Michigan has enacted new legislation introducing changes to how landlords and renters handle rent payments and security deposits.
Under Senate Bill 373, rental agreements must provide tenants with at least one option to pay rent without an additional fee or surcharge. The measure also restricts certain lease provisions that could waive tenant rights, impose unfair financial or legal obligations, or limit a landlord's responsibility to mitigate damages.
Senate Bill 22 gives landlords the option to return security deposits through electronic methods, including direct deposit, electronic transfers, and internet or mobile payment platforms. When a landlord uses an electronic payment method to return a deposit balance, the payment must be sent within 10 days of mailing the required notice of damages.
Both measures passed with bipartisan support before being signed into law by Gov. Gretchen Whitmer on September 21, 2026.
For Michigan's rental housing industry, the changes create new operational and compliance considerations. Landlords and property managers may need to review lease agreements, rent-payment systems, and security-deposit procedures to ensure they accommodate the updated requirements.
The legislation reflects a broader shift toward greater flexibility in rental payment methods and clearer protections around tenant fees and security-deposit returns.
Source: Midland Daily News
