The following information has been designed to provide you with a basic explanation of what happens when a rental agreement is made.  This information primarily deals with leases for residential properties.  It serves as a reference tool concerning the rights and responsibilities of both the tenant and landlord. The information in this section is intended to provide general guidelines and is not a substitute for competent legal advice.

Sections in this Guide

The Lease
Rights and Responsibilities
Security Deposits
Evictions
Maintenance
Subleasing
Other Questions
Summary

The Lease

Terms
Types of Tenancy
Advantages of a Written Lease Agreement
How to avoid potential lease problems
Provisions of the rental agreement

Terms

Leases contain a variety of legal terms: there are a few terms with which you should be familiar in order to understand a leasing situation. A landlord is a person or business firm in control of property who allows others to occupy and use it. A landlord may be the owner, an agent or employee of the owner, or a management company. A tenant (renter) is the person who occupies and uses property owned by someone else. A tenant's right to occupy and use land or buildings is called a leasehold or lease. The term lease is also used to mean the rental agreement that creates the leasehold. A rental agreement is the contract between the landlord and the tenant. Generally, such a contract governs the tenant's use and occupancy of rental property and provides for the payment of rent. Rental agreements may be written or oral as long as there is some type of agreement between the landlord and tenant. An escrow account, for the purpose of this guide, is a bank account or an account held by a third party generally established in the name of the tenant into which whole or partial rental payments are deposited payable to the tenant or, upon the fulfillment of certain conditions, to the landlord. A plaintiff is a person who complains or sues in a civil action to seek judicial relief for some injury to their rights. A defendant is the party against who relief or recovery is sought in an action of lawsuit.

Types of Tenancy

The different types of tenancy into which a landlord and tenant may enter for the rental of residential property include the following:

Fixed-term tenancy A fixed-term tenancy agreement will specify a starting date and termination date. The conditions, rules, and the amount of rent are fixed during the term of the lease agreement; the lease usually cannot be cut short or extended except by mutual consent or breach of the contract. The lease is often a written agreement, but may be oral unless it exceeds a year in duration.
Periodic-tenancy A periodic tenancy begins on a specific date and is renewed on a regular basis, usually by the month. Rents and rules can change more frequently than in a fixed-term tenancy. Since a periodic tenancy is renewable on a monthly basis, there is no requirement that it be written.

Advantages of a written lease agreement

Whether there is a fixed-term tenancy or a periodic tenancy, it is best to have a written record of the rental agreement. A written record is a permanent record which may be used for reference if misunderstandings arise.

In the absence of a written document signed by both parties (landlord and tenant), it is advisable to keep a personal written record of mutual agreements. This is for your own benefit and is not admissible in a court of law.

How to avoid potential lease problems

Before a tenant  enters into a lease, they should: know the type of housing needed; know what can be afforded; make a list of concerns (who pays for utilities, parking, are pets allowed, etc.); make sure the property meets their needs; and understand the lease agreement before signing or agreeing to it. If in doubt about the lease's terms, it is advisable to have an attorney check it for irregularities. Don't agree to a lease with unacceptable terms.

Provisions of the rental agreement

Leases differ in terms, but a written rental contract should include:

• The names and signatures of the landlord.

• The names and signatures of the tenants.

• The amount of rent to be paid, how and when it is to be paid.

• A description of or location of the premises to be rented.

• The starting and ending dates if it is a fixed term tenancy.

• The landlord's mailing address.

• The amount of security deposit, if any.

• The name of the financial institution holding the security deposit.

• Notice of the tenant's obligation to supply a forwarding address to the landlord within four days of terminating the tenancy.

• Definition of responsibility for paying utilities.

• Maintenance responsibilities.

• Notice to quit procedures.

• Any other agreement the landlord and tenant wish to make.

• Two copies of an inventory checklist should be furnished.

A written rental agreement should not include:

• A provision which excludes or discriminates against a person.

• Waivers or any alterations of a party's rights with respect to possession or eviction proceedings.

• A confession of judgment by a party; that is, require a party to give up the right to certain legal options in advance.

• Any provision which relieves the landlord from liability for the landlord's failure to perform a duty or for negligent performance of a duty imposed by law (however, a landlord's liability could be waived to the extent a tenant was able to recover under an insurance policy for loss, damage or injury caused by fire or other casualty).

• Waivers or alterations of a party's right to demand a trial by jury or any other right of notice or procedure required by law.

• Provide that a party be liable for legal costs or attorney's fees incurred by another party in excess of costs or fees specifically permitted by statute.

• Provide for the acquisition of the lessor (party leasing property) of a security interest in any personal property of the tenant to assure payments of rent or other charges except as specifically permitted by statute.

• Any provision that releases a party from a duty to mitigate damages.

• A requirement of the tenant to pay rent or accept premises when the premises are in a condition which violates acceptable conditions established by law.

• Any provision that waives tenant's rights regarding security deposits.

• Provisions that allow a landlord to change the terms of the lease agreement without the written consent of the tenant. However, a rental agreement may provide for changes made upon written notice to the tenant of at least 30 days to comply with changes required by law or government rule or regulation; changes in rules relating to the property which are required to protect the physical health, safety or peaceful enjoyment of the tenants and guests; or changes in the amount of rental payments to cover additional operating costs due to an increase in property taxes, utility and sewer services and insurance premiums.

• Violations of the Michigan Consumer Protection Act (Act No. 331 of 1966).

• A Provision granting the landlord power of attorney over the tenant.

A landlord has 20 days to correct any illegal clauses brought to their attention by the tenant. If these clauses are not corrected by then, a tenant can bring action to void the lease and/or to prohibit the landlord from including the clause in future leases, and to recover damages of $500 or actual damages, whichever is greater. Rental agreements must comply with the Security Deposit Act, the Consumer Protection Act, the Michigan Civil Rights Act, the Handicappers' Civil Rights Act, and the Truth in Renting Act.

Special termination provision for senior citizens

Pursuant to Public Act 348 of 1972, rental agreements entered into, renewed, or renegotiated after June 15, 1995, must provide special termination rights for senior citizens. Such residential rental agreements must provide that a tenant who had already occupied a rental unit for more than 13 months may terminate the lease on a 60-day written notice of the tenant becomes eligible to move into a rental unit in senior citizen housing subsidized by a local, state or federal program, or the tenant becomes incapable of living independently, as certified by a physician.

Rights and Responsibilities

Landlord

The landlord has a right to receive rent on time, to expect that the property will not be damaged or used for illegal purposes, and to receive payment for damages from the tenant at the end of the lease. The landlord has the right to expect that the tenant will not create a nuisance and will abide by the responsibilities contained in the lease agreement.

When a landlord and tenant agree to a specific amount of rent for a specific period of time, the agreement remains in force during that period of time unless both parties agree to something else. In the case where a tenant vacates a rental unit before the end of the lease period, the tenant may continue to be liable for rental payments. If a tenant leaves without giving timely notice, they may be held liable for additional rent payments because notice was not given at all or was insufficient. The tenant may owe rent for the full term of the lease. The landlord, however, must make a good faith effort to re-rent the property and thereby mitigate the damages for the tenant. The tenant may also, in some cases, be held liable for advertising costs to find a new tenant.

Where there is no lease spelling out the period of the tenancy, a landlord is entitled to notice equal to length of time in the rental period of the tenant's intent to vacate the premises. If the agreement is for monthly rent, a month's notice should be given. If the rental period is a week, a week's notice is usually sufficient, and so on.

The landlord also has maintenance rights. These include access to the unit to inspect and repair at reasonable intervals (with notice to the tenant) and in times of emergency. In addition, the landlord has recourse to court procedures to evict and sue tenants who cause damage to the property through action or neglect.

On the other hand, the landlord has maintenance responsibilities. The landlord must provide a safe and habitable dwelling, comply with state and local laws, and carry out repairs that are not the fault of the tenant. The landlord is also required to return the unclaimed portion of the security deposit. The landlord's specific duties and responsibilities are a very important and basic part of a lease. Before entering into either a written or oral lease, these rights and responsibilities should be clearly understood by both parties.

The landlord will generally carry insurance for fire, liability, and, if necessary, flood protection on the land and structures. In many instances, that insurance may not cover the tenant, so the tenant should find out the extent of the landlord's coverage which would affect the tenant. The tenant may purchase a renter's policy to protect personal possessions from theft, damage, or loss. Liability insurance may also be a good idea if a tenant has children or pets. Some landlords may require proof of insurance if the tenant has a waterbed. Renters' policies are readily available through most insurance agencies.

Tenant

The tenant has the right to quiet enjoyment of the rented premises, to timely repair and maintenance of the premises, to receive a written eviction notice as provided by the law, to the return of the unused portion of the security deposit, and to expect that the landlord will discharge the responsibilities contained in the lease agreement. Also, the tenant has the right to remain in the rental unit if the landlord sells it, unless there is a condition of sale clause as part of the lease arrangement. This holds until the expiration of the lease agreement. The new landlord must abide by the terms of any existing lease.

A tenant generally is expected to make timely rental payments and other agreed-upon payments (e.g. utility bills), to keep the property in good condition, and not to engage in actions that are illegal or bothersome to others. A tenant can be charged late fees for missing deadlines on the payment of rent, but the late fees can only be of an amount to recover the landlord's costs, rather than being some type of penalty. Again, the written or oral lease will usually contain the tenants specific duties and responsibilities. Also, the tenant is required to inform the landlord of necessary repairs.

Security Deposits

Introduction
Security Deposit Rights and Responsibilities
How to get your security deposit back

Introduction

In 1972, the Michigan Legislature passed a law which regulates security deposits. The law sets forth the procedures governing the collection, management, and return of security deposits. A security deposit is a deposit, in any amount, paid by the tenant to the landlord or an agent to be held for the term of the rental agreement, or any part thereof, and includes any required prepayment of 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 under conditions required by the rental agreement. Security deposit does not include an amount paid for an option to purchase, unless it is shown the intent was to evade this act, nor does it include an amount paid as a subscription for or purchase of a membership in a cooperative housing association which provides dwelling units to its members.

Always remember that the tenant has a right to the security deposit when they move from the rental unit if the tenant does not owe the landlord any rent, does not owe for utilities and leaves the rental unit in the same condition, excluding normal wear and tear, as when the tenant moved in. Security deposits are considered the tenant's property until the landlord establishes a claim on that money through court action or through mutual agreement with the tenant. If there is a dispute over this money, the landlord must go to court to establish their claim to the disputed portion of the security deposit.

A security deposit includes any money the tenant gives to the landlord beyond the first month's rent (except for specifically stated nonrefundable fees), whether or not the landlord defines that money as a security deposit. State law puts a limit on how much a landlord may collect for a security deposit, but some landlords attempt to circumvent that law by giving deposits other names.

The Michigan security deposit law is quite specific about the procedures governing deposits, and it is important that these procedures be followed closely. This law assigns tenant and landlord responsibilities the moment the lease is signed or a unit is occupied.

Security Deposit Rights and Responsibilities

Landlords and tenants are given rights and responsibilities by the security deposit law. Here is a list for both parties:
Landlords

• May not require a security deposit that is greater than 1½ month's rent.

• Remain responsible for the security deposit until: the landlord transfers the deposit to their successor and by mail notifies the tenant of the successor's name and address; the successor deposits the tenant's security deposit in a regulated financial institution or posts a bond; or the security deposit is returned to the tenant.

• Must notify tenant in writing, within 14 days after the tenant's occupancy, of the address of the bank where the security deposit is being held (it must be in a regulated financial institution), and of the tenant's duty to supply a forwarding address, in writing, within four days after vacancy.

• Can use the security deposit for the duration of the lease if they post a surety bond with the Michigan Secretary of State.

• Must give two blank tenant inventory checklist forms to the tenant at the beginning of occupancy and must fill one out at the end of occupancy. May request a receipt from the tenant for these checklists.

• Must return unclaimed portion of security deposit within 30 days after the tenant completely vacates and inform the tenant that the tenant must respond to the landlord's list of damages within seven days of receiving it. Failure on the part of the landlord to comply with this dual requirement forfeits their right to claim damages against the security deposit. The landlord should allow for mailing time. It is a good practice to retain some type of proof of mailing.

• Must take the tenant to court within 45 days of the end of occupancy to collect any disputed portion of the security deposit.

• Is entitled to part or all of the amount of the deposit if the tenant has failed to pay rent or utility bills, or continues to occupy the premises in whole or in part, entitling the landlord to additional rent.

Tenants

• Must complete an inventory checklist at the start of occupancy (within seven days of moving in).

• Must give the landlord a forwarding address within four days after moving out. If the tenant does not do this, the right to an itemized list of damages from the landlord is forfeited. However, this requirement only applies if the landlord has informed the tenant of this requirement in writing within 14 days after the tenant has moved in.

• Must respond in writing, if they dispute the charges against the security deposit, within seven days of receipt of notice. The tenant should allow for mailing time. It is a good practice to retain some type of proof of mailing.

• Has a right to the refund of the security deposit if the landlord does not send a list of damages within 30 days of the end of occupancy and does not file the case within 45 days of the end of occupancy.

This completes the list of important factors for security deposits. However, there may be other charges at the time tenancy begins that are reasonable and nonrefundable, such as a cleaning charge or fee for wall washing, carpet cleaning, drapery cleaning, etc. A cleaning fee does not negate the obligation of the tenant to maintain the unit in a normal, sanitary manner. These nonrefundable fees or charges are separate items from the security deposit and, as such, are not covered by the security deposit law.

Upon receiving possession of the rented premises, the landlord must also furnish a new tenant with two blank copies of a commencement inventory checklist including all items in the rental unit owned by the landlord. Within seven days, the tenant should review the checklist by noting the condition of the landlord's property and return one copy to the landlord. The tenant has a right to request and receive a copy of the termination inventory checklist showing the claims chargeable to the last prior tenants. At the end of the occupancy, the landlord should complete a termination inventory checklist of any damages which were caused by the tenant.

How to get your security deposit back

Remember, within four days after moving out of the rental unit, the tenant must inform the landlord in writing of a forwarding address. Within 30 days after the tenant has vacated, the landlord must mail to the tenant's new address an itemized list of any damage claimed against the tenant's security deposit. At the same time, the landlord must list the estimated cost of repair for each damaged item, the amounts and basis on which the tenant is assessed, and enclose a check or money order for the difference between damages claimed and the amount of the security deposit held by the landlord. It is important that both landlord and tenant perform their duties within the allotted time. Public Act 348 of 1972 provides guidelines for both landlords and tenants. Failure by either party to comply may result in the loss of a claim to the security deposit. If, no later than 45 days after the tenant has physically moved out and surrendered the keys, the landlord and the tenant cannot reach agreement on damage charges, the landlord must sue the tenant and secure a court judgment covering damage charges in order to rightfully retain any portion of the security deposit being held for physical damage or unpaid utilities. Failure of the landlord to comply with this requirement can make the landlord liable to the tenant for double the amount of the security deposit retained.

Evictions

If a landlord wants a tenant to leave the rental unit at some point, this can be accomplished in one of two ways: the landlord and tenant can mutually agree to terminate the rental agreement; or the landlord can evict the tenant. Eviction is the legal process used by a landlord to remove a tenant from the rented premises with or without the consent of the tenant. The landlord could evict a tenant for the following reasons:

• Nonpayment of rent.

• Damage to property.

• Causing a serious and continuing health hazard.

• Engaging in illegal activities related to controlled substances.

• Engaging in illegal activities not related to controlled substances.

• Violation of the terms of the rental agreement.

• Failure to vacate the premises after the lease expires.

• Failure to vacate the premises after the landlord has given timely notice to terminate the lease.

Evictions under 7-day notices to quit
If a tenant is renting under either a fixed-term or a periodic tenancy and the landlord wishes to evict for any of the first three reasons listed above, it may be done with a seven-day notice to quit. This eviction notice gives the tenant seven days to either correct the situation or move. In those instances where illegal activities relate to controlled substances, and the lease specifically prohibits such activity, or for violation of the terms of the rental agreement, a seven-day notice to quit may be used. For example, if rent is due May 1, but the tenant doesn't make the payment, on May 2 the landlord could issue the tenant with a Notice to Quit/Nonpayment of Rent. On May 9, the landlord may file for a court hearing to evict the tenant if the rent is still unpaid.

If there is a major violation of the local housing or zoning codes, the city may condemn a structure. Such action would force the tenants to vacate, but if the violation was not caused by them, they would be allowed to sue for money damages (i.e., moving expenses or temporary shelter costs).

Evictions under 30-day notices to quit
A notice to quit is also a mechanism used by a landlord to evict a tenant who is creating a nuisance or otherwise violating the terms of the lease. It is used when a landlord wishes to regain possession of a rental unit for other purposes, such as remodeling, at the end of a rental period or the expiration of a lease. At this point, the tenant is obligated to vacate the premises unless they can prove that the notice to quit was issued in retaliation for some action which the tenant is legally permitted to do, such as joining a housing cooperative, or placing rent in escrow and giving proper notice to the landlord until the necessary repairs are made.

Such uses include notice of termination of tenancy for reasons other than the first four stated in the list above. A tenant who rents under a periodic tenancy can be evicted for any of those reasons as long as it is not retaliatory or discriminatory. The notice must be in writing and give the tenant at least one rental period's time, usually 30 days. For example, on May 1, a landlord gives a tenant a written notice to vacate. The notice states that the tenant is to leave by June 1. This is a proper notice because it is at least 30 days. If, however, it is stipulated in the lease that the rental period is other than the normal 30 days or one month, then the notification period is equivalent to the length of that rental period. In any of the above cases, a tenant has a right to a court hearing before any actual eviction takes place. A judge or, at the request of either party, a jury decides if the tenant must move, not the landlord. Judgments are valid for 10 years.

Eviction timetable
Landlord provides a notice to quit (seven-day, 30-day, or an amount of time equal to the rental period) to the tenant.

• After the required waiting period, the landlord may file a complaint with the district court, whereupon the court shall deliver or mail to the tenant (defendant) a summons to appear before the court on a certain date.

• At the court hearing, if the tenant wins, the tenancy continues. If the tenant loses, they have ten days to pay the past due rent, settle the dispute or vacate the premises.

• After ten days (or the date set by the court), if the tenant has not vacated, a writ of restitution may be issued by the court commanding the sheriff or other authorized court officer to serve the process and restore the landlord (plaintiff) to full possession of the premises. The plaintiff must provide the court with the writ of restitution.

Important points
Remember that an eviction notice must include the tenant's name and the address or description of the premises, the reason for the demand, a date and the landlord's signature. The following should also be noted:

• Tenants are entitled to a written notice of eviction, properly served.

• Tenants are not required to move when the eviction notice expires. Expiration of the notice only enables the landlord to file for a court hearing. If a tenant stays beyond the expiration date of a notice to quit, the landlord may request the court to order the tenant to pay court costs including filing fees and process server fees.

• When a summons is received, keep it and show up in court on time. If either party does not go to the hearing, they will probably lose the case automatically.

• Any appeal of a court's decision must be made within ten days of the decision.

• Only an officer of the court can eject a tenant. A legal eviction can only occur after the landlord has won the court hearing and the appeal period expires.

• There is legal recourse for protesting an illegal eviction. Consult an attorney or housing counselor for assistance.

• Both parties have the right to have a jury decide the merits of the evidence.

There is one final eviction of which a tenant should be aware - self help eviction. Self-help eviction is an attempt by the landlord to remove a tenant from the rental premises without benefit of the legal eviction process. Public Act No. 300 of 1976 prohibits this type of eviction. The four most common forms are: shutting off of utilities; changing the locks on the doors; putting the tenant's possessions out of the rented premises; removing the tenant's possessions to another location. In case of self-help eviction, a tenant can sue to recover up to three times the amount of his or her actual damages or $200, whichever is greater
Eviction is a legal process. Unless both landlord and tenant are absolutely positive that they know what they are doing, they should consult an attorney. There is no substitute for good legal advice, and that is what is needed as soon as the process begins.

Maintenance

Maintenance problems range from things that are merely annoying to things that can pose an immediate threat to health and safety. However, it should be noted that both landlord and tenant have some maintenance responsibilities.

A tenant is generally expected to pay rent on time, keep the rented premises in a safe and sanitary condition, promptly notify the landlord of maintenance problems, exterminate insects that appear if they were not there when the tenant moved in, and leave the rented premises in good condition (normal wear and tear excepted). These responsibilities can be modified in certain instances by mutual agreement between the tenant and the landlord.

There are three types of maintenance problems: emergencies, major problems and minor problems. Emergencies are situations that require action within 24 hours and pose an immediate threat to the health and safety of a household. Examples include leaking gas, flooding, major roof damage, or a defective furnace.

Major problems are problems that affect the quality of the residential environment, but not to the degree that the life of the occupant is immediately endangered. Examples are a defective water heater, clogged drain, or heating problems in a part of a house.

Minor problems fall into the nuisance category and include defective lighting, locks, faucets, household pests, and peeling paint.

In solving these or any maintenance problems, the first step is for the tenant to talk to their landlord. The tenant should explain the situation, the importance of the repair, and when they would like it done. Municipalities have enacted housing codes to protect the rights of both landlords and tenants. Most municipalities have their own specific codes which may be checked by contacting city hall.

The second step is for the tenant to write a letter to the landlord about the problem(s), mentioning the previous talk and the fact that action will be taken if there are any more delays. Keep a copy of the letter for your records. It is important to keep track of all phone calls and conversations with a landlord or a building inspector. Individuals may want to have a building inspector sent to their home for inspection; if so, note the date.

The third step should be taken only after the tenant has documented the problems, the tenant has given the landlord time to repair and the landlord has failed to act. The tenant should keep all receipts and note the dates of all conversations regarding the problem. The tenant should keep all broken parts, and it it's necessary, call the building inspector. Withholding rent is a right under Michigan law when the landlord fails to maintain a rental unit. The tenant should send a letter to the landlord stating why rent will be withheld and the the amount will be released when the maintenance problems have been corrected. The letter should be sent by certified mail with a return receipt requested and a copy kept for the records. Alternatively, the letter could be sent by first class mail. If so, retain a receipt of mailing from the post office. This should be done before rent is due. The rent money should be put into an escrow account, depositing it with a check including a memo of purpose for your record keeping.

The tenant's next option is to pay for repairs and then deduct the cost from the rent. The money may even be drawn from the escrow account. Before any repair work is done, three companies should be called for estimates. If it is a do-it-yourself job, go to three stores to price parts. Reputable firms will come to a home and provide a free written estimate. These estimates should be mailed to the landlord stating the cost of the repairs will be paid from the withheld rent. Set a date for the landlord to fix the problem. Then, the tenant should state that they will have the problem taken care of if the landlord does not act by this date. Again, make a copy of all letters and estimates for the record.

If the landlord still does not respond, the last step is for the tenant to hire the lowest bidder and pay for the work from the escrow account. The tenant should send the landlord a copy of the receipt along with a letter stating that the amount to pay for the repairs will be deducted from the rent or from the escrow account. The tenant should then wait for the landlord's response.

A maintenance agreement is a timetable for the landlord to make repairs. The tenant should be sure that it is in writing, that both the tenant and the landlord have signed and dated it, and that both have a copy. Before a tenant sits down to talk with the landlord, they should think about how long they will wait for repairs and whether to release rent after the repairs are made. Regarding repairs, one possible problem is that both parties will become so irritated with each other that after the dispute is resolved, it is impossible for them to continue to discharge lease obligations without expressing hostility towards each other. If the repair problems become too critical, it is entirely possible that the eviction process, lawsuits, counterlawsuits and vindictive incidents could occur. Both parties should remember that in many landlord/tenant disputes, the basic issues become obscured by personal disagreements that develop. Unless both parties understand and remember that the purpose of the lease is to record mutual agreement and that there is a direct relationship between rights and responsibilities, the lease is doomed to failure. Substituting petty arguments for a basic desire to make a lease work is the surest way to an unhappy situation which can result in legal disagreements, unnecessary financial expense and a generally unpleasant experience for everyone involved.

Emergencies of the less serious type, like one where the tenant has been given timely notice and then finds it impossible to vacate the rental unit by the date specified, are the most common. The tenant should contact the landlord immediately if that happens. The rental unit may have been rented to another party. A tenant has no automatic right to remain in the rental unit beyond the last day of the rental period. The only way a tenant can hold over into the next rental period is with the permission of the landlord. Be sure that both parties understand and agree upon what the cost is to hold over. Remember, the last agreement was rental of the unit for a specific period of time, for example one month, and the tenant may not want to pay for a full month's rent for one or two days occupancy.

The other type of emergency situation arises when the tenant's health or safety is threatened. The tenant may have to move to temporary housing. If that happens, the tenant should immediately notify the landlord. If repairs are not made in a reasonable period of time, the tenant may wish to consider deducting expenses from the rent payment. If so, they should save receipts for expenses as it may be necessary to prove costs in a legal proceeding.

Subleasing

Subleasing occurs when a tenant permits another party to lease from them the property they are leasing from the landlord. The tenant thus assumes the position of being landlord in relation to their subtenants. Subleasing usually occurs because the tenant has signed a fixed-term tenancy lease and wants, for a variety of reasons, to get out of it before it expires. To avoid the financial burden of the unexpired portion of the lease, the tenant tries to find a subtenant who will assume that burden.

A tenant considering a sublease should realize that their lease agreement will permit a sublease unless it specifically prohibits subleasing, that the subtenant assumes only the duties and rights enjoyed by the tenant, that the tenant is still responsible to the landlord for performance of the lease agreement, and the tenant, in relation to the subtenant, assumes the responsibilities of a landlord and must, therefore, follow all the rules and laws applying to landlords including the security deposit law.

When a subtenant leases from a tenant, the subtenant will receive only the rights and obligations of the tenant unless the subtenant and the tenant agree to the subtenant taking something less than all of the tenant's rights and responsibilities. The subtenant cannot receive more rights and responsibilities than the tenant enjoys in the relationship to the tenant's landlord because the tenant cannot sell to the subtenant rights and responsibilities that were never possessed in the first place.

If subtenants fail to pay the rent, the original landlord can hold the original tenant responsible for missed rent payments. This amount can be withheld from the original tenant's security deposit, as can charges for physical damage done by the subtenants. Two things can be done to protect against this: require the subtenants to sign a written agreement that includes the same wording as the contract with the original landlord, and require a security deposit from the subtenants.

The tenant should also understand what assuming the role of landlord means. For instance, if the tenant requires a security deposit from the subtenants, the provisions of the security deposit law must be followed. If the tenant wants to evict the subtenants, they must use legal procedures. In addition, if landlords are required to register with a city housing department, sublessors may also have to do so. As an example, usually the person who sublets for more than a specified period of time qualifies as a landlord and must register with the city. Check with the local housing department for further details.

Subleasing can be a complicated procedure, particularly if the tenant is planning on leaving the area for the period of the sublease. Try to get the landlord to sign a new contract with the persons who are interested in subletting. If the landlord agrees and also agrees to terminate the tenant's rental contract, the tenant's responsibilities end when their occupancy ends.

If the tenant permits the subtenant to pay rent directly to the landlord, the tenant runs the risk of not knowing if the subtenants are continuing to meet their rental obligations. When the subtenants are required to pay rent directly to the tenant, with the tenant paying the usual rent to the landlord, there is much less risk.

Some communities have restrictions on the number of unrelated occupants who can reside in a unit. In some cases, both the landlord and the tenant may be held liable for violation of these ordinances.

Remember, if a tenant should decide to move out without subleasing, a landlord may hold the tenant liable for rent due until the end of the agreed-upon occupancy. In a fixed-term lease, a tenant may be held responsible for the rent due until the end of the agreed-upon occupancy. In a fixed-term lease, a tenant may be held responsible for rent due until the end of a specified ending date. In a periodic tenancy, a tenant can be held responsible for rent due until the required notice period for termination has expired. The landlord, on the other hand, must make a reasonable effort to re-rent the property. If the landlord is able to re-rent the property, the tenant's responsibility to pay rent ends when the new tenant's begin paying rent. A tenant may also be held liable for reasonable re-renting costs, such as advertising.

Other questions

Civil Rights
State and federal law prohibits discrimination in rental housing based on a number of factors, including race, color, sex, age, handicaps, and family status. For further information regarding the classes of persons protected by state and federal law and the exceptions to the general laws, contact the Michigan Department of Civil Rights or the United States Department of Civil Rights.

Housing Codes, Smoke Detectors
Some communities have adopted housing codes or other specific requirements which may affect the condition or equipment requirements of residential rental property. These include the requirement that smoke detectors be installed in housing or that residents comply with recycling ordinances. Be sure to check with your local unit of government to see if you are affected.

Restrictions on Pets
A landlord can include a provision in the lease that restricts tenants from having pets in a rental unit. The courts have permitted the eviction of tenants who violate a lease provision prohibiting tenants from maintaining pets in a rental unit. A landlord cannot discriminate against a handicapper who maintains a guide, hearing or service dog wearing a harness or a blaze orange leash and a collar if the handicapper has identification certifying that the dog was professionally trained. In publicly-subsidized housing, handicapped or elderly tenants have additional rights to maintain pets in their rental units. 

Smoking
A landlord can restrict tenants who smoke to certain apartments or buildings or can refuse to rent to smokers. The Michigan Attorney General stated in 1992 "neither state nor federal law prohibits a privately-owned apartment complex from renting only to non-smokers or, in the alternative, restricting smokers to certain buildings within an apartment complex."

Money judgments
Beginning in 1996, a portion of a welfare payment a tenant may be entitled to may be used to pay for damages they caused to a landlord if a money judgment to that effect is entered against the tenant. Specifically, if a judgment for damages arising from a breach of a written or oral lease agreement is entered against a tenant who is a welfare recipient, the landlord may then submit a certified copy of the judgment to the Michigan Family Independence Agency. The agency will then deduct a portion of that tenant/welfare recipient's monthly cash grant, up to 10 percent, and give that portion to the landlord, until the damages are paid for. It should be noted, however, that this statutory provision does not provide the landlord with a cause of action against the Michigan Family Independence Agency for a breach of lease by a welfare recipient.

Lead-based paints
Beginning in 1996, landlords must provide tenants renting units built before 1978 with certain information concerning lead-based paints. This information includes a federal government pamphlet entitles Protect Your Family From Lead in Your Home, and an informational disclosure form about lead-based paints.

There are exceptions to this federal requirement, including commercial rentals, zero-bedroom efficiency apartments, and rental units certified as lead-free by a qualified lead abatement inspector. For further information on this requirement, contact the national Lead Information Center Clearinghouse at 1-800-424-LEAD.

Summary

Remember that there is a legal and proper method for a tenant or landlord to terminate a lease and/or make the landlord or tenant fulfill their part of the lease. If the written lease specifies a method for terminating the lease, the tenant or landlord should follow that procedure. In the absence of such a provision, the tenant should (but is not legally required to) give written notice of any intent to vacate the premises. The notice should be equal in time to at least one rental period.

Note that the landlord in the lease has promised that all common areas are fit for the use intended, that the premises will be kept in reasonable repair, and that the premises will be kept in compliance with applicable state and local health and safety laws except when the disrepair or violation is caused by the tenant's willful or irresponsible conduct or lack of conduct. Legally the landlord may enter the leased premises to inspect and repair at reasonable intervals, with the consent of the tenant. The landlord and tenant should respect each other's rights and cooperate because each right held by one party carries with it corresponding responsibility.

To be safe, records should be kept. They include a copy of the lease agreement, rent receipts, cancelled checks, paid utility bills, inventory checklists, and communications including registered mail and all certified mail receipts. If information pertains to the lease agreement and it is written - keep it.
Be familiar with all obligations as a tenant or a landlord. A tenant should find out if the landlord's insurance covers any of the tenant's property that may be damaged by fire, theft, or flood. Both parties should get to know each other before problems arise. If you do not know who your landlord or tenant is, find out. It is in this way that landlord/tenant communication breakdowns are kept to a minimum.

Information provided by RentLaw.com

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