What types of dwellings are defined as "residential premises", according to the law governing residential tenancies in Michigan?

Residential premises" means a house, building, structure, shelter, or mobile home, or portion thereof, used as a dwelling, home, residence, or living place by 1 or more human beings. This includes an apartment unit, a boardinghouse, a rooming house, a mobile home, a mobile home space, and a single or multiple family dwelling, but does NOT include a hotel, a motel, motor home, or other tourist accommodation, when used as a temporary accommodation for guests or tourists, or premises used as the principal place of residence of the owner and rented occasionally during temporary absences including vacation or sabbatical leave.

What types of tenancies does the law cover?

Michigan law covers both fixed-term tenancies (tenancies having a specific starting date and a specific termination date) and periodic tenancies (tenancies which begin on a specific date and are renewed on a regular basis, usually month-to-month.

Is it necessary to have a written lease?

A written lease is not required, except for fixed-term tenancies which are longer than 1 year. However, it is recommended that a written lease be used to protect both parties.

What about a move-in move-out inventory checklist or inspection report?

An inspection report or inventory checklist is required if a security deposit is being paid by the tenant. The landlord must provide the tenant with 2 copies of a move-in checklist, which must be completed by the tenant within 7 days of moving into the rental unit. One copy is for the landlord, the other is to be retained by the tenant. A move-out checklist must be completed by the landlord when the tenant moves out to note any damages which were caused by the tenant.

Can the landlord charge a deposit?

The landlord can require a security deposit up to an amount equal to 1 1/2 months’ rent. The landlord must notify the tenant in writing, within 14 days after the tenant moves in, of the name and address of the bank or other institution where the deposit is being kept, and remind the tenant of his/her duty to supply a forwarding address, in writing within 4 days after moving out. The landlord is allowed to use the security deposit for the duration of the lease if he/she posts a surety bond with the Michigan Secretary of State.

When a tenant moves out, the landlord must return the unclaimed portion of the security deposit within 30 days of the move out, and must inform the tenant that he/she must respond to the landlord’s list of damages within 7 days after receiving it. The landlord is entitled to part or all of the deposit if the tenant has failed to pay rent or utility bills, or continues to occupy the premises in whole or in part, entitling the landlord to additional rent.

What about other fees or charges?

The landlord can require other non-refundable charges (so long as they are reasonable), such as a cleaning charge for wall washing, carpet cleaning, drapery cleaning, etc. payment of a cleaning fee does not negate the obligation of the tenant to maintain the unit in a normal sanitary manner.

When is the landlord allowed to increase the rent?

There are no government controls in Michigan over how much rent can be raised. In the case of a month to month lease, rent can be raised upon 30 days’ written notice. However, with fixed-term leases, the landlord cannot raise the rent in the middle of the lease term.

Retaliatory rent increases are rent hikes intended to punish the tenant for asserting a legal right. For example, it is illegal for a landlord to raise the rent in retaliation against a tenant for registering a complaint with the local housing department. In the case of a retaliatory rent increase, a tenant may withhold the amount of the increase from the rent payment.

Can the landlord charge a fee for late rent payments?

Yes, the landlord can charge a late fee. However, for a late fee to be legal, it must approximate the actual damage suffered by the landlord by receiving the rent late. Late fees must compensate; they cannot penalize. "Actual damages" might include lost interest on the rent, the cost of sending the tenant a letter requesting payment of rent or making a phone call, and any penalty the landlord was charged for making a late mortgage payment. In some instances, judges have upheld late fees up to $15-20/month.

How can a lease be terminated?

A fixed-term lease terminates at the end of the lease term, unless the parties agree in writing to early termination. Otherwise, if the tenant wishes to terminate the lease early, he/she may continue to be liable for rent for the full term of the lease. The landlord must, however, make every effort to re-rent the property and thereby mitigate the damages for the tenant.

If there is no lease spelling out the period of the tenancy, a landlord is entitled to 30 days’ written notice of the tenant’s intent to vacate the premises. Generally, the timing of the notice depends on the length of the rental period. If the agreement is for monthly rent, a month’s notice should be given. If the rental period is a week, a week’s notice is usually sufficient.

Can a tenant sublet the premises?

The tenant can sublet the premises, as long as subletting is not prohibited by the lease and as long as the landlord consents to the sublease.

When is the landlord permitted to enter the premises?

There are no provisions in State law covering the landlord’s right to enter the premises, or how or when notice is to be given to the tenant.

On what grounds can a landlord evict a tenant?

A landlord can evict a tenant for (i) nonpayment of rent; (ii) damage to property; (iii) causing a "serious and continuing" health hazard; (iv) engaging in illegal activities related to controlled substances; (v) engaging in illegal activities NOT related to controlled substances; (vi) violation of the terms of the lease; (vii) failure to vacate the premises after the lease expires; and (viii) failure to vacate the premises after the landlord has given timely notice to terminate the lease.

If a landlord wishes to evict a tenant for any of reasons (i), (ii) or (iii) above, it may be done with a 7-day notice to quit. This eviction notice gives the tenant 7 days to either correct the situation or move. As well, in instances where the illegal activities relate to controlled substances, and the lease specifically prohibits such activities, a 7-day notice to quit may be used. However, as regards damage to the property or presence of a serious and continuing health hazard, if there is a major violation of the local housing or zoning codes, the city may condemn the structure. Such action would force the tenant to vacate, but if the violation was not caused by the tenant, he/she would be allowed to sue for money damages (such as moving expenses or temporary shelter).

A 30-day notice to quit is also used by a landlord to evict a tenant who is creating a nuisance or otherwise violating the terms of a lease, or when a landlord wishes to regain possession of the rental unit for other purposes, such as remodeling, at the end of a rental period or the expiration of a lease. At this point, the tenant is obligated to vacate the premises unless he/she can prove that the notice to quit was issued in retaliation for some action which the tenant is legally permitted to do, such as joining a housing cooperative or placing rent in escrow until necessary repairs are made.

Such uses include notice of termination of tenancy for reasons (v), (vi), (vii) or (viii) above. A tenant who rents under a periodic tenancy can be evicted for any of the above reasons as long as it is not retaliatory or discriminatory. The notice must be in writing and give the tenant at least one rental period’s time, usually 30 days.

In any event, a tenant has a right to a court hearing before an eviction takes place. A judge (or if requested, a jury) decides if the tenant must move, not the landlord. A legal eviction can only occur after the landlord has won the court hearing and the appeal period expires. ONLY an officer of the court can eject a tenant. A landlord cannot force a tenant out by shutting off utilities, changing the locks, putting the tenant’s possessions out of the premises, or removing the tenant’s possessions to another location.

The foregoing summary is provided for information purposes only and is not to be considered legal or business advice. The information may not be complete, accurate or applicable for any particular situation and should not be relied upon.