How to Manage a Rental Property in Michigan: A Complete Guide for Landlords

Owning a rental property in Michigan can be both rewarding and challenging. Picture this: you’ve just bought a charming duplex in Grand Rapids with hopes of steady income, but winter hits hard, your tenants call about a frozen pipe, and suddenly your “passive income” isn’t so passive anymore.

Michigan’s rental market is unique. From Detroit’s revitalizing neighborhoods to Ann Arbor’s high-demand student housing, managing a property here requires a solid grasp of local laws, seasonal maintenance, and tenant expectations. Plus, with recent shifts in housing demand and rental prices, landlords need to adapt quickly to keep occupancy rates high.

In this guide, we’ll break down everything you need to know about managing a rental property in Michigan, from screening tenants and handling maintenance to understanding landlord laws and leveraging state assistance programs like MI Home Loan and MSHDA.

Understand Michigan’s Rental Laws
Screen and Select Tenants Carefully
Set Competitive Michigan Rental Rates
Stay on Top of Maintenance Year-Round
Handle Rent Collection and Late Payments
Maintain Good Tenant Relationships
Use Michigan Housing Programs and Resources
Tips & Warnings for Michigan Landlords
Conclusion
FAQs

1. Understand Michigan’s Rental Laws

Michigan has specific landlord-tenant laws that govern everything from security deposits to eviction notices.

Security Deposit Limits: In Michigan, you can’t charge more than 1.5 times the monthly rent as a security deposit. You must store it in a separate account and return it within 30 days after a tenant moves out (minus damages).
Notice for Entry: Landlords must give 24 hours’ notice before entering a property, except in emergencies.
Eviction Laws: Evictions must follow Michigan’s legal process — you can’t change locks or shut off utilities.
Lead Paint Disclosure: If your property was built before 1978, you must provide tenants with lead paint information.

Example: A landlord in Flint must follow extra safety rules because of the city’s water quality history.

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2. Screen and Select Tenants Carefully

Good tenants are the backbone of a stress-free rental experience. In Michigan’s competitive rental markets, such as Ann Arbor and East Lansing, you’ll want a thorough screening process.

Background Checks: Use Michigan court records to check for prior evictions.
Credit Checks: Ensure tenants have a stable payment history.
Employment Verification: Michigan’s economy varies by region — for example, Detroit has growing tech and manufacturing jobs, while Traverse City thrives on tourism.
References: Always contact previous landlords.

Pro Tip: MSHDA offers resources for landlords to connect with pre-screened tenants through housing assistance programs.

3. Set Competitive Michigan Rental Rates

Setting the right rent means balancing profitability with market demand.

Research Local Rates: In Grand Rapids, a 2-bedroom might rent for $1,200, while in Ann Arbor it could be $1,800 due to university demand.
Adjust Seasonally: Rental demand often spikes in spring and summer when moving is easier in Michigan’s weather.
Consider Utilities: Many landlords in Lansing include water and trash removal to attract tenants.

Example: A landlord in Kalamazoo lowered rent slightly in winter but offered a free first-month deal to fill vacancies faster.

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4. Stay on Top of Maintenance Year-Round

Michigan’s weather is no joke. Proper maintenance can save you from costly repairs and unhappy tenants.

Winter Care

Insulate pipes to prevent freezing.
Ensure heating systems are serviced before cold months.
Keep driveways and walkways salted for safety.

Spring and Summer Care

Check roofs for ice damage.
Maintain landscaping — curb appeal is important in Traverse City tourist rentals.
Schedule pest control visits before peak season.

Local Tip: In areas like Upper Peninsula, snow removal is often a must-have in lease agreements.

5. Handle Rent Collection and Late Payments

Consistent rent collection keeps your investment profitable.

Online Payments: Use Michigan-friendly platforms like RentCafe or AppFolio.
Grace Periods: Many Michigan landlords allow a 3–5 day grace period.
Late Fees: State law allows reasonable fees — document them in the lease.

6. Maintain Good Tenant Relationships

A happy tenant is more likely to renew their lease.

Respond promptly to maintenance requests.
Send seasonal reminders (e.g., keep heat above 55°F in winter).
Offer renewal incentives like a minor upgrade or rent freeze.

7. Use Michigan Housing Programs and Resources

Michigan landlords can benefit from state and local housing programs:

MI Home Loan – Helps buyers (including landlords) with low-interest mortgages.
MSHDA Housing Choice Voucher Program – Connects landlords with reliable tenants.
Detroit Down Payment Assistance Program – Offers incentives for property improvements.
Ann Arbor Affordable Housing Fund – Supports landlords offering below-market rents.

8. Tips & Warnings for Michigan Landlords

Do’s:

Know your local market — rental rules in Detroit may differ from Traverse City.
Plan for weather-related expenses like snow removal.
Stay updated on Michigan’s landlord-tenant laws.

Don’ts:

Don’t skip property inspections.
Don’t ignore seasonal maintenance — Michigan winters can be brutal.
Don’t rent without a signed lease agreement.

9. Conclusion

Managing a rental property in Michigan isn’t just about collecting rent — it’s about understanding local laws, seasonal challenges, and market trends. Whether you’re renting a downtown Detroit loft or a Lake Michigan vacation home, success comes from preparation, good tenant relationships, and smart use of state programs.

Brick By Brick Investments is here to guide you every step of the way, from acquisition to management, so your rental property can thrive year-round.

10. FAQs

Q1: What’s the maximum security deposit I can charge in Michigan?
A: 1.5 times the monthly rent.

Q2: Do I need to provide heat during winter?
A: Yes, Michigan law requires habitable conditions, which include heating.

Q3: Can I require tenants to handle snow removal?
A: Yes, but it must be stated in the lease.

Q4: How long do I have to return a security deposit?
A: 30 days after move-out.

Q5: Is rental demand higher in summer?
A: Yes, especially in college towns and tourist areas.

Q6: Do I have to accept housing vouchers?
A: Michigan does not mandate it statewide, but some cities may have local rules.

Q7: Can I raise rent anytime?
A: Only at lease renewal unless it’s a month-to-month rental.

Q8: What’s the best way to find tenants in Michigan?
A: Local listings, Zillow, and MSHDA’s landlord network.

Q9: How can I avoid winter maintenance issues?
A: Insulate, service heating systems early, and schedule snow removal.

Q10: Are short-term rentals allowed in Michigan?
A: Depends on city ordinances — Traverse City has stricter short-term rental rules.