Rental Contract Agreement Laws in Michigan

Michigan laws set out the terms and conditions of rental contract agreements.apartment house image by Mats Tooming from Fotolia.com

A rental agreement is a written statement covering the terms and conditions of the use and occupancy of a rental unit. The Michigan Landlord-Tenant Act and the Truth in Renting Act provide terms and conditions for landlord and tenant relationships with respect to rental agreements. The acts cover required rental agreement information, security deposit use and investment, arrangements for rental termination, legal remedies for rental disputes, and penalties.

Rental Agreement

In accordance with the Truth in Renting Act, a rental agreement must include the name and address of the landlord and inform tenants of their rights and obligations under the act in the manner prescribed by the state.

In accordance with the Landlord Tenant Act, a landlord can require a security deposit for a rental unit that cannot be more than 1½ months' rent. Landlords must deposit the security deposit in a regulated financial institution. A landlord may use the security deposit funds as long as a cash or surety bond is deposited with the Secretary of State in the amount set by the state.

Landlords can use security bond funds as reimbursement for damages to rental unit property, rent that is past due, premature termination of the lease agreement and failure by the tenant to pay utility bills.

Landlords are required to provide tenants with at least 14 days' notice of the amount of security deposit required and a written notice stating the terms and conditions of termination of tenancy. This notice must inform tenants that failure to provide their forwarding address within four days of lease termination will result in forfeiture of their security deposit.

Landlords must provide tenants with a commencement inventory checklist at the beginning of a rental occupancy and upon termination of the rental agreement. The checklist covers the items in the rental unit that are owned by the landlord and the condition of the unit. Tenants must sign and return the checklist within seven days of possession of the rental unit. The landlord must clearly state these instructions on the checklist and notify the tenants that they have the right to request the previous occupancy checklist for the rental unit. Upon termination of the lease, the landlord is responsible for noting any damages attributed to the tenant on the inventory checklist.

Within seven days of receipt of a landlords damage claim, tenants must provide written agreement or disagreement with the landlords claim. A landlord may start a court action for reimbursement for damages claimed, with respect to the security deposit, within 45 days after the termination of a rental occupancy agreement.

A tenant may terminate a lease after a period of 13 months of rental unit occupancy by providing notice in writing 60 days prior to the lease termination date if he has been deemed by a notarized physician statement as being unable to live independently or provides proof of eligibility to live in a senior housing subsidized rental unit.