From Paletz Law: The State of the Landlord in Michigan and Ohio

July 2nd, 2026 | By: Matthew I. Paletz, Esq.

How Regulation, Rising Costs, and Activism Are Reshaping Rental Housing

Part Two

For the modern landlord in Michigan and Ohio, the business of managing their properties and tenants has shifted based on a slew of ever-changing federal guidance and expanded local ordinances. Combine that with an increasingly activist-driven state legislature and a growing local hostility toward private property ownership itself, and you have a recipe for sleepless nights for many rental property owners.

In 2026, Local governments in both Michigan and Ohio continue to adopt policies that discourage investment in rental housing while demanding more affordable housing inventory.  Here’s our look at what local policies are shaping rental property ownership and what, as a landlord, you need to be aware of. 

Michigan: A Rapid Expansion of Tenant-Oriented Policy

Michigan has become one of the Midwest’s most active battlegrounds for landlord-tenant reform efforts.

State lawmakers and tenant advocacy organizations have introduced multiple legislative proposals to expand tenant protections while increasing obligations on rental property owners.

Lansing: Push for Expanded Tenant Rights

In the City of Lansing, lawmakers have introduced legislation that would significantly alter landlords’ obligations regarding repairs, rent withholding, and security deposit disputes.

Among the proposals discussed:

• Requiring landlords to begin addressing and making repairs and not taking into consideration contractor availability. 
• Expanded tenant rights to withhold rent payments for an increasing number of reasons
• Easier pathways for tenants to terminate leases or on the other side, be allowed to stay in their dwellings for an indefinite time, no matter their conduct or rent payment history
• Reduced deadlines for returning security deposits

Tenants’ rights advocates and supporters of tenants’ unions describe these bills as necessary protections. Housing providers, however, are more than aware that these initiatives can create unrealistic compliance standards, particularly for smaller landlords without institutional resources.

Many owners and landlords are justifiably feeling that these proposals could encourage abuse of repair disputes while making evictions and collections even more difficult.

Ann Arbor: A Cautionary Example of a Growing Regulatory Model

Ann Arbor has increasingly become a state model for aggressive local housing regulation and tenant advocacy. 

The city has expanded rental oversight through:

• Increased licensing requirements
• Increased rental inspections
• Unrealistic energy efficiency standards
• New source-of-income protections
• Increased code enforcement activity

Tenant advocacy groups in Ann Arbor have also pushed for stronger anti-eviction measures and broader tenant legal protections, again leaning on the misnomer that “housing is a right.” 

For landlords, especially those with older housing, compliance costs continue rising rapidly.

Detroit: Rising Operational Costs and Enforcement Pressure

In Detroit, landlords continue to face major challenges tied to:

• New property tax assessments
• Arbitrary blight enforcement
• Escrow disputes
• Utility costs
• Aging infrastructure
• Delays in eviction processing

Detroit’s rental compliance environment has become increasingly enforcement-oriented, particularly regarding inspections and registration requirements.

Small investors who once purchased Detroit rental properties as affordable investment opportunities now face significantly higher compliance and rehabilitation expenses, with even local news outlets reporting that landlords and rental property owners are getting out of the housing business altogether. 

Grand Rapids: Housing Demand Meets Regulatory Expansion

Grand Rapids continues to experience strong housing demand, but landlords there also report increasing operational pressures from inspections, zoning enforcement, occupancy restrictions, and affordability initiatives.

Many housing providers argue that local governments simultaneously demand affordable housing while adopting policies that increase ownership costs and discourage smaller investors from remaining in the market.

Ohio: Local Governments Taking Over What They Believe to be a Slow-Reacting State Legislature

Compared to Michigan, Ohio’s statewide landlord-tenant laws have remained relatively stable. However, recently, the Ohio Supreme Court ended the practice of “submetering,” which allowed companies to enter into agreements with landlords to sell electricity and utilities to their apartment residents and tenants. That said, local governments across Ohio are increasingly expanding rental regulation through municipal ordinances and administrative enforcement. 

Cleveland: Inspection and Registration Expansion

Cleveland has continued expanding rental registration and inspection enforcement efforts.

Landlords in Cleveland increasingly face:

• New mandatory rental registrations
• An increase in periodic inspections
• Escalating code enforcement
• Updated lead compliance obligations
• Increased administrative fees
• New and updated occupancy regulations

While city leaders argue these measures improve housing quality, many landlords say the cumulative costs make maintaining affordable rental housing increasingly difficult.

Cincinnati: Growing Tenant Advocacy Pressure

Cincinnati has seen growing activism around tenant protections, eviction-prevention programs, and affordable housing mandates.

Landlords report increasing pressure tied to:

• Extend eviction timelines due to the city’s active tenant defense programs 
• Mediation programs
• Compliance documentation
• Local inspection standards

Small landlords, particularly those operating only a few units, often lack the staffing and legal infrastructure necessary to navigate rapidly changing municipal requirements.

Columbus: Expanding Housing Bureaucracy

Columbus continues expanding housing oversight through registration requirements, zoning initiatives, and affordability discussions.

As Columbus grows, landlords are increasingly concerned that policy discussions focus almost exclusively on tenant protections, with little equal discussion of the rising costs and risks borne by housing providers.

The latest coming from the Ohio State Legislature and something that many states and cities across the country have adopted, is a requirement that every residential rental property in Columbus register with the city annually. The registry would include information about rental properties, such as the number of dwelling units, parcel IDs and an emergency contact for the property. Just another in a slew of red-tape requirements that other businesses are not subjected to. 

The Financial Reality Facing Landlords

Beyond legislation and ordinances, landlords across Michigan and Ohio are facing economic pressure from nearly every direction.

Operating costs have risen sharply, including:

• Insurance premiums
• Property taxes
• Contractor labor
• Building materials
• Utilities
• Interest rates
• Legal fees
• Landscaping Upkeep
• Appliance Repair

Many landlords also report a growing reluctance to invest in additional housing inventory due to fears about future regulation and legal exposure, showing once again that some pro-tenant advocacy is actually leading to results that hurt, not help, the available housing situation. 

Under Attack

As you are aware, the overwhelming majority of landlords in Michigan and Ohio are not massive corporations. Many are small business owners, retirees, or working families who invested in rental property as a long-term financial strategy.

When policies continuously increase risk, delay enforcement, and expand liability, many of these owners, as we stated before, are simply leaving the market.

Paletz Law: On Your Side

While we work tirelessly every day to handle your legal needs, Paletz Law is also working every day to advocate for your rights. We also engage the media on a frequent basis to represent the landlord side of issues affecting your business, as well as working with legislators, local officials and the courts. As one of the Midwest’s largest Landlord-Tenant law firms, Paletz Law will not just keep you informed on this constantly evolving political landscape but also share common-sense legal advice on how you can navigate this exceptionally volatile rental landscape and thrive as a business, whether you operate a large multi-family rental complex or a small manufactured housing community.