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,” by amending the title and section 1 (MCL 554.601), section 1 as amended by 1995 PA 79, and by adding sections 1c, 1d, 1e, and 1f.
The proposed legislation aims to amend the 1972 PA 348, which regulates relationships between landlords and tenants, by introducing new provisions and modifying existing ones. The primary objectives include enhancing transparency in rental agreements, regulating the use of security deposits, and providing legal remedies and penalties. Notably, the bill introduces requirements for landlords to provide specific notices to prospective tenants and allows for the reuse of certain screening reports. It also mandates landlords to inform prospective tenants about the information accessed during the screening process, the criteria for application denial, and the availability of rental units. Additionally, landlords are prohibited from using a tenant's credit score as the sole deciding factor for lease eligibility and from considering judicial actions without findings of liability against the tenant. The bill stipulates that landlords must decide on rental applications within 14 days and provide written notice of any adverse actions, including a detailed explanation and an opportunity for the tenant to rebut the information. Furthermore, landlords must consider a tenant's current ability to pay rent and suitability for tenancy, and they are required to process rental applications in the order received. The legislation also introduces a cap on rental application fees at $25 if the landlord does not accept a reusable screening report and outlines penalties for non-compliance, including potential civil actions for damages up to $1,000, attorney fees, and costs.
Co-sponsored by Reps.
Referred to the Committee on Economic Development and Small Business
