Drafting Michigan Lease Agreements: Truth in Renting

Drafting a residential lease in Michigan is a precarious undertaking if you attempt to "borrow" a generic lease template off the internet. Michigan has a designated statute-the Truth in Renting Act (Act 454 of 1978)-specifically designed to regulate exactly what you can and cannot include in a residential contract.

The Mandatory Truth in Renting Clause

The most rigid requirement for a Michigan residential lease is that it must explicitly acknowledge the Truth in Renting Act.

Every written residential lease must contain a specific, statutorily mandated 3-sentence statement. The lease must state-in a prominent place and rendered in at least 12-point type, or in legible print with letters not smaller than 1/8 inch:

"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."

Prohibited Clauses (Voided Lease Terms)

The core purpose of the Truth in Renting Act is to prevent landlords from writing clauses that trick tenants into giving up their civil rights. If you include any of the following clauses in your Michigan lease, the clause is automatically void.

Furthermore, if a tenant points out the illegal clause and the landlord refuses to cure the lease within 20 days, the tenant can sue the landlord for statutory damages up to $250 per illegally drafted clause.

You cannot include a clause that:

• Waives Eviction Laws: Claims the landlord has the right to re-enter the property, change the locks, or alter the locks to evict the tenant without a proper District Court order.
• Waives Security Deposit Rights: Alters or waives the strict timelines and 1.5-month limit imposed by the Security Deposit Act.
• Absolves Landlord Liability: Excludes or limits the landlord's liability for completely failing to maintain the property in a habitable condition, or absolves the landlord of liability for injuries caused by the landlord's negligence.
• Speeds Up Rent Acceleration: States that if the tenant breaches the lease, the entire remaining balance of the rent for the entire year becomes due immediately. (Rent acceleration clauses are generally illegal in Michigan residential leases).
• Waives Jury Trials: Forces the tenant to waive their constitutional right to a trial by jury in disputes.
• Forces Confessions of Judgment: Forces the tenant to automatically admit guilt or liability in a legal dispute.

Allowable "Special Clauses"

While the prohibitions are strict, Michigan landlords still have broad freedom to enact bespoke "house rules." You can legally insert clauses that:

• Ban smoking or vaping inside the unit.
• Strictly prohibit subleasing (such as banning Airbnb operations) without prior written consent.
• Enforce strict noise curfews between 10:00 PM and 7:00 AM to protect neighboring tenants.
• Shift the responsibility of routine yard maintenance or driveway snow removal to the tenant (very common in single-family home rentals in Michigan).

Ensure Legal Protection with Landager

Using an outdated PDF lease from 2012 you found on a forum leaves your entire Michigan portfolio exposed to thousands of dollars in statutory 'Truth in Renting' fines. Landager provides property managers with dynamically updated, state-specific digital lease agreements. Our system ensures the mandatory 12-point font phrasing is locked in, blocking illegal rent acceleration clauses while allowing you to legally customize your exact late fee thresholds and specific pet restrictions.

How Landager Helps

Landager tracks lease terms, important compliance deadlines, and security deposit details - making it easy to stay compliant with Michigan regulations.

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