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Contents
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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Routine rent increases are standard practice for landlords, keeping their current rents in line with market rates and combatting increased operational costs such as property taxes and materials and labor costs for repairs and maintenance.
Before increasing rent in Michigan, it's essential to understand the state's regulations. While Michigan doesn't have rent control or rent stabilization laws, rent increases need to comply with the lease agreement and tenants should receive proper notice. Michigan rent increase law also prohibits discriminatory rent increases based on protected characteristics, as the Fair Housing Act outlines.
This article clarifies, "How much can landlords raise rent in Michigan?" and explores the relevant laws governing rent increases within Michigan providing practical guidance for landlords and tenants.
Read more: When Should a Landlord Increase the Rent?
In Michigan, there are no statewide restrictions on how much or when a landlord can increase rent. However, landlords must provide tenants with adequate written notice before a rent increase takes effect.
The specific notice period required is typically outlined in the lease agreement and can range from 30 to 90 days. If the lease agreement doesn't specify a notice period for rent increases, a default period of at least 30 days is generally considered reasonable.
It is also important to note that the terms of a valid lease agreement take precedence over general state laws regarding rent increases. So, if the lease agreement stipulates a specific timeframe for rent increases or includes a cap on the amount of the rent increase, the landlord must adhere to those terms.
Additionally, landlords must comply with federal fair housing laws, such as the Fair Housing Act, which prohibits discrimination in rental housing based on protected characteristics like race, color, religion, sex, familial status, national origin, or disability. Any rent increase that is applied discriminatorily could violate these federal laws.
Read more: How Much Can A Landlord Raise The Rent?
Even though Michigan lacks rent control ordinances, landlords must still comply with state and federal laws when increasing rent.
To navigate the legal aspects of raising rent in Michigan, follow this step-by-step guide:
The initial step involves setting the new rental price. Analyzing the local rental market and current trends helps establish a competitive rate.
Online tools such as Rentometer and Zillow Rent Estimate can assist in performing a thorough market analysis for rentals in Michigan. By researching comparable properties, landlords can justify rent increases based on market value, property improvements, and rising operational costs.
After determining the new rental price, landlords must send a rent increase notice to their tenants. Michigan law mandates at least a 30-day notice for rent increases in month-to-month leases; however, providing a longer notice period (for example 60 days) will help foster positive tenant relationships, giving your tenant more time to find a new home and you more time to find a replacement.
The notice should include the current rent, the proposed new rent, the effective date of the increase, and contact information for questions, ensuring compliance with Michigan Compiled Laws (MCL) regarding landlord-tenant communications.
A tenant's reaction to a rent increase significantly depends on the communication approach. Engaging from a caring perspective and providing ample time for tenants to adjust their budgets can ease the transition.
Although Michigan law doesn't specify how to deliver the notice, a written notice is advisable to prevent misunderstandings and clarify the increased details. This written notice helps prevent misunderstandings and clarifies the details of the increase.
Landlords should also be prepared to explain the reasons behind the increase, such as property improvements or market changes, fostering transparency and trust with tenants.
Staying informed about potential changes to Michigan rent increase laws is crucial for ensuring ongoing compliance and understanding tenant rights regarding disputes arising from these increases. Landlords should consult legal resources or local landlord-tenant associations to remain updated on any legislative developments.
Read more: How to Increase the Rent: Free Rent Increase Letter
Increasing rent doesn't have to be a complicated process. With Landlord Studio, you can easily collect rent online and manage rent changes while maintaining clear communication with your tenants.
Landlord Studio's schedule rent change feature allows you to set future rent adjustments, ensuring they are applied automatically on the effective date. This feature helps you stay organized and compliant with Michigan's notice requirements, and paired with the personal reminder feature this eliminates the risk of forgetting or miscalculating the start date for the new rent amount.
Transparent communication is essential when increasing rent. Landlord Studio offers customizable email templates to notify tenants of the upcoming change. You can include all the necessary details—such as the current rent, the new amount, and the effective date—ensuring the notice is clear and compliant with Michigan law.
After implementing a rent increase, collecting the new amount is seamless with Landlord Studio's rent collection feature. Tenants can pay online, reducing the risk of late or missed payments. Automated rent reminders and recurring payment options help ensure consistent cash flow, saving you time and effort in managing rent payments.
Create your free Landlord Studio account today to make managing your rental income easier than ever.
Landlords in Michigan are legally obligated to provide tenants with written notice before increasing rent (MCL 554.139).
Generally, state law requires a minimum 30-day notice period, giving tenants time to adjust to the new financial obligation or seek alternative housing. However, lease agreements may stipulate different notice periods, so it is crucial to review the specific terms of the lease.
The rent increase notice must clearly state the new rent amount and its effective date. Failure to provide proper notice could lead to legal challenges and invalidate the rent increase.
Michigan law underscores the need for reasonable notice, fostering transparency and fairness in rental agreements, thus protecting both landlord and tenant rights.
Read more: How to Write a Friendly Landlord Rent Increase Letter
Useful resources: Download Free Rent Increase Notice Letter Template(s)
While Michigan generally prohibits rent control, mobile home tenancies have specific regulations and considerations. Recent legislative discussions have centered on regulating rent increases within mobile home parks.
For example, there have been proposed bills requiring owners of manufactured housing communities to seek approval from a state board for rent increases exceeding the inflation rate. Some proposed legislation even suggests that rent increases should align with the fair market rent for comparable mobile home lots.
It's also been proposed that mobile home park owners may have to notify the government six months before implementing a rent increase. These potential regulations seek to protect mobile home renters from "unjustifiable" rent increases and add to the existing state rules governing the licensing and operation of manufactured housing communities.
Note that the Michigan Legislature requires landlords to offer tenants a written lease agreement.
See: HB 5568 of 2020, HB 5569 of 2020, and HB 6008 of 2020.
In Michigan, while landlords can increase rent as much as they want, they must adhere to specific notice requirements and comply with fair housing laws at the federal and state levels.
The Michigan Fair Housing Act, similar to the federal Fair Housing Act, protects tenants from discrimination based on religion, race, color, national origin, sex, familial status, or handicap. To this effect, raising rent in a discriminatory manner, such as charging different rates based on protected characteristics, is illegal.
Rent increases must be reasonable and non-retaliatory against tenants who exercise their legal rights. Although Michigan doesn't have rent control laws, increases should reflect fair market value and not be used to bypass lease agreements.
Tenants can challenge excessive or unfair rent increases, and documenting all communications with landlords is essential. If discrimination is suspected, tenants can seek help from housing authorities or legal aid organizations. Moreover, tenants in mobile home parks have the right to bring an action on their behalf if owners engage in unfair or deceptive practices.
The key to successfully raising rent in Michigan is for landlords to follow the specified requirements by state laws.
This includes regulations relating to notice periods and anti-discriminatory actions as federal law and the Michigan Fair Housing Act outlines. Adhering to these requirements and laws not only helps prevent disputes regarding rent increases but also fosters positive landlord-tenant relationships.
To streamline the process of legally implementing rent increases in Michigan, consider using property management software. Platforms like Landlord Studio simplify rent collection, automate notifications for changes, and help maintain organization while complying with local regulations.
Sign up for a free account with Landlord Studio today to make your rent increase process smooth and hassle-free!
