Guide To Rental Applications in Michigan [+Free Template]

Contents

DISCLAIMER

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.

Overview

DEPOSIT

RENT CONTROL

NOTICE OF ENTRY LAWS

RE-KEYING LAWS

RENTAL AGREEMENT

LATE FEES & GRACE PERIODS

SMOKING LAWS

PET LAWS

Rental applications provide a structured way for landlords to evaluate potential renters, saving them from potential troubles with problematic tenants.

A typical rental application collects information about their personal background, residential history, and financial standing. Navigating the legal landscape surrounding rental applications in Michigan is necessary to ensure fairness, transparency and compliance.

Michigan rental application laws affect allowable application fees, permissible screening criteria, the use of screening reports, and, most importantly, tenant rights.

This article provides a comprehensive resource for Michigan landlords looking to create effective and legally sound rental applications.

Read more about Michigan laws: Michigan Landlord Tenant Laws

What is a Michigan Rental Application?

A Michigan rental application is a landlord's initial tool for finding the perfect tenant, allowing them to collect all the important information about a prospective renter. It is the first step in ensuring your property is occupied by someone reliable and respectful and who will pay the rent on time and in full every month.

In Michigan, you'll typically encounter two main application types, the Michigan Standard Rental Application which is a standard rental application process either online or on paper, and the HUD rental application which is for individuals participating in the Section 8 Housing Choice Voucher Program.

Download Free Residential Rental Application Form Template(s) here

What To Include in a Michigan Rental Application Form

Creating an effective rental application is key to finding the right tenants. If you're a Michigan landlord designing your form, consider collecting this essential information:

Personal Information: Full name, contact details, and date of birth.
Rental History: Previous addresses, duration of stay, and landlord references.
Employment Information: Current employer, position, and length of employment.
Income Details: Monthly income and any additional sources of revenue.
Credit History: Consent to check credit scores and financial background.
Personal References: Names and contact information for personal or professional references.
Background Check Authorization: Explicit permission for conducting background checks.

The Easiest Way to Collect Rental Applications In Michigan

Landlord Studio streamlines rental applications in Michigan by allowing tenants to apply online, anytime, automating the entire process.

Rental applications come with full tenant screening reports, including background checks, eviction and rental history checks, and a full credit report, saving you time. Everything is stored in one place, making it easy to stay organized. The platform also lets you compare applicants side-by-side, helping you quickly choose the best fit for your property.

With Landlord Studio, managing applications is faster, easier, and more efficient.

Create your free Landlord Studio account today to advertise your rental property, collect applications, and screen tenants.

Michigan Rental Application Laws And Requirements

Several key legislations govern rental applications in Michigan, which landlords should be aware of. Below is an overview of the key laws that property owners should consider when creating rental applications.

Maximum Rental Application Fee Michigan

In Michigan, there's no state law capping the amount landlords can charge for rental application fees. This gives landlords flexibility in setting fees to cover expenses like credit and background checks.

Keep in mind that these fees are typically non-refundable, so be upfront with applicants about this policy.

Related Article: Rental Application Fee Laws By State

Security Deposit Limits Michigan

Under Michigan law (Michigan Compiled Laws, Chapter 554, Section 554.602), landlords leasing unfurnished apartments have a security deposit limit of one and a half month's rent.

Fair Housing Compliance

When it comes to rental practices, both federal and Michigan fair housing laws draw a firm line against discrimination. The Federal Fair Housing Act safeguards renters from bias based on race, color, religion, national origin, sex, disability, and familial status.

Additionally, Michigan's own Fair Housing Act echoes these protections, specifically prohibiting discriminatory actions related to race, color, religion, sex, national origin, physical or mental disabilities, and familial status (including families with children).

What does this mean for your Michigan rental application? It's simple: you cannot request information related to these protected characteristics on your application form. Nor can you factor them into your decision-making process.

Required Disclosures in Rental Applications Michigan

Rental applications in Michigan must include disclosures about:

Lead paint: Landlords must disclose any known lead paint hazards and provide tenants with an information pamphlet
Security deposit: Landlords must provide a written record of payment and information about the financial institution holding the funds
Right to be present at inspection: Landlords must inform tenants that they have the right to be present at the final inspection
Carbon monoxide and smoke detectors: Landlords must state whether they will provide carbon monoxide and smoke detectors, and how tenants are responsible for maintaining them

Other disclosures that may be relevant include:

Criminal history: Landlords can consider applicants' criminal histories, but they must do so consistently and without discrimination
Personal information: Rental applications should request the applicant's name, phone number, email address, residential address, and proof of identification
Pet ownership and recreational habits: Rental applications should ask basic questions about pet ownership and recreational habits like smoking

Credit and Background Check Laws Michigan

In Michigan, like elsewhere, a landlord needs explicit permission before running a credit or background check on a prospective tenant. This requirement is outlined in the Fair Credit Reporting Act (FCRA), which is designed to protect applicant privacy.

To comply with FCRA, you'll need to obtain the applicant's consent. This consent can be integrated directly into your rental application or presented as a separate, standalone document.

Either way, be sure to include a clear statement informing applicants about the credit and background check process. And importantly, make sure the applicant signs the form, confirming they understand and agree to the checks.

Verifying Employment and Income

Landlords typically require prospective tenants to provide proof of income as part of the rental application process in Michigan. This requirement helps landlords assess whether an applicant can reliably afford to pay rent.

Here’s an overview of how to verify income during the rental application process:

Request Recent Pay Stubs: Ask for two to three recent pay stubs from the applicant. These should display the applicant’s name, their employer’s name, and year-to-date earnings. This documentation helps ensure consistency in income.
Employment Documentation: If an applicant is starting a new job and cannot provide pay stubs, request an offer letter or employment confirmation that includes the applicant’s salary, the company’s letterhead, and its address.
Review Bank Statements: Request two recent bank statements to gain insight into the applicant’s monthly deposits. This can be particularly useful for those who may not have pay stubs.
Tax Documents: Tax documents, such as W-2 forms for employees or 1099 forms for self-employed individuals, can provide a clear picture of an applicant's earned income for the year.
Invoices for Self-Employed Applicants: For self-employed individuals, ask for two to three recent invoices to gauge their earnings over the past couple of months.
Proof of Additional Income: Consider other sources of income, such as housing vouchers, child support, alimony, Social Security, Supplemental Security Income (SSI), or investment income. Request documentation that verifies these amounts.

It’s important to note that some states have laws against income discrimination, meaning landlords cannot deny a rental application based solely on how an applicant earns their income.

Related Article: 10 Methods for Tenants to Show Proof of Income

How To Collect Rental Applications in Michigan

Landlords in Michigan typically use two primary methods to collect rental applications: paper forms and online application platforms.

Paper Forms vs. Online Forms

Paper forms are a convenient option for applicants who may not have reliable internet access or who are less comfortable with technology. They provide a familiar format for many landlords, particularly those who prefer traditional approaches.

Landlords can easily download rental application templates from the internet, print them out, and distribute them to prospective tenants.

On the other hand, utilizing online rental application platforms like Landlord Studio can help you streamline the application process in Michigan. This method is often more efficient than paper forms, offering quicker turnaround times, better organization, and improved readability of submitted applications.

With Landlord Studio tenants will be required to fill out a simple streamlined online application and consent to a tenant screening report. This allows landlords to quickly and easily gather all the information they need on a prospective tenant to make informed decision. It’s the fasytest way to find the best possible tenants for your rentals.

Conclusion

Rental application forms are invaluable tools for Michigan landlords, but staying compliant with evolving state and federal laws is paramount. When designing or using these forms, ensure they reflect the latest regulations to avoid potential legal pitfalls.

For a simplified, stress-free approach to managing Michigan rental applications, explore property management solutions like Landlord Studio. This type of software streamlines application and fee collection, while also helping to ensure adherence to relevant legal requirements.

Michigan Landlord Tenant Laws

Rental Application Resources

Michigan Rental Application FAQs

What details should a rental application include?

A well-designed rental application gathers key information: the applicant's contact details, documented proof of income to ensure rent affordability, a clear overview of their employment history demonstrating stability, and reliable references to vouch for their character and past tenancy.

What screening reports can a landlord request?

Landlords often utilize screening reports to assess an applicant's suitability. These typically include credit reports to evaluate financial responsibility, background checks to ensure safety and security, and eviction history reports to identify any prior issues with tenancy.

What questions are illegal on a rental application?

It's crucial to avoid discriminatory inquiries. Asking about an applicant's nationality, birthplace, or cultural background is strictly prohibited and can lead to significant penalties, including fines, monetary damages, and responsibility for the applicant's legal fees.

What are the legal requirements for security deposits?

Security deposits are subject to specific regulations. They must be held in a regulated financial institution. The deposit can only be used for authorized purposes, such as covering damages beyond normal wear and tear. In Michigan, the deposit cannot exceed one and a half month's rent.

What essential terms must be included in a lease agreement?

A legally sound lease agreement identifies all parties involved, specifies the exact rental unit being leased, defines the lease duration or term, and states the precise amount of rent due and payment expectations.

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