Guide for Tenants and Landlords, Information
on Land Contract and Mortgage Forfeitures.
The 19th District Court's jurisdiction includes
resolving landlord/tenant disputes (non-payment of rent or eviction
cases) or mortgage forfeitures where damages claimed are less than $25,000.
Legal action may be initiated by obtaining
and completing forms available in the court's Civil Division and
payment of appropriate filing fees.
Among forms available are those
covering:
Further information may be obtained by contacting
the Civil Division at 943-2056 on weekdays between 8:00 am and 4:30
pm.
Following is information designed to provide
citizens with a basic explanation of what happens when a rental agreement
is made. Primarily dealing with leases for residential properties, it
serves as a reference tool concerning the rights and responsibilities
of both the tenant and landlord. It is intended to provide general guidelines
and is not a substitute for competent legal advice.
The Lease Terms
Leases contain a variety of legal terms
which you should be familiar in order to understand a leasing situation.
A landlord is a person or business firm in
control of property who allows others to occupy and use it. A landlord
may be the owner, an agent or employee of the owner, or a management
company. A tenant (renter) is the person who occupies and uses property
owned by someone else. A tenant's right to occupy and use land
or buildings is called a leasehold or lease. The term lease is also
used to man the rental agreement that creates the leasehold.
A rental agreement is the contract between
the landlord and the tenant. Generally, such a contract governs the
tenant's use and occupancy of rental property and provides for
the payment of rent. Rental agreements may be written or oral as long
as there is some type of agreement between the landlord and tenant.
An escrow account, for the purpose of this
guide, is a bank account or an account held by a third party generally
established in the name of the tenant into which whole or partial rental
payments are deposited payable to the tenant or, upon the fulfillment
of certain conditions, to the landlord.
A plaintiff is a person who complains or
sues in a civil action to seek judicial relief for some injury to their
rights. A defendant is the party against who relief or recovery is sought
in an action of lawsuit.
Types of Tenancy
The different types of tenancy into which
a landlord and tenant may enter for the rental of residential property
include the following:
Fixed-term tenancy- a fixed-term tenancy
agreement will specify a starting date and termination date. The conditions,
rules, and the amount of rent are fixed during the term of the lease
agreement; the lease usually cannot be cut short or extended except
by mutual consent or breach of the contract. The lease is often a written
agreement, but may be oral unless it exceeds a year in duration.
Periodic-tenancy- a periodic tenancy begins
on a specific date and is renewed on a regular basis, usually by the
month. Rents and rules can change more frequently than in a fixed-term
tenancy. Since a periodic tenancy is renewable on a monthly basis, there
is no requirement that it be written.
Advantages of Written Lease Agreement
Whether there is a fixed-term tenancy or
a periodic tenancy, it is best to have a written record of the rental
agreement. A written record is a permanent record which may be used
for reference if misunderstandings arise. In the absence of a written
document signed by both parties (landlord and tenant), it is advisable
to keep a personal written record of mutual agreements. This is for
your own benefit and is not admissible in a court of law.
How to Avoid Potential Lease Problems
Before tenants enter into a lease, they
should know the type of housing needed; know what can be afforded; make
a list of concerns (who pays for utilities, parking, are pets allowed,
etc.); make sure the property meets their needs; and understand the
lease agreement before signing or agreeing to it. If in doubt about
the lease's terms, it is advisable to have an attorney check it
for irregularities. Do not agree to a lease with unacceptable terms.
Provisions of the Rental Agreement
Leases differ in terms, but a written rental
contract should include:
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The names and signatures of the landlord.
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The names and signatures of the tenants.
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The amount of rent to be paid, how
and when it is to be paid.
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A description of or location of the
premises to be rented.
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The starting and ending dates if it
is a fixed term tenancy.
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The landlord's
mailing address.
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The amount of security
deposit, if any.
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The name of the
financial institution holding the security deposit.
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Notice of the tenant's
obligation to supply a forwarding address to the
landlord within four days of terminating the tenancy.
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Definition of responsibility
for paying utilities.
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Maintenance responsibilities.
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Notice to quit procedures.
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Any other agreement
the landlord and tenant wish to make.
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Two copies of an inventory checklist
should be furnished.
A written rental
agreement should not include:
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A provision, which excludes or
discriminates against a person.
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Waivers or any alterations of
a party's rights with respect to possession or eviction proceedings.
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A confession of judgment by a
party; that is, require a party to give up the right to certain
legal options in advance.
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Any provision which relieves
the landlord from liability for the landlord's failure to
perform a duty or for negligent performance of a duty imposed by
law (however, a landlord's liability could be waived to the
extent a tenant was able to recover under an insurance policy for
loss, damage or injury caused by fire or other casualty).
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Waivers or alterations of a party's
right to demand a trial by jury or any other right of notice or
procedure required by law.
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Provide that a party be liable
for legal costs or attorney's fees incurred by another party
in excess of costs or fees specifically permitted by statute.
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Provide for the acquisition of
the lessor (party leasing property) of a security interest in any
personal property of the tenant to assure payments of rent or other
charges except as specifically permitted by statute.
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Any provision that releases a
party from a duty to mitigate damages.
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Any provision that waives tenant's
rights regarding security deposits.
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Provisions that allow a landlord
to change the terms of the lease agreement without the written consent
of the tenant. However, a rental agreement may provide for changes
made upon written notice to the tenant of a least 30 days to comply
with changes required by law or government rule or regulation; changes
in rules relating to the property which are required to protect
the physical health, safety or peaceful enjoyment of the tenants
and guests; or changes in the amount of rental payments to cover
additional operating costs due to an increase in property taxes,
utility and sewer services and insurance premiums.
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Violations of the Michigan consumer
Protection Act (Act No. 331 of 1966).
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A provision granting the landlord
power of attorney over the tenant.
A landlord has 20 days to correct any illegal
clauses brought to their attention by the tenant. If these clauses are
not corrected by then, a tenant can bring action to void the lease and/or
to prohibit the landlord from including the clause in future leases,
and to recover damages of $500.00 or actual damages, whichever is greater.
Rental agreements must comply with the Security Deposit Act, the Consumer
Protection Act, the Michigan Civil Rights Act, the Handicappers'
Civil Rights Act, and the Truth in Renting Act.
Special termination provision for
senior citizens
Pursuant to Public Act 348 of 1972, rental
agreements entered into, renewed, or renegotiated after June 15, 1995,
must provide special termination rights for senior citizens. Such residential
rental agreements must provide that a tenant who had already occupied
a rental unit for more than 13 months may terminate the lease on a 60-day
written notice or the tenant becomes eligible to move into a rental
unit in senior citizen housing subsidized by a local, state or federal
program, or the tenant becomes incapable of living independently as
certified by a physician.
Rights and Responsibilities - Landlord
The landlord has a right to receive rent
on time, to expect that the property will not be damaged or used for
illegal purposes, and to receive payment for damages from the tenant
at the end of the lease. The landlord has the right to expect that the
tenant will not create a nuisance and will abide by the responsibilities
contained in the lease agreement.
When a landlord and tenant agree to a specific
amount of rent for a specific period of time, the agreement remains
in force during that period of time unless both parties agree to something
else. In the case where a tenant vacates a rental unit before the end
of the lease period, the tenant may continue to be liable for rental
payments. If tenants leave without giving timely notice, they may be
held liable for additional rent payments because notice was not given
at all or was insufficient. The tenant may owe rent for the full term
of the lease. The landlord, however, must make a good faith effort to
re-rent the property and thereby mitigate the damages for the tenant.
The tenant may also, in some cases, be held liable for advertising costs
to find a new tenant.
Where there is no lease spelling out the
period of the tenancy, a landlord is entitled to notice equal to length
of time in the rental period of the tenant's intent to vacate
the premises. If the agreement is for monthly rent, a month's
notice should be given. If the rental period is a week, a week's
notice is usually sufficient, and so on.
The landlord also has maintenance rights.
These include access to the unit to inspect and repair at reasonable
intervals (with notice to the tenant) and in times of emergency. In
addition, the landlord has recourse to court procedures to evict and
sue tenants who cause damage to the property through action or neglect.
On the other hand, the landlord has maintenance
responsibilities. The landlord must provide a safe and habitable dwelling,
comply with state and local laws, and carry out repairs that are not
the fault of the tenant. The landlord is also required to return the
unclaimed portion of the security deposit. The landlord's specific
duties and responsibilities are a very important and basic part of a
lease. Before entering into either a written or oral lease, these rights
and responsibilities should be clearly understood by both parties.
The landlord will generally carry insurance
for fire, liability, and, if necessary, flood protection on the land
and structures. In many instances, that insurance may not cover the
tenant, so the tenant should find out the extent of the landlord's
coverage, which would affect the tenant. The tenant may purchase a renter's
policy to protect personal possessions from theft, damage, or loss.
Liability insurance may also be a good idea if a tenant has children
or pets. Some landlords may require proof of insurance if the tenant
has a waterbed. Renters' policies are readily available through
most insurance agencies.
Tenant
The tenant has the right to quiet enjoyment
of the rented premises, to timely repair and maintenance of the premises,
to receive a written eviction notice as provided by the law, to the
return of the unused portion of the security deposit, and to expect
that the landlord will discharge the responsibilities contained in the
lease agreement. Also, the tenant has the right to remain in the rental
unit if the landlord sells it, unless there is a condition of sale clause
as part of the lease arrangement. This holds until the expiration of
the lease agreement. The new landlord must abide by the terms of any
existing lease.
A tenant generally is expected to make timely
rental payments and other agreed-upon payments (e.g. utility bills),
to keep the property in good condition, and not to engage in actions
that are illegal or bothersome to others. A tenant can be charged late
fees for missing deadlines on the payment of rent, but the late fees
can only be of an amount to recover the landlord's costs, rather
than being some type of penalty. Again, the written or oral lease will
usually contain the tenant's specific duties and responsibilities.
Also, the tenant is required to inform the landlord of necessary repairs.
Security Deposits - Introduction
In 1972, the Michigan Legislature passed
a law, which regulates security deposits. The law sets forth the procedures
governing the collection, management, and return of security deposits.
A security deposit is a deposit, in any amount, paid by the tenant to
the landlord or an agent to be held for the term of the rental agreement,
or any part thereof, and includes any required prepayment of rent in
any rental period in excess of the average rent for the term; and any
other amount of money or property returnable to the tenant on condition
of return of the rental unit by the tenant under conditions required
by the rental agreement. Security deposit does not include an amount
paid for an option to purchase, unless it is shown the intent was to
evade this act, nor does it include an amount paid as a subscription
for or purchase of a membership in a cooperative housing association,
which provides dwelling units to its members.
Always remember that the tenant has a right
to the security deposit when they move from the rental unit if the tenant
does not owe the landlord any rent, does not owe for utilities and leaves
the rental unit in the same condition excluding normal wear and tear,
as when the tenant moved in. Security deposits are considered the tenant's
property until the landlord establishes a claim on that money through
court action or through mutual agreement with the tenant. If there is
a dispute over this money, the landlord must go to court to establish
a claim to the disputed portion of the security deposit.
A security deposit includes any money the
tenant gives to the landlord beyond the first month's rent (except
for specifically stated nonrefundable fees), whether or not the landlord
defines that money as a security deposit. State law puts a limit on
how much a landlord may collect for a security deposit, but some landlords
attempt to circumvent that law by giving deposits other names.
The Michigan security deposit law is quite
specific about the procedures governing deposits, and it is important
that these procedures be followed closely. This law assigns tenant and
landlord responsibilities the moment the lease is signed or a unit is
occupied.
Security Deposit Rights and Responsibilities
Landlords and tenants are given rights and
responsibilities by the security deposit law. Below is a list for both
parties:
Landlords
May not require a security deposit that is
greater than 11/2 month's rent.
Remain responsible for the security deposit until: the landlord transfers
the deposit to their successor and by mail notifies the tenant of the
successor's name and address; the successor deposits the tenant's
security deposit in a regulated financial institution or posts a bond;
or the security deposit is returned to the tenant.
Must notify tenant in writing, within 14
days after the tenant's occupancy, of the address of the bank
where the security deposit is being held (it must be in a regulated
financial institution), and of the tenant's duty to supply a forwarding
address, in writing, within four days after vacancy.
Can use the security deposit for the duration
of the lease if they post a surety bond with the Michigan Secretary
of State.
Must give two blank tenant inventory checklist
forms to the tenant at the beginning of occupancy and must fill one
out at the end of occupancy. May request a receipt from the tenant for
these checklists.
Must return unclaimed portion of security
deposit within 30 days after the tenant completely vacates and inform
the tenant that the tenant must respond to the landlord's list
of damages within seven days of receiving it. Failure on the part of
the landlord to comply with this dual requirement forfeits their right
to claim damages against the security deposit. The landlord should allow
for mailing time. It is a good practice to retain some type of proof
of mailing.
Must take the tenant to court within 45 days
of the end of occupancy to collect any disputed portion of the security
deposit.
Is entitled to part or all of the amount
of the deposit if the tenant has failed to pay rent or utility bills,
or continues to occupy the premises in whole or in part, entitling the
landlord to additional rent.
Tenants
Must complete an inventory checklist at
the start of occupancy (within seven days of moving).
Must give the landlord a forwarding address
within four days after moving out. If the tenant does not do this, the
right to an itemized list of damages from the landlord is forfeited.
However, this requirement only applies if the landlord has informed
the tenant of this requirement in writing within 14 days after the tenant
has moved in.
Must respond in writing, if they dispute
the charges against the security deposit, within seven days of receipt
of notice. The tenant should allow for mailing time. It is a good practice
to retain some type of proof of mailing.
Has a right to the refund of the security deposit if the landlord does
not send a list of damages within 30 days of the end of occupancy and
does not file the case within 45 days of the end of occupancy.
This completes the list of important factors
for security deposits. However, there may be other charges at the time
tenancy begins that are reasonable and nonrefundable, such as a cleaning
charge or fee for wall washing, carpet cleaning, drapery cleaning, etc.
A cleaning fee does not negate the obligation of the tenant to maintain
the unit in a normal, sanitary manner. These nonrefundable fees or charges
are separate items from the security deposit and, as such, are not covered
by the security deposit law.
Upon receiving possession of the rented
premises, the landlord must also furnish a new tenant with two blank
copies of a commencement inventory checklist including all items in
the rental unit owned by the landlord. Within seven days the tenant
should review the checklist by noting the condition of the landlord's
property and return one copy to the landlord. The tenant has a right
to request and receive a copy of the termination inventory checklist
showing the claims chargeable to the last prior tenants. At the end
of the occupancy, the landlord should complete a termination inventory
checklist of any damages, which were caused by the tenant.
How to Get Your Security Deposit
Back
Remember, within four days after moving
out of the rental unit, the tenant must inform the landlord in writing
of a forwarding address. Within 30 days after the tenant has vacated,
the landlord must mail to the tenant's new address an itemized
list of any damage claimed against the tenant's security deposit.
At the same time, the landlord must list the estimated cost of repair
for each damaged item, the amounts and basis on which the tenant is
assessed and enclose a check or money order for the difference between
damages claimed and the amount of the security deposit held by the landlord.
It is important that both landlord and tenant
perform their duties within the allotted time; Public Act 348 of 1972
provides guidelines for both landlords and tenants. Failure by either
party to comply may result in the loss of a claim to the security deposit.
If no later than 45 days after the tenant has physically moved out and
surrendered the keys, the landlord and the tenant cannot reach agreement
on damage charges, the landlord must sue the tenant and secure a court
judgment covering damage charges in order to rightfully retain any portion
of the security deposit being held for physical damage or unpaid utilities.
Failure of the landlord to comply with this requirement can make the
landlord liable to the tenant for double the amount of the security
deposit retained.
Evictions
If a landlord wants a tenant to leave the
rental unit at some point, this can be accomplished in one of two ways:
the landlord and tenant can mutually agree to terminate the rental agreement;
or the landlord can evict the tenant. Eviction is the legal process
used by a landlord to remove a tenant from the rented premises with
or without the consent of the tenant. The landlord could evict a tenant
for the following reasons:
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Nonpayment of rent.
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Damage to property.
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Causing a serious and continuing health
hazard.
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Engaging in illegal activities related
to controlled substances,
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Engaging in illegal activities not
related to controlled substances.
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Violation of the terms of the rental
agreement.
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Failure to vacate the premises after
the lease expires.
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Failure to vacate the premises after
the landlord has given timely notice to terminate the lease.
Evictions under 7-day notices to
quit
If a tenant is renting under either a fixed-term
or a periodic tenancy and the landlord withes to evict for any of the
first three reasons listed above, it may be done with a seven-day notice
to quit. This eviction notice gives the tenant seven days to either
correct the situation or move. In those instances where illegal activities
relate to controlled substances, and the lease specifically prohibits
such activity, or for violation of the terms of the rental agreement,
a seven-day notice to quit may be used. For example, if rent is due
May 1, but the tenant doesn't make the payment, on May 2 the landlord
could issue the tenant with a Notice to Quit/Nonpayment of Rent. On
May 9, the landlord may file for a court hearing to evict the tenant
if the rent is still unpaid.
If there is a major violation of the local
housing or zoning codes, the city may condemn a structure. Such action
would force the tenants to vacate, but if the violation was not caused
by them, they would be allowed to sue for money damages (i.e., moving
expenses or temporary shelter costs).
Evictions under 30-day notices to
quit
A notice to quit is also a mechanism used
by a landlord to evict a tenant who is creating a nuisance or otherwise
violating the terms of the lease. It is used when a landlord wishes
to regain possession of a rental unit for other purposes, such as remodeling,
at the end of a rental period or the expiration of a lease. At this
point, the tenant is obligated to vacate the premises unless they can
prove that the notice to quit was issued in retaliation for some action,
which the tenant is legally permitted to do, such as joining a housing
cooperative, or placing rent in escrow and giving proper notice to the
landlord until the necessary repairs are made.
Such uses include notice of termination
of tenancy for reasons other than the first four stated in the list
above. A tenant who rents under a periodic tenancy can be evicted for
any of those reasons as long as it is not retaliatory or discriminatory.
The notice must be in writing and give the tenant at least one rental
period's time usually 30 days. For example, on May 1, a landlord
gives a tenant a written notice to vacate. The notice states that the
tenant is leave by June 1. This is a proper notice because it is at
least 30 days. If, however it is stipulated in the lease that the rental
period is other than the normal 30 days or one month, then the notification
period is equivalent to the length of that rental period. In any of
the above cases, a tenant has a right to a court hearing before any
actual eviction takes place. A judge or, at the request of either party,
a jury decides if the tenant must move, not the landlord. Judgments
are valid for 10 years.
Eviction timetable
Landlord provides a notice to quit (7-day
30-day, or an amount of time equal to the rental period) to the tenant.
After the required waiting period, the landlord
may file a complaint with the District Court, whereupon the court shall
deliver or mail to the tenant (defendant) a summons to appear before
the court on a certain date.
At the court hearing, if the tenant wins,
the tenancy continues. If the tenants lose, they have ten days to pay
the past due rent, settle the dispute or vacate the premises.
After ten days (or the date set by the court),
if the tenant has not vacated, a writ of restitution may be issued by
the court commanding the sheriff or other authorized court officer to
serve the process and restore the landlord (plaintiff) to full possession
of the premises. The plaintiff must provide the court with the writ
of restitution.
Important points
Remember that an eviction notice must include
the tenant's name and the address or description of the premises,
the reason for the demand, a date and the landlord's signature.
The following should also be noted:
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Tenants are entitled to a written notice
of eviction, properly served.
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Tenants are not required to move when
the eviction notice expires. Expiration of the notice only enables
the landlord to file for a court hearing. If a tenant stays beyond
the expiration date of a notice to quit, the landlord may request
the court to order the tenant to pay court costs including filing
fees and process server fees.
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When a summons is received, keep it
and show up in court on time. If either party does not go to the
hearing, they will probably lose the case automatically.
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Any appeal of a court's decision
must be made within ten days of the decision.
Only an officer of the court can eject a tenant. A legal eviction
can only occur after the landlord has won the court hearing and
the appeal period expires.
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There is legal recourse for protesting
an illegal eviction. Consult an attorney or housing counselor for
assistance.
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Both parties have the right to have
a jury decide the merits of the evidence.
There is one final eviction of which a
tenant should be aware of -- self-help eviction. Self-help eviction
is an attempt by the landlord to remove a tenant from the rental premises
without benefit of the legal eviction process. Public act No. 300 of
1976 prohibits this type of eviction. The four most common forms are:
shutting off of utilities; changing the locks on the doors; putting
the tenant's possessions out of the rented premises; removing
the tenant's possessions to another location. In case of self-help
eviction, a tenant can sue to recover up to three times the amount of
his or her actual damages or $200.00, whichever is greater.
Eviction is a legal process. Unless both
landlord and tenant are absolutely positive that they know what they
are doing, they should consult an attorney. There is no substitute for
good legal advice, and that is what is needed as soon as the process
begins.
Maintenance
Maintenance problems range from things that
are merely annoying to things that can pose an immediate threat to health
and safety. However, it should be noted that both landlord and tenant
have some maintenance responsibilities.
A tenant is generally expected to pay rent
on tine, keep the rented premises in a safe and sanitary condition,
promptly notify the landlord of maintenance problems, exterminate insects
that appear If they were not there when the tenant moved in, and leave
the rented premises in good condition (normal wear and tear excepted).
These responsibilities can be modified in certain instances by mutual
agreement between the tenant and the landlord.
There are three types of maintenance problems:
emergencies, major problems and minor problems. Emergencies are situations
that require action within 24 hours and pose an immediate threat to
the health and safety of a household. Examples include leaking gas,
flooding, major roof damage, or a defective furnace.
Major problems are problems that affect the
quality of the residential environment, but not to the degree that the
life of the occupant is immediately endangered. Examples are a defective
water heater, clogged drain, or heating problems in a part of a house.
Minor problems fall into the nuisance category
and include defective lighting, locks, faucets, household pests, and
peeling paint.
In solving these or any maintenance problems,
the first step is for the tenant to talk to their landlord. The tenant
should explain the situation, the importance of the repair, and when
they would like it done. Municipalities have enacted housing codes to
protect the rights of both landlords and tenants. Most municipalities
have their own specific codes, which may be checked by contacting city
hall.
The second step is for the tenant to write
a letter to the landlord about the problem(s), mentioning the previous
talk and the fact that action will be taken if there are any more delays.
Keep a copy of the letter for your records. It is important to keep
track of all phone calls and conversations with a landlord or a building
inspector. Individuals may want to have a building inspector sent to
their home for inspection; if so, note the date.
The third step should be taken only after
the tenant has documented the problems, the tenant has given the landlord
time to repair and the landlord has failed to act. The tenant should
keep all receipts and note the dates of all conversations regarding
the problem. The tenant should keep all broken parts, and if it's
necessary, call the building inspector. Withholding rent is a right
under Michigan law when the landlord fails to maintain a rental unit.
The tenant should send a letter to the landlord stating why rent will
be withheld and the amount will be released when the maintenance problems
have been corrected. The letter should be sent by certified mail with
a return receipt requested and a copy kept for the records. Alternatively
the letter could be sent by first class mail. If so, retain a receipt
of mailing from the post office. This should be done before rent is
due. The rent money should be put into an escrow account, depositing
it with a check including a memo of purpose for your record keeping.
The tenant's next option is to pay
for repairs and then deduct the cost from the rents. The money may even
be drawn from the escrow account. Before any repair work is done, three
companies should be called for estimates. If it is a do-it-yourself
job, go to three stores to price parts. Reputable firms will come to
a home and provide a free written estimate. These estimates should be
mailed to the landlord stating the cost of the repairs will be paid
from the withheld rent. Set a date for he landlord to fix the problem.
Then, the tenant should state that they will have the problem taken
care of if the landlord does not act by this date. Again, make a copy
of all letters and estimates for the record.
If the landlord still does not respond, the
last step is for the tenant to hire the lowest bidder and pay for the
work from the escrow account. The tenant should send the landlord a
copy of the receipt along with a letter stating that the amount to pay
for the repairs will be deducted from the rent or from the escrow account.
The tenant should then wait for the landlord's response.
A maintenance agreement is a timetable for
the landlord to make repairs. The tenant should be sure that it is in
writing, that both the tenant and the landlord have signed and dated
it, and that both have a copy. Before tenants sit down to talk with
the landlord, they should think about how long they will wait for repairs
and whether to release rent after the repairs are made. Regarding repairs,
one possible problem is that both parties will become so irritated with
each other that after the dispute is resolved, it is impossible for
them to continue to discharge lease obligations without expressing hostility
towards each other. If the repair problems become too critical, it is
entirely possible that the eviction process, lawsuits, counter suits
and vindictive incidents could occur. Both parties should remember that
in many landlord/tenant disputes, the basic issues become obscured by
personal disagreements that develop. Unless both parties understand
and remember that the purpose of the lease is to record mutual agreement
and that there is a direct relationship between rights and responsibilities,
the lease is doomed to failure. Substituting petty arguments for a basic
desire to make a lease work is the surest way to an unhappy situation,
which can result in legal disagreements, unnecessary financial expense
and a generally unpleasant experience for everyone involved.
Emergencies of the less serious type, like
one where the tenant has been given timely notice and then finds it
impossible to vacate the rental unit by the date specified, are the
most common. The tenant should contact the landlord immediately if that
happens. The rental unit may have been rented to another party. A tenant
has no automatic right to remain in the rental unit beyond the last
day of the rental period. The only way a tenant can hold over into the
next rental period is with the permission of he landlord. Be sure that
both parties understand and agree upon what the cost is to hold over.
Remember, the last agreement was rental of the unit for a specific period
of time, for example one month, and the tenant may not want to pay for
a full month's rent for one or two days occupancy.
The other type of emergency situation arises
when the tenant's health or safety is threatened the tenant may
have to move to temporary housing. If that happens, the tenant should
immediately notify the landlord. If repairs are not made in a reasonable
period of time the tenant may wish to consider deducting expenses from
the rent payment. If so, they should save receipts for expenses, as
it may be necessary to prove costs in a legal proceeding.
Subleasing
Subleasing occurs when a tenant permits another
party to lease from them the property they are leasing from the landlord.
The tenant thus assumes the position of being landlord in relation to
their subtenants. Subleasing usually occurs because the tenant has signed
a fixed-tem tenancy lease and wants, for a variety of reasons, to get
out of it before it expires. To avoid the financial burden of the unexpired
portion of the lease, the tenant tries to find a subtenant who will
assume that burden.
A tenant considering a sublease should realize
that their lease agreement will permit a sublease unless it specifically
prohibits subleasing, that the subtenant assumes only the duties and
rights enjoyed by the tenant, that the tenant is still responsible to
the landlord for performance of the lease agreement, and the tenant,
in relation to the subtenant, assumes the responsibilities of a landlord
and must, therefore, follow all the rules and laws applying to landlords
including the security deposit law.
When a subtenant leases from a tenant, the
subtenant will receive only the rights and obligations of the tenant
unless the subtenant and the tenant agree to the subtenant taking something
less than all of the tenant's rights and responsibilities. The
subtenant cannot receive more rights and responsibilities than the tenant
enjoys in the relationship to the tenant's landlord because the
tenant cannot sell to the subtenant rights and responsibilities that
were never possessed in the first place.
If subtenants fail to pay the rent, the original
landlord can hold the original tenant responsible for missed rent payments.
This amount can be withheld from the original tenant's security
deposit, as can charges for physical damage done by the subtenants.
Two things can be done to protect against this: require the subtenants
to sign a written agreement that includes the same wording as the contract
with the original landlord, and require a security deposit from the
subtenants.
The tenant should also understand what assuming
the role of landlord means. For instance, if the tenant requires a security
deposit from the subtenants, the provisions of the security deposit
law must be followed. If the tenant wants to evict the subtenants, they
must use legal procedures. In addition, if landlords are required to
register with a city housing department, sublessors may also have to
do so. As an example usually the person who sublets for more than specified
period of time qualifies as a landlord and must register with the city.
Check with the local housing department for further details.
Subleasing can be a complicated procedure,
particularly if the tenant is planning on leaving the area for the period
of the sublease. Try to get the landlord to sign a new contract with
the persons who are interested in subletting. If the landlord agrees
and also agrees to terminate the tenant's rental contract the
tenant's responsibilities end when their occupancy ends.
If the tenant permits the subtenant to pay
rent directly to the landlord, the tenant runs the risk of not knowing
if the subtenants are continuing to meet their rental obligations. When
the subtenants are required to pay rent directly to the tenant, with
the tenant paying the usual rent to the landlord, there is much less
risk.
Some communities have restrictions on the
number of unrelated occupants who can reside in a unit. In some cases,
both the landlord and the tenant may be held liable for violation of
these ordinances.
Remember, if a tenant should decide to move
out without subleasing, a landlord may hold the tenant liable for rent
due until the end of the agreed-upon occupancy. In a fixed-term lease,
a tenant may be held responsible for the rent due until the end the
end of a specified ending date. In a periodic tenancy, a tenant can
be held responsible for rent due until the required notice period for
termination has expired. The landlord, on the other hand, must make
a reasonable effort to re-rent the property. If the landlord is able
to re-rent the property, the tenant's responsibility to pay rent
ends when the new tenant's begin paying rent. A tenant may also
be held liable for reasonable re-renting costs, such as advertising.
Other Points of Interest - Civil
Rights
State and federal law prohibits discrimination
in rental housing based on a number of factors, including race, color,
sex, age, handicaps, and family status. For further information regarding
the classes of persons protected by state and federal law and the exceptions
to the general laws, contact the Michigan Department of Civil Rights
or the United States Department of Civil Rights.
Housing Codes, Smoke Detectors
Some communities have adopted housing codes
or other specific requirements which may affect the condition or equipment
requirements of residential rental property. These include the requirement
that smoke detectors be installed in housing or that residents comply
with recycling ordinances. Be sure to check with your local unit of
government to see if you are affected.
Restrictions on Pets
A landlord can include a provision in the
lease that restricts tenants from having pets in a rental unit. The
courts have permitted the eviction of tenants who violate a lease provision
prohibiting tenants from maintaining pets in a rental unit. A landlord
cannot discriminate against a handicapper who maintains a guide, hearing
or service dog wearing a harness or a blaze orange leash and a collar
if the handicapper has identification certifying that the dog was professionally
trained. In publicly subsidized housing, handicapped or elderly tenants
have additional rights to maintain pets in their rental units.
Smoking
A landlord can restrict tenants who smoke
to certain apartments or buildings or can refuse to rent to smokers.
The Michigan Attorney General stated in 1992 “neither state nor
federal law prohibits a privately-owned apartment complex from renting
only to non-smokers or, in the alternative, restricting smokers to certain
buildings within an apartment complex.”
Money Judgments
Beginning in 1996, a portion of a welfare
payment a tenant may be entitled to may be used to pay for damages they
caused to a landlord if a money judgment to that effect is entered against
the tenant. Specifically, if a judgment for damages arising from a breach
of a written or oral lease agreement is entered against a tenant who
is a welfare recipient, the landlord may then submit a certified copy
of the judgment to the Michigan Family Independence Agency. The agency
will then deduct a portion of that tenant/welfare recipient's
monthly cash grant, up to 10 percent, and give that portion to the landlord,
until the damages are paid for. It should be noted however, that this
statutory provision does not provide the landlord with a cause of action
against the Michigan Family Independence Agency for a breach of lease
by a welfare recipient.
Lead-based Paints
Beginning in 1996, landlords must provide
tenants renting units built before 1978 with certain information concerning
lead-based paints. This information includes a federal government pamphlet
entitled Protect Your Family From Lead in Your Home, and an informational
disclosure form about lead-based paints.
There are exceptions to this federal requirement,
including commercial rentals, zero-bedroom efficiency apartments, and
rental units certified as lead-free by a qualified lead abatement inspector.
For further information on this requirement, contact the national Lead
Information Center Clearinghouse at 1-800-424-LEAD.
Summary
Remember that there is a legal and proper
method for a tenant or landlord to terminate a lease and/or make the
landlord or tenant fulfill their part of the lease. If the written lease
specifies a method for terminating the lease the tenant or landlord
should follow that procedure. In the absence of such a provision, the
tenant should (but is not legally required to) give written notice of
any intent to vacate the premises. The notice should be equal in time
to at least one rental period.
Note that the landlord in the lease has
promised that all common areas are fit for the use intended, that the
premises will be kept in reasonable repair, and that the premises will
be kept in compliance with applicable state and local health and safety
laws except when the disrepair or violation is caused by the tenant's
willful or irresponsible conduct or lack of conduct. Legally the landlord
may enter the leased premises to inspect and repair at reasonable intervals,
with the consent of the tenant. The landlord and tenant should respect
each other's rights and cooperate because each right held by one
party carries with it corresponding responsibility.
To be safe, records should be kept. They
include a copy of the lease agreement, rent receipts, cancelled checks,
paid utility bill, inventory checklists, and communications including
registered mail and all certified mail receipts. If information pertains
to the lease agreement and it is written – keep it.
Be familiar with all obligations as a tenant
or a landlord. A tenant should find out if the landlord's insurance
covers any of the tenant's property that may be damaged by fire,
theft, or flood. Both parties should get to know each other before problems
arise. If you do not know whom your landlord or tenant is, find out.
It is in this way that landlord/tenant communication breakdowns are
kept to a minimum.