The bill amends the existing law regulating landlord-tenant relationships in Michigan, specifically addressing rental agreements and security deposits. It introduces new definitions, including "pre-tenancy fee," which refers to any fee charged by a landlord to prospective tenants before they sign a lease, and "rental application fee," which is a fee for background screening. The bill also clarifies that landlords cannot require prospective tenants to pay a pre-tenancy fee, while allowing them to charge a rental application fee, which must be disclosed in advertisements and cannot exceed $50.

Additionally, the bill mandates that if a landlord denies a rental application, they must refund the application fee within 60 days. It establishes civil fines for landlords who violate these provisions, with penalties of up to $500 for first offenses and at least $1,000 for subsequent violations. The court may also require landlords to pay reasonable attorney fees for tenants who take legal action under this section. Overall, the bill aims to enhance transparency and fairness in the rental process for prospective tenants.

Statutes affected:
House Introduced Bill: 554.601