Do I have disclose all the fees and deposits required to be made while renting out a home on a lease?
Full Question:
I own a residential property in Michigan and I intend to lease it out. I am in the process of drafting a lease agreement. A friend of mine suggested that I reveal all the fees including nonrefundable fees and deposits explaining the requirement and purpose for which it is required. Is this necessary in a lease agreement? Beside this, what other information would I be required to include in the lease?
11/09/2016 |
Category: Landlord Tenant |
State: Michigan |
#26454
Answer:
As regards to the disclosures to be made in the lease on the subject of all nonrefundable fees or deposits, the law in Michigan states that it must be stated in writing explaining the fees that are required and the purposes for which they are required. A leading case discussing this issue is Stutelberg v. Practical Management Co., 245 N.W.2d 737 (1976). The Michigan statute - Mich. Comp. Laws §§ 554.601b, 554.608, 554.634, 554.602 to 554.616 provides details on these disclosures. Alternatively, you can also check your local ordinance for any city or county disclosure requirements. To find yours, check your city or county website (many are listed on State and Local Government on the Net - http://www.statelocalgov.net/), or contact the office of your mayor, city manager, or county administrator. As a final point, see the Required Landlord Disclosures (http://www.nolo.com/legal-encyclopedia/required-landlord-disclosures.html) article for details on federally-required landlord disclosures and other information on disclosures about the rental property.
In general, Michigan also requires landlord to make disclosures such as move in checklist, rights of domestic violence victims, identity of owner or agent and security deposit details as well.
