Michigan Residential Lease Agreement

Standard Michigan Residential Lease Agreement Template_1 on iPropertyManagement.com

A Michigan residential lease agreement (“rental agreement”) is a legal contract between a landlord overseeing a residential property and a tenant who wishes to rent it. A residential lease may, on or before move-in, additionally require a security deposit from the tenant as assurance against future property damage.

Michigan Residential Lease Agreement Disclosures

These disclosures are required for some or all residential lease agreements in Michigan:

Disclosure Applicable To
Landlord Name/Address All Units
Truth In Renting Act All Units
Domestic Violence All Units
Move-In Checklist/Security Deposit Notice All Leases Collecting a Security Deposit
Lead Paint All Units Built Before 1978

Landlord’s Name and Address

Applicable to all Michigan rentals.

Michigan leases must contain the name and address of the landlord or authorized agent. This enables smooth communication of any important legal notice. This contact information is most often written in the lease agreement, for maximum convenience. The landlord has an obligation to notify the tenant in the event of a change in contact information. [1]

Truth in Renting Act Disclosure

Applicable to all Michigan rentals.

As part of the Truth in Renting Act, all residential rental agreements in Michigan must include a general statement of the rights a tenant has under state law. [2]

This law provides the exact language to be used for this disclosure:

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.

Domestic Violence Protection Disclosure

Applicable to all Michigan rentals.

Michigan rental agreements must include a notice that a tenant with a certified proof of domestic violence victim status may cancel the lease without penalty by giving appropriate notice. [3]

This is the language which must be used in the disclosure, placed in a prominent section of the rental agreement and typed in a font not less than 12 points, or in a legible print with letters not smaller than 1/8 inch:

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.

Move-In Checklist/Security Deposit Notice

Applicable to all Michigan rentals.

Michigan landlords collecting a security deposit must provide two copies of a checklist that takes inventory of the rental unit’s condition, specifically noting any existing damage and any features which must be returned in original condition. [4] This checklist does not necessarily have to be attached to the rental agreement, but must be provided to the tenant within seven days of move-in. An identical form must be used upon move-out. [5]

The checklist must contain the following notice in legible writing at the top of the document: [6]

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.

It also must include the following security deposit receipt disclosure, in at least 12-point, boldface font:

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.

Failure to provide this disclosure relieves the tenant of an obligation to provide a forwarding address in order to receive a refund of unused security deposit funds.

Lead-Based Paint Disclosure

Applicable to any Michigan rentals built before 1978.

For any property built before 1978, federal law requires that a Michigan residential lease must contain a lead-based paint disclosure. This requires landlords to do the following:

Optional Disclosures and Addenda (Recommended)

The following lease agreement disclosures and addenda are not required by Michigan law in residential lease agreements, but assist with tenant management and help limit landlord liability.

Optional Disclosure Purpose
Asbestos Informs tenants about any asbestos hazards related to the property. Tenants can take precautions to reduce asbestos hazards by avoiding any disturbance of asbestos fibers.
Bed Bugs Informs tenants whether the property or an adjacent unit has a history of suspected bed bug infestation, and reminds the tenant of the obligation to report suspected infestation immediately.
Late/Returned Check Fees Specifies late fees or returned check fees related to the lease. Michigan has no cap on late fees and a $25 cap on returned checks if paid within 7 days ($35 if paid within 30 days).
Medical Marijuana Use Informs tenants about policy related to medical marijuana use on the rental property. Some state laws allow landlords to restrict marijuana usage to non-smoking methods only, or allow use only in designated smoking areas.
Mold Disclosure Informs tenants about actual or suspected mold contamination on the property, along with any remediation efforts, to help limit landlord liability.
Non-Refundable Fees Charges not agreed by the tenant in the lease may be refundable upon lease termination. For Michigan landlords to charge a non-refundable fee, it must be disclosed and agreed as such in the lease.
Shared Utilities Arrangements Discloses how charges are billed to individual tenants, when multiple rental units share a utility meter for the whole building or property. This ensures tenants receive fair charges and understand what uses contribute to their bill.
Smoking Informs tenants of designated smoking areas that do not interfere with the quiet enjoyment of other tenants.

Some Michigan cities, like Detroit, have more comprehensive rules than the statewide standard. Always check local laws.

Consequences of Not Including Mandatory Disclosures

Mandatory disclosures outline important health, safety, and property information for both landlord and tenant safety. A landlord who fails to provide federally or state-mandated disclosures could face legal consequences or monetary penalties, either from a tenant lawsuit or from state officials. Many lease provisions may be unenforceable without legally required disclosures.

Failure to comply with the federal lead-based paint hazard disclosure risks fines of tens of thousands of dollars per violation.

Sources

(1) A rental agreement shall state the name and address at which notice required under this act shall be given to the lessor.

(2) A rental agreement shall state in a prominent place in type not smaller than the size of 12-point type, or in legible print with letters not smaller than 1/8 inch, a notice in substantially the following form:

“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.”

(1) … A rental agreement may contain a provision stating “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.”. If the rental agreement does not contain such a provision, the landlord shall post written notice visible to a reasonable person in the landlord’s property management office or deliver written notice to the tenant when the lease agreement is signed. The content of the written notice shall be identical to the provision in this section.

1) The landlord shall make use of inventory checklists both at the commencement and termination of occupancy for each rental unit which detail the condition of the rental unit for which a security deposit is required.

(2) At the commencement of the lease, the landlord shall furnish the tenant 2 blank copies of a commencement inventory checklist, which form shall be identical to the form used for the termination inventory checklist. The checklist shall include all items in the rental unit owned by the landlord including, but not limited to, carpeting, draperies, appliances, …

(3) Unless the landlord and tenant agree to complete their inventory checklist within a shorter period, the tenant shall review the checklist, note the condition of the property and return 1 copy of the checklist to the landlord within 7 days after receiving possession of the premises.

(4) The checklist shall contain the following notice in 12 point boldface type at the top of the first page: “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.”.

(a) Within 7 days, excluding weekends and holidays, after the date the written demand provided in subsection (2) is mailed, the full amount of the dishonored check, draft, or order, plus a processing fee of $25.00.

(b) Within 30 days after the date of the mailing of the notice provided in subsection (2), the full amount of the dishonored check, draft, or order, plus a processing fee of $35.00.

Frequently Asked Questions

How long can a residential lease be in Michigan? Depending on circumstances, in Michigan it’s usually possible to have a lease of any length of time, as long as the length of the lease term is specific and agreed in writing by the landlord and tenant. Oral leases can almost never be for a term of more than one year. Read more » Is a contract to lease binding in Michigan? Yes, a contract to lease is legally binding in Michigan. To be valid, a contract to lease may have to be written, especially for a fixed term over one year. Oral leases may be valid in some cases (especially when both parties later behave as though there’s an enforceable oral lease), but often have strict limitations on enforceability for things like length of the lease term. Read more » Do lease agreements need to be notarized in Michigan? No, lease agreements do not need to be notarized in Michigan. A notary helps establish the identity of the people signing the lease, if there’s a claim of fraud, but a notary isn’t necessary for a lease to be valid. Read more » Can a lease automatically renew in Michigan? Yes, a lease can automatically renew in Michigan. Most rental agreements will automatically renew when the initial tenancy period is over. Past this point, the lease typically becomes a month-to-month rental agreement, with the same basic terms and conditions otherwise as the original lease. In some cases, such as if rent is being paid weekly, the lease may become a week-to-week lease. Read more »