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Tenants Beware
If renting is in your future, or that of a child’s or friend’s, these tips can help ensure that your experience won’t be a costly one:Are there advantages to a written lease agreement? Whether there is a fixed-term tenancy or a periodic tenancy, it is best to have a written record of the rental agreement. A written record is a permanent record that may be used for reference if misunderstandings arise. In the absence of a written document signed by both parties, it is advisable to keep a personal written record of mutual agreements. However such a document is not admissible in a court of law.
How do you avoid potential lease problems? Before a tenant enters into a lease, he should: 1) know the type of housing needed; 2) know what can be afforded; 3) make a list of concerns (who pays for utilities, parking, are pets allowed, etc.); 4) make sure the property suits his personal needs; 5) understand the lease agreement before agreeing to it and/or signing it. If in doubt about the terms of the lease, have an attorney review it and provide advice. Do not agree to a lease with unacceptable terms.
Can a landlord charge a late fee if the rent is overdue? Yes, but only if a provision of the lease or rental agreement addresses it, and state law permits it. If nothing in writing specifies the late fee and its amount, the landlord can’t later decide they want to collect a late fee.
Does the landlord have access to the rental unit at any time? No. A tenant has a right to quiet enjoyment of their home. A landlord is bound by the constitution too. Even a police officer may not search without probable cause and a warrant.
A landlord is only entitled to inspect rental property periodically to make sure everything is in order, but even then the tenant must have reasonable notice of intent to enter. Entering rental property in a non-emergency situation without the tenant’s permission should be considered trespassing.
How much of a security deposit can a landlord require? In Michigan, a landlord may not require a security deposit that is greater than 1½ month’s rent. When the property is rented with furnishings, the landlord may usually request an additional deposit to cover the value of the furnishings. Landlords can and do charge additional deposits for pets.
What can a landlord do with a security deposit? Michigan law requires landlords to place security deposits in a separate, regulated bank account and to notify the tenant of the name and address of the bank where the money is held.
Can a landlord refuse to return a security deposit? Yes, but only by following state law. A landlord can always deduct payment for back rent, tenant utilities, and when the tenant has damaged the premises in a way that devalues the property. However, if the problems are considered normal wear and tear, the tenant cannot be penalized.
Michigan law requires that an inventory, or move in condition, “check list” be filled out and signed by all parties at the time of possession, to help determine what damage can be charged to the tenant when they vacate. Many tenants and landlords take the extra precaution of photographing damages both at the beginning and termination of occupancy to avoid damages disputes.
In Michigan, the landlord should return the deposit, less deductions for cleaning and repair, within 30 days after the tenant moves out. The tenant may dispute any claims against the security deposit, however the tenant must do so in writing within seven days of receipt of the notice.
Should the landlord fail to refund the security deposit or send a list of damages within 30 days of the end of occupancy and does not file a legal dispute within 45 days of the lease termination, the tenant has a right to full refund of the entire security deposit.