Michigan Lease Agreement

Understanding Michigan Lease Agreement Requirements

State Legal Framework

Michigan landlord tenant law provides the foundation for all residential rental agreements in the state. Michigan does not have a comprehensive landlord-tenant act like many other states. Instead, Michigan relies on the Truth in Renting Act (MCL 554.631-554.641), the Security Deposit Act (MCL 554.601-554.616), and common law principles. Michigan maintains a relatively landlord-friendly legal environment while providing essential tenant protections through these statutes.

The Michigan rental lease agreement becomes enforceable when both parties sign the document, creating mutual obligations that govern the entire landlord-tenant relationship under Michigan’s landlord-tenant statutes.

Written Agreement Standards

Michigan does not legally require written lease agreements for tenancies under one year. However, creating a written residential lease agreement Michigan landlords can reference provides clear documentation and legal protection. Written agreements prevent disputes by establishing explicit terms both parties acknowledge and accept.

Essential Elements of a Michigan Lease Agreement

Parties and Property Identification

Complete Party Information Every Michigan lease agreement template should identify all parties involved in the rental arrangement. Required information includes:

• Full legal names of all landlords or property managers
• Full legal names of all adult tenants
• Complete property address including unit numbers
• Legal property description when applicable

Accurate identification prevents confusion about who holds rights and responsibilities under the agreement.

Lease Term and Duration

Fixed-Term Agreements Fixed-term leases establish specific start and end dates for tenancies. Most Michigan rental contracts run for 12-month periods, though landlords can create agreements for any duration. Fixed-term leases provide stability for both parties and establish clear expectations about tenancy length.

Month-to-Month Arrangements Month-to-month rental agreements offer flexibility for landlords and tenants who prefer shorter commitments. These arrangements automatically renew each month until either party provides proper termination notice. Michigan requires one month written notice to terminate month-to-month tenancies for tenancies lasting more than one year.

Rent Payment Terms

Payment Obligations Michigan lease agreements must clearly state rent payment requirements including:

• Monthly rent amount
• Payment due date
• Accepted payment methods
• Where tenants should submit payments
• Grace period provisions (if offered)

Michigan law does not mandate specific grace periods, so landlords should clearly specify any grace period terms in lease agreements.

Late Fee Provisions Michigan does not impose statutory caps on late fee amounts, allowing landlords to set reasonable penalties for overdue rent. Late fee policies should appear clearly in the rental agreement Michigan tenants receive. Including specific late fee amounts and assessment dates prevents disputes. Courts may refuse to enforce late fees that are unreasonably high.

Security Deposit Requirements in Michigan

Deposit Limits and Handling

Statutory Cap Michigan limits security deposits to one and one-half months rent. This cap applies to the total security deposit collected regardless of property value or rental amount.

Separate Account Requirements Michigan requires landlords to hold security deposits in a regulated financial institution. Landlords have two options:

• Hold the deposit in a separate escrow account, OR
• Post a cash or surety bond with the Secretary of State

Landlords must provide tenants with written notice of the depository name and address within 14 days of receiving the deposit.

Move-In Inspection Requirements

Michigan requires landlords to provide tenants with a move-in checklist within seven days of the start of tenancy. This checklist must:

• Document the condition of the rental unit
• Identify existing damage
• Be completed and signed by both parties
• Be retained by both landlord and tenant

Failure to provide the checklist limits landlord’s ability to make security deposit deductions.

Return Procedures

30-Day Timeline Michigan landlords must return security deposits within 30 days after tenants vacate properties. This timeline applies to both the deposit return and required itemized statements of deductions.

Itemization Requirements Landlords must provide an itemized list of damages claimed and amounts deducted. The list must be sent by first-class mail to the tenant’s forwarding address.

Allowable Deductions Landlords can deduct from security deposits for:

• Unpaid rent
• Damage beyond normal wear and tear
• Cleaning costs to restore property to move-in condition
• Utility charges owed by tenant
• Other charges authorized in the lease agreement

Providing itemized deduction statements with remaining deposit balances prevents tenant disputes and potential legal claims.

Wrongful Withholding Penalties

Michigan imposes significant penalties on landlords who wrongfully withhold security deposits. Landlords who fail to return deposits or provide proper itemization within 30 days are liable for:

• Double the amount wrongfully withheld
• Reasonable attorney fees
• Court costs

Additionally, failure to provide the move-in inventory checklist limits the landlord’s ability to withhold any portion of the deposit.

Required Disclosures for Michigan Rental Agreements

Lead-Based Paint Disclosure

Federal law mandates lead-based paint disclosures for all rental properties built before 1978. Michigan landlords must provide:

• Written disclosure of known lead-based paint presence
• EPA pamphlet “Protect Your Family from Lead in Your Home”
• Ten-day opportunity for lead inspection
• Signed acknowledgment of disclosure receipt

Failure to provide proper lead disclosures exposes landlords to significant federal penalties.

Security Deposit Disclosure

Michigan requires landlords to provide written notice of security deposit information within 14 days of receiving the deposit. This notice must include:

• Name and address of the financial institution holding the deposit
• Statement that the tenant must provide a forwarding address within four days of move-out to receive the deposit return

Move-In Checklist Disclosure

Michigan requires landlords to provide a move-in inventory checklist within seven days of the tenancy start date. The checklist must:

• Detail the condition of the premises
• Be signed by both parties
• Include notice of tenant’s right to dispute the checklist

Truth in Renting Act Compliance

Michigan’s Truth in Renting Act prohibits certain lease provisions and requires specific disclosures. Landlords must ensure leases do not contain provisions that:

• Waive tenant rights under Michigan law
• Require tenants to pay landlord’s attorney fees regardless of outcome
• Allow landlords to confess judgment against tenants
• Limit landlord liability for negligence

Owner/Agent Identification

Michigan requires landlords to disclose:

• Name and address of the property owner
• Name and address of any person authorized to manage the property
• Name and address of person authorized to receive notices and demands

Mold Disclosure

Michigan does not mandate specific mold disclosures. However, landlords should consider:

• Disclosing known mold problems as a best practice
• Addressing mold prevention in lease terms
• Responding promptly to tenant mold reports

Bed Bug Disclosure

Michigan does not require specific bed bug disclosures. Best practices include:

• Disclosing known infestation history
• Establishing reporting procedures in lease terms
• Clarifying treatment responsibilities

Landlord and Tenant Rights Under Michigan Law

Landlord Obligations

Implied Warranty of Habitability Michigan recognizes an implied warranty of habitability requiring landlords to maintain rental properties. Required maintenance includes:

• Maintaining the property in reasonable repair
• Keeping the property fit for its intended use
• Compliance with building and housing codes affecting health and safety
• Maintaining electrical, plumbing, heating, and sanitary systems
• Providing running water and reasonable amounts of hot water
• Maintaining working smoke detectors and carbon monoxide detectors
• Keeping common areas clean and safe
• Extermination of pest infestations
• Maintaining weathertight conditions

Landlords must complete repairs within a reasonable time after receiving notice from tenants.

Property Access Rights Michigan requires landlords to provide reasonable notice before entering rental properties. While no specific statutory timeframe exists, 24 hours advance notice is standard practice. Entry must occur at reasonable times for legitimate purposes including:

• Inspections
• Repairs and maintenance
• Showing property to prospective tenants or buyers
• Emergencies (no notice required)

Tenant Responsibilities

Property Care Standards Tenants must maintain rental units according to Michigan law and lease terms including:

• Keeping the property clean and sanitary
• Using electrical, plumbing, heating, and other systems properly
• Disposing of garbage properly
• Not deliberately or negligently destroying property
• Not disturbing neighbors’ peaceful enjoyment
• Complying with housing and building codes
• Allowing reasonable landlord access
• Maintaining smoke and carbon monoxide detectors (battery replacement)

Lease Termination and Eviction Procedures

Voluntary Termination

Notice Requirements Michigan termination notice requirements depend on lease type and duration:

• Fixed-term leases end automatically on specified dates
• Month-to-month tenancies (over one year) require one month written notice
• Month-to-month tenancies (under one year) require notice equal to the interval between rent payments
• Week-to-week tenancies require one week written notice

Including clear termination procedures in lease agreements prevents misunderstandings about proper notice protocols.

Eviction Processes

Michigan uses summary proceedings for evictions.

Nonpayment of Rent Michigan landlords can begin eviction proceedings when tenants fail to pay rent. The process requires:

• Seven-day demand for possession (for nonpayment)
• Filing summons and complaint if tenant fails to pay or vacate
• Court hearing and judgment
• Writ of restitution for physical removal (10 days after judgment)

Lease Violations Landlords can pursue eviction for material lease violations:

• Notice period depends on severity of violation
• Court filing after notice period expires
• Court proceedings and judgment

Termination of Tenancy For terminating a tenancy without specific cause at lease end:

• Proper notice based on tenancy type
• Court filing if tenant fails to vacate

Retaliatory Eviction Protections

Michigan provides limited protection against retaliatory evictions. Landlords should avoid:

• Evicting tenants for reporting code violations
• Raising rent in response to tenant complaints
• Reducing services after tenants exercise legal rights

Creating an Effective Michigan Lease Agreement

Documentation Best Practices

Comprehensive Terms Strong Michigan lease agreements include provisions addressing:

• Pet policies and deposits (within statutory limits)
• Guest and occupancy limits
• Maintenance responsibilities
• Utility payment assignments
• Parking and storage rules
• Noise and conduct standards
• Renewal and termination procedures
• Entry notice procedures
• Snow removal responsibilities
• Move-in checklist procedures
• Security deposit account information

Professional Templates Using a Michigan lease agreement template ensures contracts include all legally required elements. Given Michigan’s specific security deposit requirements and Truth in Renting Act provisions, professional templates help landlords maintain compliance.

Tenant Screening Integration

Application Procedures Thorough tenant screening before lease signing helps landlords select reliable tenants. Screening should include:

• Credit history review
• Employment and income verification
• Rental history and references
• Background checks where permitted

Michigan does not prohibit source of income discrimination statewide, though some local ordinances may apply. Documenting screening criteria and applying standards consistently protects landlords from discrimination claims.

Michigan-Specific Considerations

Detroit Metro Area

The Detroit metropolitan area presents unique rental considerations:

• Diverse housing stock from historic to modern
• Neighborhood revitalization and gentrification patterns
• Rental licensing requirements in Detroit
• Property tax considerations
• Growing rental demand in suburbs (Ann Arbor, Royal Oak, etc.)

Ann Arbor and College Rentals

Michigan has significant college student rental markets:

• University of Michigan (Ann Arbor)
• Michigan State University (East Lansing)
• Western Michigan University (Kalamazoo)
• Central Michigan University (Mt. Pleasant)
• Grand Valley State University (Allendale)
• Eastern Michigan University (Ypsilanti)

Landlords in college towns should consider:

• Academic year lease terms
• Parental guarantor requirements
• Move-in/move-out timing around semesters
• Multiple roommate arrangements
• Summer subletting provisions
• High tenant turnover patterns

Winter Weather Provisions

Michigan’s harsh winters create essential rental considerations:

• Snow and ice removal responsibilities
• Heating system maintenance requirements
• Minimum heating temperature requirements
• Pipe freezing prevention
• Emergency heating failure procedures
• Driveway and sidewalk maintenance
• Ice dam prevention

Lease agreements should clearly assign winter maintenance duties.

Great Lakes Coastal Properties

Michigan’s extensive shoreline creates unique considerations:

• Lakefront property rental regulations
• Flood zone disclosures
• Erosion and bluff stability concerns
• Seasonal rental patterns
• Beach access provisions
• Storm surge awareness

Short-Term and Vacation Rentals

Michigan regulates short-term rentals at local levels:

• Local registration requirements vary by municipality
• Zoning restrictions in some areas
• Tax collection obligations
• Traverse City and northern Michigan tourism areas
• Lake community rental regulations

Manufactured Housing

Michigan has significant manufactured housing inventory:

• Mobile Home Commission regulations
• Specific requirements for mobile home communities
• Lot rental agreement distinctions
• Community rules and enforcement
• Title and registration requirements
• Tenant protections in manufactured housing communities

Lead Paint Requirements

Michigan follows federal lead paint requirements:

• Disclosure required for pre-1978 properties
• Lead-safe renovation practices
• Certification requirements for contractors
• Childhood lead poisoning prevention programs

Military Tenant Considerations

Michigan’s military installations require understanding:

• Service members Civil Relief Act (SCRA) protections
• Lease termination rights upon deployment or PCS orders
• Selfridge Air National Guard Base considerations
• Battle Creek Air National Guard Base
• Eviction protections during active duty

HOA and Condominium Rentals

Many Michigan rentals occur within homeowner associations:

• Association approval requirements
• Tenant compliance with community rules
• Rental restrictions and caps
• Application processes and fees
• Condo conversion considerations

Landlords should verify HOA rental policies before marketing properties.

Cannabis Legalization Impact

Michigan’s cannabis legalization affects rental properties:

• Landlords can prohibit cannabis use in lease agreements
• Smoking restrictions apply to cannabis consumption
• Growing cannabis may be restricted or prohibited
• Federal housing programs maintain cannabis prohibitions

Utility Responsibility Provisions

Michigan leases should clearly address:

• Which utilities tenants pay
• How shared utilities are divided
• Winter heating shutoff protections
• Utility shutoff notification requirements

Security Deposit

TOPIC	RULE
Security Deposit Maximum:	1.5x monthly rent Mich. Comp. Laws § 554.602
Security Deposit Interest:	No statute
Separate Security Deposit Bank Account:	Not required. A landlord may use the deposit money however they want provided that they deposit a cash or surety bond with the secretary of state. Mich. Comp. Laws § 554.604
Non-refundable fees:	No statute
Pet Deposits and Additional Fees:	No statute
Deadline for Returning Security Deposit:	30 days Mich. Comp. Laws § 554.610
Permitted Uses of the Deposit:	Damages beyond normal wear and tear, owed rent, unpaid utilities, and rent due for premature termination by the tenant Mich. Comp. Laws § 554.607
Security Deposit can be Withheld:	Yes Mich. Comp. Laws § 554.607
Require Written Description/Itemized List of Damages and Charges:	Yes Mich. Comp. Laws § 554.609
Receipt of Security Deposit:	Yes Mich. Comp. Laws § 554.603
Record Keeping of Deposit Withholdings:	No statute
Failure to Comply:	Failure to notify the tenant of deposit withholdings within 30 days of tenancy terminating means the landlord forfeits the right to make a claim against the deposit. Mich. Comp. Laws § 554.610

Lease, Rent & Fees:

TOPIC	RULE
Rent is Due:	No specific statute. Common practice is at the beginning of each month or term if week-to-week for example unless otherwise stated in the lease agreement.
Payment Methods:	No statute
Rent Increase Notice:	No statute
Late Fees:	No statute
Application Fees:	No statute
Prepaid Rent:	No statute
Returned Check Fees:	$25 if paid within 7 days. $35 if paid within 30 days. May be liable for up to 2x the amount of the check, plus fees of $250. Mich. Comp. Laws § 600.2952
Tenant Allowed to Withhold Rent for Failure to Provide Essential Services (Water, Heat, etc.):	Yes Mich. Comp. Laws § 125.530(3)
Tenant Allowed to Repair and Deduct Rent:	No statute
Self-Help Evictions:	Not allowed Mich. Comp. Laws § 600.2918
Landlord Allowed to Recover Court and Attorney’s Fees:	No statute stating if a landlord is allowed to recover. However, a landlord is prohibited from including a provision in the lease agreement that a party is responsible for legal costs/attorney fees. Mich. Comp. Laws § 554.633(g)
Landlord Must Make a Reasonable Attempt to Mitigate Damages to Lessee, including an Attempt to Re-rent:	No statute

Notices and Entry:

TOPIC	RULE
Notice to Terminate Tenancy:	Year-to-year tenancies may be terminated with notice of lease expiration in 1 year. Mich. Comp. Laws § 554.134(4)
Notice to Terminate a Periodic Lease – Week-to-week:	Equal intervals between payments, e.g 1 week. Mich. Comp. Laws § 554.134(1)
Notice to Terminate a Periodic Lease – Month-to-Month:	1-month notice. Mich. Comp. Laws § 554.134(1)
Notice to Terminate Lease due to Sale of Property:	No specific statute. Depends on the length of the lease as explained in Mich. Comp. Laws § 554.134
Notice of date/time of Move-Out Inspection:	No specific statute about a notice being required. However, an inventory checklist shall be provided to the tenant upon giving posession of premises to be returned within 7 days. At termination of tenancy, landlord must do a new inventory checklist to list any damages. Mich. Comp. Laws § 554.608
Notice of Termination for Nonpayment:	7-day notice to quit Mich. Comp. Laws § 554.134(2)
Notice for Lease Violation:	24-hour notice for lease violations related explicitly to controlled substances. 7-day notice for nonpayment, noncompliance, etc. Mich. Comp. Laws § 554.134(2)(4)
Required Notice before Entry:	No statute, but common practice is 24-hour notice within a reasonable timeframe.
Entry Allowed with Notice for Maintenance and Repairs:	Yes Mich. Comp. Laws § 600.2918(3)(b)
Emergency Entry Allowed without Notice:	No statute, but usually if there is an emergency it’s allowed
Entry Allowed During Tenant’s Extended Absence:	Yes. If the landlord believes in good faith that the tenant has been deceased for a minimum of 18 days. Mich. Comp. Laws § 600.2918(3)(d)(iii)
Entry Allowed with Notice for Showing the Property:	No statute
Notice to Tenants for Pesticide Use:	No statute
Lockouts Allowed:	Not allowed Mich. Comp. Laws § 600.2918(2)(e)
Utility Shut-offs Allowed:	Not allowed Mich. Comp. Laws § 600.2918(2)(f)
Electronic Notices Allowed:	Yes if parties agreed to it previously. Mich. Comp. Laws § 450.835

Disclosures

• Name and Addresses: Must disclose the name and address of the landlord and authorized agents. (Mich. Comp. Laws § 554.634)
• Copy of the Lease: Tenants must be given a written copy. (Mich. Comp. Laws § 554.634)
• Domestic Violence Situations: Lease may be terminated with court documentation. (Mich. Comp. Laws § 554.601b)

Duties

Landlord’s Duties

• Compliance: Comply with health and safety codes. (Mich. Comp. Laws § 125.471)
• Repairs: Keep premises in good repair and fit for use. (Mich. Comp. Laws § 554.139)
• Common Areas: Keep in reasonable repair and safe condition. (Mich. Comp. Laws § 554.139)
• Maintenance: Maintain essential services and facilities. (Mich. Comp. Laws § 554.139)
• Garbage: Provide for removal. (Standard practice)

Tenant’s Duties

• Cleanliness: Keep rental unit clean. (Common law)
• Trash: Dispose of waste properly. (Common law)
• Plumbing: Use responsibly. (Common law)
• Appliances: Use in a proper manner. (Common law)
• Damage: Do not damage the premises. (Mich. Comp. Laws § 554.139)
• Quiet Enjoyment: Respect others’ right to quiet enjoyment. (Common law)
• Subleasing: Only if lease permits. (Lease-specific)
• Retaliation: Prohibited. (Mich. Comp. Laws § 600.5720)
• Lead Disclosure: Federal requirement.

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Protecting Your Michigan Rental Investment

A well-drafted Michigan rental lease agreement forms the foundation of successful property management. Given Michigan’s specific security deposit requirements, move-in checklist obligations, and Truth in Renting Act provisions, comprehensive documentation becomes essential. Clear terms addressing winter maintenance, security deposit procedures, and tenant responsibilities protect both landlord and tenant interests.

RocketRent provides Michigan lease agreement templates designed to meet state requirements and protect landlord investments. Our platform streamlines property management with integrated tools for lease creation, rent collection, and tenant screening. Create your Michigan rental lease agreement today and manage your properties with confidence.