Michigan Residential Lease Agreement

Introduction

A Michigan lease agreement is a legally binding document signed by a landlord and tenant that outlines the terms of renting residential or commercial property. The contract specifies the lease term length, rent amount, security deposit, fees, and other rental obligations. Once properly executed, the agreement can only be terminated under specific conditions defined by Michigan law.

Required Disclosures

Michigan law requires landlords to provide specific disclosures to tenants before or at the beginning of a lease. These disclosures protect tenant rights and ensure transparency in the landlord-tenant relationship.

Address for Notices

All lease agreements must include the name and address where the tenant can send legal notices to the landlord. ^[1]

Domestic Violence Victims

Landlords must disclose to tenants that if they have a reasonable apprehension of present danger to themselves or their child from domestic violence, sexual assault, or stalking, they may have statutory rights to seek release from their rental obligation. ^[2] The disclosure must include this specific phrase:

"A tenant who has a reasonable apprehension of present danger to him or her or his or her child from domestic violence, sexual assault, or stalking may have special statutory rights to seek a release of rental obligation under MCL 554.601b."

Inventory Checklist

Before the tenant takes possession, landlords must provide two blank inventory checklists so the tenant can document the condition of the property. The tenant must return one completed checklist to the landlord within seven days. ^[3]

Lead-Based Paint Disclosure

Federal law requires landlords to provide a lead-based paint disclosure form to all tenants renting property constructed before 1978. This disclosure must include information about known lead-based paint hazards and an EPA-approved pamphlet. ^[4]

Security Deposit Notice

Landlords who require a security deposit must provide written notice to the tenant within 14 days of possession. ^[5] This notice must include:

The landlord's name and address for receiving communications

The name and address of the financial institution holding the deposit

The tenant's obligation to provide a forwarding address within 4 days after moving out

The notice must include the following statement in 12-point boldface type, at least 4 points larger than the body of the notice:

"You must notify your landlord in writing within 4 days after you move of a forwarding address where you can be reached and where you will receive mail; otherwise your landlord shall be relieved of sending you an itemized list of damages and the penalties adherent to that failure."

Truth in Renting Act Statement

All lease agreements must contain the following statement: ^[6]

"NOTICE: Michigan law establishes rights and obligations for parties to rental agreements. This agreement is required to comply with the Truth in Renting Act. If you have a question about the interpretation or legality of a provision of this agreement, you may want to seek assistance from a lawyer or other qualified person."

Security Deposits

**Maximum Amount: **A landlord cannot require a security deposit exceeding one and a half months' rent. ^[7]

**Storage Requirements: **Security deposits must be held in a regulated financial institution. ^[8] While Michigan law does not require landlords to place deposits in interest-bearing accounts, they must be held securely in a proper financial institution.

**Return Timeline: **Landlords must return the security deposit to the tenant within 30 days after the end of occupancy. ^[9] If the landlord plans to withhold any portion of the deposit for damages or unpaid rent, they must provide an itemized list of damages with estimated repair costs. ^[10]

Rent Payment Terms

**Due Date: **The lease agreement must clearly state when rent is due. Michigan law does not mandate a specific due date, but it is commonly set as the first day of each month. ^[11]

**Grace Period: **Michigan state law does not establish a mandatory rent grace period. Any grace period must be specified in the lease agreement. If rent is not paid when due, the landlord may serve the tenant with a seven-day notice to quit to begin eviction proceedings. ^[12]

**Late Fees: **Michigan statutes do not establish a maximum late fee amount. Landlords may charge late fees as specified in the lease agreement, but the fees should be reasonable.

**NSF (Bad Check) Fees: **If a tenant's rent check is returned for insufficient funds or no account, the landlord may charge a processing fee. ^[13] The fees are:

$25 if the tenant pays the full amount plus the fee within 7 days (excluding weekends and holidays) after written demand is mailed

$35 if the tenant pays within 30 days after written demand is mailed

If the tenant fails to pay either amount, the landlord may pursue civil action for the check amount plus civil damages of 2 times the check amount (or $100, whichever is greater) and costs of $250.

**Withholding Rent: **Tenants may withhold rent and deposit it into an escrow account if a government agency suspends the property's certificate of compliance due to unsafe or unhealthy living conditions. ^[14] The suspended rent is held in escrow and may be used to correct violations. This right does not apply if the tenant caused the hazardous conditions.

Landlord's Right to Enter

Michigan state law does not specify how much advance notice a landlord must provide before entering a tenant's unit. However, standard practice and lease agreements typically require 24 to 48 hours' written notice for non-emergency situations. In emergency situations involving immediate threats to health, safety, or property, landlords may enter without prior notice.

Breaking a Lease

**Non-Payment of Rent: **When a tenant fails to pay rent, the landlord may serve a seven-day notice to quit. ^[15] The tenant has seven days to either pay the overdue rent or vacate the premises. If the tenant does neither, the landlord may proceed with formal eviction proceedings.

**Non-Compliance with Lease Terms: **If the lease agreement includes provisions for termination due to non-compliance with lease terms, the landlord may terminate the tenancy by providing 30 days' notice. ^[16]

**Health Hazard or Property Damage: **If a tenant's non-compliance creates a health hazard or causes serious damage to the property, the landlord may serve a seven-day notice to quit. ^[17] Examples include failure to pay for essential utilities that creates serious health hazards or extensive property damage.

**Lockouts Prohibited: **Michigan law prohibits landlords from locking out tenants or preventing access to the rental property without following proper legal eviction procedures. ^[18] Tenants who have been wrongfully locked out may be entitled to recover monetary damages and regain entry to the property.

**Tenant Breaking Lease Early: **Tenants may legally terminate their lease early under specific circumstances:

Domestic Violence, Sexual Assault, or Stalking: Tenants who have a reasonable apprehension of present danger to themselves or their child may terminate the lease.

***Senior Citizen Housing: ******Tenants who have lived in a unit for at least 13 months may terminate their lease if they become eligible for subsidized senior citizen housing or can no longer live independently. ***^[19]

Lease Termination

**Month-to-Month Tenancies: **Either the landlord or tenant may terminate a month-to-month lease by providing one month's notice. ^[20] The notice must be in writing and delivered according to the lease terms.

**Fixed-Term Leases: **Fixed-term leases (such as one-year leases) automatically terminate at the end of the specified term unless both parties agree to renew or the lease converts to a month-to-month tenancy.

**Abandonment: **Michigan law does not specify a set number of days a tenant must be absent for a property to be considered abandoned. However, landlords may proceed with eviction if rent has not been paid and the landlord believes "in good faith" that the tenant has abandoned the property. ^[21]

**Unclaimed Property: **Michigan state law does not establish requirements for handling a tenant's abandoned personal property after lease termination or eviction. Lease agreements should specify how unclaimed property will be handled.

Additional Provisions

**Utility Shutoff: **If a tenant's failure to pay for essential utilities creates a serious health hazard or causes extensive damage to the property, the landlord may serve a seven-day notice to vacate. ^[22]

**Lease Compliance: **All Michigan residential lease agreements must comply with the Truth in Renting Act and applicable federal and state housing laws. Any lease provisions that conflict with state or federal law are void and unenforceable.