Michigan Lease Agreements | Residential & Commercial

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A Michigan lease agreement allows a landlord to lease their property to a tenant seeking to pay rent to occupy the space. The terms may vary, but commonly a standard lease is for a 1-year period with rent due on the first (1st) of each month. It is recommended for landlords to always screen their tenants to ensure they have the financial capability to pay rent on a monthly basis.

Rental Application – Form provided for the landlord to verify that a potential tenant is currently employed t view any other requested credentials.

Table of Contents

Agreement Types (8)


Association of Realtors Lease Agreement – To be used by Realtors when representing a landlord or tenant in a rental arrangement.

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Commercial Lease Agreement – For a business use such as a store, restaurant, office, industrial, or any other type.

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Lease with Option to Purchase (Lease to Own) Agreement – Standard contract with a provision that allows for the sale of the premises within a particular timeline.

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Month to Month Lease Agreement – A tenancy at will in accordance with § 554.134. The contract may be terminated within one (1) month’s notice.

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Room Rental (Roommate) Agreement – Shared housing between members of a dwelling to negotiate the services in the unit and times for cleaning and other duties.

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Standard Residential Lease Agreement – Residential arrangement with a start and end date for most common types of tenancies.

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Sublease Agreement – Designed for a tenant in a standard lease and would like to rent the property to someone else for the remainder of their term. Typically the landlord must agree to this type of tenancy.

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Termination Lease Letter – Allows a lessor or lessee to cancel a month to month agreement with at least one (1) month’s notice before the next payment period (§ 554.134).

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Disclosures

Domestic Violence Victims – The landlord must write the following either in the rental contract, hung on the property, or delivered to the Tenant:

NOTICE: 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.

Inventory Checklist (§ 554.608) – A list including the condition of the property must be returned to the landlord within seven (7) days of taking occupancy for which a security deposit is required.

Lead-Based Paint Disclosure – A federal law that requires all landlords to disclose to their tenants, only if the residential unit was built before 1978, that the existence of this paint may pose a danger if exposed.

Notice Information (§ 554.634) – The landlord must provide in the lease an address where the tenant may be able to send legal notices.

Truth in Lending Act (§ 554.634) – All contracts must contain the following in 12-point font and no less than 1/8 inch in height.

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.

Security Deposit Receipt (§ 554.603) – Must be given by the landlord to the tenant including the financial institution where the funds are located. In addition, the following must be stated in the receipt, in at least 12 point font which must be at least 4 points larger than the rest of the document and in bold-faced lettering:

NOTICE: 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.

Access

There is no law that requires the landlord to issue notice to the tenant before entering the property.

Security Deposits

Maximum (§ 554.602) – One and a half (1.5) months’ rent is the most a landlord may receive from a tenant.

Returning (§ 554.609) – Within thirty (30) days of the end of occupancy the landlord must send the tenant their deposit, along with any itemized deductions, their forwarding address.

Laws/Guides

Residential LawsChapter 554 (Real and Personal Property)

HandbookMichigan Landlords and Tenant Guide

(Video) What are the Michigan Rental Laws?