The holidays are over, but for many Michigan landlords, the financial headache is just beginning.
It is a trend we see every year at The Law Offices of Aaron D. Cox: January is historically one of the worst months for rent collection. Tenants often overextend themselves during the holiday season, leaving you—the landlord—at the bottom of their priority list when the New Year rolls around.
If your tenant is ghosting you this month, or if you are sitting on a stack of unpaid judgments from 2025, you need a strategy. Here is how to recover what you are owed in 2026.
1. Know the Difference: Possession vs. Money Judgments
One of the most common misconceptions we see is landlords thinking an eviction solves their money problem. It doesn’t.
- Possession Judgment: This gives you the property back. It allows you to remove the tenant, but it does not automatically garnish their wages.
- Money Judgment: This is a specific court order stating the tenant owes you $X amount.
Crucial Step: If you are filing for eviction this January, ensure your complaint includes a count for Money Damages. If you only file for possession to get them out quickly, you may have to file a brand new lawsuit later just to chase the debt.
2. The “Conditional Dismissal”: Your Best Friend
In Michigan, we often recommend using a Conditional Dismissal rather than rushing straight to a writ of eviction.
- How it works: You and the tenant sign an agreement filed with the court. The tenant agrees to pay a specific amount by a specific date (e.g., “Pay January and February rent by Feb 1st”).
- The Benefit: If they miss the payment, you don’t have to start over. You can often move immediately to eviction and you have a cemented record of the debt they admitted to owing.
3. Garnishments in 2026: What’s Changed?
If a tenant moves out owing you thousands, a Periodic Garnishment (wages) or Non-Periodic Garnishment (bank accounts/tax returns) is your enforcement tool.
However, Michigan and Federal rules regarding “protected income” are stricter in 2026.
- Minimum Wage Thresholds: Garnishment is often limited to earnings above 30x the federal minimum wage. As economic factors shift, ensuring your garnishment calculation is accurate is vital to avoid having the writ rejected by the court.
- Tax Refunds: It is tax season. If you have a valid money judgment, you may be able to intercept a state tax refund—but the timing is tight. You must have your judgment in place before they file.
4. Don’t Accept Partial Payments Without a Plan
If a tenant owes $1,500 and hands you $500 this week, be careful.
- In some Michigan jurisdictions, accepting partial payment after serving a Notice to Quit or filing a complaint can void your eviction case because it creates a new “implied” tenancy.
- The Fix: Always issue a receipt stating “Acceptance of this payment does not waive the pending eviction action,” or better yet, only accept payment as part of a court-approved Conditional Dismissal.
Get Your Revenue Back on Track
You are running a business, not a charity. If you have unpaid judgments collecting dust, or if you need to start the eviction process for non-payment, we can help you navigate the 2026 court system.
Contact The Law Offices of Aaron D. Cox, PLLC today to discuss your collections strategy.