What Landlord Rules Apply Where My Rental Property Is Located?

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A Michigan rental home is covered by three layers of rules: federal law (such as fair housing and lead paint disclosure), Michigan state law (such as security deposits, lease terms and the eviction process), and the city or township's own rental rules, which often include registration, inspections and a rental certificate. HOA or condo rules can add a fourth layer. The local layer is the one that changes most from one address to the next.

JMZ Management manages rentals in more than 125 cities and townships across five Metro Detroit counties, and as JMZ's owner FAQ puts it, every city handles rental compliance differently. This guide shows what each layer covers and how to find the rules for a specific address before you buy.

Key takeaways

• Federal and state rules apply everywhere in Michigan; local rules depend on the exact city or township.
• Many Metro Detroit communities require rental registration and an inspection before a tenant moves in.
• Michigan caps security deposits at one and a half months' rent and sets rules for returning them.
• Check HOA or condo rules before buying, since some limit or ban rentals.
• Call the city's building or code department before closing.

Step 1: Know the federal rules

• Fair housing: the federal Fair Housing Act bans discrimination based on race, color, religion, sex, national origin, familial status and disability, in advertising, screening and every other part of renting.
• Lead-based paint disclosure: for homes built before 1978, landlords must give tenants the required lead disclosure and pamphlet before the lease is signed.

Step 2: Know the Michigan state rules

Some of the state rules every Michigan landlord should know:

• Security deposits: capped at one and a half months' rent, with requirements for how the deposit is held, a move-in inventory checklist, and returning the deposit or an itemized list of damages within 30 days after the tenant moves out. See our Michigan security deposit guide.
• Lease terms: Michigan's Truth in Renting Act limits what a lease can include.
• Civil rights: Michigan's Elliott-Larsen Civil Rights Act adds protected categories beyond federal law, including age and marital status.
• Evictions: removal goes through district court after proper notice, such as a 7 Day Demand for Possession for nonpayment. Self-help evictions are not allowed. See our Michigan eviction timeline.
• Rent control: Michigan law prevents local governments from adopting rent control.

Our overview of Michigan landlord-tenant laws covers more, including notice to enter a rental.

Step 3: Check the city or township's rental rules

This is where two homes a few miles apart can have very different requirements. Depending on the community, you may need to:

• Register the home as a rental and pay a fee
• Pass an inspection and receive a rental certificate before a tenant moves in
• Renew the certificate and pass re-inspections on a set schedule
• Meet local property maintenance codes for smoke detectors, egress, handrails and similar items
• Follow local rules on trash, snow removal, parking and water bills

According to JMZ, placing a tenant before the city's inspection is generally not allowed, though JMZ can ask each city. JMZ's Cert Assist Program handles the city's forms, fees, scheduling, violation repairs and final inspection. City fees and repair costs are paid by the owner.

JMZ's city pages are a good starting point for local details. See property management in Southfield, property management in Dearborn Heights and property management in Royal Oak.

Step 4: Check HOA and condo rules

If the home is a condo or in a subdivision with an association, read the bylaws before you buy. Some associations limit the number of rentals, set minimum lease terms, require tenant registration or ban rentals altogether. JMZ manages condos and townhomes within association rules.

Step 5: Confirm the rules before you close

1. Call or visit the city or township building or code enforcement office and ask what a rental requires at that address.
2. Ask whether the home has a current rental certificate and any open violations.
3. Ask for the inspection checklist so you can price likely repairs.
4. Get the HOA documents if there is an association.
5. Decide who will own the home, you or an LLC. See how to transfer a rental to an LLC.

Step 6: Keep good records

Keep the lease, inspection reports, certificates, notices and deposit records in one place. Our post on rental documents landlords must keep lists what to save.

Common mistakes

• Assuming the rules in one city apply in the next one over
• Moving a tenant in before the city inspection and certificate
• Collecting more than one and a half months' rent as a deposit
• Missing the 30-day deposit deadline after move-out
• Buying a condo without checking the association's rental rules
• Using an out-of-state lease form

Frequently asked questions

Do I need a rental license to rent out my house in Michigan?

It depends on the city or township. There is no single statewide rental license, but many Metro Detroit communities require registration, an inspection and a rental certificate before a tenant moves in.

What is the maximum security deposit in Michigan?

Michigan caps security deposits at one and a half months' rent. The deposit or an itemized list of damages must be returned within 30 days after the tenant moves out.

Does Michigan have rent control?

No. Michigan law prevents local governments from adopting rent control.

How do I find out the rental rules for a specific city?

Contact the city or township building or code enforcement department and ask what a rental at that address requires, including registration, inspections and fees.

Can a property manager handle city rental inspections?

Yes. JMZ Management's Cert Assist Program handles the city's forms, fees, scheduling, violation repairs and final inspection.

Related guides and resources

• Rental owner FAQ
• Top landlord-tenant laws to keep in mind
• 7 things to handle before your first tenant moves in
• Single family home management

The bottom line

Federal and state rules are the same across Michigan, but the city or township decides much of what it takes to rent a specific home. Check the local rules before you close, and build the cost of compliance into your numbers. At JMZ Management, your property is our business.

This article is for general information only and is not legal or tax advice.

Want a manager who knows the rules city by city? Get a free rental analysis or management proposal at jmzmanagement.com/freerentalanalysis or call 248-284-6990.

CONTACT US to learn more about professional property management in Michigan.