Michigan has a set of regulations for residential leases, including those for mid-term rentals (typically leases ranging from one to six months). Understanding and incorporating these regulations into your lease agreements is crucial for compliance and effective property management. Here’s an overview of the key regulations and detailed guidelines for what to include in your mid-term rental lease provisions:
1. Security Deposit Limits
[li indent=0 align=left]Michigan Law: Security deposits in Michigan are capped at one and a half months' rent. This regulation applies to all residential rentals, including mid-term leases.[li indent=0 align=left]Actionable Lease Provision: Clearly specify the security deposit amount in your lease agreement, ensuring it does not exceed one and a half months' rent. Outline the conditions under which the deposit may be withheld or returned.
2. Security Deposit Return
[li indent=0 align=left]Michigan Law: Landlords must return the security deposit within 30 days after the tenant vacates the property. If any deductions are made, an itemized list of these deductions must be provided.[li indent=0 align=left]Actionable Lease Provision: Include a clause in the lease agreement that details the 30-day timeframe for returning the security deposit and provides information on how deductions, if any, will be itemized and communicated.
3. Notice for Rent Increases
[li indent=0 align=left]Michigan Law: For month-to-month tenancies, landlords are required to provide at least 30 days' notice before increasing the rent. This notice period is standard across many states.[li indent=0 align=left]Actionable Lease Provision: Include a provision in the lease that outlines the procedure for rent increases, specifying the 30-day notice period required for such changes.
4. Eviction Process
[li indent=0 align=left]Michigan Law: For non-payment of rent, landlords must issue a 7-day notice to pay or vacate before initiating eviction proceedings. For other lease violations, a 30-day notice is typically required.[li indent=0 align=left]Actionable Lease Provision: Detail the eviction process in the lease, including the 7-day notice for non-payment of rent and any other procedures for addressing lease violations.
5. Right to Repair and Habitability
[li indent=0 align=left]Michigan Law: Landlords must maintain rental properties in a habitable condition. Tenants have the right to request repairs, and if the landlord fails to address issues, tenants may repair and deduct the costs from rent or seek other remedies.[li indent=0 align=left]Actionable Lease Provision: Include a clause in the lease agreement that specifies the landlord’s and tenant’s responsibilities regarding maintenance and repairs, including the process for requesting and addressing repairs.
6. Late Fees
[li indent=0 align=left]Michigan Law: While Michigan law allows for late fees, it does not specify a cap. Late fees must be reasonable and clearly stated in the lease agreement.[li indent=0 align=left]Actionable Lease Provision: Specify the amount of any late fees in the lease, including when they will be charged and any grace period allowed before late fees are applied.
7. Tenant's Right to Terminate Lease for Domestic Violence
[li indent=0 align=left]Michigan Law: Victims of domestic violence have the right to terminate their lease early without penalty, given they provide appropriate documentation (e.g., a restraining order) and typically give 30 days' notice.[li indent=0 align=left]Actionable Lease Provision: Include a clause that outlines the process for lease termination in cases of domestic violence, including acceptable documentation and the required notice period.
8. Disclosure of Lead-Based Paint Hazards
[li indent=0 align=left]Michigan Law: Federal law requires landlords to disclose known lead-based paint hazards if the property was built before 1978.[li indent=0 align=left]Actionable Lease Provision: Include the lead-based paint disclosure form and an EPA-approved pamphlet about lead hazards in your lease agreement if the property was built before 1978.
9. Landlord Access to Property
[li indent=0 align=left]Michigan Law: There are no specific statutory requirements for notice before a landlord enters the rental property for non-emergency reasons, but a common practice is to provide 24 hours' notice.[li indent=0 align=left]Actionable Lease Provision: Define the notice period for landlord entry in the lease agreement, specifying that 24 hours' notice will be provided for non-emergency access.
10. Rental Agreements and Lease Terms
[li indent=0 align=left]Michigan Law: Written rental agreements are required for leases longer than one year. For mid-term leases, while not mandatory, having a written agreement is advisable.[li indent=0 align=left]Actionable Lease Provision: Always use a written lease agreement for mid-term rentals to clearly outline all terms and conditions, even though not strictly required for leases shorter than one year.
11. Use of Security Deposits
[li indent=0 align=left]Michigan Law: Security deposits must be held in a separate account, and landlords must provide a written statement of any deductions from the deposit.[li indent=0 align=left]Actionable Lease Provision: Include a clause in the lease agreement detailing the handling of the security deposit, including how it will be held and the process for providing a statement of deductions.
12. Foreclosure and Tenant Rights
[li indent=0 align=left]Michigan Law: In the event of foreclosure, tenants must be given 90 days' notice before being required to vacate, provided they have a valid lease agreement.[li indent=0 align=left]Actionable Lease Provision: Include a clause that outlines tenant rights in case of foreclosure, specifying the 90-day notice period.
Summary
Michigan’s regulations on mid-term rentals include a cap on security deposits and a standard return period, along with a specific process for rent increases and evictions. The state’s requirements for late fees are flexible but must be reasonable, and it provides tenant protections related to habitability and domestic violence. Including these Michigan-specific provisions in your lease agreements will help ensure compliance with state laws and set clear expectations for both landlords and tenants.