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Michigan Sublease Agreement

A Michigan sublease agreement is a legal contract that allows a current tenant, known as the “Sublessor,” to rent out all or a portion of their residence to a third party, referred to as the “Sublessee”. This agreement establishes the terms under which the subtenant will occupy the rental unit while the original tenant remains responsible for their obligations under the primary lease with the landlord.

Michigan Sublease Agreement

Michigan Sublease Agreement

Right to Sublet

In Michigan, tenants do not automatically have the right to sublet their property. The ability to sublet is contingent upon the terms outlined in the original lease agreement. If the lease does not explicitly mention subletting, landlords may grant permission through a written Landlord Consent Form.

Permission to Sublet

Tenants must obtain explicit written permission from their landlord to sublet. Even with consent, landlords retain the right to reject a potential subtenant based on legally acceptable criteria, such as a criminal history or insufficient income.

Standardized Michigan Sublease Agreements

A typical Michigan sublease agreement includes several key components:

  • Names of the Parties: Identifies the Sublessor and Sublessee.
  • Term: Specifies the start and end dates of the sublease.
  • Rent: Details the rent amount, payment schedule, and payment methods.
  • Rental Unit Location: Provides the address of the rental unit as per the original lease.
  • Master Lease Inclusion: Attaches a copy of the Master Lease and notes any exceptions.
  • Lead-Based Paint Notice: Required if the rental unit was built before 1978.
  • Truth in Renting Act Notice: Includes a statement about the rights and obligations under Michigan law, formatted in a specified font size.
  • Rights of Domestic Violence Victims: States the rights of tenants facing domestic violence.
  • Liability: Clarifies that the Sublessee is liable for damages, while the Sublessor remains responsible to the landlord.
  • Authorized Occupants: Identifies who is allowed to live in the rental unit.
  • Security Deposit: Limits the maximum security deposit to one and one-half month’s rent.
  • Pet Deposit: Allows for a pet deposit, except for service dogs and emotional support animals.
  • Return of Security Deposit: Mandates that the security deposit be returned within 30 days after vacating.
  • Disputes: Outlines how disputes will be resolved, potentially through mediation or arbitration.
  • General Conditions: States that the written sublease contains all agreements and can only be modified in writing.
  • Inventory of Included Items: Lists items included in the rental unit.
  • Utilities: Specifies which utilities are paid by the Sublessor and which by the Sublessee.
  • Smoking Policy: Details any restrictions on smoking within the rental unit.
  • Landlord’s Consent: Describes how to obtain landlord permission if not included in the Master Lease.
  • Signature: Requires signatures from the Sublessor, Sublessee, and the landlord.

Tax Implications of a Sublease in Michigan

Short-term rentals, defined as those lasting 30 days or less, are subject to the Michigan Use Tax and Lodgings Tax. Additional taxes may apply based on location. For example, in Kent County, the following taxes are applicable:

  • Michigan State Use Tax: 6%
  • Hotel-Motel Tax: 5%

Tenants engaging in short-term rentals must register with the Department of Treasury and comply with local tax authority requirements.

Security Deposit Obligations

In Michigan, a security deposit must be returned within 30 days after the tenant vacates the rental unit. The maximum security deposit allowed is one and one-half month’s rent.

Notices Required

Sublessors are required to provide subtenants with written notices, including:

  • Seven days’ notice to pay rent or vacate.
  • Thirty days’ notice of intent not to renew the sublease.

Statutes

FAQs

Yes, in Michigan, tenants must obtain explicit written permission from their landlord to sublet their apartment. If the original lease does not mention subletting, the landlord can grant permission using a Landlord Consent Form.

A Michigan sublease agreement typically includes the names of the parties, the term of the sublease, rent details, rental unit location, a copy of the master lease, and notices required by law, among other provisions. It should also address security deposits, liability, and any specific conditions related to the sublease.

Short-term rentals of 30 days or less in Michigan are subject to the Use Tax and Lodgings Tax. For example, in Kent County, this includes a 6% Michigan State Use Tax and a 5% Hotel-Motel Tax. Tenants must register with the Department of Treasury before collecting these taxes.

Yes, a landlord in Michigan has the right to reject a subtenant if they are deemed unqualified, such as having a criminal history or low income. Even after granting permission to sublet, landlords can screen potential subtenants.

In Michigan, the maximum security deposit that can be charged for a sublease is one and one-half month’s rent. This security deposit is held by the sublessor, not the landlord, and must be returned within 30 days after the tenant vacates the rental unit.

If your landlord does not allow you to sublet, you must comply with the terms of your original lease. Subletting without permission could lead to lease violations and potential eviction. Always check your lease agreement for specific subletting clauses.

A sublessor in Michigan must provide a subtenant with a seven-day written notice to pay rent or vacate the premises. Additionally, a 30-day written notice is required if the sublessor intends not to renew the sublease.

Yes, subletting is legal in Michigan, provided that the original lease does not prohibit it. Tenants must ensure that their subleasing arrangements comply with local housing and occupancy codes.