Across Michigan, homeowners often turn to room rentals to generate additional income, manage rising housing costs, or better use available space. But when you invite a tenant into your home, clear boundaries matter. A room rental agreement in Michigan provides a framework for rent, rules, and responsibilities.
Like a standard Michigan lease agreement, a room rental contract should clearly spell out key terms upfront, including:
- Rent, deposits, and payment terms
- Required landlord disclosures
- House rules and shared-space guidelines
- Responsibilities for the tenant and landlord
Let’s walk through some of the laws and best practices that apply to room rentals in Michigan.
Room Rental Laws
If you rent out a room in your Michigan home, state law sets the ground rules for how you and your tenant must work together. The same landlord-tenant laws apply whether you’re renting a whole house or just one bedroom.
In Michigan, landlords need to:
- Keep the room safe and livable for everyday use.
- Provide basic services such as heat, water, and electricity.
- Follow disclosure and notice rules required by state law.
- Respect the tenant’s space and avoid unnecessary disruptions.
- Use the courts to resolve serious issues rather than trying to handle evictions on their own.
These legal standards guide every room rental agreement in Michigan. Next, we’ll look at the contract options landlords use to structure room rentals.
Different Types of Room Rental Agreements in Michigan
When you rent out a room in Michigan, you have a few ways to set things up.
Verbal agreement: Some landlords start with a simple verbal agreement, especially when renting to a friend or someone they already know.
Fixed-term lease: A fixed-term lease agreement runs for a defined period, usually under 1 year.
Month-to-month lease: A Michigan month-to-month lease agreement continues from one rental period to the next.
The type of agreement you choose shapes how much flexibility you have, how easy it is to make changes, and how protected you feel if problems come up.
Required Landlord Disclosures
Michigan requires landlords to provide a handful of state and federal disclosures before a room rental arrangement begins.
Truth in Renting Act notice: Every Michigan residential lease must include the state-mandated Truth in Renting Act statement, which explains tenant rights and confirms that the agreement complies with Michigan law (Mich. Comp. Laws § 554.634).
Landlord name and address: Landlords must provide their contact information (name and address) or that of an authorized agent, and update tenants if it changes (Mich. Comp. Laws § 554.634).
Inventory checklists: When collecting a security deposit, landlords must provide move-in and move-out inventory checklists that document the unit’s condition. Tenants need to return a completed copy within 7 days (Mich. Comp. Laws § 554.608).
Domestic violence disclosure: Leases need to explain that qualifying victims of domestic violence, sexual assault, or stalking may terminate early without penalty under specific conditions (Mich. Comp. Laws § 554.601b).
Lead-based paint: Landlords must disclose any known lead hazards and provide the federally required pamphlet if the room they are renting is in a home built before 1978.
Security Deposit Rules
Maximum security deposit: Michigan limits security deposits to 1.5 times the monthly rent. Landlords may not collect more than this amount, regardless of lease type (Mich. Comp. Laws § 554.602).
Security deposit receipt: Landlords in Michigan must give tenants a written security deposit notice within 14 days of move-in. The notice must disclose where they hold the deposit, explain the deduction and return rules, and inform tenants of their obligation to provide a forwarding address within 4 days of moving out (Mich. Comp. Laws § 554.603).
Deduction tracking: Rental property owners can deduct unpaid rent or damage beyond normal wear and tear. However, they must document each charge and list it in writing (Mich. Comp. Laws § 554.607).
Security deposit return: Landlords have 30 days after move-out to return the deposit or send an itemized list of deductions along with any remaining balance (Mich. Comp. Laws § 554.609).
Pet deposits: Michigan allows pet deposits, but they still count toward the security deposit cap and follow the same rules for handling and return.
Rent Payment Rules
Late rent fees: State law allows Michigan rental property owners to charge late fees as long as the lease clearly states the amount. The law does not set a maximum late fee, but landlords must keep the fee reasonable and apply it only after rent becomes past due.
Right to withhold rent: Tenants in Michigan may withhold rent or pay for repairs only when the landlord fails to keep the property in habitable condition. Tenants must first give the landlord a reasonable opportunity to fix the issue and keep detailed records of repair costs.
Grace period: State law does not require a grace period for late rent. Rent becomes late on the due date listed in the lease unless the agreement includes a grace period.
Pet rent: Michigan does not regulate monthly pet rent. Landlords may charge a recurring pet fee when applicable, and the agreement should specify the amount and any related rules.
Rent Payment Increase Rules
Rent payment frequency increase: Landlords may raise rent at the end of a lease term, provided they comply with the notice requirements set by Michigan law or the lease.
Rent payment increase maximum: State law does not cap rent increases. Landlords may set the new rent amount unless the lease itself limits increases.
Rent control/stabilization: Michigan prohibits rent control at the state level. However, landlords must provide advance notice before raising rent, 30 days’ notice for tenants who have lived in the unit less than 1 year and 60 days’ notice for tenants who have lived there more than 1 year (Mich. Comp. Laws § 554.134).
Michigan Room Rental Agreement Breaches
Failure to pay: When a tenant fails to pay rent, landlords may issue a 7-day Notice to Pay or Quit. If the tenant does not pay within that period, landlords in Michigan may begin the eviction process through the court system (Mich. Comp. Laws § 554.134(2)).
Lease violations: Should a tenant violate the terms of the room rental agreement in Michigan, landlords may give written notice describing the violation and allowing time to cure it. Depending on the severity of the issue, the notice period typically ranges from 7 to 30 days. Serious health or safety violations may justify a shorter notice period (Mich. Comp. Laws § 600.5714(d)).
Self-help evictions: In Michigan, landlords can’t force a tenant out on their own. Locking the door, shutting off utilities, or taking someone’s belongings can get landlords into serious legal trouble; you need a court order to remove a tenant (Mich. Comp. Laws § 600.2918).
Terminating a Michigan Room Rental Agreement
Month-to-month: Landlords and tenants must give at least one whole month’s written notice to end a month-to-month room rental agreement in Michigan (Mich. Comp. Laws § 554.134).
Fixed-term: A fixed-term room rental agreement ends on the date listed in the lease. Unless the lease includes an early termination clause, the tenant remains responsible for rent through the end of the term.
Tenant’s right to terminate: In Michigan, tenants can break a lease early without penalty in a few specific situations. For example, if someone faces domestic violence, sexual assault, or stalking, state law gives them the right to move out and break the lease (Mich. Comp. Laws § 554.601b).
Room abandonment: If a tenant abandons a room when they move out without notice, stop paying rent, and stop communicating. Michigan law does not require landlords to take specific steps with abandoned property. However, landlords should follow the lease terms and confirm abandonment before re-renting the space.
Landlord Access Laws
Immediate access: Michigan law allows landlords to enter a rental unit without notice in emergencies, such as fires, flooding, or other situations requiring immediate action to protect people or property.
Landlord harassment: Michigan doesn’t spell out an exact notice rule for entry, but showing up without a good reason interferes with a tenant’s right to enjoy their space.
Advance notice: It’s smart to give at least 24 hours’ notice and to enter only for real reasons (e.g., making repairs, conducting inspections, or showing the room to future tenants).
Lease Agreement Renewal and Termination
Required renewals: Landlords may choose whether to renew a lease; Michigan law does not require renewal upon lease expiration.
Required notice: For month-to-month room rentals, landlords must give tenants at least one whole month’s notice before ending the tenancy (Mich. Comp. Laws § 554.134). For fixed-term leases, landlords should give at least 60 days’ notice if they do not plan to renew the agreement.
Month-to-month considerations: If landlords plan to change lease terms, such as rent amounts or house rules, they need to put those changes in writing before the next rental period begins.
Room Rental Agreement Michigan FAQs
What to include in a Michigan room rental agreement?
Include rent payment information, deposits, payment timing, house rules, utilities, required disclosures, and termination conditions in a Michigan room rental agreement.
How do I legally rent out a room?
To legally rent out a room in Michigan, landlords should use a written agreement. They should also provide the required state and federal disclosures, comply with deposit laws, maintain habitable conditions, and confirm that local zoning allows room rentals.
How to make a Michigan room rental agreement?
Rental property owners can create a Michigan room rental agreement by using a state-specific template, downloading a printable PDF, or generating one through landlord software. In addition to tenant protections, the agreement should reflect state laws on deposits and notices.
