Michigan Month-to-Month Rental Agreement
Though many leases last a year or more, Michigan month-to-month lease agreements offer both landlords and tenants greater flexibility. Whereas a fixed-term lease expires on a specific date, a month-to-month rental agreement has no end date and expires and renews at the end of each month until either party gives appropriate notice to terminate.
Though these short-term rental agreements differ from long-term Michigan lease agreements, Michigan landlord-tenant law still applies to month-to-month contracts in the state. Keep reading to learn what landlords should know about these rental agreements.
Michigan Month-to-Month Lease Laws
Though Michigan month-to-month lease agreements provide some freedom for landlords and tenants, a few crucial rental laws still apply here. We’ll go into detail on how landlords should approach the following:
- Making mandatory landlord disclosures
- Giving required notice to terminate
- Increasing rent
- Evicting tenants if necessary
- Receiving, storing, and returning security deposits
- Charging pet deposits and rent
- Charging late fees
Michigan Month-to-Month Lease Agreement
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Required Landlord Disclosures (5)
- Lead-based paint: Under federal law, landlords must disclose the known presence of lead-based paint and all associated hazards in any unit built before 1978 (Residential Lead-Based Paint Hazard Reduction Act of 1992).
- Truth in Renting Act: Landlords must provide a copy of Michigan’s Truth in Renting Act with all residential leases. This document outlines tenants’ rights under Michigan landlord-tenant law (Truth in Renting Act).
- Domestic violence: Landlords must disclose the tenant’s right to terminate a lease early without financial penalty if the tenant is a victim of domestic violence (MCL 554.601b).
- Move-in checklist: Landlords must provide a checklist detailing the dwelling unit’s condition at move-in before charging a security deposit. The same checklist must be used to assess any damages to the unit upon the termination of the tenancy (MCL 554.608).
- Landlord/agent name and address: Landlords must disclose their name and address or that of an authorized agent (MCL 554.634).
Required Notice to Terminate Month-to-Month Agreement
While landlords and tenants across the U.S. must give appropriate notice to terminate month-to-month lease agreements, the required notice period differs by state. In Michigan, landlords and tenants should abide by these practices:
Required notice for landlord: Landlords must notify tenants at least 1 month in advance before terminating a Michigan month-to-month lease agreement (MCL 554.134).
Required notice for tenant: Tenants must give landlords 1 month’s notice before terminating a Michigan month-to-month lease agreement (MCL 554.134).
Rent Increase Laws
Michigan month-to-month rental agreements give landlords more room to increase rent. However, landlords must still provide adequate notice and abide by other state laws that govern rent increases.
As of 2024, rent control is illegal in Michigan, meaning landlords can increase rent by any necessary amount. Under Public Act 226 of 1988, landlords must provide at least 30 days’ notice before raising rent for tenants who have lived in a unit for less than a year and 60 days’ notice for tenants who have lived there for more than a year.
If the rental agreement contains terms that apply to rent increases, such as restrictions on the amount or an increased notice period, landlords must also abide by these rules.
Rent Payment Laws
Grace period: Michigan law does not require landlords to provide a grace period for late rent payments.
Late rent fees: Landlords may charge late fees in any reasonable amount should rent become overdue, but both parties must agree on the amount in the rental contract first.
Tenant’s right to withhold rent: Tenants in Michigan may withhold rent and place payments in escrow if their landlord fails to provide safe, habitable housing. They may also conduct necessary repairs and deduct the cost from rent (MCL 125.530).
Pet rent laws: Landlords in Michigan may charge monthly pet rent. The lease agreement should disclose the amount.
Security Deposit Rules
Maximum security deposit: Landlords using a Michigan month-to-month lease agreement can charge a security deposit that does not exceed one-and-a-half months’ rent (MCL 554.602).
Security deposit receipt: Within 14 days of receiving the security deposit, landlords must give tenants a written receipt that includes the location of the financial institution where the deposit is being stored (MCL 554.603).
Deduction tracking: Landlords in Michigan must maintain records of any deductions made against the deposit for damages to the rental unit or unpaid rent/utilities (MCL 554.609).
Returning a tenant’s security deposit: Within 30 days of the tenancy’s termination, landlords must provide an itemized statement of all deductions and any remaining security deposit amount. The tenant has 7 days from the time of receipt to contest the deductions (MCL 554.609).
Pet deposit rules: Landlords can charge a pet deposit in a reasonable amount that does not exceed the limits established by federal law (Exhibit 6-4: Mandatory and Discretionary Pet Rules).
Property Access Regulations
Advance notice: Though Michigan does not have specific laws that require landlords to notify tenants before accessing the dwelling unit, landlords should still provide reasonable notice and enter at reasonable times.
Immediate access: Michigan law does not address landlords’ immediate access to a unit; landlords should only enter a unit without advance notice in an emergency.
Landlord harassment: If the landlord repeatedly enters the unit without providing proper notice to the tenant, this could constitute landlord harassment. As a result, the tenant may terminate the lease early without penalty, and the landlord could be subject to civil repercussions.
Rental Agreement Violations
Missed rent payment: If a tenant does not pay rent on time as established in the Michigan month-to-month lease agreement, the landlord may issue a 7-day notice to pay or quit (MCL 554.134).
Lease violation: Should a tenant-at-will violate the terms of the rental agreement, the landlord may deliver a month’s notice to cure the violation or quit the premises. (MCL 554.134) If the tenant creates a material health or safety violation, the landlord may deliver a 7-day notice to quit (MCL 600.5714).
Self-help evictions: Unlike other states, Michigan allows landlords to use self-help evictions to remove squatters, though they must first seek legal resources (Act No. 223).
Landlords in Michigan may not use self-help evictions to remove tenants or tenants-at-will.
Lease Abandonment: Tenants may break a lease and move out of their unit early in certain circumstances, including starting active-duty military service (Servicemembers Civil Relief Act 50 USC App § 535), becoming incapable of living independently (MCL 554.601a), or being a victim of sexual assault, domestic violence, or stalking (MCL 554.601b). Outside of these reasons, though, tenants who abandon their lease may have to pay the remainder of the rent for the original lease agreement term.
Michigan Month-to-Month Lease Agreement FAQs
What is a month-to-month lease agreement?
Michigan month-to-month lease agreements are short-term rental contracts that expire and automatically renew at the end of every month until terminated by either the landlord or the tenant.
What’s the difference between a fixed-term lease and a month-to-month agreement?
Fixed-term leases expire and must then be renewed on a set date, usually a year or more from the original lease signing. On the other hand, month-to-month agreements are more flexible and allow landlords and tenants greater freedom in determining the length of the tenancy.
How to end a month-to-month lease agreement?
In Michigan, either the landlord or the tenant must give the other party 30 days’ written notice to end a month-to-month lease agreement. If the landlord has good cause and must end the tenancy early, appropriate notice must be given between 7 and 30 days in advance.