LEGAL UPDATE WILLIAM M. SCHLECTE, ESQ. SCHLECTE LAW FIRM, PC bill@schlectelaw.com

ELECTRONIC SERVICE MCL 600.5718, as amended by 2015 PA 36 Effective August 19, 2015 Governs service of demands for possession In addition to personal service, service a household member or employee in the leased premises and first- class mail.

ELECTRONIC SERVICE May serve demands for possession if LL: Obtains specific written consent from the tenant. Obtains electronic affirmation of that consent from the tenant, using the electronic notice address provided by the tenant.

ELECTRONIC SERVICE LL may not refuse to enter into a lease because a prospective tenant declines to consent to electronic service. MCL 600.5718(2).

DEATH OF A TENANT MCL 600.2918(3)(d) LL may take possession of the premises after the death of a tenant, without a lawsuit if ALL of these conditions are met:

DEATH OF A TENANT LL informed tenant in writing of tenant’s option to provide contact information for an authorized person LL can contact in event of death. NOTE: LL not responsible for incorrect contact information provided by tenant or for tenant’s failure to provide LL with contact information.

DEATH OF A TENANT Landlord believes in good faith that tenant has been deceased for at least 18 days and that there is no surviving tenant living in the premises.

DEATH OF A TENANT After 18 days (and as long as there are no surviving tenants in the premises), and not less than 10 days before LL enters to take possession and dispose of the contents, LL must do EACH of the following:

DEATH OF A TENANT Make a reasonable attempt to contact the authorized person using the contact information provided by tenant (if the tenant provided contact information). Request the authorized person to open a probate estate for the tenant within 28 days after the tenant’s death.

DEATH OF A TENANT NOTE: LL is not responsible for the authorized contact person’s failure to respond to landlord’s notice before landlord reenters the premises at the designated time.

DEATH OF A TENANT Place on the door of the premises a notice stating LL intends to reenter, to take possession of the premises, and to dispose of the contents after 10 days have elapsed. LL must notify county public administrator that LL believes the tenant is deceased and that LL intends to reenter to take possession of the premises and to dispose of contents if a probate estate is not opened.

LEASE FEES Security deposits are limited to one and a half times the monthly rent. If the lease calls for a “deposit” for pets or cleaning or some other reason, it might be construed as requiring an excessive security deposit in violation of MCL 554.602. A deposit must be held in escrow, whereas a fee may be spent. The better practice is to characterize these amounts as fees.

LEASE FEES PET FEES Non-Service and Non-Emotional Support Animals May prohibit pets entirely May allow only certain pets, number and size May charge a fee either or both one-time and/or monthly

LEASE FEES Service Animal Specially trained to provide specific service for disabled person Dogs only Wears a Service Animal vest May NOT charge a fee – even if LL allows pets and charges other tenants a Pet Fee

LEASE FEES Emotional support animal. May NOT charge a Pet Fee Provides comfort to individuals suffering from anxiety, depression, panic attacks, or other disability. Must be documented by a letter from a Qualified Health Professional: Individual has a disability Animal allows the person to enjoy the normal activities of a nondisabled person

LEASE FEES All fees must be “reasonably related to the cost to the LL E.g. Late Fee must be reasonably related to the cost to LL of collecting and waiting for a late payment. Courts may reduce requested late fees that are excessive.

LEASE FEES Concession Fees Lease states a higher “market” rent and a “concession” or discount unless the rent is paid late. “Concession Fee” could be interpreted by a court as a disguised, and excessive, Late Fee.

COURT ACTION EVICTION AND/OR COLLECTION Plaintiff must be legal Owner Advantages of Entity Ownership by LLC or Sub-S Corp If LL is entity, must be represented by attorney – otherwise, it is the unauthorized practice of law NOTE: proposed legislation to change this Pros and cons of the proposal Each District Court has different procedures

BEDBUGS Effective treatment requires cooperation BY LL and Tenant in inspections, pretreatment preparation, actual treatment, and posttreatment evaluation and monitoring. All parties need to be educated about bedbug characteristics and what it takes to get rid of them.

BEDBUGS Treatments include pesticides, steam, heat, and freezing. A combination of methods may be necessary to address the problem completely.

BEDBUGS Both LLs and tenants need to know how to dispose properly of items that cannot be treated. They should be slashed, wrapped in plastic, and clearly marked as bedbug-infested to discourage others from “trash picking” them.

BEDBUGS Michigan LLs are subject to statutory covenants of fitness and reasonable repair -- MCL 554.139. Subsection (1)(b) includes covenant to comply with state and local health and safety laws. State and most local jurisdictions consider bedbug infestation to be a violation of health and/or building codes – which means it is also a breach of the statutory covenants.

BEDBUGS Section of Housing Law of Michigan -- MCL 125.474 Requires owner of a dwelling to “be responsible for keeping the entire building free from vermin.” Tenants “shall be responsible for the cleanliness of those parts of the premises that they occupy and control.”

BEDBUGS Who has liability for treatment and damages? Is LL liable for damages? Single-Family Rental Multi-Family Rental Determination of Causation is often problematic

OTHER STATUTORY REGULATION Forcible Entry and Detainer (antilockout) Act (FEDA), MCL 600.2918 et seq. Landlord and Tenant Relationships (security deposit) Act (LTRA), MCL 554.601 et seq. Truth in Renting Act (TIRA), MCL 554.631 et seq. Michigan Consumer Protection Act (MCPA), MCL 445.901 et seq.