Michigan Standard Residential Lease Agreement

A Comprehensive Guide Under Michigan Landlord-Tenant Law

Introduction

A Michigan standard residential lease agreement is a legally binding contract between a landlord and tenant for the rental of residential property. This agreement establishes the terms and conditions under which the tenant will occupy the property, including rent amount, lease duration, security deposit requirements, and the rights and responsibilities of both parties. Michigan residential leases are governed by several statutes, including the Landlord and Tenant Relationships Act (Act 348 of 1972) for security deposits and the Truth in Renting Act (Act 454 of 1978) for lease provisions and disclosures. ^[1]

The standard lease arrangement typically lasts for one year and requires the tenant to pay rent at the beginning of each month. Both parties should carefully review and discuss all lease conditions before signing to ensure mutual understanding and agreement.

Legal Framework

Michigan's residential landlord-tenant relationships are governed by multiple statutes. The Landlord and Tenant Relationships Act (Act 348 of 1972) regulates security deposits, inventory checklists, and domestic violence protections. The Truth in Renting Act (Act 454 of 1978) establishes requirements for lease provisions and mandatory disclosures. Additionally, MCL 554.139 establishes implied covenants of habitability that apply to all residential leases. ^{[1] [2]}

Required Disclosures

Michigan law requires landlords to make specific disclosures to tenants before or at the commencement of the tenancy. There are six required disclosures:

Address for Legal Notices (state Requirement)

Under MCL 554.634(1), every rental agreement must state the name and address at which notice required under the Truth in Renting Act shall be given to the lessor. This ensures tenants know where to send legal communications. ^[3]

Domestic Violence Victims' Rights (state Requirement)

Under MCL 554.601b, tenants must be informed of their right to terminate a lease if they experience domestic violence, sexual assault, or stalking. The lease agreement or a posted sign must contain the following statement: ^[4]

"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 (state Requirement)

Under MCL 554.608, landlords must provide tenants with two blank copies of a commencement inventory checklist at the start of the lease. The checklist must include all items in the rental unit owned by the landlord, including carpeting, draperies, appliances, windows, furniture, walls, closets, shelves, paint, doors, plumbing fixtures, and electrical fixtures. ^[5]

The checklist must contain the following notice in 12-point boldface type: "You should complete this checklist, noting the condition of the rental property, and return it to the landlord within 7 days after obtaining possession of the rental unit. You are also entitled to request and receive a copy of the last termination inventory checklist which shows what claims were chargeable to the last prior tenants."

Lead-Based Paint Disclosure (federal Requirement)

For all residential properties built before 1978, federal law (42 U.S.C. 4852d) requires landlords to: (1) disclose known information about lead-based paint and lead-based paint hazards, (2) provide tenants with a federally-approved pamphlet on lead poisoning prevention ("Protect Your Family From Lead in Your Home"), and (3) include a Lead Warning Statement in the lease. ^[6]

Security Deposit Notice (state Requirement)

Under MCL 554.603, if a landlord collects a security deposit, they must provide a written notice to the tenant no later than 14 days from the date the tenant assumes possession. The notice must include: (1) the landlord's name and address for receipt of communications, (2) the name and address of the financial institution where the deposit is held, and (3) the tenant's obligation to provide a forwarding address. ^[7]

The notice must include this statement in 12-point boldface type (at least 4 points larger than the body): "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 (state Requirement)

Under MCL 554.634(2), every rental agreement must contain the following statement in a prominent place in type not smaller than 12-point (or legible print with letters not smaller than 1/8 inch): ^[3]

"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 Deposit Laws

Maximum Amount

Under MCL 554.602, a landlord may require a security deposit for each rental unit, but the deposit shall not exceed 1 1/2 months' rent (one and a half months). The security deposit must be required and maintained in accordance with the terms of the Landlord and Tenant Relationships Act. ^[8]

Deposit Storage

Security deposits must be deposited in a regulated financial institution or surety bond company. The landlord must disclose to the tenant the name and address of the financial institution where the deposit is held.

Return of Security Deposit

Under MCL 554.609, the landlord must return the security deposit within 30 days after the termination of occupancy. If the landlord makes any deductions, they must mail the tenant an itemized list of damages claimed, including the estimated cost of repair for each damaged item and the amounts the landlord intends to assess. The list must be accompanied by a check or money order for the difference between the damages claimed and the security deposit. ^[9]

Tenant's Forwarding Address Obligation

Rent Payment Laws

Grace Period

Michigan law provides no statutory grace period for rent payments. Rent is due on the date specified in the lease agreement, and late fees may be charged immediately if rent is not paid on time. However, landlords and tenants may agree to a grace period in the lease.

Late Fees

Michigan has no statutory limit on late fees for residential leases. However, late fees should be reasonable and proportional to the rent amount. Excessive fees may be challenged as unconscionable under general contract principles.

Nsf/bad Check Fee

Under MCL 600.2952, if rent is paid with a dishonored check, the landlord may charge a processing fee of $25 if paid within 7 days of the written demand, or $35 if paid within 30 days. After 30 days, the landlord may pursue civil damages of 2 times the check amount or $100 (whichever is greater), plus $250 in costs. ^[10]

Landlord Obligations

Under MCL 554.139, in every residential lease, the landlord covenants: ^[11]

1. Fitness for Use: That the premises and all common areas are fit for the use intended by the parties

2. Reasonable Repair: To keep the premises in reasonable repair during the term of the lease

3. Health and Safety Compliance: To comply with applicable health and safety laws of the state and local government where the premises are located

Modification: The parties may modify these obligations only where the lease has a current term of at least 1 year.

Tenant Obligations

Tenants have the following general obligations under Michigan law:

1. Pay rent on time as specified in the lease agreement

2. Keep the premises clean and safe

3. Dispose of garbage and waste properly

4. Use electrical, plumbing, heating, and other facilities reasonably

5. Not deliberately or negligently destroy, deface, or damage the premises

6. Comply with building and housing codes affecting health and safety

7. Provide forwarding address within 4 days of moving out

Lease Terms and Termination

Michigan law under MCL 554.134 governs the termination of various tenancy types: ^[12]

Month-To-Month Tenancy

An estate at will or by sufferance (including month-to-month leases) may be terminated by either party by giving 1 month's notice to the other party. If rent is payable at periods of less than 3 months, the notice period equals the interval between rent payments.

Non-Payment of Rent

If a tenant neglects or refuses to pay rent, the landlord may terminate the tenancy by giving the tenant a written 7-day notice to quit.

Drug Activity

If a tenant holds over after a lease is terminated due to manufacturing, delivering, or possessing controlled substances on the premises, the landlord may give a 24-hour notice to quit. This requires a formal police report to have been filed.

Year-To-Year Tenancy

A tenancy from year to year may be terminated by either party by a notice to quit given at any time. The notice terminates the lease at the expiration of 1 year from the time of service.

Landlord Right of Entry

Michigan does not have a specific statute governing landlord entry notice requirements. However, tenants have an implied right to quiet enjoyment of the rental property, which protects their privacy.

Best Practices for Landlord Entry:

Provide reasonable advance notice (at least 24 hours recommended)

Enter only during reasonable hours (typically 9 AM to 5 PM)

Valid reasons: repairs, inspections, showing to prospective tenants or buyers

Fair Housing Protections

All residential lease agreements in Michigan are subject to fair housing laws. The federal Fair Housing Act (42 U.S.C. 3601 et seq.) and the Michigan Elliott-Larsen Civil Rights Act (MCL 37.2101 et seq.) prohibit discrimination in housing. ^{[13] [14]}

Protected Classes (11 total under Michigan law):

Race, Color, National Origin, Religion, Sex (including sexual orientation and gender identity - added 2023), Familial Status, Disability, Age, Marital Status, and Source of Income (added April 2025 - exemption for 4 or fewer units)

Landlords may not refuse to rent, set different terms, or provide different services based on these protected characteristics. Violations can result in significant civil penalties and liability.

Prohibited Lease Provisions

Under the Truth in Renting Act (MCL 554.631-641), certain lease provisions are prohibited and unenforceable: ^[2]

Waiving tenant's right to jury trial

Waiving tenant's right to notice or hearing before eviction

Confessing judgment against the tenant

Waiving tenant's right to legal process

Authorizing landlord self-help eviction (changing locks, removing possessions)

Waiving statutory security deposit protections

Penalty for Violation: Tenants may recover actual damages or $250, whichever is greater, plus reasonable attorney fees.

How to Create a Michigan Residential Lease Agreement

Step 1: Identify the Parties

Include the full legal names of the landlord (or property management company) and all tenants who will occupy the property. Specify the landlord's name and address for receiving legal notices as required by MCL 554.634(1).

Step 2: Describe the Property

Provide the complete street address, unit number (if applicable), city, county, and zip code. Include a description of any included amenities, parking spaces, storage units, or common areas.

Step 3: Specify Lease Terms

State the lease start date, end date (or indicate month-to-month), and any renewal provisions. Standard residential leases typically run for one year.

Step 4: Set Rent and Payment Terms

Specify the monthly rent amount, due date (typically the 1st of each month), acceptable payment methods, and where/how rent should be paid. Include any late fee provisions.

Step 5: Document Security Deposit

State the security deposit amount (maximum 1.5 months' rent), where the deposit will be held, and the conditions under which deductions may be made. Reference the 30-day return requirement and provide the security deposit notice within 14 days of move-in.

Step 6: Include Required Disclosures

Include all six required disclosures: (1) legal notice address, (2) domestic violence rights, (3) inventory checklist, (4) lead-based paint disclosure (if pre-1978), (5) security deposit notice, and (6) Truth in Renting Act statement.

Step 7: Define Rights and Responsibilities

Clearly outline landlord and tenant obligations regarding maintenance, repairs, utilities, and property care. Include policies on guests, pets, smoking, alterations, and subletting.

Step 8: Execute the Agreement

Both parties should sign and date the agreement. Each party should retain a copy. Provide two copies of the inventory checklist as required by MCL 554.608.