21/09: Lease Law - Michigan

It is important for both the landlord and the tenant to be aware of the numerous laws that govern all aspects of the landlord-tenant relationship. The most important of these laws are:

The Truth in Renting Act, MCL 554.631 to 641;
The Landlord Tenant Act, MCL 554.601 to 616;

The Summary Proceedings Act, MCL 600.5701 to 600.5759;
The Elliott-Larson Civil Rights Act, MCL 37.2101 to 37.2804;
The Persons with Disabilities Civil Rights Act, MCL 37.1101 to 37.1607;
Lease or license of residential premises / covenants / modifications, MCL 554.139; and
Damages for forcible entry and detainer / unlawful interference with possessory interest, MCL 600.2918.

Tenants who are having difficulties with their landlords can and should refer to these laws to hold their landlords accountable. For example, according to the Truth in Renting Act, landlords must EXCLUDE certain provisions from their leases and if included, they are automatically considered void. The tenant can make the landlord fix a lease with these illegal provisions and if the landlord does not, the tenant can take the landlord to court and win statutory damages and fees. Landlords are likewise required to INCLUDE certain provisions such as the name and address at which notice shall be given to the lessor and a very specific statement regarding the fact that the agreement must comply with applicable Michigan laws.

For those who are interested in knowing the landlord's obligation to maintain the premises, reference should be made to MCL 554.139. This law requires that landlords must keep the premises and all common areas fit for the use intended. They must also be kept in reasonable repair and in compliance with applicable health and safety laws of the state and of the local unit of government.

Tenants who are worried about the return of all or part of their security deposit should pay particular attention to the Landlord and Tenant MCL 554.601 to 616 as this act regulates security deposits. Landlords cannot collect more than 1 and 1/2 times the monthly rent as a security deposit. Furthermore, they cannot require a security deposit unless they notify the tenant no later than 14 days from the date a tenant assumes possession in a written instrument of the landlord's name and address as well as the name and address of his bank. There is also a requirement of a particular notice regarding the tenant's responsibility to forward their new mailing address to the landlord within 4 days after termination of occupancy: “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.” An inventory checklist is required at the commencement and termination of the tenancy. If a landlord wants to keep all or part of the security deposit for damages or other obligation, he must mail to the tenant, within 30 days after the termination of occupancy, an itemized list of damages claimed, including the estimated cost of repair of each property damaged item and the amounts and bases on which he intends to assess the tenant. The notice of damages shall include the following statement in 12 point boldface type which shall be at least 4 points larger than the body of the notice: “You must respond to this notice by mail within 7 days after receipt of same, otherwise you will forfeit the amount claimed for damages.”. Failure by the landlord to comply with the notice of damages requirement within the 30 days after the termination of occupancy, constitutes agreement by the landlord that no damages are due and he shall remit to the tenant immediately the full security deposit.

Tenants of an advanced age should be aware of MCL 554.601a, which allows early termination of a lease if the tenant becomes eligible to take possession of a subsidized rental unit in senior citizen housing or becomes incapable of living independently.

Regarding discrimination, the Elliott-Larsen Civil Rights Act provides protection from discrimination in housing accommodations on the basis of religion, race, color, national origin, age, sex, or marital status. There is an exemption in the law where the landlord or a member of the landlord's immediate family resides in one of the units. However, the Civil Rights Act of 1866 prohibits discrimination on the basis of race in ALL property transactions; and since federal law trumps state law, the federal law must be followed. Therefore, landlords can NEVER discriminate on the basis of race. Also, persons with disabilities are protected from discrimination. Landlords must accommodate disabled persons unless they demonstrate that the accommodation would impose an undue hardship or that they or their immediate family resides in 1 of the units under certain circumstances.

Finally, a tenant is entitled to quiet enjoyment of the premises and landlords are prevented from interfering with that enjoyment unless they are acting pursuant to court order, or the interference is only temporary in order to make needed repairs or inspection as provided by law. Landlords are not allowed to enter a tenant's property whenever they want, nor are they allowed to eject a tenant in a forcible or unlawful manner. A tenant who is put out or held out of their rented property in a forcible and unlawful manner, is entitled to recover 3 times the amount of his actual damages or $200.00, whichever is greater, in addition to recovering possession. Furthermore, a tenant whose possession has been unlawfully interfered with by the landlord or their agents shall be entitled to recover the amount of his actual damages or $200.00, whichever is greater, for each occurrence and, where possession has been lost, to recover possession. Landlords cannot use or threaten force, nor can they remove or destroy a tenant's personal property. They cannot change the locks without immediately providing keys, nor can they board up the premises. They cannot interrupt a service procured by the tenant or which the landlord is under a duty to furnish, if that service is so essential that its interruption would constitute constructive eviction, including heat, running water, hot water, electric, or gas service. Lastly, they cannot introduce noise, odor or other nuisance.

Any person involved in a landlord-tenant relationship must be aware of these laws. Landlords must inform their staff as for example, if certain language is not included in leases and certain time frames are not met, rights can be very limited. Tenants who must breach their lease in advance pray for the landlord to miss the 30-day deadline. If the notice of damages retained from the security deposit does not go out within 30 days after the tenant terminates the tenancy, all rights to the security deposit and any other damages are waived. Also, it must be clear that deference must be made to the federal Civil Rights Act and no discrimination on the basis of race must ever occur. The landlord-tenant relationship is tenuous at best. Knowledge of the applicable law by both parties sets forth expectations, reduces unnecessary problems, and lays a foundation for a positive relationship.


Comments

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Lisa Coleman wrote:

My niece rented an apartment in Warren MI about 6 months ago. My sister had to co-sign for her because my niece is recently out of school with very little credit history. The Landlord said that they would just put my Sister's name as the Tenant, rather than preparing the co-signer documents. My niece is the only person who lives in the apartment, a fact about which the Landlord was fully aware. Recently, the manager of the apartment complex told my sister that the lease was illegal because in Michigan the person named on the lease as the tenant must occupy the premises, so they have to do all new paperwork. They have had other managment issues with the complex and would rather just get out of the lease. If the parties to the lease are not appropriate and against Michigan law, is the lease illegal and therefore void?
25/03 18:26:14

refadmin wrote:

Landlords must keep the premises and all common areas fit for the use intended. They must also be kept in reasonable repair and in compliance with applicable health and safety laws of the state and of the local unit of government.

Arguably, the fact that the upstairs did not have heat, is a breach of this obligation. However, it appears that you worked that breach out by negotiating a reduced rent. Presumably that area is not being used for living. You could argue that it is still not fit for the use intended, to wit, to occupy at all.

It sounds like you did not come to an understanding with regard to the utilities. In that case, the court would determine what is reasonable. If your landlord led you to believe that you were not responsible for the water and yet is attempting to recover this charge from you, then you can dispute this. Make sure that you notify the landlord of your dispute in a timely manner. Do it in writing in a certified letter.

There are specific timelines/deadlines within which you and your landlord must communicate regarding the security deposit. Make sure that these are followed. The landlord's failure to do so can amount to a waiver of all damages.

Take a look at my blog article regarding getting your security deposit back from your landlord.
24/03 18:32:37

Jayme wrote:

Well I guess with the heating situation I was looking for more of a reason like unsuitable house for what it was rented for, just for something to fall back on. The lease states utilities and that is all. We take care of heat. Our water got shut off and that was when we didn't even know there was a water bill! Then we called the landlord and they said that they pay that...there is nothing that states we pay the electric in general and he didn't say anything about reimbursing during that time. They said they did not get bills so they didn't give us bills. I think that this is damaging his credit rating as the electric was in his name at that point.
24/03 15:02:04

refadmin wrote:

If you were not aware of the heating situation before you moved in, then the landlords should make an accommodation for you, and it sounds like they did. If you were unsatisfied with that arrangement, then it was your obligation to make that known at the time. It appears then that the heating issue has been resolved.

When the terms of the lease were changed, a new lease was created although not in writing. Under the Statute of Frauds, leases for less than one year do not need to be in writing. The terms of the old lease would not necessarily be carried over into the new lease.

With regard to the utilities, the question is whose obligation was it to pay those bills. The lease obligates you to pay them but that lease has been changed. It boils down to what was the agreement with regard to the utilities. When the landlord put the utilities in his name, did you understand that he was going to pay them and you would not be obligated to reimburse him? Did he present you with any bills during the time they were in his name?

If you had the understanding that you were obligated to pay the utilities through your occupancy though they would not be billed in your name, (the fact that the utilities were put in another's name is not determinative of the obligation to pay) then you should be required to pay them. If your landlord should have presented you with the bills but did not and the matter went to a collection agency, then you should receive some compensation for the damage to your credit rating.

The courts considers what is reasonable when the terms of the agreement are uncertain or vague. Using your logic what do you think is reasonable? The courts do not like to see anyone get a windfall.
24/03 12:35:46

Jayme wrote:

Our landlord rented us a 4 bedroom home in Michigan for 3 adults and a child. This home was leased from November 2007-April 2008. November was a warm month for us but when December came around the upstairs had to be blocked off as the home has NO insulation what-so-ever as well as no electrical outlets upstairs to run a space heater. This created an issue for us. I moved into the enclosed porch area downstairs while the other two adults moved into bedrooms and the child slept in the living room. This was not going to work as one of the mothers was going through a custody battle and needed the room for the child. The landlords after much arguing agreed to move the child and one adult out breaking the lease with no extra charge and moved the rent from 750.00 to 500.00. In the lease it stated that we were to pay utilities. We take care of heat and electric. We moved the electric into our name in November. The landlord called and said they wanted to refinance the house and it couldn't look like anyone was living there at the time. They moved the electric BACK into their name and we were waiting to move it back. They had us put away all our personal belongings and pretend we were cousins in from out of town just staying there. I rec'd an email on January 4th stating the following:

Jayme,
Nice talking with you last night. I just want to verify 2 things real quick:

1) Starting on February 1st the rent is going to be decreased to $500/month for you and Robin.
2) I just contacted Consumers Energy and it is in Jon's name as we had switched it temporarily so please contact consumers at 800-477-5050 and switch it in either yours or Robins name through the duration of the lease the end of April.

If there are any questions feel free to let me know.

In that email please refer to #2, I transfered service that day to my name and the next billing cycle it was mailed to my parent's address as there is no mailbox on the premises and it does state duration of lease therefore I had no idea about back electric bills that were not paid.
Now they are coming back and stating that we owe 400 dollars to a collection company for electric bills and they will end up keeping our security deposit. After such a run around do you believe that there is anything that we can do legally? The township and city have no renting regulations as well. They have in our lease a place livable for 4 individuals and it cannot be to code for people to live there!!!
They never redrew a lease up when the mom and child moved out.
Please help!!!
24/03 11:44:01

refadmin wrote:

Your landlord is required to maintain the premises in reasonable repair so that they are fit for their intended purposes.

If you are at risk of having your children hurt from the nails, you are obligated to fix them yourself or take some other emergency action to fix them, as for example, placing a rug over the nails. You should write a certified letter to your landlord providing him with an opportunity to fix the nails or you will have them fixed and withhold the amount of the repair from the rent in an escrow account. This should get him to repair the defect.

Harassing you daily is not acceptable and is a violation of the law, to wit, the state and federal fair debt collection practices acts. These laws provide for damages in the event that the creditor breaks the law. I have an article on what creditors cannot do in collecting debt under the Consumer Law category of this website.
21/03 14:08:43

amber wrote:

I rent a home in Michigan and have requested that the landlord fix the carpet where nails are coming through. Two of my three children have been hurt yet the carpet is still not fixed. The landlord has threatened to turn off our water if we do not get it changed over in our name even though it states in the lease that it will be billed quarterly. We were late this month for the first time on rent and he has literately harassed me daily. I have saved all of the messages, pictures of the nails and the wounds it inflicted on my children. My eight month old will go in the morning for a tetanus shot. The lease does not state how many days allowed late just the late fees that will be applied. Can you please tell me if I should consult a lawyer, pay the early termination fee of lease? What about the security deposit?
20/03 22:55:20

refadmin wrote:

It sounds like you fall within the addendum regarding the new job. As long as you comply with the lease and the addendums, the landlord / owner will not have a cause of action against you. Furthermore, you should check your timelines on the security deposit very carefully, because if they do not follow the timelines, they could forfeit any and all damages including but not limited to the security deposit. I have an article on getting your security deposit back from your landlord in the landlord / tenant category that you should review.
18/03 16:40:14

Sporkbob wrote:

My wife and I currently reside in an apartment that we would like to move out of because I got a new job in another part of the state. The lease includes 3 addendums. The first is a standard addendum that states that a 60 day notice must be furnished prior to vacating the premises at which point all rent concessions must be paid back. We initialed all sections and signed this document in the space at the bottom. The second states that the lease may be terminated with a 60 day notice after 6 months in the lease provided the tenant receives a job transfer to somewhere more than 50 miles away and they will lose their job if they do not transfer. We initialed all sections of this but did not sign and date this page at the bottom in the space provided. The leasing agent said we did not need to although she no longer works at that leasing office. The third is similar to the second but provides a way out of the lease in the event that the tenant purchases a home. The same situation applies wherein we initialed all sections but did not sign and date. Aside from the previous mention of the new job, we have had oodles of problems with water damage, mold, broken heaters, etc. I won't go in to those however as we failed to keep good records of them. We furnished the rental company our 60 day notice based on the provisions of the first addendum, and two weeks later they wrote back saying they would hold us to our lease. Do we have legal standing to leave providing we pay through our last month of rent plus all of the lease concessions?

-Thanks!
17/03 23:56:30

refadmin wrote:

There is no law that provides for breach of lease if an opportunity to purchase a home arises. You are bound by the legal provisions of your lease. Without additional facts, I cannot offer you any further information.
17/03 18:57:09

Darla wrote:

Hello, We are renting a home, and would like to purchase a home, can we break our lease?
17/03 17:15:46

refadmin wrote:

In Michigan, the result of the action would likely be that they would lose. You cannot be held responsible for their lease. At most, you would be responsible for a month's rent as where in a month-to-month lease, you should provide one month's notice to move out. Additionally, on the utilities, you have a strong defense. If you did not sign a lease or enter into a verbal agreement on the utilities, who is to say that you agreed to pay for any utilities. Some landlords do pay for some or all of the utilities.
13/03 22:26:13
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