Without intervention, whether through tax relief, insurance reform, or more efficient court processes, Detroit risks losing the housing infrastructure its residents desperately need. The question now is whether solutions can be found before foreclosures transform warning signs into wholesale market collapse.

While the plight of Detroit landlords and property owners is not a new revelation in Michigan, it is refreshing to see a media outlet step up and highlight the challenges faced by some landlords in an otherwise hyper-tenant-friendly news environment.