A bill to amend 1978 PA 454, entitled “Truth in renting act,” by amending section 6 (MCL 554.636).
The bill aims to enhance tenant protections by specifying rights and remedies available to tenants when a rental agreement includes provisions that contravene certain sections of the Act. Key provisions of the bill include:
Tenant Remedies for Violations: Tenants are empowered to take legal action if a rental agreement contains illegal provisions and the landlord fails to rectify these violations within 20 days after receiving written notice from the tenant. Remedies available to tenants include the ability to void the rental agreement, enjoin the landlord from including such provisions in future agreements, and recover damages.
Conditions for Immediate Remedies: The bill outlines circumstances under which tenants can seek remedies without prior notice to the landlord, especially if the landlord was already aware of the violations or had been previously notified under section 5 of the Act.
Recovery of Court Costs and Attorney Fees: Tenants who prevail in legal actions against landlords for including illegal provisions in rental agreements are entitled to recover court costs and statutory attorney fees.
Limitations on Damages and Penalties: The bill stipulates that all actions related to a specific provision must be joined, with only one judgment for damages awarded. However, tenants can still recover actual damages. Additionally, landlords are not penalized for violations resulting from judicial interpretations unless they fail to correct the violation within 30 days after a court's final determination.
Definition of Tenant: The term "tenant" is clarified to mean a person who is currently a party to a rental agreement with the lessor.
Contingent Enactment: The enactment of this bill is contingent upon the passage of related legislation, either Senate Bill No. ____ or House Bill No. 5761 from the 102nd Legislature.
This bill represents a significant effort to clarify and strengthen tenant rights within the framework of Michigan's Truth in Renting Act, particularly focusing on the remedies available to tenants when facing rental agreements that include illegal or unfair provisions.
Co-sponsored by Reps.
Referred to the Committee on Economic Development and Small Business