RESIDENTIAL LEASE ADDENDUM
LATE FEE (MICHIGAN)
[// GUIDANCE: This Addendum is intended for attachment to an existing Michigan residential lease (the “Lease”). All bracketed language should be reviewed and completed or, where appropriate, deleted prior to execution.]
TABLE OF CONTENTS
- Document Header
- Definitions
- Operative Provisions
- Representations & Warranties
- Covenants & Restrictions
- Default & Remedies
- Risk Allocation (Intentionally Omitted)
- Dispute Resolution
- General Provisions
- Execution Block
1. DOCUMENT HEADER
This Residential Lease Addendum – Late Fee (“Addendum”) is made as of [EFFECTIVE DATE OF ADDENDUM] (the “Effective Date”) by and between:
• [LANDLORD LEGAL NAME], (“Landlord”); and
• [TENANT LEGAL NAME(S)], (“Tenant”).
Landlord and Tenant are the parties to that certain Residential Lease dated [LEASE DATE] relating to the premises commonly known as [PROPERTY ADDRESS] (the “Premises”). The parties desire to amend the Lease to address late payment of Rent, all on the terms set forth herein.
For good and valuable consideration, the receipt and sufficiency of which are acknowledged, the parties agree as follows.
2. DEFINITIONS
For purposes of this Addendum (capitalized terms not defined below have the meanings given in the Lease):
“Due Date” means the first (1st) calendar day of each month, unless the Lease specifies another date.
“Grace Period” means the period ending at 11:59 p.m. on the [GRACE PERIOD DAYS]th calendar day of the month in which Rent is due.
“Late Fee” means the amount assessed pursuant to Section 3.2.
“Rent” means the Monthly Rent as defined in the Lease, currently $[MONTHLY RENT AMOUNT] per month.
3. OPERATIVE PROVISIONS
3.1 Obligation to Pay Rent Timely.
Tenant shall pay Rent on or before the Due Date without demand, deduction, or set-off, at the place and in the manner provided in the Lease.
3.2 Late Fee; Statutory Parameters.
(a) If Tenant fails to pay the full amount of Rent by the expiration of the Grace Period, Tenant shall owe a Late Fee equal to the lesser of:
(i) [LATE FEE PERCENTAGE]% of the outstanding Rent; or
(ii) $[MAX LATE FEE AMOUNT].
(b) The Late Fee is intended to reimburse Landlord for administrative costs incident to late payment and is not a penalty. The parties agree that the foregoing amount bears a reasonable relation to Landlord’s actual costs and complies with Michigan public-policy standards governing liquidated damages.
[// GUIDANCE: While Michigan law imposes no statewide numeric cap, late fees that are excessive or unrelated to actual damages may be unenforceable. Most Michigan leases use 5% of monthly rent or $50, whichever is less, as a conservative benchmark.]
3.3 Application of Payments.
Payments received shall be applied first to unpaid Late Fees, then to other sums due, and finally to the oldest outstanding Rent, unless Landlord elects otherwise or applicable law requires a different allocation.
4. REPRESENTATIONS & WARRANTIES
4.1 Mutual Authority.
Each party represents that it has full right, power, and authority to execute and deliver this Addendum and to perform its obligations hereunder.
4.2 Compliance with Law.
Landlord represents that the Late Fee structure herein is intended to comply with Mich. Comp. Laws § 600.5714(1)(a) (seven-day demand prerequisite to eviction for non-payment) and all other applicable state and federal landlord-tenant laws.
5. COVENANTS & RESTRICTIONS
5.1 Tenant Covenant.
Tenant covenants to pay all Rent and Late Fees when due and acknowledges that failure to do so constitutes a material breach of the Lease, as amended.
5.2 Landlord Covenant.
Landlord covenants to serve any statutory notices required prior to initiating eviction proceedings, including the seven-day Demand for Possession (Non-Payment of Rent) in conformity with Mich. Comp. Laws § 600.5714(1)(a).
6. DEFAULT & REMEDIES
6.1 Events of Default.
An “Event of Default” occurs if Tenant:
(a) Fails to pay all Rent within the Grace Period; or
(b) Fails to pay any assessed Late Fee within five (5) days after written notice from Landlord.
6.2 Notice and Cure.
Upon an Event of Default, Landlord may (i) issue a written demand for payment specifying the amount due and providing at least seven (7) days to cure; and/or (ii) serve a statutory seven-day Demand for Possession.
6.3 Graduated Remedies.
If Tenant fails to cure within the notice period:
(a) Landlord may pursue eviction, money damages, and any other remedy permitted under the Lease or applicable law; and
(b) Tenant shall be liable for reasonable attorney fees and court costs to the extent allowed by law and the Lease.
6.4 No Waiver.
Acceptance of Rent or Late Fees after the Due Date shall not constitute a waiver of any default or of Landlord’s right to commence eviction proceedings.
7. RISK ALLOCATION
[Intentionally Omitted – indemnification not applicable; liability limits governed by statutory law.]
8. DISPUTE RESOLUTION
8.1 Governing Law.
This Addendum and the Lease shall be governed by and construed in accordance with the residential landlord-tenant laws of the State of Michigan, without regard to its conflict-of-laws principles.
8.2 Forum Selection.
Any action arising from or related to this Addendum shall be brought exclusively in the [COUNTY NAME] County District Court, Housing Division, or such other Michigan court having jurisdiction over residential landlord-tenant matters (“Housing Court”).
8.3 Arbitration.
The parties expressly decline arbitration for disputes concerning this Addendum.
8.4 Jury Trial.
Nothing herein shall be construed as a waiver of either party’s constitutional right to a trial by jury.
8.5 Injunctive Relief.
Landlord retains the right to seek immediate possession of the Premises pursuant to summary proceedings under Michigan law, which the parties acknowledge constitutes injunctive-type relief.
9. GENERAL PROVISIONS
9.1 Incorporation; Precedence.
This Addendum is incorporated into and made part of the Lease. In the event of any conflict, the provisions of this Addendum control with respect to Late Fees.
9.2 Amendment & Waiver.
No amendment or waiver of any provision of this Addendum is effective unless in writing and signed by both parties. A waiver on one occasion is not a waiver on any other occasion.
9.3 Assignment & Delegation.
Tenant may not assign or delegate any rights or obligations under this Addendum without Landlord’s prior written consent, except as otherwise permitted under the Lease.
9.4 Severability.
If any provision of this Addendum is held invalid or unenforceable, the remaining provisions remain in full force and effect to the extent permitted by law.
9.5 Entire Agreement.
This Addendum, together with the Lease, constitutes the complete and exclusive statement of the agreement between the parties with respect to the subject matter hereof.
9.6 Electronic Signatures.
Signatures transmitted by electronic means (including facsimile or PDF) shall be deemed original and binding.
10. EXECUTION BLOCK
IN WITNESS WHEREOF, the parties have executed this Addendum as of the Effective Date.
LANDLORD:
[LANDLORD LEGAL NAME]
By: _____
Name: ______
Title: _____
Date: _______
TENANT(S):
1. ______
[TENANT NAME]
Date: _________
-
[TENANT NAME]
Date: _________
[Add additional signature lines as necessary]
[// GUIDANCE: Notarization is not required for Michigan residential lease addenda, but may be used for additional evidentiary weight. Attach as Exhibit A to the Lease or integrate into the Lease package.]