Landlord Tenant Guide - State of Michigan

possession has ended (oftentimes based onlandlord’s failure to act). The person is justshort of being considered a trespasser. Theelements: (a) the tenant entered possessionlawfully, (b) the tenant’s legal right topossession has ended, and (c) the tenantremains without the landlord’s consent. Fixed-Term TenancyAdvantages. The advantage to the tenant isthat the rental period is fixed and the rentalamount is stable; the landlord may not regainpossession or raise the rent, with fewexceptions. The advantage to the landlord isthat the tenant is committed to pay rent for aspecified period of time; the tenant is boundby the lease terms, with few exceptions.Disadvantages. The disadvantage to thetenant is that he or she is bound by the leaseterm and may not simply move withoutremaining liable for the rent, permitting fewerchanges in arrangements. The disadvantage tothe landlord is that he or she is stuck with thetenant until the lease term ends.Periodic Tenancy OR Tenancy at WillAdvantages. The advantage to the tenant isthat he or she is free from any furtherobligation once proper notice of termination isgiven to the landlord—different housingarrangements can be made more quickly. Thesame advantage is true for the landlord; he orshe may decide to no longer rent to the tenantif the same proper notice is given.Disadvantages. The disadvantage to thetenant is that the landlord, with proper notice,can also raise rent. The disadvantage to thelandlord is that he or she is not provided withany certainty as to how long the tenant willremain. Although it is common for tenants to signsome type of written agreement, a lease is notalways put in writing. Sometimes it is nothingmore than an oral agreement as to the move-inand move-out dates, the address of the rentalproperty itself, and the amount of the rent andwhen it must be paid. However, if the leaseagreement is for a period of more than oneyear, an oral lease is not an option—it must beput in writing to comply with the Statute ofFrauds (MCL 566.106).Whether there is a fixed-term tenancy or aperiodic tenancy, it is best to have a writtenrecord of the rental agreement. A writtenrecord is a permanent record that may be usedfor reference if misunderstandings arise—andthey do. In the absence of a written lease,signed by both the landlord and the tenant, itis advisable to keep a personal written recordof the agreement. The Michigan Truth in Renting Act (Act 454of 1978, MCL 554.631 to 554.641) regulatesresidential leases—requiring the landlord todisclose certain information. Leases differsomewhat in terms, but a written leaseagreement should include:1. Name and signature of the landlord;2. Name and signature of the tenant;3. Rent amount to be paid, how frequently,and when and where it is to be paid;4. Address of the rental property;5. Starting and ending dates if it is a fixedtermtenancy;6. Landlord’s mailing address;7. Amount of the security deposit, if any;8. Name and address of the financialinstitution holding the security deposit;9. Notice of the tenant’s obligation to providea forwarding address to the landlord within4 days of terminating the tenancy;10. Who is responsible for paying utilities;11. Repair and maintenance responsibilities;12. Eviction procedures;13. Any other terms and conditions that thelandlord and tenant agreed to; and14. This statement must be provided in aprominent place in the lease, in at least a12-point font size:“NOTICE: Michigan law establishes rightsand obligations for parties to rentalagreements. This agreement is required tocomply with the Truth in Renting Act. Ifyou have a question about theinterpretation or legality of a provision ofthis agreement, you may want to seekassistance from a lawyer or otherqualified person.”