Michigan is one of the most lucrative markets for investing in real estate. If you plan to invest in a Michigan rental unit, it’s important to understand the landlord-tenant law that rules the state to avoid any potential issues. As a landlord, you have the responsibility to ensure that you stay in compliance with Michigan landlord-tenant laws.
Understanding the Michigan landlord-tenant law is important so that you’ll know your responsibilities as a landlord when you rent out your home. It is also crucial for landlords to understand the responsibilities and rights of their renters, such as paying rent. This way, all parties will be prepared to address legal issues that may arise during the course of a lease agreement term, creating a solid foundation for a healthy landlord-tenant relationship and keeping both parties compliant with local and state laws.
Required Landlord Disclosures in Michigan
Property owners are required to disclose certain information to residents in the lease agreement. Under Michigan landlord-tenant local laws, these are the mandatory disclosures that landlords must include in the lease agreement:
Non-Refundable Fees
Non-refundable fees are optional disclosures, however, it is recommended that landlords include all non-refundable charges in the rental or lease agreement to avoid any issues with residents. Failure to include these in the lease may make residents eligible for a refund for what they pay when the rent lease expires.
Security Deposits
Michigan security deposit laws dictate that landlords may collect money for a security deposit fund, with a maximum amount equivalent to 1.5 months’ worth of rent payments. Additionally, security deposit funds must be held in a regulated financial institution (e.g., credit union, bank, etc.) for the duration of the tenancy.
Landlords must include the security deposit receipt disclosure, which requires the resident to notify the landlord in writing (within four days of moving to a new address) where they can be reached and receive mail.
Landlords are also required to return the security deposit once the rent period is over and minus any itemized deductions. Then they must return it to residents within 30 days after move-out from the rental unit. Make sure you get a forwarding address from your resident when their lease ends.
Read a more in-depth explanation of security deposit local laws in Michigan here.
Rights of Domestic Violence Victims
According to Michigan law, landlords are required to include a specific clause on protection from domestic violence in leases. This lease clause allows a resident to break a lease early as long as the resident can prove that they’re a victim of domestic violence.
Truth in Renting Act
The Truth in Renting Act disclosure is applicable to all rental properties in the state of Michigan. This means that every lease agreement in the state of Michigan must include a statement that indicates the rights of the residents under the Michigan landlord-tenant law.
Owner or Agent Identity
Michigan also requires landlords to disclose their names and addresses and their authorized representatives.
The names, contact information, and addresses should be provided in the lease. This is to create smooth communication between landlords, their representatives, and the residents.
Move-in Checklist
If Michigan landlords choose to charge a deposit, they need to provide two copies of the inspection reports detailing the property’s condition within seven days after move-in.
The landlord will use this checklist upon move-out inspection. The move-in checklist should include any present damage and specific furnishings that are included in the rental unit.
The landlord should also indicate that these must be returned in the same condition as they were when residents moved in.
Resident Rights and Responsibilities in Michigan
Under Michigan landlord-tenant local law, residents have the right to:
- Live in a habitable space.
- Receive their deposit (or what remains of it after allowable deductions) within a reasonable timeframe after moving out.
- Receive fair housing opportunities (as per fair housing laws).
- Take legal action if the landlord violates any provisions in the written lease.
- Have requested repairs completed within a reasonable time frame.
- Not be evicted as a form of retaliation or discrimination.
- Have reasonable accommodations made to meet the needs of a disability.
Residents can legally break a lease in Michigan due to:
- Early termination clauses in the lease agreements.
- Domestic abuse.
- Uninhabitable rental unit.
- Landlord harassment.
- Senior citizen health issues.
- Active military duty.
Residents also have responsibilities, these include:
- Pay rent on time as agreed upon in the lease.
- Maintain the upkeep of the unit to keep it safe and habitable.
- Keep the peace in the neighborhood.
- Give notice of maintenance issues immediately.
- Pay the price of damage repairs exceeding normal wear and tear.
Landlord Rights and Responsibilities in Michigan
Under Michigan landlord-tenant laws, a landlord has the right to:
- Collect the cost of repairs for damages beyond normal wear and tear.
- Collect rent payments on a timely and regular basis, as agreed upon in the lease.
- Begin the Michigan eviction law process when there are legal grounds to evict a resident.
- Raise the monthly rent with a legal justification, such as to meet the raise in property taxes, and provided written notice.
Michigan landlords are responsible for the following:
- Providing residents with a habitable living space, ensuring the property is safe, functional, and free from any continuing health hazard.
- Follow all laws for their renters' security deposits
- Repair issues within a reasonable timeframe.
- Addressing emergency issues within 24 hours.
- Returning the resident's deposit (minus allowable deductions) within 30 days after the move-out date.
- Providing residents with basic housing needs defined by local code requirements
An Overview of Michigan Landlord-Tenant Laws
Resident Privacy and Landlord’s Right to Enter the Dwelling
Local and state law does not state how much notice landlords must give before entering a rental unit or home. Both parties must mutually agree on this, it is recommended to outline the notice requirement within the lease to responsibly avoid potential disputes. Landlords are not required to give written notice to enter the premises in case of emergencies.
Maintenance and Repairs
As a Michigan landlord, you're responsible for ensuring that the premises meets a certain level of habitability. Residents are mandated to make requested non-emergency repairs in a reasonable timeframe, while emergencies must be responded to within 24 hours.
Residents have the right to hire an outside contractor to complete necessary repairs at a reasonable cost and deduct the expense from future rent payments. However, this option should only be used for minor repairs under $300, and residents must follow legal procedures and provide proper notice to the landlord before taking these steps.
Michigan’s Housing Discrimination Laws
The Federal Fair Housing Act prohibits landlords from discriminating against residents based on race, national origin, color, sex, religion, familial status, or disability. Under Michigan Fair Housing laws, residents are also protected from being discriminated against based on age and marital status throughout the time they rent.
Residents’ Rights to Withhold Rent in Michigan
Residents have the right to live in a habitable property due to Michigan’s Implied Warranty of Habitability If a landlord fails to provide a habitable dwelling space, the resident may legally break the lease early without notice and withhold rent. Under Michigan law, residents also have the right to get their security deposits back after the lease term ends.
Small Claims Lawsuits in Michigan
Rent-related disputes, amounting to less than $5,000 can be settled in small claims court. However, it is extremely rare for landlord-tenant cases to be taken to small claims court. The courthouse will not handle the eviction lawsuit for cases having to do with damages or cases having to do with disagreements that do not involve money.
In the rare case that a landlord-tenant issue is accepted in small claims court, it usually revolves around the return of a security deposit, unpaid rent, or other lease violations that costs money to landlords.
Conclusion
Ensuring that you’re well versed in Michigan's landlord-tenant law, landlord-tenant rights, and fair housing laws is crucial when owning a rental property. That being said, it can be hard to keep up with Michigan state law when you’re managing a rental on your own.
Consider hiring an accomplished property manager! At Compass Property Management, we have the experience and expertise to meet all your rental management needs. Contact us today to get started!
Disclaimer: This blog does not constitute legal advice from a licensed attorney in your state. Laws change, and this post might not be updated at the time of your reading. Please contact us for any questions you have in regards to this content or any other aspect of your property management needs.
