Bill Text: MI HB5766 | 2023-2024 | 102nd Legislature | Introduced


Bill Title: Housing: landlord and tenants; methods of communication between landlords and tenants; update. Amends secs. 3, 9, 10, 11, 12 & 13 of 1972 PA 348 (MCL 554.603 et seq.).

Spectrum: Partisan Bill (Democrat 8-0)

Status: (Introduced) 2024-06-04 - Bill Electronically Reproduced 06/04/2024 [HB5766 Detail]

Download: Michigan-2023-HB5766-Introduced.html

 

 

 

 

 

 

 

 

 

 

 

HOUSE BILL NO. 5766

May 30, 2024, Introduced by Reps. Brenda Carter, Wilson, Weiss, Price, O'Neal, Hope, Morgan and Tsernoglou and referred to the Committee on Economic Development and Small Business.

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 sections 3, 9, 10, 11, 12, and 13 (MCL 554.603, 554.609, 554.610, 554.611, 554.612, and 554.613).

the people of the state of michigan enact:

Sec. 3. A landlord shall not require a security deposit unless he the landlord notifies the tenant no later than 14 days from the date a tenant assumes possession in a written instrument of the landlord's name, and address, for receipt of communications email address, cellular telephone number, or any other means of receiving written communication under this act, the name and address of the financial institution or surety required by section 4, and the tenant's obligation to provide in writing a forwarding mailing address, an email address, a cellular telephone number, or any other means of receiving written communication to the landlord within 4 days after termination of occupancy. The notice shall must include the following statement in 12 point boldface type which that is at least 4 points larger than the body of the notice or lease agreement: "You must notify your landlord in writing within 4 days after you move of a forwarding mailing address, an email address, a cellular telephone number, or any other means of receiving written communication where you can be reached and where you will receive mail, email, text messages, or written communication; otherwise your landlord shall be is relieved of sending you an itemized list of damages and the penalties adherent to that failure." Failure to provide the information relieves the tenant of his the tenant's obligation relative to notification of notify the landlord of his the tenant's forwarding mailing address, email address, cellular telephone number, or any other means of receiving written communication.

Sec. 9. (1) In case of damage to the rental unit or other obligation against the security deposit, the landlord shall mail send to the tenant, within 30 15 days after the termination of occupancy, a notice of damages that contains an itemized list of damages claimed for which the security deposit may be used as provided in section 7, including the estimated cost of repair of each property damaged item and the amounts and bases on which he the landlord intends to assess the tenant. The list shall The notice of damages must include the following statement in 12 point boldface type that must be at least 4 points larger than the body of the notice: "You must respond to this notice by mail, email, or text message, within 7 days after receipt of the notice, otherwise you will forfeit the amount claimed for damages.".

(2) The notice of damages required under subsection (1) must be sent to the tenant in a manner reasonably calculated to give actual notice of damages claimed for which the security deposit may be used as provided in section 7, including, but not limited to, any of the following:

(a) By ordinary mail.

(b) By email. For purposes of this subdivision, the landlord must ensure that the notice of damages is sent to an email address that the tenant provided to the landlord or previously used to communicate with the landlord.

(c) In any other manner of transmitting written communication that the landlord has previously used to communicate with the tenant and the tenant has previously accepted, or that the tenant has notified the landlord is a manner of contacting the tenant. The manner of transmitting written communication under this subdivision includes, but is not limited to, text messages on a wireless 2-way communication device.

(3) Either of the following applies to a notice of damages sent pursuant to subsection (1):

(a) If a landlord sends the notice of damages to a tenant by ordinary mail, the notice of damages must be accompanied by a check or money order for the difference between the damages claimed and the amount of the security deposit held by the landlord and shall must not include any damages that were claimed on a previous termination inventory checklist prior to the tenant's occupancy of the rental unit. The notice of damages shall include the following statement in 12 point boldface type which shall be at least 4 points larger than the body of the notice: "You must respond to this notice by mail within 7 days after receipt of same, otherwise you will forfeit the amount claimed for damages.".

(b) If a landlord sends the notice of damages by any means described in subsection (2)(b) or (c), the landlord shall send the check or money order described under subdivision (a) by ordinary mail to the tenant within 7 days after sending the notice of damages to the tenant.

Sec. 10. Failure by the landlord to comply with the notice of damages requirement within the 30 15 days after the termination of occupancy , constitutes agreement by the landlord that no damages are due and he that the landlord shall immediately remit to the tenant immediately the full security deposit to the tenant.

Sec. 11. The tenant shall notify the landlord in writing at the address, email address, cellular telephone number, or any other means of receiving written communication given under section 4 3 within 4 days after termination of his the tenant's occupancy of an a forwarding mailing address, an email address, a cellular telephone number, or any other means of receiving written communication at which communications pursuant to this act may be received under this act. Failure to comply with this requirement relieves the landlord of the requirement of notice of damages but does not prejudice a tenant's subsequent claim for the security deposit.

Sec. 12. (1) If a landlord claims damages to a rental unit and gives notice of damages as required, the tenant upon receipt of the list of damages shall respond by ordinary mail to the address provided by the landlord as required by section 3 within 7 days, indicating in detail his the tenant's agreement or disagreement to the damage charges listed. For the purposes of this section the date of mailing shall be considered the date of the tenant's response.

(2) The written response required under subsection (1) must be made in a manner reasonably calculated to give actual notice of the tenant's agreement or disagreement to the damage charges listed to the landlord, including, but not limited to, any of the following:

(a) By ordinary mail. For purposes of this subdivision, the date of the mailing is considered the date of the tenant's response.

(b) By email. For purposes of this subdivision, the tenant must ensure that the written response is sent to an email address that the landlord provided to the tenant or previously used to communicate with the tenant.

(c) By personal delivery of the written response to the landlord, signed by the landlord, and of which the tenant retains a copy or image.

(d) In any other manner of transmitting written communication that the tenant has previously used to communicate with the landlord and the landlord has previously accepted, or that the landlord has notified the tenant is a manner of contacting the landlord. The manner of transmitting written communication under this subdivision includes, but is not limited to, text messages on a wireless 2-way communication device.

Sec. 13. (1) Within 45 days after termination of the occupancy and not thereafter after the 45 days, the landlord may commence an action in a court of competent jurisdiction for a money judgment for damages which he has claimed that the landlord claims or in lieu thereof return the balance of the security deposit held by him the landlord to the tenant or any amount mutually agreed upon in writing by the parties. A landlord shall is not be entitled to retain any portion of a security deposit for damages claimed unless he has any of the following apply:

(a) The landlord first obtained obtains a money judgment for the disputed amount. or filed

(b) The landlord files with the court satisfactory proof of an inability to obtain service on the tenant. or unless:

(c) (a) The tenant has failed to provide a forwarding mailing address, an email address, a cellular telephone number, or any other means of receiving written communication as required by under section 11.

(d) (b) The tenant has failed to respond to the notice of damages as required by under section 12.

(e) (c) The parties have agreed in writing to the disposition of the balance of the deposit claimed by the landlord.

(d) The amount claimed is entirely based upon accrued and unpaid rent equal to the actual rent for any full rental period or portion thereof during which the tenant has had actual or constructive possession of the premises.

(2) This section does not prejudice a landlord's right to retain any security deposit funds as satisfaction or partial satisfaction of a money judgment obtained pursuant to summary proceedings filed pursuant to under chapter 57 of Act No. 236 of the Public Acts of 1961, as amended, being sections 600.5701 to 600.5759 of the Compiled Laws of 1948 the revised judicature act of 1961, 1961 PA 236, MCL 600.5701 to 600.5759, or other proceedings at law. Failure of the landlord to comply fully with this section constitutes waiver of all claimed damages and makes him the landlord liable to the tenant for double the amount of the security deposit retained.

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