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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Curtis wrote:

Hi, I read your article and was hoping you could help. I moved out of the house I was living in to move to a friend's because I was not spending nearly anytime at my own residence. I was never on the lease. I was merely allowed by the other residents of the house to share a room with another occupant. I never signed anything, a lease or a sublet contract. Now that I have moved out, the current tenants are asking for me to pay rent for the months until the lease ends or they will take me to small claims court. What would the result of this action be? Considering that there have been no agreements in writing, I don't think that I owe them anything. Also, they are trying to get money for utilities as well, even though for the last 2 months I have spent maybe 10 hours in the house, mainly just to move my belongings out.

Thanks
13/03 22:16:47

refadmin wrote:

Dear Dawn:

I have not researched FL law. I do know that typically ambiguities in a contract are interpreted to favor the draftee, that is you because the property owner is in the best position to define the terms. In your situation, you both have interpretations. The court will typically decide what is reasonable when there are differences in the interpretation of the contract. You must work out a settlement with your landlord or take it up with the courts. If he keeps your deposit, pay attention to the timelines because his noncompliance could amount to his forfeit of damages.
12/03 15:23:41

refadmin wrote:

Dear Joe and Lacey:

You have a great argument in breaking your lease in that the landlords have breached their covenant of quiet enjoyment by allowing the other tenant to move in and occupy the other room in such a way that it interferes with your occupancy and quiet enjoyment of the premises. You can negotiate with the landlords indicating that you have a solid countersuit for your damages in being forced to terminate a lease without having alternative arrangements for living quarters, all at quite an expense to you.

If they will not settle, you can leave and take it from there. If they retain a portion of the security deposit keep an eye on your timelines and their compliance with the laws. You must also follow certain timelines in your defense. Ultimately you would take it before a judge or magistrate who would make a decision. Certainly the more details you have regarding the disruptions the better. Your preparation is most important.
12/03 15:20:25

Dawn wrote:

PLEASE HELP!!!! I am trying to break my lease because of a hot water issue. There is an addendum to my lease which states "penalty for early termination is one month's rent." I interpreted this to mean that I am able to terminate at any time as long as I pay the penalty. At most, I think it's reasonable to assume that 30 days notice would be required since the penalty is for one month's rent. However, my landlord says that it is implied that he needs two months notice since in another part of the lease it refers to holdovers and says in that event, two months notice is required. This is in a completely different part of the lease and I had no idea that I was to "assume" that it also referred to the notice required for early termination. I am in FL and when I moved in I gave him first and last months' rent and a deposit equal to one month's rent. I gave him notice on March 8th that I was terminating the lease. He wants to keep the money for my deposit and last months rent that I initially paid. Is this right? What happens when there is no meeting of the minds and I thought one thing and he thought another???
12/03 14:34:05

joeandlacey wrote:

We rent one room out of a house occupied by the LLs. The LLs have allowed their friend from high school move into one of the open rooms. The young man has made our lives a living hell. No one asked us if we wanted a coke fiend living with us (he claims to be clean now and we can't prove otherwise). From constant swearing to leaving broken glass in our cat's food (no exaggeration, but the LLs just can't believe it), we have had too much and want out now.
The LLs still expect us to pay the rest of our lease, about 5 months rent. They have told us that if we leave, they will take us to court for the money. Is there no provision that lets us break a lease when the living situation is so drastically changed by the LL? Also, is it significant that we learned the LLs have never paid taxes for rent received (I.E. does their defrauding the government void the lease in anyway)?
12/03 04:53:01

refadmin wrote:

Dear Chad S.:

You must look to the property maintenance code, within your city or township ordinances. The term "rental unit" will be defined. Typically, the definition refers to particular living quarters within a dwelling intended for occupancy. Furthermore, part of the property maintenance code will likely require a property owner to obtain a certificate of compliance before the owner may rent the property. The failure to obtain a certificate of compliance constitutes a civil infraction. Certainly, you are not obligated to pay for any other tenant's utilities and should raise that issue with the landlord.
12/03 00:45:03

refadmin wrote:

Dear Tony:

The fact that the basement is run down with some water damage is unlikely to qualify as a breach of the landlord's obligation. However, on the upside is the fact that a court will not uphold fees which are not agreed to in the lease. If you do breach your lease and move out early, the landlord must mitigate his damages by looking for tenants to lease your unit. Furthermore, they must comply with the law with regard to the security deposit.

If you need further assistance, please so inquire.
11/03 00:05:29

Tony wrote:

I signed a lease in MI and recently quit my job. I still have 9 months on my lease. The landlord told me that I must pay $1450.00 as a Market Return Fee and Leasing Fee in addition to paying rent until the apartment is leased or the lease contract is paid in full. The lease does not mention the Market return Fee or Leasing Fee. I need to get out of the lease. Nothing is wrong with my unit, but the basement where the washer and dryers are is pretty run down and looks to have some water damage.
08/03 19:33:03

Chad S wrote:

How does a house qualify as a two unit? I rent a house. My landlord is trying to call the upstairs area, unit two. It is empty. This house has only one address and no kitchen or shower/tub upstairs and only one utility meter that I pay.
03/03 09:24:19

refadmin wrote:

Unless there is undue influence or fraud, once you sign a lease, you are obligated to its terms. Your best bet is to try to work this out with the landlord / property owner. If there was any discussion in the negotiation stage about the possibility of your withdrawal or if there is a clause you can rely on in the lease, then use those factors in support of your position.

Typically, if there is a question or concern about whether a potential tenant wants the property, they should not sign a lease. Once the lease is signed, this evidences that they have read the terms and agree to them, thereby entering into the commitment for the property.
25/02 13:25:36

KW wrote:

I am interested in renting an apartment in Michigan, but have a question about a lease that I signed that is supposed to start on March 1, 2008. If I change my mind about the apartment before March 1, can I legally get out of the lease agreement at that time?

Thanks for any help,
Katherine
25/02 08:43:14

refadmin wrote:

I assume that the period quoted was meant to say, January 31, 2008 versus January 31, 2007. That being said, it sounds like your landlord is construing the lease provision to provide for $100.00 per month in back rent for the 12 1/2 months. However, unless you have misquoted your lease, this is not what the lease states. When I read the provision, I interpreted it to mean $100 per month for future rent, and not past rent. If provisions in the lease are ambiguous, as yours seems to be, the law requires that they be interpreted in favor of the tenant because the landlord was in the best position to have made the provisions clear. Therefore, your landlord should not prevail on his claim for that dollar amount.

Furthermore, the landlord does not have to give you notice before the lease is up, but does have to give you notice of a change in the lease terms, such as the rent. He also does have to give you proper notice of eviction.
16/02 23:21:56
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