2023 House Bill 4891

Housing: landlord and tenants; rental application fees; require to be refunded if the application is denied.

A bill to amend 1972 PA 348, entitled “An act to regulate relationships between landlords and tenants relative to rental agreements for rental units; to regulate the payment, repayment, use and investment of security deposits; to provide for commencement and termination inventories of rental units; to provide for termination arrangements relative to rental units; to provide for legal remedies; and to provide penalties,” (MCL 554.601 to 554.616) by amending the title and by adding section 7a.

House Fiscal Agency Analysis

House Bill 4891 would add a new section to 1972 PA 348, known as the landlord-tenant act, that would require landlords to refund the application fees of prospective tenants whose applications were denied. Under the bill, a landlord that denies a prospective tenant’s application for a rental unit would be required to refund any application fees paid by the prospective tenant. An applicant whose application was denied and whose application fees are not refunded could bring a civil action against the landlord for actual damages or $1,000, whichever is greater, in addition to reasonable attorney fees and the costs of bringing the action. A landlord would not be required to refund a background screening fee, or that portion of the application fee, if they provide the applicant with a copy of the background screening report.