HOUSE BILL NO. 5385

November 14, 2023, Introduced by Reps. Mentzer, Breen, Hope and Roth and referred to the Committee on Judiciary.

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 1 (MCL 554.601), as amended by 1995 PA 79.

the people of the state of michigan enact:

Sec. 1. As used in this act:

(a) "Rental unit" means a structure or part of a structure used as a home, residence, or sleeping unit by a single person or household unit, or any grounds, or other facilities or area promised for the use of a residential tenant and includes, but without limitation, apartment units, boarding houses, rooming houses, mobile home spaces, and single and 2-family dwellings.

(b) "Rental agreement" means an agreement that establishes or modifies the terms, conditions, rules, regulations, or any other provisions concerning the use and occupancy of a rental unit.

(a) (c) "Landlord" means the any of the following:

(i) The owner, lessor, or sublessor of the rental unit or the property of which it is a part. and, in addition, means a

(ii) The person authorized to exercise any aspect of the management of the premises, including a person who, that, directly or indirectly, acts as a rental agent , or receives rent, other than as a bona fide purchaser, and who whether or not the person has no an obligation to deliver the receipts rental payments to another person.

(d) "Tenant" means a person who occupies a rental unit for residential purposes with the landlord's consent for an agreed upon consideration.

(b) "Rental agreement" means an agreement that establishes or modifies the terms, conditions, rules, regulations, or any other provisions concerning the use and occupancy of a rental unit.

(c) "Rental unit" means a structure or part of a structure used as a home, residence, or sleeping unit by a single person or household unit, or any grounds or other facilities or area promised for the use of a residential tenant. Rental unit includes, but is not limited to, an apartment unit, a boarding house, a rooming house, a mobile home space, or a single- or 2-family dwelling. Rental unit does not include a residence occupied by a seller on a temporary basis after the sale of that residence.

(d) (e) "Security deposit" means a deposit, in any amount, paid by the tenant to the landlord or his or her the landlord's agent to be held for the term of the rental agreement, or any part of the term, and includes any required prepayment of rent other than the first full rental period of the lease agreement; any sum required to be paid as 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 in condition as required by the rental agreement. Security deposit does not include either of the following:

(i) An amount paid for an option to purchase, pursuant to under a lease with option to purchase, unless it is shown the intent was to evade this act.

(ii) An amount paid as a subscription for or purchase of a membership in a cooperative housing association incorporated under the laws of this state. As used in this subparagraph, "cooperative housing association" means a consumer cooperative that provides dwelling units to its members.

(e) (f) "Senior citizen housing" means housing for individuals 62 years of age or older that is subsidized in whole or in part under any local, state, or federal program.

(f) "Tenant" means a person that occupies a rental unit for residential purposes with the landlord's consent for an agreed-upon consideration.