Whether you’re a landlord or a tenant, knowing the rent control laws in Michigan can provide you with much-needed answers. For landlords, understanding the laws will help you determine how much you can increase rent without breaking the law.
On the other hand, tenants can benefit by knowing their rights and understanding the process by which landlords can raise rent. That way, tenants will have the opportunity to prepare for rent increases and not be surprised by out-of-the-blue rent hikes.
In today’s article, we will discuss rent control in Michigan. By the end of the article, our hope is that you gain a better understanding of Michigan rent control laws, no matter your role, whether landlord or tenant.
Key Takeaways
- Rent control in Michigan is illegal. Landlords can raise the rent by any amount as long as they adhere to the terms of the rental agreement or provide at least 30 days’ notice (for tenants who have been in the property for less than a year; 60 days’ notice is required for tenants who’ve lived at a property for longer than a year).
- Knowing the Michigan rent control laws allows landlords to remain compliant and set pricing based on a variety of factors, including the current market. Understanding these laws also enables tenants to plan for potential rent increases, make informed financial decisions, and exercise their rights if they feel their rent was increased without proper notice or in a retaliatory or discriminatory manner.
- TurboTenant is reliable rental management software that streamlines rent payment and collection for tenants and landlords alike. For both parties, the ability to collect and pay rent from anywhere eliminates the hassle of in-person handoffs. Plus, autopay ensures landlords get paid on time, and renters save themselves the added cost of late fees.
Michigan Rent Control Laws: An Overview
Michigan Legislature’s Public Act 226 of 1988 bans rent control, meaning there’s no cap on rent increases. While there are no rent control laws in the state aside from the ban, landlords must provide at least 30 days’ notice in the event of a rent hike if the tenant has been in the unit for less than a year.
If the tenant has resided in the property for more than a year, a 60-day notice is required.
If a rental agreement is in place, the terms of that agreement dictate the amount of notice needed, the amount of rent increase, and, in some cases, the frequency of increases. In other words, landlords have the discretion to implement rent increases as they see fit, but they must comply with the agreement for its duration — no rent increases are allowed if the landlord doesn’t lay them out in the agreement at the beginning of the relationship.
In scenarios where an agreement is in place, the Michigan lease supersedes the law and provides landlords with the right to increase rent at the rate outlined in their lease. Because of these somewhat murky rules, landlords and tenants must be aware of Michigan landlord-tenant laws and stay on top of lease renewals when the time comes.
Rent Increase Limitations in Michigan
How much can a landlord raise rent in Michigan? Use the rental agreement as the starting point. Then, refer to the state law. Under Michigan law, rent can be increased by any amount as long as it’s not done in retaliation to a tenant doing something they are legally permitted to (e.g., participating in a union) or involving discrimination.
Also, as previously stated, landlords cannot increase rent if it goes against the terms of the rental agreement. For example, if the rental agreement specifies that rent will be $2,000 for the next 12 months, you can only increase the rent once the lease expires. In that case, you’d want to provide notice about the increase and give the tenant the chance to sign a new rental agreement or opt for a month-to-month arrangement.
After the lease is up, you can raise the rent by any amount, provided you notify the tenant about the increase ahead of time.
Tenant Considerations
Between January 2023 and January 2024, the average rent increase in Michigan was 12.47%, which is among the highest in the U.S.
For many people, an increase of that amount could be life-altering. That is where the Michigan Legislature’s House Bill 4947 of 2023 comes in.
The bill aims to implement rent control in Michigan to provide more affordable housing for renters, allow cities to determine individual rent caps, and provide greater protections for tenants.
However, until the bill is passed (which it may never be), there is no rent control in Michigan, nor are there any rent increase laws Michigan uses aside from providing notice before any rent increase that’s not outlined in the lease agreement.
Just Cause for Eviction in Michigan
Since there’s no rent control in Michigan, tenants may struggle to pay rent from time to time, which could, unfortunately, result in evictions. However, it is important to note that there must be “just cause” to evict someone in Michigan. That means a tenant must be behind on rent, consistently pay rent late (three times in 12 months), or something else along those lines.
Remember that even though tenants can be evicted, they have the right to safe and fair housing, meaning they can fight back against eviction if the landlord has failed to keep the health and safety codes up to date. Tenants may also avoid eviction if it appears to be filed out of discrimination or retaliation.
Landlord Rights and Responsibilities
- As a landlord, you can increase rent by any amount in Michigan as long as you abide by the rental agreement.
- Regarding Michigan rent control, use the lease for guidance on how much notice you need to give. Even though you can raise the rent, it is your responsibility to review the rental agreement and provide the appropriate amount of notice. If there’s no notice requirement in the lease, you must give 30 or 60 days’ notice, depending on how long a tenant has been in your property.
- Landlords are responsible for giving tenants a reason for the rent increase and a date when the increase will take effect.
- Landlords have the right to evict a tenant who is unable to pay rent only after going through the formal eviction process.
Tenant Rights and Responsibilities
- Tenants have the right to finish their lease within the terms of the rental agreement.
- Tenants are responsible for alerting landlords about any issues that make the house inhabitable so that they can be addressed.
- Tenants have the right to move out if they cannot afford the rent increase as long as they provide the amount of notice specified in the rental agreement.
- Tenants are responsible for knowing the Michigan landlord-tenant laws and speaking up without fear of retaliation if they believe their rights have been violated.
- Tenants have the right to not be discriminated against based on gender, religion, or other factors.
Navigating Rent Control Laws with TurboTenant
Understanding the ins and outs of rental control in Michigan can be a challenge. Fortunately, TurboTenant has seen it all, and we’re well-versed in the various rent increase laws Michigan uses (e.g., the requirement of providing notice, abiding by the rental agreement terms, etc.).
We’ve got you covered if you’re looking for a reliable company that offers property management software in Michigan. We provide property marketing, screening, a credit check for tenants, Michigan rental application templates, and much more. Additionally, our rent collection software allows you to track rent payments with ease, providing automatic reminders and late fees to keep everything streamlined.
It’s pretty great – but don’t just take our word for it. Here’s what landlords have to say about TurboTenant:
Disclaimer: TurboTenant does not provide legal advice. This material has been prepared for informational purposes only. All users are advised to check all applicable local, state, and federal laws and consult legal counsel should questions arise.