The Paletz Law Blog

Senate Bill 372 is Again Trying to Keep MI Landlords from Using Credit Scores for Tenant Screening

September 29th, 2025 | By: Paletz Law Press

Some Michigan lawmakers are once again pushing to reshape the rental landscape with Senate Bill 372, legislation that would fundamentally alter how landlords evaluate prospective tenants by prohibiting the use of credit scores in determining lease eligibility.

A Giant Mess For Landlords Attempting to Pre-Qualify Tenants 

The bill introduces several tenant-leaning measures. Under the legislation, if passed, landlords would be required to accept reusable screening reports that tenants obtain themselves within 45 days, and cannot charge related application fees when accepting these reports. When declining tenant-provided reports, landlords could charge a maximum $25 fee, but only with proper notification requirements.

Most significantly, the legislation prohibits landlords from using prospective tenants’ credit scores or past tenancy disputes where certain past tenancy disputes were found as determining factors for lease approval. 

The bill also requires landlords to inform applicants about screening criteria, available units and whether they maintain waiting lists. Following adverse decisions, landlords must provide copies of the reports used and offer meetings to discuss the determinations.

Our Biggest Concerns 

Restricting access to credit and eviction history undermines landlords’ ability to assess financial risk, potentially driving up rental costs and setting tenants up for failure when they cannot sustain their rental agreements. 

These are misguided attempts by legislators to help those seeking low-income housing, but this is not the way to do it. The key is to avoid placing tenants in an unreasonable credit risk in the first place. This scenario ultimately leads to eviction. So, our question to legislators is, “How does that actually help the constituents you’re supposedly serving?” 

What’s Old is New Again. They Just Keep Coming 

This isn’t Michigan’s first attempt at such landlord restrictions. The Michigan House previously introduced House Bill 4818 in 2023 with similar credit score prohibitions, but that bill failed to reach the floor for a vote.  

Senate Bill 372 has once again taken up this ill-advised cause, representing another affront to landlords in the ongoing battle between private property rights and pro-tenant advocacy. As always, Paletz Law will continue to address these concerns and fight for your rights.