In the U.S., including Michigan, a rental agreement is a widely used document. It is a legally-binding form that is created by two parties, one of which is renting out a certain space (either for residential or commercial purposes) to another individual. Usually, the parties are referred to as the “landlord” and the “tenant.” The paper serves several purposes. First of all, it outlines the responsibilities of the involved parties. Secondly, it protects the owner’s rights in case of unpredictable circumstances caused by the tenants. Even if you lease a room to a reliable friend or relative, it is recommended to conclude such a contract to avoid confusing situations and disputes.
The structure of the form and requirements for its completion may vary from state to state. However, this type of form covers nearly the same information in all states: personal details of the parties, description of the property and its address, the rent amount, and other terms and conditions under which the parties cooperate.
In Michigan, both parties can enter into various types of rental agreements depending on the type of rental deal at hand. They can choose from at least seven different forms:
Some of the forms differ in the period of time for which the premises are rented out. Others are meant only for tenants (for instance, if a tenant wants to lease a room when they are renting the property from another owner). To get acquainted with all specific terms of each form or to create one of them, you are welcome to make use of our form-building software that will also help to make the downloading process quicker.
Before you conclude a rental contract, you should find out what requirements and rules regulate the relations between you and the other party. Keep in mind that these rules vary from state to state. In Michigan, the majority of laws regarding renting are stated in Chapter 554 of the state law or in special state guides that reveal a tenant’s rights and duties.
A security deposit is an amount of money that a tenant is to provide to a landlord. The landlord, in their turn, must deposit this sum of money into a bank account and inform the tenant where the bank is located and provide them with the account number.
According to Section 554.602, the maximum amount of the security deposit must not exceed the rent for one month and a half. A security deposit ensures that the tenant can pay the rent and financially cover all damages caused.
As stated in the above-mentioned section, if the renter has decided to move out and has not broken the rental contract, the security deposit must be returned within 30 calendar days. The landlord can use the money only if they need it to repair the damage caused by the renter.
The amount of interest to which the tenant is entitled depends on the type of bank account. An interest-bearing account may require an interest that is less than 5%.
Any tenant has a right to privacy when they make a rental deal and move into a certain property. Nevertheless, if any maintenance is needed, the landlord has a right to enter their property. In most states, the owner must inform the tenant no later than one-two days before coming. In Michigan, if the owners want to access the rental unit for repair or other purposes, they are not required to notify the lessee. Although notifying the tenant is optional, it is recommended to give a phone call or write an email and state an adequate reason for the visit.
In Michigan, a rental deal is never made without providing several disclosures. Thus, when creating a lease agreement, make sure that you have prepared the following disclosures: