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 sections 3, 9, 10, 11, 12, and 13 (MCL 554.603, 554.609, 554.610, 554.611, 554.612, and 554.613).
House Bill No. 5766, introduced on May 30, 2024, proposes amendments to the 1972 PA 348, which governs the relationship between landlords and tenants, particularly focusing on rental agreements and security deposits. The key changes suggested by this bill include:
Landlord Notification Requirements: Landlords would be required to provide tenants with their contact information and the details of the financial institution holding the security deposit within 14 days of the tenant taking possession of the property.
Tenant Forwarding Information: Tenants would need to give their forwarding contact information to the landlord within 4 days of moving out.
Itemized List of Damages: Landlords must send an itemized list of any damages to the property within 15 days after the tenant vacates. Tenants then have 7 days to respond to this list, failing which they may forfeit the amount claimed for damages.
Methods of Communication: The bill specifies that notices can be sent via mail, email, text messages, or other previously accepted methods of communication between the landlord and tenant.
Return of Security Deposit: If a landlord fails to comply with the requirement to notify about damages within 15 days, they must return the full security deposit to the tenant. Furthermore, landlords have 45 days after the termination of occupancy to either return the balance of the security deposit or commence court action for damages.
Penalties for Non-Compliance: Failure by landlords to comply with these requirements results in them waiving all claimed damages and being liable to the tenant for double the amount of the security deposit retained.
This bill aims to update and clarify the methods of communication between landlords and tenants, as well as to provide more structured timelines and penalties for the handling of security deposits and notification of damages.
Co-sponsored by Reps.
Referred to the Committee on Economic Development and Small Business
