|
Contents
Definitions
Termination
of lease
Security
deposit; amount
Security
deposit; notice
Security
deposit, disposition; bond
Security
deposit as property of tenant
Waiving
requirements of act
Security
deposit; permissible uses
Inventory
checklists
Itemized
list of damages; check or money order; contents of notice of damages
Effect
of noncompliance with notice of damages requirement
Notice
of forwarding address; effect of noncompliance
Response
to notice of damages
Action
for damages; retention of security deposit; waiver
Termination
of landlord's interest; liability for security deposit
Action
to enforce act
Effective
date and applicability of act
Sec. 1. As used in this act:
(a) "Rental unit" means a structure or part
of a structure used as a home, residence, or sleeping unit by
a single person or household unit, or any grounds, or other facilities
or area promised for the use of a residential tenant and includes,
but without limitation, apartment units, boarding houses, rooming
houses, mobile home spaces, and single and 2-family dwellings.
(b) "Rental agreement" means an agreement that
establishes or modifies the terms, conditions, rules, regulations,
or any other provisions concerning the use and occupancy of a
rental unit.
(c) "Landlord" means the owner, lessor, or sublessor
of the rental unit or the property of which it is a part and,
in addition, means a person authorized to exercise any aspect
of the management of the premises, including a person who, directly
or indirectly, acts as a rental agent, receives rent, other than
as a bona fide purchaser, and who has no obligation to deliver
the receipts to another person.
(d) "Tenant" means a person who occupies a rental
unit for residential purposes with the landlord's consent for
an agreed upon consideration.
(e) "Security deposit" means a deposit, in any
amount, paid by the tenant to the landlord or his or her agent
to be held for the term of the rental agreement, or any part of
the term, and includes any required prepayment of rent other than
the first full rental period of the lease agreement; any sum required
to be paid as rent in any rental period in excess of the average
rent for the term; and any other amount of money or property returnable
to the tenant on condition of return of the rental unit by the
tenant in condition as required by the rental agreement. Security
deposit does not include either of the following:
(i) An amount paid for an option to purchase, pursuant
to a lease with option to purchase, unless it is shown the intent
was to evade this act.
(ii) An amount paid as a subscription for or purchase
of a membership in a cooperative housing association incorporated
under the laws of this state. As used in this subparagraph,
"cooperative housing association" means a consumer
cooperative that provides dwelling units to its members.
(f) "Senior citizen housing" means housing for
individuals 62 years of age or older that is subsidized in whole
or in part under any local, state, or federal program.
History: 1972, Act 348, Eff. Apr. 1, 1973;--Am. 1984, Act 297,
Imd. Eff. Dec. 21, 1984;--Am. 1995, Act 79, Imd. Eff. June 15,
1995.
554.601a
Termination of lease; conditions; applicability of section to
leases entered into, renewed, or renegotiated after effective date.
Sec. 1a.
(1) A rental agreement shall provide that a tenant who
has occupied a rental unit for more than 13 months may terminate
a lease by a 60-day written notice to the landlord if 1 of the
following occurs: (a) The tenant becomes eligible during the lease
term to take possession of a subsidized rental unit in senior
citizen housing and provides the landlord with written proof of
that eligibility. (b) The tenant becomes incapable during
the lease term of living independently, as certified by a physician
in a notarized statement. (2) This section applies only to leases
entered into, renewed, or renegotiated after the effective date
of this section, in accordance with the constitutional prohibition
against impairment of contracts provided by section 10 of article
I of the state constitution of 1963.
History: Add. 1995, Act 79, Imd. Eff. June 15, 1995.
A landlord may require a security deposit for each rental unit.
A security deposit shall be required and maintained in accordance
with the terms of this act and shall not exceed 1 1/2 months'
rent.
History: 1972, Act 348, Eff. Apr. 1, 1973.
Sec. 3. A landlord shall not require a security deposit
unless he notifies the tenant no later than 14 days from the date
a tenant assumes possession in a written instrument of the landlord's
name and address for receipt of communications under this act,
the name and address of the financial institution or surety required
by section 4 and the tenant's obligation to provide in writing
a forwarding mailing address to the landlord within 4 days after
termination of occupancy. The notice shall include the following
statement in 12 point boldface type which is at least 4 points
larger than the body of the notice or lease agreement:
"You must notify your landlord in writing within 4
days after you move of a forwarding address where you can be
reached and where you will receive mail; otherwise your landlord
shall be relieved of sending you an itemized list of damages
and the penalties adherent to that failure."
Failure to provide the information relieves the tenant of his
obligation relative to notification of the landlord of his forwarding
mailing address.
History: 1972, Act 348, Eff. Apr. 1, 1973.
(1) The security deposit shall be deposited in a regulated
financial institution. A landlord may use the moneys so deposited
for any purpose he desires if he deposits with the secretary of
state a cash bond or surety bond written by a surety company licensed
to do business in this state and acceptable to the attorney general
to secure the entire deposits up to $50,000.00 and 25% of any
amount exceeding $50,000.00. The attorney general may find a bond
unacceptable based only on reasonable criteria relating to the
sufficiency of the bond, and shall notify the landlord in writing
of his reasons for the unacceptability of the bond.
(2) The bond shall be for the benefit of persons making
security deposits with the landlord. A person for whose benefit
the bond is written or his legal representative may bring an action
in the district, common pleas or municipal court where the landlord
resides or does business for collection on the bond.
History: 1972, Act 348, Eff. Apr. 1, 1973.
For the purposes of this act and any litigation arising thereunder,
the security deposit is considered the lawful property of the
tenant until the landlord establishes a right to the deposit or
portions thereof as long as the bond provision is fulfilled, the
landlord may use this fund for any purposes he desires.
History: 1972, Act 348, Eff. Apr. 1, 1973.
The requirements of this act may not be waived by the parties
to a rental agreement except as specifically provided herein.
History: 1972, Act 348, Eff. Apr. 1, 1973.
A security deposit may be used only for the following purposes:
(a) Reimburse the landlord for actual damages to the
rental unit or any ancillary facility that are the direct result
of conduct not reasonably expected in the normal course of habitation
of a dwelling.
(b) Pay the landlord for all rent in arrearage under the
rental agreement, rent due for premature termination of the rental
agreement by the tenant and for utility bills not paid by the
tenant.
History: 1972, Act 348, Eff. Apr. 1, 1973.
(1) The landlord shall make use of inventory checklists
both at the commencement and termination of occupancy for each
rental unit which detail the condition of the rental unit for
which a security deposit is required.
(2) At the commencement of the lease, the landlord shall
furnish the tenant 2 blank copies of a commencement inventory
checklist, which form shall be identical to the form used for
the termination checklist. The checklist shall include all items
in the rental unit owned by the landlord including, but not limited
to, carpeting, draperies, appliaces, windows, furniture, walls,
closets, shelves, paint, doors, plumbing fixtures and electrical
fixtures.
(3) Unless the landlord and tenant agree to complete their
inventory checklist within a shorter period, the tenant shall
review the checklist, note the condition of the property and return
1 copy of the checklist to the landlord within 7 days after receiving
possession of the premises.
(4) The checklist shall contain the following notice in
12 point boldface type at the top of the first page: "You
should complete this checklist, noting the condition of the rental
property, and return it to the landlord within 7 days after obtaining
possession of the rental unit. You are also entitled to request
and receive a copy of the last termination inventory checklist
which shows what claims were chargeable to the last prior tenants.".
(5) At the termination of the occupancy, the landlord
shall complete a termination inventory checklist listing all the
damage he claims were caused by the tenant.
History: 1972, Act 348, Eff. Apr. 1, 1973.
In case of damage to the rental unit or other obligation against
the security deposit, the landlord shall mail to the tenant, within
30 days after the termination of occupancy, an itemized list of
damages claimed for which the security deposit may be used as
provided in section 7, including the estimated cost of repair
of each property damaged item and the amounts and bases on which
he intends to assess the tenant. The list shall be accompanied
by a check or money order for the difference between the damages
claimed and the amount of the security deposit held by the landlord
and shall not include any damages that were claimed on a previous
termination inventory checklist prior to the tenant's occupancy
of the rental unit. The notice of damages shall include the following
statement in 12 point boldface type which shall be at least 4
points larger than the body of the notice:
"You must respond to this notice by mail within 7 days
after receipt of same, otherwise you will forfeit the amount
claimed for damages.".
History: 1972, Act 348, Eff. Apr. 1, 1973.
Failure by the landlord to comply with the notice of damages
requirement within the 30 days after termination of occupancy,
constitutes agreement by the landlord that no damages are due
and he shall remit to the tenant immediately the full security
deposit.
History: 1972, Act 348, Eff. Apr. 1, 1973.
The tenant shall notify the landlord in writing at the address
given under section 4 within 4 days after termination of his occupancy
of an address at which communications pursuant to this act may
be received. Failure to comply with this requirement relieves
the landlord of the requirement of notice of damages but does
not prejudice a tenant's subsequent claim for the security deposit.
History: 1972, Act 348, Eff. Apr. 1, 1973.
If a landlord claims damages to a rental unit and gives notice
of damages as required, the tenant upon receipt of the list of
damages shall respond by ordinary mail to the address provided
by the landlord as required by section 3 within 7 days, indicating
in detail his agreement or disagreement to the damage charges
listed. For the purpose of this section the date of mailing shall
be considered the date of the tenant's response.
History: 1972, Act 348, Eff. Apr. 1, 1973.
(1) Within 45 days after termination of the occupancy
and not thereafter the landlord may commence an action in court
of competent jurisdiction for a money judgment for damages which
he has claimed or in lieu thereof return the balance of the security
deposit held by him to the tenant or any amount mutually agreed
upon in writing by the parties. A landlord shall not be entitled
to retain any portion of a security deposit for damages claimed
unless he has first obtained a money judgment for the disputed
amount or filed with the court satisfactory proof of an inability
to obtain service on the tenant or unless:
(a) The tenant has failed to provide a forwarding address
are required by section 11.
(b) The tenant has failed to respond to the notice of
damages are required by section 12.
(c) The parties have agreed in writing to the disposition
of the balance of the deposit claimed by the landlord.
(d) The amount claimed is entirely based upon accrued
and unpaid rent equal to the actual rent for any full rental period
or portion thereof during which the tenant has had actual or constructive
possession of the premises.
(2) This section does not prejudice a landlord's right
to retain any security deposit funds as satisfaction or partial
satisfaction of a money judgment obtained pursuant to summary
proceedings filed pursuant to chapter 57 of Act No. 236 of the
Public Acts of 1961, as amended, being sections 600.5701 to 600.5759
of the Compiled Laws of 1948 or other proceedings at law. Failure
of the landlord to comply fully with this section constitutes
a waiver of all claimed damages and makes him liable to the tenant
for double the amount of the security deposit retained.
History: 1972, Act 348, Eff. Apr. 1, 1973.
Upon termination of a landlord's interest in a rental unit whether
by sale, assignment, death, appointment of receiver or otherwise,
the landlord or his agent is liable with respect to the security
deposit, until the occurrence of any of the following:
(a) Transfer of the deposit to the landlord's successor
in interest and written notification to the tenant by ordinary
mail of the transfer and of the successor's name and address.
(b) Compliance with section 4 by the successor in interest.
(c) Return of the security deposit to the tenant.
History: 1972, Act 348, Eff. Apr. 1, 1973.
The attorney general or any affected individual may bring an
action to enforce this act in a court of competent jurisdiction
in the county where the defendant resides or does business.
History: 1972, Act 348, Eff. Apr. 1, 1973.
This act takes effect April 1, 1973 and applies only to security
deposits held pursuant to leases entered into, renewed or renegotiated
after April 1, 1973.
History: 1972, Act 348, Eff. Apr. 1, 1973.
Information provided by RentLaw.com
Search
our properties listings >
Prefer
to share? Search the roommates listings >
|
