A Pair of New City of Lansing Edicts Negatively Affect Local Property Owners

August 19th, 2025 | By: Paletz Law Press

Rental Property Owners Required to Pay Tenant Relocation Costs

The City of Lansing has passed the “Landlord Relocation Rule,” an ordinance significantly affecting rental property owners. The new, recently enacted regulation requires landlords to provide relocation assistance to tenants because of what the City of Lansing refers to as “safety issues.”

Under the new ordinance, property owners must obtain mandatory insurance coverage to cover tenant relocation expenses, including moving costs and temporary housing if the city red-tags rental properties for safety violations. The city will also require proof of this insurance when issuing certificates of compliance (COC) and may revoke existing certificates if coverage isn’t maintained.

Once again, the City of Lansing and tenant rights advocates are addressing the symptom rather than the root cause of the issue, which, according to the Apartment Association of Michigan (AAM) is inadequate city code enforcement staffing. They contended that timely intervention on code violations could prevent properties from even reaching red-tag status, eliminating the need for these new regulations.

Despite opposition from groups like the AAM, the ordinance is expected to drive up rental costs as property owners incorporate these new insurance requirements into their financial planning. However, the full economic impact remains unclear as landlords have just begun to navigate this unprecedented and politically driven insurance mandate.

Property owners facing compliance challenges or seeking guidance on this new ordinance should consult with Paletz Law to fully understand their obligations and protect their investments in this evolving regulatory landscape.

Lansing Judge Allows Homeless Encampment to Continue with New Requirements for Property Owners

A City of Lansing homeless encampment near Dietrich Park has been granted permission to remain in place, but with strict safety and sanitation requirements imposed by the court. Judge Rosemarie Aquilina ruled that the longstanding encampment north of Old Town can stay, ordering two private property owners to install portable toilets on their land where the homeless community has been established.

The decision comes after the City of Lansing filed a lawsuit against the property owners last month, seeking to clear the encampment due to safety and sanitation concerns. However, city leaders argued they will not displace those living in homeless encampments without offering alternative housing solutions. A pre-trial hearing is scheduled for next month, with the full trial set to begin in late January. The city also announced plans to build a pod village for unhoused residents, though construction won’t begin until March 2025.

While Paletz Law sympathises with the plight of Lansing’s homeless, imposing this kind of duty, which inherently now encompasses additional premises liability, is an unconscionable abuse of judicial power. Also, the fact that the City of Lansing is abandoning its own duties and placing the burden on property owners is truly a scary development.

As always, Paletz Law will continue to diligently protect the private property rights of our clients.

The information contained in this article is only meant to be a basic overview and should not be construed as legal advice. Readers should not act upon this information without the advice of an attorney. The contents are intended for general information purposes only and may not be quoted or referred to in any other publication or otherwise be disseminated without the prior written consent of Paletz Law.

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