Michigan landlords who rent homes must specifically include tenancy terms in their leases.
As a homeowner in Michigan, you can freely rent your home by using a written or oral lease agreement. If you decide to use a written lease agreement, you must comply with the Michigan Truth in Renting Act or Act 454 of 1978, Michigan Code Sections 554.631 to 554.641. The act requires you to include a disclosure statement placed in a prominent location in your lease in at least 12-point type.
Mandatory Lease Provisions
You must include specific provisions in your lease agreement including your address, your tenant's address, the official address where your tenants must send written notices, your tenants' obligations to provide forwarding information to terminate their tenancy within four days of termination, a specific disclosure statement regarding the Michigan Truth in Renting Act and tenants' rights to seek counsel. You must also include the name of the financial institution where you are keeping your tenants' security deposits, your repair responsibilities and your standard eviction procedures. You must also include how much rent you will be charging and obtain your tenant's signature.
Truth in Renting Act
If you don't include the necessary Truth in Renting Act information, then you must fix your lease so that you include it within 20 days of notification of noncompliance from your tenants. If you fail to remedy your disclosure omission, your tenants may have legal rights to void your entire transaction and request fines of up to $250 per violation and incidental damage awards.
Regulated Lease Practices
Michigan law requires you to comply with existing federal and state laws prohibiting discriminatory rental practices based on race, origin or disability. However, you may include provisions that ban smoking in your property and pets, unless your tenant relies on a service animal for his disability needs. You cannot insert provisions that violate public policies including rights to remove your tenants' personal property, rights to accelerate rent payments, automatic waiver of legal rights or rights to release your responsibilities to provide necessary repairs and safe and clean housing.
Security Deposits Requirements
Under Michigan law, you cannot collect a security deposit exceeding one and one-half times your monthly rental fee. After collecting a security deposit, you must deposit the funds into a regulated and approved lending institutional account or obtain a bond to cover the entire amount of the deposit with the Michigan Secretary of State. The cash or surety bonds provide tenants with financial assurance that you will be able to refund their deposits.
Post-Occupancy Duties
Within 14 days of occupancy, you must notify your tenants of where you are keeping their deposits and their obligations to provide you with a forwarding address within four days if they move out. If they provide you with a written forwarding address, you must return any remaining security deposits within 30 days after they move out. If you are deducting from the security deposit, you must send them an itemized list of damages and their rights to object within seven days or waive their rights to objection.
Considerations
Since real estate laws can frequently change, do not use this information as a substitute for legal advice. Seek advice through an attorney licensed to practice law in your locality.
Tags: your tenants, Truth Renting, lease agreement, security deposit, your lease, your tenant
