A Michigan lease agreement is a document containing the terms and conditions for leasing a property in the state of Michigan. The property can be leased for commercial or residential purposes. The agreement incorporates terms pertaining to the specific type of lease that is agreed to by both the landlord and the tenant. It has to comply with the laws of the state of Michigan. A commercial lease agreement must adhere to common law principles of Michigan while a residential lease agreement must comply with the provisions of the Michigan Truth in Renting Act.
Purpose of a Michigan Lease Agreement
A lease can be oral or written. However, it is advisable to have a written lease agreement in place to serve as a record of the landlord-tenant relationship. In case of any misunderstanding, the agreement acts as a ready reference to resolve the issue. Under the laws of Michigan, if a lease is for more than a year, the agreement has to be in writing. It outlines the responsibilities of the parties so that both are aware of what is required of them.
Key Terms of Michigan Lease Agreement
The following key terms should be included In this agreement-
- Names and addresses of the parties
- Address of the rental property
- Term of the lease
- Rent to be paid
- Amount of security deposit to be paid
- Number of occupants who can reside in the rental property
- Tenant’s obligation to provide a forwarding address to the landlord within four days of terminating the lease
- Use of the property
- Utilities and who is responsible for paying for them
- Provisions regarding keys/locks of the property
- Repairs and Maintenance responsibilities
- Grounds for terminating the lease
- Notice of termination
- Procedure for eviction
- Landlord’s right of entry
- Applicable law to be the law of the state of Michigan
How to Draft the Michigan Lease Agreement?
The lease agreement must comply with the laws of the state. It should not include any provision that is prohibited under Michigan law. The following steps may be followed to draft this agreement:
- Decide the nature of the lease- commercial or residential.
- Include the names and addresses of the parties involved.
- Decide the term of the lease and include the start and end date in the agreement.
- Both parties should agree to the amount of rent to be paid and the mode of payment.
- Decide the security deposit to be paid by the tenant and the conditions for its deduction and mode of return.
- Decide the utilities for which either party has to pay the charges. For example, the landlord can pay for the water and sewer charges while the tenant will be responsible for paying for electricity and telephone.
- Include a clause that limits the number of occupants who can reside in the rental property during the subsistence of the lease.
- Decide the mutual rights and obligations of the landlord and the tenant.
- Decide the conditions of use of the property by the tenant. For example, the property can only be used for residential/commercial purposes and not to store any hazardous substance or carry out any illegal activity.
- Both parties should agree as to the conditions under which the landlord or his agent can enter the premises.
- In case the landlord does not allow pets, such a clause shall be included in the agreement.
- There must be a clause (in bold-faced type and at least 4 points larger than the font of the body) that requires the tenant to provide, in writing, a forward mailing address to the landlord within four days after moving out of the rental premises.
- Provide the grounds and procedure for termination of the lease agreement.
- Ensure that both parties have signed the agreement, and the date is mentioned.
Types of Michigan Lease Agreement
There are various kinds of lease agreements in Michigan-
- The standard residential lease agreement
- Commercial lease agreement
- Lease to own agreement- it is a contract that allows the sale of the premises within a particular time period.
- Roommate agreement– An agreement between
- Month to a monthly lease agreement that can be terminated by giving one month’s notice.
What Happens In Case of Violation?
If a tenant breaks the lease agreement without any justification, the laws of Michigan require the landlord to take reasonable measures to re-rent the property and mitigate the losses. The rent received from the new tenant has to be deducted from the amount owed by the previous tenant. If the landlord is unable to find a new tenant, then the previous tenant has to pay the rent for the remainder of the lease.
Sample Michigan Lease Agreement
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