Rental Application and Tenant-Screening Fee Requirements in Michigan
At a glance
| Governing law and coverage | No general statewide applicant-fee statute after audit of 1972 PA 348 (MCL §§ 554.601-.616), the Truth in Renting Act, and Occupational Code art. 25; a narrower MSHDA rule governs LIHTC units |
|---|---|
| Fees allowed or prohibited | No general-market provision specifically authorizes or prohibits an application or screening fee; MSHDA permits a customary and reasonable LIHTC application fee but bars a fee for required eligibility paperwork |
| Maximum charge and adjustment | No statewide general-market numeric, actual-cost, per-applicant, per-household, or indexed ceiling; LIHTC program rule is customary and reasonable |
| Permitted costs and charge timing | No general-market fee-component, vacancy, charge-when-considered, concurrent-application, or repeat-charge rule; LIHTC special eligibility paperwork cannot be charged to the applicant |
| Before-screening disclosures | No general statewide fee, vacancy, criteria, report-source, dispute-right, reusable-report, or application-order disclosure; LIHTC projects remain subject to program rules |
| Receipt, report copy, and refund | No general statewide application-fee receipt, landlord-obtained-report copy, unused-fee refund, or unconsidered-application refund rule |
| Applicant-supplied or reusable reports | No current statewide applicant-supplied or reusable screening-report acceptance or no-fee procedure |
| Application order and adverse action | No statewide first-in-order, first-qualified, single-application, or Michigan denial-reason notice process for ordinary rental applications |
| Remedies and stronger local rules | No application-fee-specific statutory damages or statewide fee-preemption clause in the audited general-market schemes; the LIHTC rule applies only to regulated projects |
Michigan has no general-market fee process
The current Landlord-Tenant Relationship Act, MCL §§ 554.601-.616, does not create an ordinary rental-application or tenant-screening fee process. The Michigan Judicial Institute's current benchbook maps that Act to security deposits, information exchanged during the tenancy, move-in and move-out inventories, damage claims, specified early-termination rights, and source-of- income discrimination. Its complete Act discussion contains no application- fee cap, applicant receipt, report-copy duty, refund deadline, reusable-report system, application order, or state adverse-action notice.
The Truth in Renting Act, MCL §§ 554.631-.641, regulates clauses in written rental agreements rather than establishing a pre-tenancy screening-fee system. Article 25 of the Occupational Code reaches licensed property management, and MCL § 339.2501 defines that work to include offering another person's real property for rent. The current LARA licensing materials add no tenant-facing application-fee amount, disclosure, receipt, refund, report-copy, reusable- report, processing-order, or denial-notice rule.
Accordingly, the audited general-market schemes create no special statewide requirement for:
- a numeric, actual-cost, per-person, or indexed maximum;
- proof that a vacancy exists or that an application will be considered;
- advance disclosure of the fee basis, criteria, or reporting agency;
- an application-fee receipt, screening-report copy, or unused-fee refund;
- acceptance of an applicant-supplied or reusable report;
- first-in-order or first-qualified processing; or
- a Michigan-format denial or conditional-approval notice.
A narrower rule applies to MSHDA-regulated LIHTC units
Michigan's April 2026 Low-Income Housing Tax Credit compliance manual states that an application fee is permissible if customary and reasonable. It also bars charging for the special paperwork required to establish eligibility for a LIHTC unit, including the tenant income certification, third-party verifications, and compliance checklist. That program rule does not establish a statewide ceiling for an ordinary market-rate rental application.
What trips people up
The security-deposit cap is not an application-fee cap. MCL § 554.601(d) defines a security deposit as money held during the rental agreement or other money returnable on the condition that the unit is returned as required. An ordinary nonrefundable screening charge should not be treated as though the Act's security-deposit amount, inventory, or return procedures automatically govern it.
The reusable-report and fee-cap rules are proposals, not current law. SB 372 has advanced to the Senate order of third reading, but it has not passed the Senate or become law. HB 4995, HB 4770, and the fair-chance companion bills also remain in committee. The Legislature's current calendar showed both chambers returning July 29, 2026, so these measures remain live rather than dead after adjournment.
The LIHTC rule is program-specific. A customary-and-reasonable limit in a MSHDA compliance manual for regulated affordable units is not a general rule for every Michigan landlord.
Common questions
Is there a statewide maximum rental application fee? No general-market numeric or cost-based ceiling appears in the current audited schemes. A MSHDA- regulated LIHTC project must follow the narrower customary-and-reasonable rule.
Must a landlord refund the fee after denial? Current general Michigan law does not create a special denial-refund deadline for an ordinary application. HB 4770 would require one if enacted.
Must a landlord accept a reusable screening report? Not under current statewide law. SB 372 and HB 4995 would create elective acceptance systems if enacted.
Must the landlord give me the report or written reasons? The audited general state statutes create no special report-copy or Michigan-format denial notice tied to an application fee. Separate federal duties can still apply.
Statutes and sources
- 1972 PA 348; MCL §§ 554.601-.616 — current official judicial audit of
the Landlord-Tenant Relationship Act.
The LTRA details the parties’ duties and obligations with regard to the amount of a tenant’s security deposit, its use, the transmission of information between the landlord and the tenant, and the settlement of disputes. The LTRA also briefly addresses special circumstances of early lease termination.
Official source: https://www.courts.michigan.gov/4a4eb6/siteassets/publications/benchbooks/lltbb/lltbbresponsivehtml5.zip/LLTBB/Ch_2_Specific_Acts/Chapter_2__58__Specific_Landlord-Tenant_Laws.htm (accessed 2026-07-21) - 1972 PA 348 title and MCL § 554.601(d) — current baseline recited in official Legislative Service Bureau bill text.
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.
Official sources: https://www.legislature.mi.gov/documents/2025-2026/billintroduced/Senate/htm/2025-SIB-0372.htm and https://www.legislature.mi.gov/documents/2025-2026/billintroduced/House/htm/2025-HIB-4770.htm (accessed 2026-07-21) - Truth in Renting Act, MCL §§ 554.631-.641 — current judicial audit of prohibited clauses, required clauses, and remedies for written rental agreements.
2.2 Truth in Renting Act ... A. Specifically Prohibited Clauses ... B. Specifically Required Clauses ... C. Remedies and Actions for TRA Violations.
Official source: https://www.courts.michigan.gov/siteassets/publications/benchbooks/lltbb/lltbb.pdf?r=1 (accessed 2026-07-21) - MCL § 339.2501 — Article 25 property-management definition reproduced by LARA.
“Property management” means the leasing or renting, or the offering to lease or rent, of real property of others for a fee, commission, compensation, or other valuable consideration pursuant to a property management employment contract.
Official source: https://www.michigan.gov/lara/-/media/Project/Websites/lara/bpl/Real-Estate-Brokers-and-Salespersons/Licensing-Information/Real-Estate-Broker-Company-and-Branch-Office-Licensing-Guide-and-FAQ.pdf (accessed 2026-07-21) - MSHDA LIHTC Compliance Manual, chapter 4, part 432 — application-fee rule for regulated LIHTC units.
Application Fee. Permissible if customary and reasonable. However, no fee can be charged for the special paperwork ... that is required to establish a tenant's eligibility to reside in a LIHTC unit.
Official source: https://www.michigan.gov/mshda/-/media/Project/Websites/mshda/rental/Property-Managers/Compliance-for-Rental-Housing/Manuals-Policies-and-Codes/LIHTC-Compliance-Manual/CM-Chapter-4-Income-Rent-and-Utility-Allowances.pdf (accessed 2026-07-21)
Source links
Every statute quoted above, linked, with the date we checked it.
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