Human Relations
Commission
LANDLORD &
TENANT
PREFACE
PREFACE
The City of Holland Human Relations Commission published the Tenant/Landlord Rights and Responsibilities Handbook to promote good tenant and landlord relationships. The Human Relations Commission encourages both rental parties to become informed of their rights and responsibilities so that difficulties may be prevented and effectively managed if they arise.
You are encouraged to use the forms contained in this booklet which appear in the appendices. Tenant and Landlord court forms may be obtained at the district court. The information in this booklet should not be used as a substitute for professional legal advice and assistance. Whenever necessary, both tenants and landlords should seek the services of an attorney to enforce their rights.
TABLE OF CONTENTS
TABLE OF CONTENTS PAGE PAGE
FAIR HOUSING & CIVIL RIGHTS 1
TENANT SELECTION 2
RENTAL UNIT SELECTION 2
TENANT RIGHTS 3
TENANT RESPONSIBILITIES 3
LANDLORD RIGHTS 4
LANDLORD RESPONSIBILITIES 4
RENTAL UNIT REGISTRATION 5
ANNUAL PERMIT FEE 5
RENTAL UNIT CERTIFICATION PROGRAM 5
CITY OF HOLLAND HOUSING CODES 6
HOUSING BOARD OF APPEALS 8
WITHHOLDING RENT FOR REPAIRS 9
RENT DEDUCTION FOR REPAIRS 10
RENT REBATE 10
WRITTEN RENTAL AGREEMENTS 11
WRITTEN LEASES 12
ORAL RENTAL AGREEMENTS 12
SUBLEASING 13
RENT INCREASES 13
TERMINATING A LEASE 14
TRUTH IN RENTING ACT:
LEASES AND RENTAL AGREEMENTS 15
CORRECTING ILLEGAL LEASE AND AGREEMENT CLAUSES 16 INCLUDING OMITTED REQUIRED STATEMENTS AND NOTICES 17
MOVING OUT 17
SECURITY DEPOSITS 18
PERMITTED USES FOR SECURITY DEPOSITS 19 USES OF SECURITY DEPOSITS NOT PERMITED 19 REASONS FOR RETENTION OF SECURITY DEPOSIT 19
CLEANING DEPOSIT 20
INVENTORY CHECKLIST 20
SCHEDULE FOR RETURN OF SECURITY DEPOSIT 20
NOTICE OF DAMAGES 21
EVICTIONS 22
EVICTION EXAMPLE #1: NONPAYMENT OF RENT 23 EVICTION EXAMPLE #2: TERMINATION OF TENANCY 23
ILLEGAL EVICITONS 24
EVICTIONS FROM PUBLIC HOUSING 25
SMALL CLAIMS COURT 26
APPENDICES APPENDICES
I. SAMPLE RENTAL APPLICATION
II. SAMPLE LETTER: REQUEST FOR REPAIRS
III. SAMPLE LETTER: WITHHOLDING RENT FOR REPAIRS IV. SAMPLE LEASE OR RENTAL AGREEMENT
V. ADDITIONAL TERMS AND CONDITIONS VI. NOTICE OF SECURITY DEPOSIT
VII. INVENTORY CHECKLIST FORM
VIII. SAMPLE LETTER: RETURN OF SECURITY DEPOSIT (30 DAYS) IX. SAMPLE LETTER: RETURN OF SECURITY DEPOSIT (45 DAYS)
X. NOTICE OF DAMAGES
XI. SAMPLE LETTER: DISPUTE OF CLAIMED DAMAGES
FAIR HOUSING AND CIVIL RIGHTS FAIR HOUSING AND CIVIL RIGHTS
The Holland Human Relations Commission is responsible for the enforcement of the City of Holland’s fair housing ordinance. In addition, the Michigan Department of Civil Rights (MDCR) and the Department of Housing and Urban Development (HUD) investigate unfair and discriminatory housing practices on the state and federal levels. The combined city, state, and federal laws prohibit discrimination on the basis of religion, race, color, national origin, age, sex, marital status, family status, disability, and legal income source.
The following discriminatory practices are prohibited:
• Refusal to meet with interested parties for the purpose of renting, or refusal of permission under reasonable conditions to inspect an available rental property.
• Failure to offer equal terms, facilities, conditions, services or privileges in a rental transaction.
• Denial of the availability of a rental property when in fact it is available for rent.
• Print, circulate, post, or cause to be published a statement, advertisement, notice or sign with the intent to discriminate in the selection of prospective tenants.
• Use of an application form to select tenants with the intent to discriminate or make a record or inquiry which indicates the religion, race, color, national origin, age, sex, marital status, family status, or disability of tenants. Source of income information may be obtained for the purpose of making a good faith business decision relating to the tenant’s ability to meet the financial responsibility involved.
TENANT SELECTION TENANT SELECTION
• Tenants should complete a rental application. Be sure that the information requested on the application does not violate city, state, or federal civil rights and fair housing laws.
• Check housing references and contact at least one, preferably two, previous landlords.
• Check tenant’s credit references.
• When possible, visit the prospective tenants at their current address to see how they maintain their residence.
• Landlords must comply with all fair housing laws when selecting tenants. It is illegal to discriminate against prospective tenants because of their race, color, national origin, religion, age, sex, marital status, disability, or family status. Also, in the City of Holland, a tenant cannot be denied a rental unit because of their legal source of income.
RENTAL UNIT SELECTION RENTAL UNIT SELECTION
• Request to interview past tenants or current tenants living in the landlord’s other rental units.
• Check with the City of Holland’s Environmental Health & Inspections Department to ensure that the rental unit is registered and is in compliance or substantial compliance with the City of Holland’s property maintenance code.
• Have the landlord make needed repairs to the rental unit before moving in. Otherwise, have the landlord agree, in writing, to make the necessary repairs by a specific date.
• Read the lease or rental agreement carefully before signing. Ask the landlord to explain any parts of the agreement that are not clear or are difficult to understand. All leases and rental agreements that violate the TRUTH IN RENTING ACT TRUTH IN RENTING ACT are
invalid and cannot be enforced unless properly corrected.
TE
TENANT RIGHTSNANT RIGHTS
Tenants have the right to:
• receipts for rent, fees, and utility payments made.
• full use and peaceful enjoyment of the rental unit.
• a well maintained rental unit which meets applicable state and local housing codes.
• request necessary repairs and complain to authorities when the landlord fails to make required repairs.
• agreements, notices, and promises of repairs, in writing;
• have the security deposit handled as required by the security deposit law.
• non-discrimination by the landlord on the basis of religion, race, color, national origin, age, sex, marital status, family status, disability, and legal income source.
TENANT RESPONSIBILITIES TENANT RESPONSIBILITIES
Tenants have the responsibility to:
• pay the rent on time and comply with the lease or rental agreement.
• keep the rental unit clean and keep garbage in approved containers.
• be considerate of other tenants.
• repair any damage caused by tenants or guests
• complete and return the inventory checklist within seven (7) days after moving into the rental unit and notify the landlord of repairs needed in the rental unit.
• allow the landlord to enter the rental unit if permission is granted by the tenant.
LANDLORD RIGHTS LANDLORD RIGHTS
Landlords have the right to:
• have the rent paid on time or evict for non-payment of rent.
• evict for failure of tenants to properly care for the rental unit.
• sue tenants for rent due if the lease or agreement is terminated prematurely.
• refuse to rent to someone based on poor or insufficient credit information or poor references.
• request the housing inspector to inspect the rental unit and issue a housekeeping order to a tenant who is unsanitary in the upkeep of the rental unit.
• enter the rental unit with proper notice and permission from the tenant to make necessary repairs. In an emergency, permission to enter is not necessary.
LANDLORD RESPON
LANDLORD RESPON SIBILITIESSIBILITIES
Landlords have the responsibility to:
• respect the tenant’s privacy and comply with the terms of the lease or rental agreement.
• and comply with state and local property maintenance codes.
• follow legal procedures and use proper legal forms when renting to or evicting a tenant.
• process the security deposit according to the security deposit law including utilizing proper legal forms.
• request permission before entering the rental unit, except in the case of an emergency;
RENATAL UNIT REGISTRATION PROG RENATAL UNIT REGISTRATION PROG RAMRAM
Rental units located within the city limits of Holland are required to be registered with the City of Holland’s Environmental Health & Inspections Department. The following information shall be provided:
• The address of the rental dwelling and number of rental units within the structure.
• The name, residence address, business and home telephone number of the owner.
• The name, residence address, business address, and business telephone number of the responsible agent designated by the owner.
The are no fees for registering rental units unless the owner surpasses the 30 days required for registration of newly constructed, converted, sold, transferred, or conveyed rental dwellings. A $25.00 administrative late charge is collected for late registration of each rental unit. Failure to register or providing incorrect, outdated registration information is considered a misdemeanor and is subject to a fine and costs as well as the administrative late charge.
ANNUAL PERMIT FEE ANNUAL PERMIT FEE
No rental unit may be occupied unless an Annual Basic Housing Permit is first secured from the City of Holland’s Environmental Health & Inspections Department. A $30.00 annual permit fee is due every year on January 10, and paid to the City Treasurer for each rental unit. The annual permit fee is set by City Council and may be subject to change.
RENTAL UNIT CERTIFICATION PROGRAM RENTAL UNIT CERTIFICATION PROGRAM
The City of Holland requires all rental housing units to be inspected for compliance with the City’s housing code. Certification Ordinance No. 880 states, “No property owner shall lease, rent, or otherwise allow a rental unit to be occupied unless the Environmental Health & Inspections Department has issued a rental certificate of compliance for such rental unit.”
A rental certificate of compliance shall not be required under the following circumstances:
• Within three (3) years of the first inspection of the rental unit, but no longer than six (6) years from the effective date of this ordinance.
CITY OF HOLLAND HOUSING CODE REQUIREMENTS CITY OF HOLLAND HOUSING CODE REQUIREMENTS
Rental units must meet housing code requirements as homes or apartments which are in a safe and decent living condition.
If your rental unit does not comply with the code requirements listed below, tenants are encouraged to first contact their landlord and request that repairs be made. If the landlord fails to make the necessary repairs, the tenant has the right to file a complaint with the City of Holland’s Environmental Health & Inspections Department to have code violations corrected. It should be noted that: TENANTS ARE PROTECTED FROM TENANTS ARE PROTECTED FROM EVICTIONS BY MICHIGAN LAW WHEN THE EVICTION IS IN RETALIATION FOR EVICTIONS BY MICHIGAN LAW WHEN THE EVICTION IS IN RETALIATION FOR REPORTING HOUSING CODE VIOLATIONS.
REPORTING HOUSING CODE VIOLATIONS.
An official copy of the City of Holland Housing-Property Maintenance Code Ordinance is available upon request in the Environmental Health & Inspections Department in city hall. The housing code requirements as outlined below are not intended to take the place of the city’s official housing code and are not all inclusive. The information provided is intended to give tenants and the landlords an idea of what is generally required by the city housing code and should be used as a guideline.
• The water supply system must be maintained to provide water in sufficient volume and pressure to enable plumbing fixtures to function in a satisfactory manner.
• All sinks, bathtubs, showers and lavatories must be able to provide cold and hot running water.
• Sinks in the bathroom, kitchen, and basement as well as lavatories and drains must be in good working order.
• Each dwelling unit or apartment must have at least one room with both a lavatory and a toilet.
• Each dwelling unit must have at least one shower or bathtub.
• Walls, ceilings, floors, windows, doors, and exterior surfaces must be maintained in good condition, free from excessive peeling paint, cracked or loose plaster, decayed wood, and other defective surface conditions.
(Housing Code Requirements Continued)
• A safe and approved heating system must be provided that is able to maintain 65° heat for all habitable rooms from September 15 to May 15.
• Bathrooms and kitchens must have adequate ventilation by window or exhaust fan. A window is not required in a bathroom for ventilation purposes if an approved mechanical ventilation system exists.
• Every window and exterior door must fit within its frame and be weather-tight to exclude wind and rain.
• At least one (1) window in each habitable room must be capable of being opened easily. All operable windows must have window hardware capable of tightly securing each window.
• At least one (1) operable window in each habitable room must have an approved screen that fits tightly.
• Every habitable room must have at least one (1) window of approved size facing directly to the outdoors for light and ventilation.
• Exterior doors and hardware must be maintained in good condition, with locks capable of tightly securing the doors.
• The exterior of the dwelling must be kept weather and water tight and rodent proof.
• A minimum of two (2) separate duplex electrical outlets must be provided for each habitable room, and a minimum of one (1) for a bathroom with GFCI protection.
• Habitable rooms and bathrooms must have wall controlled switches or outlets for lighting fixtures.
• Kitchens must be provided with at least two (2) separate duplex electrical outlets, one of which must be adequate for the operation of a refrigerator. In addition, kitchens must be provided with a minimum of two (2) grounding type duplex electrical outlets. The National Electrical Code requires that all outlets in the kitchen located within six (6) feet of a sink, and above a counter top, be equipped with ground fault circuit interruption protection.
(Housing Code Requirements Continued)
• Each basement room must have at least one (1) light fixture.
• The interior of every dwelling and common area must be maintained in a clean and sanitary condition free from accumulation of rubbish, refuse, or garbage.
• Garbage and vegetable wastes or other organic materials which can rot and produce odors must be stored in leak-proof containers.
• All heating and cooling equipment must be kept in good and safe repair.
• All railings, floors, steps, stairs, and porches must be safe and sound.
• Hardwired interconnected with battery backup smoke detectors must be provided for each rental unit, and must be maintained in working order.
• Each structure must have an assigned street number displayed so that it can be read easily from the street.
• At least one off-street parking area that is a clearly designated driveway area with concrete or other similar durable surface must be provided for each dwelling unit.
HOUSING BOARD OF APPEALS HOUSING BOARD OF APPEALS
The Housing Board of Appeals was established to hear appeals from tenants and landlords arising from decisions made by the housing inspector or enforcing officer. The five (5) member board of appeals review appeals relating to the administration, enforcement and interpretation of the city housing code, registration, and certification programs.
The Human Relations Commission recommends that rental property owners contact the Environmental Health & Inspections Department, located in the 3rd floor of city hall, and
WITHHOLDING RENT FOR REPAIRS WITHHOLDING RENT FOR REPAIRS
A tenant may choose to withhold rent if the landlord fails to maintain the rental unit in good repair. In order to withhold rent the following steps must be taken:
1. A letter must be written to the landlord (keep a copy) requesting that repairs be made and when the repairs should be completed. Depending on the repairs, the landlord must be given a reasonable time to comply with the request.
2. If the landlord does not respond to the written request to make repairs, the tenant must notify the landlord in writing (certified mail, return receipt recommended) of withholding rent. The entire amount of the rent should be placed in an escrow account on or before the rent is due. The landlord should also be advised that once repairs are completed, the rent will be paid in full.
3. Once rent is withheld, the tenant should make an appointment with a city housing inspector to verify and officially document the repairs needed.
NOTE: Rent may not be withheld if rent payments are overdue. The tenant must be current with rent payments and may withhold future rental payments only.
CAUTION: As a result of withholding rent for repairs, the landlord might issue a seven (7) day notice to evict for non-payment of rent. If this should happen, the tenant must be prepared to show that rent was properly withheld and that the entire rent due is in a savings or escrow account.
If the landlord decides to issue a thirty (30) day notice to evict as a result of withholding rent for repairs, the tenant must be prepared to show that rent was properly withheld and that the attempted eviction is in retaliation for the rent withholding.
Michigan’s retaliatory eviction law p
Michigan’s retaliatory eviction law protects tenants from eviction when the eviction is in rotects tenants from eviction when the eviction is in retaliation for reporting housing code violations, or in retaliation for taking advantage of retaliation for reporting housing code violations, or in retaliation for taking advantage of legal rights afforded under the law.
RENT DEDUCTION FOR REPAIRS RENT DEDUCTION FOR REPAIRS
The landlord in responsible for maintenance and repairs of the rental unit. When repairs are needed, the landlord should be informed of the repairs to be made in writing. If the landlord refuses to make the necessary repairs within a reasonable time period, the tenant may decide to make the repairs or contract to have these repairs completed. When deducting rent for repairs the tenant should do the following:
• The landlord should be informed of the repairs to be made in writing. This notice should give the landlord a reasonable time period to complete the repairs.
• If repairs are not made within a reasonable time, the tenant should obtain more than one written estimate to have the repairs completed.
• Once repair estimates are obtained, they should be mailed by certified mail to the landlord advising the landlord of the plan to have the repairs made and the rent deducted to cover expenses. This letter should also give the landlord a date to complete repairs prior to having the repairs made by a contractor.
• Once repairs are completed, the tenant should send the landlord all receipts along with a written explanation and the balance of the rent. Copies of everything mailed to the landlord should be kept.
• When deducting rent for repairs the landlord may disagree with the cost of the repairs made, or that not enough time was allowed for the landlord to complete the repairs. This risk should be considered and all steps taken should be carefully documented.
RENT REBATE RENT REBATE
The landlord has the responsibility to maintain the rental unit in good repair. If the landlord refuses to maintain and repair the rental unit, the tenant has the right to ask the court for a rebate or reimbursement of rent paid. The amount of reimbursement requested should be directly related to the level of disrepair of the rental unit.
WRITTEN RENTAL AGREEMENTS WRITTEN RENTAL AGREEMENTS
The Holland Human Relations Commission recommends that tenants and landlords use written rental agreements. A rental agreement should be signed by the tenant and the landlord or someone authorized to represent the landlord. The tenant should be given a copy of the agreement. The tenant and landlord should check the agreement to see that the following items are included:
• The names of the persons signing the agreement.
• The address of the property.
• The amount of the rent and the date rent is due.
• Who is responsible for paying specific utilities.
• A statement of the property owner’s obligations to repair and maintain the unit.
• A statement that all notices are to be given in writing.
• The address where the landlord can be contacted.
• The legal notice required by the Truth In Renting Act. Without the following notice, a written agreement cannot be enforced:
“ NOTICE:
“ NOTICE: MICHIGAN LAW ESTABLISHES RIGHTS AND OBLIGATIONS FOR PARTIES MICHIGAN LAW ESTABLISHES RIGHTS AND OBLIGATIONS FOR PARTIES TO RENTAL AGREEMENTS
TO RENTAL AGREEMENTS. THIS AGREEMENT IS REQUIRED TO COMPLY WITH THE . THIS AGREEMENT IS REQUIRED TO COMPLY WITH THE TRUTH IN RENTING ACT. IF YOU HAVE A QUESTION ABOUT THE TRUTH IN RENTING ACT. IF YOU HAVE A QUESTION ABOUT THE INTERPRETATION OR LEGALITY OF A PROVISION OF THIS AGREEEMENT, YOU INTERPRETATION OR LEGALITY OF A PROVISION OF THIS AGREEEMENT, YOU MAY WANT TO SEEK ASSISTANCE FROM A LAWYER OR OTHER QUALIFIED MAY WANT TO SEEK ASSISTANCE FROM A LAWYER OR OTHER QUALIFIED PERSON.
W
WRITTEN LEASESRITTEN LEASES
A lease differs from a rental agreement in that a lease expires at the end of a specified period, typically six months to a year. A rental agreement expires at the end of every rental period which is usually for one (1) month. A lease should be read carefully before signing. A written lease has both advantages and disadvantages and a tenant and landlord should consider both before signing:
• The tenant is assured of remaining in the rental unit for the length of the lease, provided none of the provisions are violated.
• The rent will remain the same throughout the duration of the lease.
• The rights and responsibilities of the tenant and landlord will be in writing.
• The tenant must live in the apartment or house for as long as the lease states. If the tenant moves before the lease expires, the tenant is liable for the remaining rent. If another tenant moves in and pays rent for the remainder of the lease, the former tenant would be liable only for the unpaid months. The landlord may not receive double rent.
• The tenant should be aware of what is agreed upon in the lease. If the tenant has questions about the lease, an attorney should be contacted before signing the contractual agreement.
ORAL RENTAL AGREEMENTS ORAL RENTAL AGREEMENTS
Some landlords do not require a written lease or written agreement. Therefore, these tenants have an informal agreement with their landlord which is called an oral agreement.
This type of agreement expires at the end of each rental period. A new period begins when the tenant pays rent and ends when the rent is due again. Thus, an oral agreement is automatically renewed when the tenant pays the rent.
SUBLEASING SUBLEASING
If a tenant must break the lease, the rental unit may be subleased if the landlord is in agreement and if provisions in the rental agreement or lease allow subleasing. However, the original tenant is responsible for the following:
• Rules that apply to the landlord, now apply to the tenant or sublessor.
• The unpaid rent of the sublessee or substitute tenant.
• Damages caused by the sublessee or substitute tenant.
A sublessor, or the original tenant, is still obligated to the landlord for the lease even though the apartment has been sublet. Therefore, it is recommended that the tenant sign another written lease with the sublessee and also require a security deposit. Ideally, it is better to have a willing landlord sign a new lease directly with the sublessee and release the original tenant from the original lease.
RENT INCREASES RENT INCREASES
The landlord may raise the rent as long as legal procedures are followed. However, the landlord may not raise the rent under these conditions:
• The tenant has a lease, unless the lease indicates that rent may be increased.
• The raise is in retaliation against the tenant for taking legal action, such as requesting that the landlord to make repairs or is reported for code violations.
• The landlord fails to give the tenant proper written notice of a rent increase. A verbal notice is not proper notice and in such cases the rent increase is not legal. Proper notice is an advance written notice equal to one rental period.
The landlord may raise the rent under these conditions:
• The tenant does not have a written lease.
• The rent increase is not in retaliation for legal action taken by the tenant.
• Written proper notice is given at least one rental period in advance.
Notice: If the tenant is not given proper written notice equal to one rental period, the Notice: If the tenant is not given proper written notice equal to one rental period, the tenant does not have to pay the extra rent the next time rent is due. However, once tenant does not have to pay the extra rent the next time rent is due. However, once written notice is r
written notice is received the tenant will have to pay the new rental rate for the eceived the tenant will have to pay the new rental rate for the following rental period when the rent is due.
TEMINATING A LEASE TEMINATING A LEASE
If the tenant must terminate a lease prior to its expiration date, the tenant may choose to do the following:
• If the landlord approves, the tenant may sublease the rental unit.
• The tenant may get written approval from the landlord to terminate the lease early. This agreement may or may not contain conditions for early termination of the lease.
• The tenant may decide to move out, after giving the landlord written notice at least one rental period in advance. Once the landlord receives the notice to terminate the lease, the landlord must make a reasonable attempt to re-rent the unit. If the landlord is successful, the responsibility for paying rent belongs to the new tenants. In addition, the original tenant may be charged for reasonable costs to re-rent the unit such as advertising and other related expenses.
• However, if the landlord is unsuccessful in re-renting the unit, the tenant has the obligation to pay rent until the expiration of the lease or until the unit is re-rented. In order to get the rental unit re-rented as soon as possible, the tenant should help the landlord by recruiting qualified tenants. A complete record of the prospective tenants recruited should be kept in case the landlord sues for rent due for the remainder of the lease and claims that no qualified tenants were available.
• The tenant or landlord violates the terms of the lease. If the landlord violates the lease agreement and therefore breaks the lease, the tenant should notify the landlord, in writing, about the lease violation(s). If the tenant decides to move, the landlord should be informed of the decision at least one rental period in advance.
THE TRUTH IN RENTING ACT THE TRUTH IN RENTING ACT LEASES AND RENTAL AGREEMENTS LEASES AND RENTAL AGREEMENTS
The Truth in Renting Act regulates the contents of leases and rental agreements and provides penalties for landlords who violate the provision of the Act.
According to the Truth in Renting Act No. 454, it is unlawful for leases or rental agreements to contain clauses or provisions which:
• Exempts landlords from their responsibility to keep their rental units in decent and safe repair.
• Exempts tenants from maintaining their a clean rental unit.
• Requires that tenants give up their rights under the Security Deposit Act No. 348.
• Excludes or discriminates against a person on the basis of race, color, national origin, religion, age, sex, marital status, disability or source of income.
• Releases the landlord from their responsibility for damages caused by their negligence.
• Requires that tenants give up the right to trial by jury or give up any legal proceedings required by law, and or that the tenant pay the landlord’s attorney fees and court costs.
• Requires the landlord to choose the representing attorney for the tenant.
• Requires tenants to put up their personal property as security to insure payment of rent or other charges claimed by the landlord.
• Requires that tenants pay the remainder of their lease all at once if the tenants break their lease.
• Requires that tenants give up their rights or alter their rights with respect to possession or eviction procedures provided by Michigan law.
• Releases landlords from their duty to mitigate or minimize their damages.
• Allows landlords to change or alter leases or rental agreements without written permission of the tenants, except for changes that require a 30 day notice.
(TRUTH IN RENTING ACT LEASES AND RENTAL AGREEMENTS Continued)
• A lease or rental agreement that specifies that tenants are responsible for the rental unit maintenance and or repairs.
• Violates the Michigan Consumer Protection Act No. 331.
A review of the lease should be conducted to ensure compliance to the Truth in Renting Act. If a clause or provision in the rental agreement or lease is illegal according to the Truth in Renting Act, then the agreement or lease is considered void. The Truth in Renting Act requires that leases and rental agreements contain the following:
• The name and address where the landlord can be contacted.
• The following notice in a prominent location in type no smaller than the size of 12-point type, or in legible letters no smaller then 1/8 inch:
“NOTICE:
“NOTICE: MICHIGAN LAW ESTABLISHES RIGHTS AND OBLIGATIONS FOR PARTIES MICHIGAN LAW ESTABLISHES RIGHTS AND OBLIGATIONS FOR PARTIES TO RENTAL AGREEMENTS. THIS AGREEMENT IS REQUIRED TO COMPLY WITH THE TO RENTAL AGREEMENTS. THIS AGREEMENT IS REQUIRED TO COMPLY WITH THE TRUTH IN RENTING ACT. IF YO
TRUTH IN RENTING ACT. IF YOU HAVE A QUESTION ABOUT THE U HAVE A QUESTION ABOUT THE INTERPRETATION OR LEGALITY OF A PROVISION OF THIS AGREEMENT, YOU MAY INTERPRETATION OR LEGALITY OF A PROVISION OF THIS AGREEMENT, YOU MAY WANT TO SEEK ASSISTANCE FORM A LAWYER OR OTHER QUALIFIED PERSON.” WANT TO SEEK ASSISTANCE FORM A LAWYER OR OTHER QUALIFIED PERSON.”
CORRECTING ILLEGAL CLAUSES CORRECTING ILLEGAL CLAUSES Landlord
Landlord:: A landlord may correct an illegal clause or provision in a lease or written
agreement by giving written notices to all tenants that a clause is void and unenforceable, or that the clause will be changed to comply with the Truth in Renting Act. If a required notice or statement in a lease is excluded, the landlord may correct the omission by giving a written notice to the affected tenants, and include the omitted statement or notice as required by the Truth in Renting Act.
Tenant
Tenant:: The tenant must notify the landlord in writing and inform the landlord of the
illegal clause in the lease or rental agreement which the tenant believes is in violation of the Truth in Renting Act. Once the landlord has been notified, in writing by the tenant, the landlord must notify the tenant(s) in writing within 20 days that the cited illegal clause is void, or changed to comply with the Truth in Renting Act. The tenant may also do the following if the landlord fails to correct the clause within 20 days:
• Void the lease or written agreement and terminate the tenancy.
TRUTH IN RENTING ACT TRUTH IN RENTING ACT
INCLUDING OMITTED REQUIRED STATEMENTS AND NOTICES IN INCLUDING OMITTED REQUIRED STATEMENTS AND NOTICES IN
LEASES AND RENTAL AGREEMENTS LEASES AND RENTAL AGREEMENTS Tenants:
Tenants: The tenant must notify the landlord in writing and inform the landlord of the
omitted required statement or notice in the lease or written agreement. Once the landlord has been notified, in writing, the landlord must notify the tenant(s), in writing within 20 days, to include the statement or notice originally omitted.
If the landlord fails to take corrective action to include the required statements or notices, the tenant may sue for $500.00 dollars or actual damages, whichever is greater. In addition, the tenant may terminate the rental agreement and the tenancy.
A tenant or landlord who prevail in an action under the Truth in Renting Act is entitled to recover court costs, plus attorney fees.
A printed lease or rental agreement form which fails to comply with the Truth in Renting Act should not be soldshould not be sold. A commercial seller of such forms may be liable for damages
suffered by a purchaser (landlord) if sued by a tenant under the Truth in Renting Act.
MOVING OUT MOVING OUT
The tenant should give the landlord at least one (1) rental period advance written notice of the intention to move out. Failure to comply with this requirement may cause the tenant to forfeit the security deposit.
The tenant should leave the rental unit in clean or as good condition as when the tenant moved in.
The tenant should give the landlord a forwarding address in writing within four (4) days after moving out in order to have the security deposit returned.
SECURITY DEPOSITS SECURITY DEPOSITS
The landlord may require a security deposit for each rental unit. In most cases, the amount of the security deposit required is equal to one month’s rent. However, the However, the landlord is allowed to collect a security deposit that is equal to 1 ½ months rent, but landlord is allowed to collect a security deposit that is equal to 1 ½ months rent, but cannot ex
cannot exceed this limit.ceed this limit.
The landlord must notify the tenant, in writing, within fourteen (14) days, after the tenant takes possession of the rental unit of the following:
• The name and address of the landlord where communication may be received regarding the security deposit.
• The name and address of the financial institution or bank where the security is deposited.
• The security deposit notice must inform the tenant that the tenant must furnish the landlord with a forwarding address within four (4) days after terminating the occupancy of the rental unit. The notice must contain the following statement in 12-point boldface type:
“YOU MUST NOTIFY YOUR LANDLROD, IN WRITING, WITHIN FOUR (4) DAYS “YOU MUST NOTIFY YOUR LANDLROD, IN WRITING, WITHIN FOUR (4) DAYS AFTER YOU MOVE OF A FORWARDING ADDRESS WHRE YOU CAN BE REACHED, AFTER YOU MOVE OF A FORWARDING ADDRESS WHRE YOU CAN BE REACHED, AND WE
AND WEHRE YOU WILL RECEIVE MAIL; OTEHRWISE, YOUR LANDLORD WILL BE HRE YOU WILL RECEIVE MAIL; OTEHRWISE, YOUR LANDLORD WILL BE RELIEVED OF SENDING AN ITEMIZED LIST OF DAMAGES AND THE PENALTIES RELIEVED OF SENDING AN ITEMIZED LIST OF DAMAGES AND THE PENALTIES ADHERENT TO THAT FAILURE.”
ADHERENT TO THAT FAILURE.”
Failure by the landlord to provide the above notice relieves the tenant of the obligation to furnish the landlord with a forwarding address after moving.
PERMITTED USES FOR SECURITY DEPOSIT PERMITTED USES FOR SECURITY DEPOSIT
Security deposits may be used for the following:
• Actual damages to the rental unit that are beyond normal wear and tear.
• Unpaid rent once the tenant has moved.
• Unpaid utility bills that were the responsibility of the tenant.
• Rent due to premature termination of the lease.
USES OF SECURITY DEPOSIT NOT PERMITED USES OF SECURITY DEPOSIT NOT PERMITED
Security deposits may not be used for the following:
• Claims that are considered normal wear and tear of the rental unit.
• Cleaning expenses once the tenant has moved.
• Rent due as long as the tenant continues to reside in the rental unit.
REASONS FOR RETENTION OF SECURITY DEPOSIT REASONS FOR RETENTION OF SECURITY DEPOSIT
The landlord may keep the security deposit for the following reasons:
• The landlord has obtained a money judgment.
• The landlord filed with the court proof of inability to serve the tenant with a notice of damages as required.
• The tenant does not provide a forwarding address.
• The tenant fails to respond to the notice of damages as required.
• Both parties agreed in writing about the status of the of the security deposit.
• The amount claimed is equal to any portion of unpaid rent.
The landlord is responsi
The landlord is responsible for the security deposit until any of these actions take place:ble for the security deposit until any of these actions take place:
• The landlord transfers the deposit to the new landlord and gives written notice to the tenant of the action taken along with the new landlord’s name and address.
• The new landlord complies with the required security deposit notice to the tenant.
CLEANING DEPOSIT CLEANING DEPOSIT
A cleaning deposit is not a security deposit. It is an amount of money paid by the tenant at the beginning of the tenancy and used by the landlord to clean the premises before the tenant moves in. A cleaning deposit is not required by law and is not refundable. In addition, a cleaning deposit cannot be collected as part of a security deposit, but may be collected as a separate fee.
INVENTORY CHECKLIST INVENTORY CHECKLIST
If the landlord requires a security deposit, an inventory checklist must be used when the tenant takes possession of the rental unit and again when the tenant moves out.
At the time the tenant moves into the rental unit, the landlord must give the tenant two (2) blank copies of the inventory checklist. The tenant must complete the inventory checklist by taking note of the condition of the renal property and then return one (1) copy of the checklist to the landlord within seven (7) days after moving into the rental unit. The inventory checklist must contain the following notice in 12-point boldface type at the top of the first page:
“YOU SHOULD COMPLETE THIS CHECKLIST, NOTING THE CONDITON OF THE “YOU SHOULD COMPLETE THIS CHECKLIST, NOTING THE CONDITON OF THE RENAL PROPERTY, AND RETUR
RENAL PROPERTY, AND RETURN IT TO THE LANDLORD WITHIN 7 DAYS AFTER N IT TO THE LANDLORD WITHIN 7 DAYS AFTER OBTAINING POSSESSION OF THE RENTAL UNIT. YOU ARE ALSO ENTITLED TO OBTAINING POSSESSION OF THE RENTAL UNIT. YOU ARE ALSO ENTITLED TO REQUEST AND RECEIVE A COPY OF THE LAST TERMINATION INVENTORY REQUEST AND RECEIVE A COPY OF THE LAST TERMINATION INVENTORY CHECKLIST WHICH SHOWS WHAT CLAIMS WERE CHARGEABLE TO THE LAST PRIOR CHECKLIST WHICH SHOWS WHAT CLAIMS WERE CHARGEABLE TO THE LAST PRIOR TENANT”
TENANT”
At the time the tenant moves from the rental unit the landlord must complete a termination inventory checklist, listing all the damages claimed to be caused by the tenant.
SCHEDULE FOR RETURN OF SECURITY DEPOSIT SCHEDULE FOR RETURN OF SECURITY DEPOSIT WITHIN FOUR (4) DAYS OF MOVING:
WITHIN FOUR (4) DAYS OF MOVING: The tenant notifies the landlord, in writing, of
the new forwarding address where the security deposit should be mailed.
WITHIN THIRTY (30) DAYS:
WITHIN THIRTY (30) DAYS: After the tenant moves the landlord mails the tenant an
itemized list of damages plus a check for the balance of the security deposit.
WITHIN SEVEN (7) DAYS:
WITHIN SEVEN (7) DAYS: If the tenant, after receiving the itemized list of damages, is in
(SCHEDULE FOR RETURN OF SECURITY DEPOSIT Continued)
WITHIN FORTY
WITHIN FORTY--FIVE (45) DAYS: FIVE (45) DAYS: After the tenant has moved out, the landlord must
either return the security deposit or start court action to claim the amount disputed.
AFTER FORTY
AFTER FORTY--FIVE (45) DAYS: FIVE (45) DAYS: If the landlord has not returned the disputed amount of
the security deposit, or started court action, the tenant may begin court action and claim double the amount disputed.
NOTICE OF DAMAGES NOTICE OF DAMAGES
If the landlord claims the tenant damaged the rental unit and the landlord has a claim against the security deposit, the landlord must mail to the tenant within thirty (30) days of moving an itemized list of damages including the estimated cost of each repair for each property damaged item. The list, or notice of damages, must be accompanied by a check or money order for the difference between the damages claimed and the amount held by the landlord. The notice of damages must include the following statement in 12The notice of damages must include the following statement in 12--point type:
point type:
“YOU MUST RESPOND TO THIS NOTICE OF DAMAGES BY MAIL WITHIN 7 DAYS AFTER RECEIPT OF THE SAME, OTHERWISE YOU WILL FORFEIT THE AMOUNT CLAIMED FOR DAMAGES.”
If the landlord fails to comply with the notice of damages requirement within thirty (30) days after the tenant moves, it is considered that the landlord is in agreement that no damages are due and must return the full security deposit to the tenant.
If the tenant fails to notify the landlord, in writing, within four (4) days after moving of the forwarding address where mail may be received or the tenant can be reached, the landlord is relieved of the requirement to mail the tenant a notice of damages. This does not affect the tenant’s claim to the security deposit.
Upon receipt of the notice of damages, the tenant must respond in writing within seven (7) days if the tenant disagrees with the list of damages.
EVICTIONS EVICTIONS
There are two types of evictions, each providing for different time periods before the court action can be initiated. Both kinds of evictions require that a “NOTICE TO QUIT”“NOTICE TO QUIT”
be given to the tenant in writing to be valid. Standard eviction forms are available at the District Court.
Seven (7) Day Notice to Quit Seven (7) Day Notice to Quit
The landlord may serve the tenant with a Seven (7) Day “Notice to Quit” if the tenant is late in paying rent, causing a serious and continuous health hazard and or extensive physical damage to the landlord’s property. This means the tenant has seven (7) days from receiving the eviction notice, to either pay the rent owed, remove the health hazard, repair the damages, or move.
If after seven (7) days have passed and the tenant has not moved, paid the back rent, or stopped whatever damage was done to the rental unit, the landlord must have a copy of the notice to quit notarized and filed with the court. The eviction notice does not have to be notarized until the landlord decides to file for court action. The landlord is not required to notarize the tenant’s eviction notice.
Once the landlord files the notice to quit with the court, the landlord will file complaint and summons forms to be served to the tenant.
The seven (7) day Notice to Quit becomes void or is cancelled whenever the tenant pays the rent owed, removes the health hazard, or repairs the damage.
Termination of Tenancy
Termination of Tenancy –– Notice to Quit Notice to Quit
In Michigan, a landlord can evict a tenant for any reason if there is no written lease, or the lease has expired. A landlord may evict as long as the landlord gives the tenant “proper notice”, and follows the correct eviction and court procedures. Proper notice is an amount of time equal to how often the tenant pays rent. For example, if the tenant pays rent every thirty (30) days, then a thirty (30) day Notice to Quit is required. If the rent is paid every fourteen (14) days, a fourteen (14) day Notice to Quit is required, etc. An exception may apply to vendor payments made by the F.I.A., Family Independence Agency. In these cases, a thirty (30) day Notice to Quit may be required to serve as proper notice.
EVICTION EXAMPLE #1 EVICTION EXAMPLE #1 NOTICE TO QUIT FOR NON
NOTICE TO QUIT FOR NON --PAYMENTPAYMENT OF RENT OF RENT –– SEVEN (7) DAYS SEVEN (7) DAYS Steps:
Steps:
1. The landlord serves the tenant with a Seven (7) Day Notice to Quit for non-payment of rent.
2. If the seven (7) days expire and the tenant has not paid rent owed, the landlord notarizes the copy of the Notice to Quit and files it with the District Court. If the tenant pays the rent owed in full prior to the expiration of the seven (7) days, the notice will become void or cancelled.
3. If the Notice to Quit is not cancelled the landlord files complaint and summons forms with the court.
4. The court serves the complaint and summons to the tenant. The complaint gives the tenant the reasons for the eviction and the summons informs the tenant of the date and time to appear in court.
5. A court hearing is held. If the tenant wins the case or pays the rent owed, the tenant remains in the rental unit. If the tenant loses, the tenant will be given ten (10) additional days to pay the past due rent and court costs or vacate the premises.
6. If the additional ten (10) days expire and the tenant has not paid the rent owed or vacated the premises, the landlord may file a Writ of Restitution with the court to regain possession of the rental unit.
7. Once the landlord files the Writ of Restitution, the court will direct a court appointed officer to serve the Writ of Restitution to the tenant and restore full possession of the premises to the landlord.
EVICITON EXAMPLE #2 EVICITON EXAMPLE #2 NOTICE TO QUIT FOR TERMINATION OF TENANCY
NOTICE TO QUIT FOR TERMINATION OF TENANCY –– THIRTY (30) DAYS THIRTY (30) DAYS Steps:
Steps:
1. The landlord serves the tenant with a thirty (30) day Notice to Quit to Terminate Tenancy. If the tenant has a lease, a reason must be given for the eviction. If there is no lease, the landlord is not required to give a reason for eviction.
2. If the tenant does not move by the time the thirty (30) days expire, the landlord must notarize the copy of the Notice to Quit and file it with the District Court. If the landlord accepts rent money for any period after the Notice to Quit expires, the eviction becomes void and the process must be started all over again.
(EVICTION EXAMPLE #2 Continued)
3. The landlord files complaint and summons forms with the court.
4. The court serves the complaint and summons to the tenant. The summons tells the tenant the date and time to appear in court and the complaint informs the tenant of the reasons for the eviction.
5. A court hearing is held. If the tenant shows why they should not be evicted because of an illegal eviction and the tenant wins, the tenant may remain in the rental unit. If the tenant loses, the tenant will be given an additional ten (10) days to move.
6. If after the ten (10) days expire and the tenant has not moved, the landlord may file a Writ of Restitution with the court to regain possession of the rental unit.
7. Once the Writ of Restitution is filed, a court appointed officer will serve the Writ of Restitution to the tenant and restore full possession of the premises to the landlord.
ILLEGAL EVICTIONS ILLEGAL EVICTIONS
There are three (3) instances when evictions are illegal:
1. It is illegal to evict someone for discrimination on the basis of religion, race, color, national origin, sex, age, disability, marital status, family status or source of income. 2. When the eviction is a retaliatory action against the tenant, Michigan’s Retaliatory
Eviction Law protects a tenant from eviction when the eviction is in retaliation for reporting housing code violations, or in retaliation for taking advantage of legal rights afforded under the law.
3. It is illegal for a landlord to forcibly throw tenants or their belongings out of the rental unit, even if the tenants are late in paying rent. A tenant can be physically A tenant can be physically evicted only by a law enforcement official under a court order.
evicted only by a law enforcement official under a court order. A court order may
be issued only after the ten (10) days the law gives the tenant to move have passed. The tenant has until midnight on the tenth (10th) day to move. Only then can a court
(ILLEGAL EVICITIONS - Three (3) instances when eviction is illegal, continued)
3. (Continued) Any tenant whose possession of the rental unit has been unlawfully interfered with by the landlord, is entitled to recover the amount of actual damages or $200, whichever is greater, for each occurrence. Where possession has been lost, the tenant is entitled to recover possession and three (3) times the amount of actual damages or $200, whichever is greater. Unlawful interference with possession includes:
• The use of force or threat.
• The removal, retention, or destruction of the personal property of the tenant.
• A change, alteration or addition to the locks, or other security devices on the property without providing keys to the tenant in possession.
• The boarding up of the premises which prevents or deters entry.
• The removal of doors, windows, or locks.
• The termination or interruption of a service, including heat, running water, hot water, electric, or gas, which is so essential that its termination or interruption would constitute a constructive eviction.
• Introduction of noise, odor, or other nuisance.
The above will not apply where the landlord can establish the following: The above will not apply where the landlord can establish the following:
• The landlord’s action was in accordance with a court order.
• Temporary interference of possession was only necessary to make needed repairs or inspection and, only provided by law.
• It is believed in good faith, that the tenant has abandoned the premises, and after diligent inquiry has reason to believe the tenant did not intend to return, and current rent was not paid.
EVICTION FROM PUBLIC HOUSING EVICTION FROM PUBLIC HOUSING
SMALL CLAIMS COURT SMALL CLAIMS COURT
If a tenant owes money to the landlord or, the landlord owes money to the tenant and there is a disagreement on the amount owed, a small claims suit can be filed in the Small Claims Division of the District Court for up to $3,000 without hiring an attorney.
Since attorneys are not needed, simply state the facts of the case, submit appropriate evidence, and present witnesses if any. After both sides have had an opportunity to be heard, the judge will make a decision which cannot be appealed to a higher court.
If the person being sued wants to reserve the right to have legal representation and the right to appeal the judge’s decision, then the person being sued may request, prior to the small claims hearing, that the case be heard in a higher court. If this request is made, the Small Claims Division will refer the case to the Civil Court Division and a new trial date will be set.
A brochure outlining details on how to file a small claims suit may be obtained at the District Court.
LAWS THAT APPLY TO TENANTS AND LANDLORDS LAWS THAT APPLY TO TENANTS AND LANDLORDS
• City of Holland Fair Housing Ordinance
• City of Holland Housing Codes
• Elliot-Larsen Civil Rights Act NO. 453, Public Acts of 1976 as amended
• Michigan Handicappers’ Civil Rights Acts No. 220, Public Acts of 1976 as amended
• Title VIII of the Civil Rights Acts of 1968 as amended by the Fair Housing Amendment of 1988
• Truth in Renting Act No. 454, Public Acts of 1978. MCLS: 5544.631
• Security Deposit Act No. 348, Public Acts of 1972. MCLS: 554.601, MSA 26.1138
• Eviction Act No. 300, Public Acts of 1976, MSA 5.2891
• Unlawful Evictions Act 236, Public Acts of 11961 as amended MCLA: 600.2918
• Retaliatory Evictions Act 220, Public Acts of 1972. MCLS: 600.5720
• Covenant of Fitness for Use, Revised Code of 1846 as Amended.. MCLS: 554.139, MSA 26.1109
• Summary Proceeding Act. MSA 27.5701
• Consumer Protection Act. MSA 19.418
APPENDIX I: SAMPLE APPLICTION TO RENT APPENDIX I: SAMPLE APPLICTION TO RENT
APPLICANT ______________________________ SOCIAL SECURITY # _________________ ADDRESS ________________________________ TELEPHONE # ( ) __________________ CITY ____________________________________ STATE _______ ZIP CODE ____________ NUMBER OF PERSONS TO OCCUPY THE RENTAL UNIT __________________________ CURRENT LANDLORD ________________________________________________________ ADDRESS ___________________________________ TELEPHONE # ( ) ______________ CITY _______________________________________ STATE ______ ZIP CODE ___________ EMPLOYER _________________________________ TELEPHONE # ___________________ ADDRESS ___________________________________ # OF YEARS EMPLOYED ___________ CITY _______________________________________ STATE ______ ZIP CODE __________ EMPLOYER OF SPOUSE/ROOMMATE ___________________________________________ ADDRESS ___________________________________ # OF YEARS EMPLOYED ___________ CITY _______________________________________ STATE ______ ZIP CODE ___________ OTHER SOURCES OF INCOME _________________________________________________ TOTAL MONTHLY INCOME ___________________________________________________ THREE (3) CREDIT REFERENCES:
1. ______________________________________ TELEPHONE # ( ) ___________________ 2. ______________________________________ TELEPHONE # ( ) ___________________ 3. ______________________________________ TELEPHONE # ( ) ___________________ NUMBER OF VEHICLES OWNED ________________________________________________ YEAR MAKE MODEL COLOR LICENSE #
______________________________________________________________________________ ______________________________________________________________________________ DRIVER’S LICENSE NUMBER _________________________________ STATE ___________ The above information is true, and I authorize its use for credit and reference information.
______________________________________________________________________________
APPENDIX II: SAMPLE LETTER
APPENDIX II: SAMPLE LETTER -- REQUEST FOR REPAIRS REQUEST FOR REPAIRS
DATE: ______________________________________ TO: ______________________________________ FROM:______________________________________ RE: REQUEST FOR REPAIRS
I informed you verbally on (date) ________________________ that my rental unit needed several repairs. Since you have not responded to my previous request, I am taking this opportunity to advise you, in writing, of the necessary repairs.
___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ I expect that you will make these repairs as soon as possible. However, if these repairs are not completed within two (2) weeks, I will consider the following options: withhold rent and place it in an escrow/savings account until repairs are made; and/or request an inspection by the City of Holland’s Environmental & Health Inspections Department to enforce the housing code.
I expect that you will respond to my request. Sincerely,
APPENDIX III: SAMPLE LETTER
APPENDIX III: SAMPLE LETTER -- WITHHOLDING RENT FOR REPAIRS WITHHOLDING RENT FOR REPAIRS
DATE: ______________________________________ TO: ______________________________________ FROM:______________________________________ RE: WITHHOLDING RENT FOR REPAIRS
I informed you in a letter on (date) ________________________ of the need for repairs to my rental unit. Since you have not responded to my request for repairs, I have taken further action.
I have opened and escrow/savings account at ___________________________ bank/credit union, and will deposit my rent in this account until repairs are completed. Once repairs are completed, I will forward to you all rent due. Should you wish to discuss this further please contact me at ___________________________________________________________. It is my hope that we can settle this matter in a satisfactory manner.
Sincerely,
Signature Rental Address
APPENDIX
APPENDIX IV: SAMPLE LEASE OR RENTAL AGREEMENT IV: SAMPLE LEASE OR RENTAL AGREEMENT 1.
1. PARTIES PARTIES
The parties in this agreement are _________________________ hereinafter called “Property Owner”, and ____________________________ hereinafter called “Tenant”.
2. PROPERTY 2. PROPERTY
Property Owner hereby lets the following property to Tenant for the term of this agreement: (a) the property located at _______________________________________ and (b) the furniture and appliances on said property as may be indicated in the Rental Inventory Checklist.
3. TERM 3. TERM
The term of this agreement shall be for ___________________ beginning on __________________ and ending on ___________________________.
4. RENT 4. RENT
The rental amount for said property shall be $ _______________ per ______________ due and payable in the following manner _____________________________________.
5. UTILITIES 5. UTILITIES
Utilities shall be paid by the party indicated in the following chart:
UTILITY LANDLORD TENANT
Electricity Gas
Water & Sewage Garbage Collection Rubbish Removal Other
7. SECUR
7. SECURITY DEPOSITSITY DEPOSITS
If a security deposit is required, Tenant shall pay Property Owner upon execution of this agreement, a security deposit, not to exceed 1 ½ month rent of $ ______________ which is the property of the Tenant. Said deposit may be applied by Property Owner toward reimbursement for any damages caused beyond normal wear and tear.
(SAMPLE LEASE OR RENTAL AGREEMENT Continued)
8. PROPERTY OWNER’S OBLIGATION TO REPAIR AND MAINTAIN 8. PROPERTY OWNER’S OBLIGATION TO REPAIR AND MAINTAIN
Property Owner shall maintain the rental unit and premises thereof in a decent, safe, and sanitary condition in compliance with all state, federal, and local laws and ordinances. Upon Property Owner’s failure to comply after reasonable request by the Tenant, Tenant may complain to proper governmental authority.
If repairs are needed to comply with this paragraph, Property Owner specifically agrees to complete the following repairs within _____________ days ________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________
9. FAILURE TO PAY RENT 9. FAILURE TO PAY RENT
Rent is to be paid by Tenant to the Property Owner on or before the due date. If the Tenant fails to pay the rent when due, Property Owner will serve a Seven (7) Day Notice to Quit to pay rent, or vacate the premises as provided by Michigan Law.
10. NOTICES 10. NOTICES
Notices, or rent receipts provided by this agreement or notices required by the Truth in Renting Act must be in writing. They shall be given to the other party as follows: To the Tenant at the premises __________________________Phone ( ) _____________________ To the Property Owner at ____________________________Phone ( ) ________________ Both parties may contact each other at reasonable hours to discuss problems arising from this agreement and adherence thereof.
“NOTICE:
MICHGIAN LAW ESTABLISHES RIGHTS AND OBLIGATIONS FOR PARTIES TO RENTAL AGREMENTS. 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 IN THIS AGREEMENT, YOU MAY WANT TO SEEK ASSISTANCE OF AN ATTORNEY, OR OTHER QUALIFIED PERSON.”
Any changes, additions, or deletions from conditions of this agreement must be mutually agreed upon in writing.
______________________________________________________________________________ TENANT SIGNATURE DATE PROPERTY OWNER SIGNATURE DATE
APPENDIX V: ADDITONAL TERMS AND CONDITIONS APPENDIX V: ADDITONAL TERMS AND CONDITIONS 11. COMPLIANCE WITH THE SECURITY DEPOSIT ACT 11. COMPLIANCE WITH THE SECURITY DEPOSIT ACT
Property Owner shall give Tenant two (2) blank copies of a rental inventory checklist which must be completed by the Tenant within seven (7) days after moving in. Tenant must keep a copy and send copy to the Property Owner.
A notice to Tenant (Commencement of Tenancy) must be provided by the landlord and shall include the following:
”The security deposit required of you will be deposited in the following regulated financial institution __________________________________________” and
“NOTICE TO TENANT: YOU MUST NOTIFY YOUR LANDLORD, IN WRITING, WITHIN 4 DAYS AFTER YIOU MOVE OF A FORWARDING ADDRESS WHERE YOU CAN BE REACHED AND WHERE YOU WILL RECEIVE MAIL; OTHERWISE YOUR LANDLORD WILL BE RELIEVED OF SENDING YOU AN ITEMIZED LIST OF DAMAGES AND THE PENALTIES ADHERENET TO THAT FAILURE.”
Note: Failure to notify of a forwarding address does not effect the tenant’s claim for the security deposit.
The Property Owner shall send Tenant a list of damages, the cost of repair for each item, and a check to cover the balance within thirty (30) days after the Tenant moves out or the landlord may begin court action within forty-five (45) days after the tenant moves out. If this is not done, Property Owner automatically agrees that the Tenant is entitled to the full security deposit.
Tenant must notify the Property Owner within seven (7) days after receiving the list of damages, whether the Tenant agrees with the damages cited or not. Failure to respond constitutes agreement by Tenant to damages listed. If agreement cannot be reached, Property Owner must sue Tenant for damages within forty-five (45) days after Tenant has moved out. Failure to do so makes the Property Owner liable to the Tenant for double the amount of the deposit.
12. USE OF PROPERTY 12. USE OF PROPERTY
(SAMPLE LEASE OR RENTAL AGREEMENT - ADDITIONAL TERMS AND CONDITIONS Continued)
13. TENANT’S DUTY TO MAINTAIN PREMISES 13. TENANT’S DUTY TO MAINTAIN PREMISES
Tenant shall dispose of all rubbish and garbage in a clean and sanitary manner by placing it in the designated rubbish and garbage facilities. Tenant shall keep the unit in a clean and sanitary condition, and shall otherwise comply with all state and local laws requiring tenant to maintain rental premises. If damage to the dwelling, other than normal wear and tear, is caused by acts of neglect by the Tenant and his guests, tenant shall repair such damage at own expense. Upon, Tenant’s failure to make such repairs, after reasonable written notice by the Property Owner, Property Owner may cause such repairs to be made and the tenant shall be liable to Property Owner for any reasonable expense thereby incurred by Property Owner.
14. ALTERATIONS 14. ALTERATIONS
No alterations, additions, or improvements that would cause Property Owner to incur costs to restore the unit to original condition prior to this tenancy, normal wear and tear expected, shall be made by Tenant in or to the dwelling unit without prior written consent of Property Owner. Such consent shall not be unreasonably withheld.
15. NOISE 15. NOISE
Tenant agrees not to allow on the premises any excessive noise or other activity which unduly disturbs the peace and quiet of other tenants in the building. Property Owner agrees to insure said right.
16. INSPECTION BY PROPERTY OWNER 16. INSPECTION BY PROPERTY OWNER
Property Owner or his agent may enter the dwelling unit with permission from the Tenant during reasonable hours only for the following purposes: to inspect to see if Tenant is complying with said agreement; to make repairs; and to exhibit the unit to perspective purchasers, mortgages, and tenants. Such requests for entry shall not be so frequent as to seriously disturb Tenant’s peaceful enjoyment of the premises. Such entries shall take place only with prior consent of Tenant, which consent shall not unreasonably be withheld.
If however, the Property Owner reasonably believes that any emergency such as a fire exists which requires an immediate entry, such entry may be made without the Tenant’s consent. If such an emergency occurs, Property Owner shall, within two (2) days thereafter, notify Tenant of the date, time, and purpose of such entry.
Inspections by the Property Owner shall be conducted in accordance with the terms contained within the lease or rental agreement.
(SAMPLE LEASE OR RENTAL AGREEMENT – ADDITIONAL TERMS AND CONDITIONS Continued)
17. TEMINATION OF TENANCY 17. TEMINATION OF TENANCY
If either party wishes to terminate the rental relationship at the end of the agreement, they must notify the other party in writing, at least thirty (30) days before the agreement is due to expire. Upon termination of this agreement, Tenant shall vacate the premises, remove all personal property belonging to them and leave the premises as clean as they found it, normal wear and tear expected. If Tenant holds over upon termination of this lease, and Property Owner accepts Tenant’s tender of the rent provided by this lease, this lease shall continue to be binding on the parties as a rental period to rental period agreement. Substantial violations of any provision included therein may constitute grounds for termination of the lease by either party. Upon thirty (30) days written notice, tenant may terminate this lease to accept employment in another community, or to enter active service with the U. S. military services.
18. SUBLEASING 18. SUBLEASING
Tenant shall not assign this lease or sublet the dwelling unit without written consent from Property Owner. Such consent shall not be withheld without good reason relating to the prospective Tenant’s ability to comply with the provisions of this lease. This paragraph shall not prevent the Tenant from accommodating guests for reasonable periods of time (2 to 3 weeks); any other arrangements must be approved in writing by Property Owner.
19. LEASE CHANGES 19. LEASE CHANGES
No changes, additions, or deletions from conditions of this agreement shall take effect during the term of this agreement unless a thirty (30) day written advance notice is given to the Tenant and mutually agreed upon in writing.
________________________________________ _________________
PROPERTY OWNER SIGNATURE DATE
________________________________________ _________________
APPENDIX VI: NOTICE OF SECURITY DEPOSIT APPENDIX VI: NOTICE OF SECURITY DEPOSIT Michigan Public Act 348 of 1972 states:
Michigan Public Act 348 of 1972 states: “A landlord shall not require a Security Deposit
unless he/she notifies the tenant no later than 14 days from the date a tenant assumes possession in a written instrument of the landlord’s name and address for receipt of communication under this act; the name and address of the financial institution or surety required by Section 4 and the tenant’s obligation to provide in writing a forwarding address to the landlord within 4 days after termination of occupancy. The notice shall include the following statement in 12-point boldface type which is at least 4 points larger than the body of the notice or lease agreement.”
“YOU MUST NOTIFY YOUR LANLDORD IN WRITING WITHIN 4 DAYS AFTER YOU MOVE OF A FORWARDING ADDRESS WHRE 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.”
This notice must be completed by the landlord and presented to the tenant(s) within fourteen (14) days from the date a tenant assumes possession of a rental unit and must contain the following information.
NAME OF TENANTS: __________________________________________________________ ADDRESS OF RENTAL UNIT: ___________________________________________________ I have received a security deposit in the amount of $ __________________ which shall not exceed 1 ½ months rent that is the property of the tenants. The security deposit has been deposited at: Financial Institution: _________________________________________ Address ______________________________________________________________________ Or surety bond has been posted with ____________________________________________ Bond number_____________________
