A Michigan month-to-month lease agreement, sometimes called a rental agreement, is a legally binding contract between landlord and tenant. Even though tenants in this arrangement are considered tenants-at-will, the document must include all required state disclosures and comply with Michigan landlord-tenant laws.
These disclosures include rules about notice, deposits, rent changes, and access to the property. For landlords, month-to-month rentals offer the flexibility to adjust rent or transition between tenants without the commitment of a fixed-term lease.
Below is a complete overview of what Michigan landlords and tenants should know before entering a month-to-month rental.
Disclosures (5)
Michigan requires landlords to include several disclosures in their month-to-month rental agreements. These keep the rental transparent and help tenants understand their rights from day one.
- Lead-based paint: Federal law mandates all landlords to disclose any known information about lead-based paint and its hazards in all rentals built before 1978.
- Landlord name and address: Michigan law requires landlords to disclose their name and address to their tenants, for ease of communication. Further, if anything changes, you must notify them promptly (Mich. Comp. Laws § 554.634).
- Truth in Renting Act: As part of the Truth in Renting Act, landlords must include a general statement of their tenant’s rights under state law (Mich. Comp. Laws § 554.634).
- Domestic violence disclosure: Landlords must terminate a lease agreement at the request of any tenant who can provide proof of domestic violence victim status. They must prominently display this notice in the rental agreement (Mich. Comp. Laws § 554.601b).
- Move-in checklist/security deposit notice: If landlords collect a security deposit, they must provide their tenant with two copies of a move-in checklist that outlines the current condition of the unit within 7 days of move-in (Mich. Comp. Laws § 554.608).
Optional Disclosures and Addenda
Optional disclosures help reduce disputes and clarify expectations throughout the tenancy. Common additions include:
Asbestos: Discloses any known asbestos in the unit and provides tips to avoid or limit exposure.
Bed bugs: Informs tenants of any known or suspected bed bug infestations in the unit or in adjacent units.
Late/returned check fee: Discloses fees for late or returned rent checks. In Michigan, there is no limit on late fees. Returned check fees are limited to $25 if paid within 7 days and $30 if paid within 30 days. If your tenant does not pay within this time, you may charge up to an additional $250 (Mich. Comp. Laws § 487.2158 (2024)).
Medical marijuana use: Explains the guidelines for the use of medical marijuana on the property, as some states allow landlords to limit or restrict its use.
Mold disclosure: Discloses any known or suspected mold issues in the unit, as well as strategies for remediation.
Non-refundable fees: Outlines any fees that the landlord will not refund or return at the end of the agreement.
Shared utilities: Details how the landlord will divide utility costs between any units that share a utility meter.
Smoking: Informs the tenant of the smoking policy for the rental, including any designated smoking areas on the property.
Additional Michigan Month-to-Month Lease Laws
Michigan’s general landlord-tenant laws still apply to month-to-month rentals. These rules cover notice requirements, rent increases, lease violations, evictions, deposit handling, late fees, and property access. Understanding these laws helps both parties navigate the tenancy smoothly.
Notice to Terminate a Month-to-Month Agreement
State law governs when and how landlords can terminate a Michigan month-to-month lease. Here’s what you need to know.
Required notice for tenant: Tenants must give landlords 1 month’s notice before terminating a Michigan month-to-month lease agreement (Mich. Comp. Laws § 554.134).
Required notice to the landlord: Landlords must notify tenants at least 1 month in advance of terminating a Michigan month-to-month lease agreement (Mich. Comp. Laws § 554.134).
Laws Governing Rent Increases
Month-to-month agreements allow landlords to adjust rent more frequently than fixed-term leases. Michigan has no rent control or rent stabilization laws, meaning landlords can increase rent as they see fit.
However, there are a few things to keep in mind:
- Landlords must provide written notice at least 30 days before the rent increase takes effect.
- Rent increases cannot be retaliatory or discriminatory.
- Some local municipalities may require registration compliance before rent changes can be issued.
Lease Violations and Eviction
Issues can arise even in flexible arrangements. Michigan outlines the steps landlords must follow when a violation occurs.
Missed rent payment: If the tenant does not pay rent, the landlord may issue a 7-Day Notice to Pay or Quit before filing for eviction (Mich. Comp. Laws § 600.5714).
Lease violation: For violations other than nonpayment, such as unauthorized pets or property damage, landlords must issue a 30-day Notice to Cure or Quit (Mich. Comp. Laws § 554.134).
Lease abandonment: If a tenant moves out unexpectedly, they may still be responsible for rent until the landlord re-rents the unit, provided the landlord makes reasonable efforts to mitigate losses.
Self-help evictions: Self-help evictions are illegal throughout Michigan. All evictions must go through the appropriate legal channels (Mich. Comp. Laws § 600.2918).
Rent Payment Laws
Understanding Michigan’s rent rules helps both sides avoid confusion throughout the rental process.
Rent control/stabilization: Rent control or stabilization does not exist at the state level in Michigan. In fact, Michigan enacted a law in 1988 that bans local governments from enacting ordinances that cap rent increases (Mich. Comp. Laws § 123.411).
Late rent fees: State law does not limit what landlords may charge as a late rent fee; however, the fee must be reasonable and clearly outlined in your lease template.
Grace period: Michigan does not require a grace period. If a landlord offers one, they must clearly outline the terms in the lease agreement.
Tenant’s right to withhold rent: Currently, Michigan tenants cannot withhold rent if a landlord fails to make necessary repairs. They must follow legal procedures, such as escrow or filing a complaint, when dealing with habitability issues.
Pet rent laws: Landlords may charge a pet deposit or a monthly pet rent, as long as the amount is reasonable and clearly outlined in the lease agreement template.
Security Deposits
Michigan law regulates various aspects of security deposit collection, including maximum amounts, handling, receipts, and more.
Maximum amount: Landlords may collect up to 1.5 times the monthly rent as a security deposit (Mich. Comp. Laws § 554.602).
Deposit receipt: Landlords must provide tenants with a receipt that includes the name and address of the bank holding the deposit and a statement requiring the tenant to provide a forwarding address within 4 days of moving out.
Interest payments: State law does not require landlords to pay interest on security deposits.
Security deposit return: After the tenant moves out, the landlord must return the balance of the deposit, along with an itemized list of any deductions, within 30 days (Mich. Comp. Laws § 554.610).
Deductions: Landlords may deduct funds from the security deposit to cover unpaid rent or damages beyond normal wear and tear. These deductions must be outlined in an itemized list and given to tenants within 30 days of move-out (Mich. Comp. Laws § 554.610).
Property Access Laws
On occasion, landlords may need access for repairs, inspections, or emergencies. It’s essential to find a balance between upholding routine maintenance and respecting your tenant’s privacy.
Advance notice: Michigan law doesn’t specify how much notice a landlord must give before entering a rental, but it’s best practice to provide at least 24 hours’ notice when possible.
Immediate access: In an emergency, landlords may enter rental properties without notice.
Harassment: If a landlord enters repeatedly without permission, fails to provide reasonable notice, or misuses their access rights, their actions could constitute landlord harassment.
