Most Commonly Used Michigan Lease Agreements
In Michigan, the most commonly used lease agreements are commercial lease agreements, standard residential lease agreements, a month-to-month lease agreement, a lease to own agreement, a sublease agreement, and a roommate agreement.
All of the most commonly used Michigan lease agreements use the same basic clauses. However, they may have their own specific purposes. Here a couple of examples to highlight how they may be different while also being very similar in nature.
- A roommate agreement is a type of residential lease. It includes all of the clauses found in a standard residential lease agreement. Yet it also explains which areas of the rental are for the sole use of the roommate and which areas are for the use of all of the occupants.
- A standard residential lease agreement is generally written for a fixed-term of one year. At the end of that term, it may renew for another year or it may convert to a month-to-month lease agreement. However, a one-year fixed-term lease may be similar to a month-to-month lease in many ways. One common similarity is that both may require a 30-day written notice to move out at the end of the lease if either party decides they do not wish to renew it.
How to Write a Michigan Lease Agreement
A Michigan lease agreement must be written in accordance with Michigan landlord-tenant laws. Failure to do so means that the lease cannot be enforced. Additionally, there are other laws that must be considered. You’ll learn more about some of those laws under the sections related to disclosures and security deposits.
Because it is a contract, you should read the terms of the lease agreement or have it reviewed by a lawyer.
A Michigan lease agreement should include the following information:
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Names of the parties - This clause includes the landlord's full name or the property management company's legal business name and the full name of the tenant(s).
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Property Address - This clause provides the physical address for the rental property. It includes the city, zip code, and, if applicable, the lot or unit number.
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Term Information - This clause provides the type of lease agreement the parties agree to enter into. For example, a month-to-month lease or a fixed term. A fixed-term lease means that the parties agree that the tenant will hold possession of the space for a certain amount of time, usually one year. If it is a fixed lease, this section should include the date that the lease will end.
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Rental Amount - This clause includes a lot of information such as the date that the lease will begin, the amount of the monthly rent, the day of the month that rent is due, and the address where the rent may be paid.
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Late Fee - This clause explains how much the fee is that is due if the rent is not paid by a certain date.
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Security Deposit - This clause provides the amount of money that must be paid in advance of the tenant taking control of the property. A security deposit is used to repair damages caused by the tenant.
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Initial Payment - This clause documents the total amount of money that the tenant must pay to move into the property. This should include the amount of the first month's rent, the security deposit, and the total of the two numbers added together.
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Occupants - This clause documents the full name of each tenant even if they are a minor or are not signing the lease. This part of a Michigan residential lease agreement establishes who will reside in the residential unit. For commercial space leases, it designates those who have permission to use the space. If the presence of additional occupants changes the price of the rent, it should be included in this section.
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Utilities - This clause explains which utilities or services a tenant does not pay.
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Parking - This clause informs the tenant whether they will receive a parking space. If a parking space is reserved and there is a designated spot, the spot should be listed in this section.
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Furnishings - This clause tells tenants what they are allowed to install (such as a washing machine or dishwasher) or what they may not install. If the tenant is not allowed to bring their own appliances, that should be designated in this section.
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Notices - This clause lists the names of both the landlord or the property management company and tenant along with their respective mailing addresses. This contact information is used if the parties need to send out a notice to the other party.
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Eviction - This clause explains how eviction proceedings would be carried out in the event of nonpayment or breach of other lease terms.
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Additional Terms - This clause documents any other terms that the parties agreed to that haven't been included in any other section of the lease agreement.
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Signature and Date - The document should be signed and dated by all parties.
Which Disclosures Belong in a Michigan Lease Agreement?
There are several disclosures that are required by law in the State of Michigan. There are also key statements that must be included.
- A notice for domestic violence victims must be included as follows:
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 a rental obligation under MCL 554.601b.
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.
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.
What You Need to Know About Michigan Lease Agreement Deposits
Under state law, the landlord may not request more than one and a half month's rent as a security deposit. The security deposit must be returned to the tenant within 30 days of ending the lease. If money was withheld from the security deposit, the landlord must provide an itemized list of deductions.
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