Need a Property Rentals Contract in Michigan? AroundWire Can Help

In Michigan, contracts for property rentals—whether residential or commercial—are governed by a combination of state statutes and local ordinances. Key contract characteristics include clear identification of the property, duration of lease, rent amount and payment schedules, security deposit terms (with deposits typically capped at 1.5 months’ rent for residential leases per the Michigan Security Deposit Act), and explicit responsibilities for maintenance and repairs. State law requires disclosure of lead-based paint hazards for properties built before 1978 and may mandate other disclosures depending on locality. Insurance obligations are common: landlords often require tenants to carry renter’s or liability insurance, while landlords themselves must comply with state and municipal property insurance requirements. Commercial leases may include additional risk allocation provisions, such as indemnification and waiver of subrogation clauses. Licensing is required for landlords with multiple rental properties in some Michigan cities, notably Detroit, which also enforces property inspection and certificate of compliance requirements. Payment terms commonly specify grace periods and late fees, subject to reasonableness under Michigan law. Dispute resolution provisions often favor local venue and may encourage mediation or arbitration prior to litigation. Contracts must comply with the Michigan Truth in Renting Act (for residential leases), which prohibits certain unfair terms. Overall, Michigan emphasizes clarity, statutory compliance, and fair allocation of risk in property rental contracts.