The bill amends the existing law regulating landlord-tenant relationships in Michigan, specifically addressing rental agreements and associated fees. It introduces new definitions, including "pre-tenancy fee," which refers to any fee charged by a landlord to a prospective tenant before signing a lease, and "rental application fee," which is a fee for background screening. The bill prohibits landlords from requiring pre-tenancy fees and mandates that any rental application fee must not exceed $50. Additionally, landlords are required to disclose the rental application fee in advertisements and must refund this fee within 60 days if the application is denied.

Furthermore, the bill establishes penalties for landlords who violate these provisions, including civil fines of up to $500 for first offenses and at least $1,000 for subsequent violations. Courts may also order landlords to pay reasonable attorney fees for tenants who bring actions under this section. Overall, the bill aims to enhance transparency and fairness in the rental process, protecting prospective tenants from excessive fees and ensuring they are informed about costs associated with rental applications.

Statutes affected:
House Introduced Bill: 554.601