Do you own some property in Michigan state? Are you looking to rent it out and make some profit but do not know where to start from? To begin with, you require a Michigan rental lease agreement that can help you go forward.
Getting an attorney to manage and develop your lease agreement will cost you way more than you can imagine. To avoid expensive attorneys, you can find templates online easily.
At CocoSign, you can find some excellent templates to serve your purposes. By altering it, you can include your specific disclosures, rules, etc., and have your very own rental agreement ready in no time.
What Is a Michigan Lease Agreement?
The Michigan lease agreement is a legally binding contract that allows two parties (the tenants and the landlords) to bind together officially for the purpose of renting out a property for a specific period.
Now, there are two types of rental agreements - one which leases property over a certain time period. Usually, the allotted time for the Michigan residential lease agreement equals one year. This always comes with a start and end date.
The other one is a rental agreement, which renews every month and is usually a short-term situation. It is also known as ‘estate at will.’
Creating a rental agreement for Michigan based property can be exhausting. There are a lot of factors that need to be addressed in doing so. These include disclosures and addendums, both the mandatory and optional ones.
Michigan Landlord and Tenant Laws
Michigan rental lease agreement has a set of landlord and tenant laws that the state declares a must to follow. An overview of these laws is as follows:
- Michigan security deposit and return limit: The amount that a landlord can charge as a security deposit has a limit. This limit is generally a maximum of a month and a half’s rent. The tenant should receive the security deposit within 30 days of moving out.
- Rent Rules: The state law has set down a seven-day time limit within which the tenant has to pay the month’s rent or move out. Failure to do so allows the landlord to file for eviction.
- Termination and Eviction Rules: The landlord has the privilege of determining and specifying the details of the termination of a tenancy.
For example, if a tenant has caused damage to the property willfully or poses a continuous health hazard, then the landlord can provide an unconditional quit notice of seven days for the tenant to move out. Failure to do so will allow the landlord to file for eviction.
- Inventory checklistsIt is legal for a landlord to make inventory checklists in detail at two times. Once when the tenants are moving in and once after the tenants are moving out. This is to assess the rental unit’s condition and any damages done.
Michigan Lease Disclosures & Addendums
Michigan state laws require you to add certain legal disclosures in your rental agreements. They are as follows:
Lead-Based Paint Disclosure:
The safety and health of tenants is a top priority. Hence, the state requires the rental property managers to disclose relevant information to tenants regarding lead-based paint hazards.
Buildings built before 1978 are likely to contain lead-based paint. If your rental property dates back to before 1978, you must provide your tenants with an EPA-approved pamphlet.
You must also include a ‘Lead Warning Statement’ in your Michigan lease agreement. Moreover, revealing all important information about the role of lead-based paint in your building or rental units.
Marijuana Use Policy:
Marijuana is allowed for medicinal purposes and now for recreational use in Michigan. Therefore, landlords are required to mention all related policies in the agreement with clear rules to avoid any legal problems.
The rental lease agreement should include the disclosure which allows early termination of the lease by the tenant. It is based on the presence of danger to him or his child from domestic violence, stalking, or sexual assault.
The tenant should notify the landlord with proof of violence in a certified mail. The tenant’s obligation ends by 31 days after he/she issues the notice.
Dishonored Fee Payment:
This needs to be included in the lease or agreement as well. The dishonored fee should be set at $25 to be paid within seven days.
Optional Disclosures & Addendums
Michigan renter’s agreement can include many optional disclosures. These include smoking policies, availability of fire protection equipment, and the identity of the landlord.
Any recent flooding events in the building, move-in checklists, list of pre-existing damage to the property can be included too. It is recommended to include the following disclosures in the rental agreements:
- Shared Utilities Arrangements: The tenants share and split the utilities of the property on rent. It is advised to specify the ratio of the utilities that the residents can use per month. Moreover, it is important to mention the costs with the utilities. This ensures equality and justice in your rental business.
- Late Fee: The tenant must be fully disclosed with the details of the late fee. These details should be highlighted to ensure that the tenants are well aware of all possible consequences in such situations.
As highlighted above, some vital disclosure laws need to be present in all Michigan rental lease agreements. The landlords can add other disclosures in this contract as well which benefits both parties.
However, the best place to find ready-made templates is CocoSign as they cover the basics of all Michigan lease agreement forms. The landlord can incorporate details as per his or her preference.
CocoSign represents a wide collection of legal templates covering all types of leases, contracts and agreements for personal and commercial use. All legal templates available on CocoSign shall not be considered as attorney-client advice. Meanwhile, CocoSign shall not be responsible for the examination or evaluation of reviews, recommendations, services, etc. posted by parties other than CocoSign itself on its platform.