Free Michigan Rental Lease Agreement

Michigan Rental Lease Agreement

What do you need to know about rental lease agreements in Michigan?

Official Rules and Regulations

  • Though this article covers the rental laws in Michigan, you should consider reading the official rules and regulations.

    • General Provisions – Mich. Comp. Laws §§ 554.131 – 554.139

    • Landlord and Tenant Relationships – Mich. Comp. Laws §§ 554.601 – 554.61

    • Housing Law of Michigan – Mich. Comp. Laws §§ 125.401 – 125.543

    • Untenable Buildings – Mich. Comp. Laws §§ 554.201 – 554.201

    • The Truth in the Renting Act – Mich. Comp. Laws §§ 554.631 – 554.641

Security Deposit

In the rental lease agreement in Michigan, the security deposit shouldn’t exceed 1 ½ months’ rent. The deadline for returning the security deposit is 30 days.

In Michigan, neither the security deposit interest nor separate security deposit bank account is required.

There are no statutes defining pet deposits or non-refundable fees.

  • What are the permitted uses of the security deposit?

    • Reimbursing the landlord for any actual damages resulting from conduct and wear and tear

    • Payment to the landlord for late rent owed or the rent due for any premature termination.

Damages and charges: the landlord is required to prepare a written description or an itemized list of charges and damages within 30 days of moving out, the tenant must mail the itemized list of the claimed damages including an estimate on the cost of repairs for every damaged item, and a check/ money order for the difference between the claimed and the original deposit amount.

Record keeping of deposits. The landlord is required to keep a record of deposit withholdings according to the statutory move-in or move-out process. However, the landlord cannot withhold any damages from the tenant’s deposit if they were claimed on a previous tenant’s move-out checklist. They should also notify the last tenant that they are entitled to the previous tenant’s move-out checklist with the claimed damages.

Receipts: a receipt of the deposit isn’t required but, 14 days after moving in, the landlord must provide in writing the tenant with the name and the address of the financial institution holding the deposit.

Money Judgment: monetary judgment for claimed damages is required in some circumstances for example if the tenant contests the claimed damages. The landlord can sue for a money judgment in the court or file with the court the proof of an inability to obtain the service of the tenant or to return the withheld portion of the security deposit.

Noncompliance: if the landlord fails to send notice to the tenant of the claimed damaged within 30 days of moving out, then the landlord is considered to have agreed that no damages are due and they must return the full deposit immediately.

Lease, Fees, and Rent

In the Michigan rental lease agreement, rent is due as stated in the contract. And, there are no statutes governing rent increase notices, late fees, abandonment and early termination fees, rent grace period or prepaid rent.

In case of a returned check, the tenant pays return check fees amounting to $25 if paid within 7days and $35 if the fees are paid within 30 days.

The tenant can withhold rent if the landlord fails to provide essential services like water and heat. Also, in case an enforcement agency determines that the conditions of the property are hazardous to health and the tenant hasn’t caused the conditions, then the tenant could pay rent into an escrow account established by the agency.

There is no statute stating if the tenant can repair and deduct rent but in Michigan, the tenant’s right to repair was established in Rome v. Walker, 198 N.W.2d 458 (1972).

The landlord can recover the limited amount of court and attorney fees.

There is also no statute as to whether or not the landlord can make a reasonable attempt to mitigate damages to the lessee.

Notices and Entry

A one-year notice is required to terminate yearly leases with no end date.

For monthly leases, 30-days’ notice is required and seven days for weekly leases.

For termination of leases because of nonpayments, 7-day written notice is required, as well as the termination of health hazards, property damage, threat of violence by a tenant or physical violence.

A 24-hours written notice to quit may be given in case a tenant doesn’t move out after the termination of the lease.

The landlord should give complete move-in and move-out checklists.

Notice of forwarding address is given if, after 4 days of moving out the tenant fails to notify the landlord in writing of their new mailing address,

Notice isn’t required for date and time of move-out inspections

There is no statute requiring the landlord to give notice before entry, but entry is allowed with notice of repairs and maintenance if they are non-emergency.

There are no statutes governing entry notices for showings or emergency entry without notice as well as notice to tenants for pesticide use.

Lockouts and utility shutoffs aren’t allowed.

Disclosures and Miscellaneous Notes

This section covers names and addresses, a copy of the lease, domestic violence situations, landlord duties, Radon testing, Lead disclosures, and the Truth in Renting Act Disclosure

Court Related

The Michigan Small Claims Court has set limits of $5,000, but the courts don’t allow eviction cases.

The Statute of Limitations – Oral and Written contracts are valid for 6 years

You can get legal help from Michigan courts, the Attorney General, Bar Association, and you can also get Legal Aid.

Business Licenses

In the state of Michigan, the landlords managing their properties don’t require business licenses but, the third-party property managers must have state licenses

For your lease agreement in Michigan, fill out our online legal agreement form today.