HOUSE BILL No. 6245


     November 5, 1998, Introduced by Rep. Jelinek and referred to the Committee on Urban Policy and Economic Development.


        A bill to amend 1972 PA 348, entitled

   "An act to regulate relationships between landlords and tenants
   relative to rental agreements for rental units; to regulate the
   payment, repayment, use and investment of security deposits; to
   provide for commencement and termination inventories of rental
   units; to provide for termination arrangements relative to rental
   units; to provide for legal remedies; and to provide penalties,"

   by amending section 2 (MCL 554.602).

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         Sec. 2.  (1) A landlord may require a security deposit for

 2    each rental unit.  A security deposit shall be required and main-

 3    tained in accordance with the terms of this act and shall not

 4    exceed 1-1/2 months' rent.

 5         (2) IN THE CASE WHERE MORE THAN 1 TENANT SIGNS A RENTAL

 6    AGREEMENT, THE LANDLORD SHALL ALLOW THE APPORTIONMENT OF THE

 7    SECURITY DEPOSIT EQUALLY AMONG THE PARTIES.





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 1         (3) UPON EXPIRATION OR TERMINATION OF A LEASE IN WHICH 1 OR

 2    MORE TENANTS HAVE SIGNED AND PROVIDED A PROPORTIONAL SECURITY

 3    DEPOSIT, THE LANDLORD SHALL RETURN THE PROPORTIONAL SHARE OF THE

 4    SECURITY DEPOSIT TO THE TENANTS IN THE MANNER PROVIDED FOR UNDER

 5    THIS ACT.  THE LANDLORD MAY RENEW THE LEASE WITH SUBSTITUTED PAR-

 6    TIES OR MAY EXECUTE A NEW LEASE AND SHALL ACCEPT A PROPORTIONAL

 7    SECURITY DEPOSIT.  THIS SUBSECTION DOES NOT ALLOW A LANDLORD TO

 8    RETAIN A PROPORTIONAL SHARE OF A SECURITY DEPOSIT BELONGING TO A

 9    TENANT NOT SUBJECT TO THE RENEWED OR NEW LEASE.






































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