The Michigan Senate, led by a small cadre of legislators, is at it again, introducing more anti-landlord bills in an attempt to restrict the use of your properties. Paletz Law, as a strong advocate for our landlord and property owner clients, provides you with the latest update on what’s going on in the state legislature that could potentially affect your business operations. While these bills have yet to come out of committee, they could in the future influence the way you do business.
SB 375 – The bill mandates that rent will include the cost of providing ‘essential services’ (climate control, hot/cold water, trash removal, pest control, landscaping). Additionally, rental agreements must not include charges/fees that are ‘not reasonable’, third-party/public utility services (charges not incurred by the landlord), or penalties for not renewing a lease for longer than a month.
Paletz Law’s View: Housing providers have their own financial obligations that are expected to be paid on time. If a landlord doesn’t have the security for a longer lease term, then they should be able to offset that lack of security. Curtailing the amount a landlord can reasonably charge will only drive the overall rates higher. Operating and material costs continue to fluctuate and have to be accounted for to represent the financial health/stability of properties.
SB 374 – Amends 1961 PA 236 (MCL 600.101 to 600.9947) by adding section 5755. Chapter 57a would be modified under Section 5755 and would allow courts to seal records of eviction for several reasons. Additionally, Section 5755 will mandate that the court will automatically expunge records after 3 years, allow records to be opened for educational/journalistic purposes, and allow a prospective tenant to bring a civil action against a housing provider that based an adverse action on a known sealed court record.
Paletz Law’s View: We believe that landlords and other tenants should have the right to know who they’re renting to and living near. While we understand the thinking where tenant advocates are trying to have a renter’s record not be disqualifying in a new rental scenario, this bill goes even further. Any legislation that allows someone who does not have clean hands to use an incident to weaponize and file a lawsuit against someone who is just trying to protect their property is patently absurd.
SB 373 – At least one method of payment must be available fee-free/surcharge free.
Paletz Law’s View: Landlords and property owners should be free to recover any administrative costs incurred and the government should not be interfering with contracts that were freely and voluntarily entered into. Housing providers are being singled out even though many other companies have preferred methods of payment.
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