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This article provides general information and is not legal advice. For accuracy and specific guidance on landlord-tenant laws, consult an attorney before making any decisions or taking action.
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Tenant screening is an important process that allows landlords to evaluate prospective renters and determine their fit for a lease. When done carefully, it can significantly decrease the chances of costly property damage and financial losses that come with landlord-tenant disputes.
Michigan tenant screening laws are designed to protect both landlords and tenant applicants, allowing landlords to use credit and background checks to inform their decisions and pass along a reasonable fee to the applicant. However, these fees must cover the landlord's real screening expenses and can't be used to generate extra income. Additionally, there are laws designed to protect tenants from discrimination and that regulate how landlords can use the data from screening reports.
This guide offers a complete look at Michigan's tenant screening laws for 2025. You'll also learn what information landlords can legitimately collect, how they can use it, and the limitations on associated fees.
Related Article: The Landlord's Guide To Tenant Screening
Before conducting any tenant screening, Michigan landlords must understand the several federal, state, and local legislations that govern the process. This will help them maintain compliance with those laws and ensure a fair and lawful evaluation of prospective renters.
One of the main legislatures that apply during tenant screening in Michigan is the federal Fair Housing Act (FHA). This act prohibits discrimination based on race, color, religion, sex, familial status, national origin, or disability. At the state level, the Michigan Elliott-Larsen Civil Rights Act extends the protected classes to include age and marital status.
While Michigan does not explicitly protect “source of income” statewide, some local ordinances (e.g., in Detroit and Ann Arbor) prohibit income-based discrimination. For more context, refusing tenants with housing vouchers would be considered discriminating based on income.
Under House Bill 4878 (2023), the Michigan Fair Chance Access to Housing Act, landlords face new restrictions:
Tenants may file complaints with the Michigan Department of Civil Rights or the U.S. Department of Housing and Urban Development (HUD) for FHA violations. Additionally, HB 4878 allows complaints to the Michigan Attorney General for improper criminal record use.
However, Landlords who comply with the law are immune from liability for renting to individuals with criminal histories.
As of this writing, Michigan law does not have a statewide limit on rental application fees. This means landlords can charge applicants any amount to cover processing costs like background and credit checks.
Landlords should note that the application fees are typically non-refundable. Also, each adult applicant is responsible for their fee if they are signing the lease. Additionally, despite the lack of statewide limitations on tenant screening fees in Michigan, local ordinances might apply. That’s why it’s recommended that landlords check local laws for compliance guidance.
Finally, according to House Bill 5605, tenants are allowed to submit a reusable screening report. Landlords that accept these reusable screening reports from a prospective tenant shall not charge the prospective tenant a rental application fee.
Like most states, landlords in Michigan are mandated to disclose specific information about their screening process to applicants.
Before accepting an application fee, a landlord must disclose in writing whether the screening process includes evaluating or considering the applicant's criminal record. If it does, the landlord must also inform the applicant that they may be required to provide documentary evidence of any inaccuracies in their criminal record, rehabilitation, or other mitigating factors.
In Michigan, landlords must adhere to the Fair Credit Reporting Act (FCRA) and state laws when conducting background and credit checks on prospective tenants.
Under the FCRA, landlords must obtain clear, written consent from the applicant before running any credit or background checks. The disclosure requesting consent must be in a standalone format, separate from the rental application. The applicant must authorize the landlord to obtain the report.
The Michigan Fair Chance Access to Housing Act (HB 4878) adds nuances. Landlords cannot inquire about criminal history until after issuing a conditional offer based on other screening criteria (income, rental history, credit score). Therefore, consent for a criminal background check should be obtained after this conditional offer.
If a landlord takes adverse action (denial, higher deposit) based on a consumer report, they must provide an adverse action notice. This notice includes the reporting agency's details, a statement that the agency didn't make the decision, the applicant's right to a free report copy within 60 days, and the right to dispute report accuracy.
Below is an overview of the essential steps involved in the tenant screening process in Michigan.
Start by asking pre-qualification questions to gauge whether applicants meet key criteria, such as income level, rental history, and their preferred move-in date.
Collect vital information from applicants, including their contact details, previous addresses, employment history, proof of income, and consent for background checks.
After gathering the necessary information, conduct comprehensive background checks. These should include credit history, criminal records, and rental history. Utilizing an online screening service can streamline access to these reports legally and efficiently.
When choosing an online tenant screening service, focus on the accuracy and thoroughness of the information provided about potential tenants. Consider aspects such as cost, data security, and the speed of report delivery.
A notable option is Landlord Studio, which provides a detailed tenant screening report for Michigan that includes credit scores, rental history, background checks, and eviction records. Reports can be generated in as little as 30 minutes, with prices starting at $45.
Once you have reviewed the reports, assess the applications using consistent criteria to ensure compliance with Michigan's tenant screening laws.
It is crucial for landlords to promptly inform applicants of their decisions. Providing clear reasons for any denials promotes transparency and helps maintain a positive relationship with potential tenants.
To navigate Michigan's tenant screening effectively, landlords must grasp and follow both federal and state rules. Doing so helps prevent legal troubles from non-compliance. Landlords should also avoid discriminatory practices, focusing instead on solid indicators like a tenant's consistent payment history and ability to afford rent.
Property management platforms, like Landlord Studio, can ease screening and boost compliance with Michigan's tenant screening laws as of 2025. Landlord Studio provides budget-friendly screening choices and prioritizes legal adherence.
Take the first step towards improving your tenant screening experience in Michigan by creating your free Landlord Studio account today!
