A Practical Guide For Tenants . - Michigan Legislature

Table of ContentsEviction Proceedings(continued)(continued)B. TAKING THE ACTION TO COURTQ1 What must the landlord do to begin a lawsuit for eviction? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Q2 What must the tenant do after receiving the Complaint? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Q3  What happens if the tenant fails to appear and answer after receiving the Complaint? . . . . . . .Q4  Once a lawsuit is started, can the parties still try to negotiate or mediate an agreement? . . . . .Q5 If the parties reach an agreement, do they still have to appear in court? . . . . . . . . . . . . . . . . . . .Q6 What possible defenses to a lawsuit for eviction might a tenant have? . . . . . . . . . . . . . . . . . . . . . .Q7 What can the parties expect to see happen at trial? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Q8  If the landlord wins the lawsuit for eviction, how soon can the tenantand his/her personal property be removed? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Q9 Can the tenant be evicted and still forced to pay money damages to the landlord? . . . . . . . . . . .14151616161617C. EVICTION TIMELINE18MediationThe Mediation Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Community Mediation Centers in Michigan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Small Claims CourtQ1Q2Q3Q4Q5Q6Q7What is a small claims lawsuit? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Why not try mediation before starting a lawsuit? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .How does a lawsuit begin? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .What happens when you are sued in Small Claims Court? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .How do I prepare for the hearing? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .What happens at the hearing? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .If you win, how do you collect your money? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1717202123232324242525Repair and MaintenanceA. RESPONSIBILITIES ARE SHARED WHEN MAINTAINING A RENTAL PROPERTYQ1 What are the landlord’s responsibilities? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Q2 What are the tenant’s responsibilities? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2627B. IMPORTANT STEPS TO TAKE IN SOLVING THE PROBLEM(S)Step 1: Notify the landlord and provide reasonable time for repair . . . . . . . . . . . . . . . . . . . . . . . . . . . .Step 2: Contact the building inspector and schedule an inspection . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Step 3:  If the landlord has failed to make necessary repairs, either withhold the rent and depositit into an escrow account OR pay for the repair and deduct the cost from the rent . . . . . .Q1 How much rent should be withheld? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Q2  What if the tenant lawfully withholds rent and the landlord starts the eviction process? . . . . . .Additional ConsiderationsCivil Rights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Housing Codes, Smoke Detectors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Pet Restrictions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Smoking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Lead-Based Paint . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Medical Marijuana . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Bed Bugs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Appendices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Sample Residential Lease Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Sample Residential Sublease Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Sample Roommate Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Sample Lead-Based Paint Disclosure Form . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Sample Inventory Checklist . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Samples of Tenant’s Letters to Landlord . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Samples of Landlord’s Letters to Tenant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Approved Court Forms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Preparedby theMichigan LegislatureThis information is provided free to Michigan citizens and may not be reproduced for resale or profit.272727282829292929293030313237384041434850

Creating and Terminating Tenanciesand Understanding the LeaseRead the lease. Read the lease. Read thelease. When most people hear the term “lease”they think of the long sheets of paper writtenin very small type that they sign when theyagree to move in and rent an apartment orhouse. A lease contains a variety of legalterms. It is important to recognize and knowthe following terms of a lease and tounderstand the substance of the agreement. Landlord:   The party agreeing to transferpossession and use of the rental property,usually the owner (but may also include anagent or employee of the owner, or amanagement company). Tenant:  The party taking possessionand use of the rental property from thelandlord under a lease. A tenant’s right topossession and use is called a tenancy orleasehold. Lease (or Rental Agreement):  Thecontract between the tenant and landlord,transferring possession and use of the rentalproperty. (See sample Residential LeaseAgreement, page 32.) A lease can be written ororal, but a written lease provides the bestprotection for both the landlord and thetenant. Joint and Several Liability:   If more thanone person signs the lease as a tenant, thelease may state that their obligations are “jointand several.” This means that each person isresponsible not only for his or her individualobligations, but also for the obligations of allother tenants. This includes paying rent andperforming all other terms of the lease. Escrow Account:   A bank account orother account held by a third party, generallyestablished in the name of the tenant, intowhich whole or partial rent payments aredeposited to show that the tenant was ready,willing, and able to pay the rent—but iswithholding the rent until a certain problemis fixed that the landlord is legally responsiblefor fixing. Once the problem is fixed, theescrowed rent amount will be released to thelandlord.There are references to statutes, courtrules, Attorney General opinions, and executivebranch agency rules and regulations, bothfederal and state, in this book. These areavailable from several sources, in libraries andonline, including those that follow. “Thisinformational booklet is intended only as aguide – it is not a substitute for the services ofan attorney and is not a substitute forcompetent legal advice.”› The references to Michigan statutes areto the Michigan Compiled Laws (MCL),which may be accessed on theLegislature’s website,www.legislature.mi.gov.› The Michigan Court Rules (MCR) may beaccessed on the Michigan SupremeCourt’s website, www.courts.mi.gov.› Michigan Attorney General opinions maybe accessed at www.mi.gov/ag.› The Michigan Administrative Code maybe accessed at www.mi.gov/lara.› The references to federal statutes are tothe United States Code (USC), which maybe accessed at https://uscode.house.gov.› The Code of Federal Regulations (CFR)may be accessed at www.ecfr.gov/cgi-bin/ECFR. Plaintiff:  A person who files a civil actionto seek judicial relief for some injury ordamage caused in violation of his or her rights. Defendant: A person against whom reliefor recovery is sought in a civil action.A. THE TENANCYQ1 What are the types of tenancies?While the lease refers to the written (ororal) agreement, the “tenancy” refers to theactual property right a tenant receives underthe lease. When the owner conveys to anotherlesser interest in the property for a term lessthan that of the owner’s for valuableconsideration (generally rent), thereby grantinganother use and enjoyment of his or herproperty during the period stipulated, thatcreates a tenancy. In Michigan, there arethree types of tenancies: Fixed-Term Tenancy:   This type of tenancyis created when the lease agreement specifieswhen the tenancy begins and when it ends.It terminates automatically at the end of theperiod specified. Generally, a written leaseprovides that if a tenant holds over after thefixed term expires, the tenancy shall beconsidered a month-to-month tenancy. On theother hand, if the lease does not so provide,and the parties acquiesce—i.e., the tenantstays in possession and the landlord acceptsthe rent—the lease is considered renewed forthe same fixed term upon the same conditions.3

Periodic Tenancy OR Tenancy at Will:This type of tenancy is indefinite in duration. It iscreated by actual or implied consent. Usually amonth-to-month tenancy, the lease is consideredrenewed at the end of each rental period (monthto-month or week-to-week, depending upon howoften rent must be paid). Termination procedureis governed by statute and requires notice. Tenancy at Sufferance OR HoldoverTenancy:   This type of tenancy is created byoperation of law only. A tenant holdspossession after his or her legal right topossession has ended (oftentimes based onlandlord’s failure to act). The person is justshort of being considered a trespasser. Theelements: (a) the tenant entered intopossession lawfully, (b) the tenant’s legal rightto possession has ended, and (c) the tenantremains without the landlord’s consent.Q2 Are there advantages and disadvantagesto the different types of tenancies?Fixed-Term TenancyAdvantages. The advantage to the tenant isthat the rental period is fixed and the rentalamount is stable; the landlord may not regainpossession or raise the rent, with fewexceptions. The advantage to the landlord isthat the tenant is committed to pay rent for aspecified period of time; the tenant is boundby the lease terms, with few exceptions.Disadvantages. The disadvantage to thetenant is that he or she is bound by the leaseterm and may not simply move withoutremaining liable for the rent, permitting fewerchanges in arrangements. The disadvantage tothe landlord is that he or she is stuck with thetenant until the lease term ends.Periodic Tenancy OR Tenancy at WillAdvantages. The advantage to the tenant isthat he or she is free from any furtherobligation once proper notice of termination isgiven to the landlord—different housingarrangements can be made more quickly. Thesame advantage is true for the landlord; he orshe may decide to no longer rent to the tenantif the same proper notice is given.Disadvantages. The disadvantage to thetenant is that the landlord, with proper notice,can also raise rent. The disadvantage to thelandlord is that he or she is not provided withany certainty as to how long the tenant willremain.B. THE LEASEQ1 Are there advantages to a writtenlease?Although it is common for tenants to signsome type of written agreement, a lease is not4always put in writing. Sometimes it is nothingmore than an oral agreement as to the move-inand move-out dates, the address of the rentalproperty itself, a

This information is provided free to Michigan citizens and may not be reproduced for resale or profit. Creating and Terminating Tenancies and Understanding the Lease 3 Read the lease. Read the lease. Read the lease. When most people hear the term “lease” they think of the long sheets of paper written in very small type that they sign when they agree to move in and rent an apartment or .