A Michigan lease agreement is more than just a legal form; it’s a blueprint for a smooth rental experience in the Great Lakes state. Whether you’re leasing an apartment in Detroit or a cabin in Traverse City, the right lease agreement will help set the tone and protect your investment.
Disclosures (5)
Michigan requires landlords to provide certain disclosures with their lease agreement. Disclosures help ensure transparency and compliance, and protect both you and your renters by setting clear expectations.
- Lead paint: Federal law requires landlords to disclose any known information on lead-based paint and its hazards for homes built before 1978.
- Landlord name/address: Landlords must provide their name and address with the lease, and must notify tenants of any changes (MCL 554.634).
- Truth in Renting Act: A Michigan lease agreement must include a statement of tenants’ rights under state law as part of the Truth in Renting Act (MCL 554.634).
- Domestic violence: Landlords are required to inform tenants that they may legally terminate their lease early without penalty if they can prove they are the victim of domestic violence (MCL 554.601b).
- Move-in checklist/security deposit: Any landlord who charges a security deposit must give two copies of a move-in checklist detailing the rental’s current condition. Landlords must provide this checklist to the tenant within 7 days of move-in, and they can use the same form at move-out to calculate deductions (MCL 554.608).
Optional Disclosures and Addenda
While not legally required, including these optional disclosures can help clarify rules, reduce disputes, and make sure everyone is on the same page.
Asbestos: Notifies tenants of any asbestos-related hazards that may be on the property, as well as ways to minimize risk.
Bed bugs: Informs tenants of any history of suspected bed bug infestations in the unit or adjacent units.
Late/returned check fees: Outlines late fees and returned check fees. There is no limit on late fees in Michigan. Returned check fees are capped at $25 if paid within 7 days and $35 if paid within 30 days. If not paid at this time, landlords may charge up to an additional $250.
Medical marijuana use: Explains the policies regarding medical marijuana use, including any limitations on acceptable types and more.
Mold: Notifies tenants of any known or suspected mold-related issues, along with suggestions for remediation.
Non-refundable fees: Landlords must clearly outline any non-refundable fees in the lease. Failure to disclose could result in a loss of the deposit at move-out.
Shared utilities: Outlines how landlords will divide any utility costs if there are any shared meters.
Smoking: Specifies the smoking policy in the rental, including any designated smoking areas that won’t disturb other tenants.
Consequences of Not Including Mandatory Disclosures
If you skip a mandatory disclosure in your Michigan lease agreement, you run the risk of facing financial or legal penalties. Protect your investment (and your peace of mind) by keeping your lease agreement complete and compliant.
Security Deposit Regulations in Michigan
Michigan has clear rules surrounding security deposits, including the amount that landlords can charge and the timeframe for returning the deposit.
Maximum amount: Michigan landlords are allowed to charge up to 1.5 times the monthly rent as a security deposit (MCL 554.602).
Deposit receipt: You must provide a receipt of receiving the security deposit, including the landlord’s name and address, the name and address of the financial institution, and a statement requiring the tenant to provide a forwarding address within 4 days of moving out (MCL 554.608).
Interest payments: Michigan landlords are not required to hold the security deposit in an interest-bearing account or pay interest to the tenant.
Security deposit return: Landlords must return the security deposit, along with an itemized list of deductions, to the tenant within 30 days of the tenant’s move-out date (MCL 554.609).
Deductions: You must detail any deductions in an itemized list, including invoices or receipts. You must also give this list to the tenant within 30 days of moving out, along with a justification for each deduction.
Rent Payment Regulations
From late fees to grace periods, Michigan also has clear regulations regarding rent payment. Here’s what you need to know.
Rent control/stabilization: Michigan does not have rent control or stabilization laws. In fact, Michigan passed a statewide ban on rent control in 1988, limiting local governments’ ability to regulate private residential leasing.
Late rent fees: Landlords are allowed to charge a reasonable late fee in Michigan. While there are no state laws that limit the amount, it must be clearly outlined in the lease agreement and agreed to by the tenant.
Grace period: There are no laws or regulations in Michigan that require a grace period for late rent payments. While not required, many landlords still choose to add one to their Michigan lease agreement.
Tenant’s right to withhold rent: State law allows tenants to withhold rent and make repairs under the state’s “warrant of habitability” or “covenant of fitness.”
Violations
Even with the best tenants, rental agreement violations can happen. Knowing what to do when they occur helps everyone recover quickly.
Lease violation: If a lease violation occurs, Michigan landlords may provide written notice of the breach and allow a reasonable time to rectify it, typically between 7 and 30 days.
Missed rent payment: In the case of a missed rent payment, the landlord should send a written notice demanding payment, including the amount owed and the deadline for payment.
Lease abandonment: If a tenant abandons their lease early, they may still be financially responsible for the rest of the lease term, unless they have a legal reason for terminating their lease early.
Self-help evictions: Self-help evictions are illegal in Michigan and should never be attempted (MCL 600.2918).
Terminating a Lease
Whether the tenant or the landlord initiates it, terminating a Michigan lease agreement comes with its own set of rules.
Standard lease: Michigan tenants are allowed to legally break their lease early if they meet specific criteria, such as the landlord’s breach of contract or domestic violence.
Month-to-month: Written notice must be given at least 30 days in advance by either party.
Property abandonment: There are no state laws that outline what a landlord is required to do with any property left behind by a tenant. It’s best to outline your policy in your Michigan lease agreement so that all parties can agree.
Renewing a Lease
If you’re satisfied with your current tenants, renewing a lease can save time and money. To do it correctly, landlords must follow specific rules. Here’s what you can and can’t do during the renewal process.
Notice requirements: Michigan landlords are required to provide tenants with ample notice informing them that they don’t intend to renew their lease. For standard leases, this means at least 60 days’ notice, and for month-to-month leases, it drops to 1 month’s notice (MCL 554.601a).
Renewals: There are no state-wide laws that require landlords to renew leases; however, some cities have such laws in place. Always check your local laws when it comes to renewals.
Landlord’s Access to Property
Whether it’s an emergency or for routine maintenance, almost all landlords have to enter the unit at some time or another. Providing proper notice regarding your tenant’s time goes a long way in maintaining the relationship.
Immediate access: Michigan law doesn’t require landlords to give tenants notice before accessing the property (A Practical Guide for Tenants and Landlords).
Notice requirements: Michigan law doesn’t require landlords to give any notice before entering a property. However, it’s best practice to provide at least 24 hours’ notice to help keep your tenants happy.
Harassment: Although there are no laws requiring a landlord to provide notice to access a property, repeatedly entering the property without notice or just cause can constitute landlord harassment. In these cases, tenants may be able to legally terminate their lease early.
