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Michigan limits renter fees, eases security deposit returns

Michigan limits renter fees, eases security deposit returns

Rule Changes Holt, MI local

New laws curb landlord fees and tighten security deposit return rules

September 25th, 2026: Ann Arbor approves tenant protections, recognizes right to organize

Overview

Updated Sep 26

Michigan landlords face new limits on fees they charge renters, and tenants get a clearer path to recovering security deposits, under two bills Gov. Gretchen Whitmer signed Sept. 22. The laws are the latest step in a years-long push by Michigan Democrats to cut the upfront cost of renting.

Days later, Ann Arbor became the first Michigan city to formally recognize renters' right to organize and expanded its Tenants' Bill of Rights. The moves come as a report shows Michigan is short 195,462 housing units for extremely low-income renters, a shortage that has pushed rents higher.

Why it matters

For Michigan renters, these laws reduce the cash needed to move in and tighten the rules for getting deposits back.

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Key Indicators

195,462
Housing units short for extremely low-income renters
Per National Low Income Housing Coalition report, up from 185,354 last year.

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People Involved

Organizations Involved

Timeline

December 2024 September 2026

5 events Latest: September 25th, 2026 · 1 week ago
Tap a bar to jump to that date
  1. Ann Arbor approves tenant protections, recognizes right to organize

    Latest Local Policy

    City council passed an expanded Tenants' Bill of Rights and formally recognized renters' right to organize, the first city in Michigan to do so. Violations can bring fines up to $500.

  2. Whitmer signs renter fee and security deposit bills

    Legislation

    Whitmer signs two bills limiting fees landlords can charge renters and easing security deposit returns.

  3. Senate Democrats introduce renter protection package

    Legislation

    Introduces SB 372-375: application fee caps, fee-free payment, eviction sealing, junk fee limits.

  4. Whitmer signs House source-of-income protections

    Legislation

    Signs House bills adding court remedies for source-of-income discrimination.

  5. Whitmer signs source-of-income housing discrimination ban

    Legislation

    Signs eight bills including a source-of-income housing discrimination ban.

Scenarios

1

Landlord groups sue to block Michigan fee limits

Possible Resolves by Q2 2027

Discussed by: Property-owner trade groups, which opposed similar laws in New York and California

Michigan landlord and realtor associations file suit in state court, arguing the fee cap and deposit rules exceed the state's regulatory authority or interfere with private contracts. A court could issue an injunction pausing enforcement while the case proceeds. The suit would follow the pattern of legal challenges that met tenant protection laws in other states.

2

Michigan passes eviction record sealing law

Possible Resolves by End of 2027

Discussed by: Michigan Senate Democrats, whose 2025 package included eviction record sealing (SB 374)

The legislature passes Senate Bill 374 or a similar measure to seal eviction records immediately and expunge them after three years. Sponsors argue permanent eviction records lock tenants out of stable housing even after disputes are resolved. The bill would extend the same renter-protection logic to the post-rental process.

3

Fee and deposit rules take effect without legal challenge

Likely Resolves by Q1 2027

Discussed by: Supporters of the new laws, who expect landlords to adjust rather than sue

No lawsuit emerges, and the new fee limits and deposit rules go into effect as written. Landlords update their application fee practices and deposit return timelines to comply. The rules would then operate alongside the 2024 source-of-income protections as a settled part of Michigan landlord-tenant law.

Historical Context

3 moments from history that rhyme with this story — and how they unfolded.

June 2019

New York's Housing Stability and Tenant Protection Act (2019)

New York lawmakers passed a sweeping tenant protection law that banned most application fees, capped security deposits at one month's rent, and restricted evictions. It was the most significant expansion of tenant rights in the state in decades.

Then

Landlord groups sued, arguing the law was unconstitutional. Courts upheld most provisions.

Now

New York became a template for other states weighing tenant protections.

Why this matters now

Michigan's new fee and deposit rules follow the same playbook of limiting what landlords can charge on top of rent.

2019

Oregon's Rent Control and Tenant Protections (2019)

Oregon became the first state to adopt statewide rent control and banned no-cause evictions. The law limited annual rent increases and gave tenants more stability.

Then

Landlords funded a 2020 ballot measure to repeal the law; voters rejected it.

Now

Oregon showed that renter protections could survive organized opposition.

Why this matters now

Michigan's fee limits may face similar organized pushback from landlord groups.

2023

Minnesota's 2023 Renter Protection Package

Minnesota's Democratic legislature passed a package including a source-of-income non-discrimination law and a renters' bill of rights, alongside funding for affordable housing.

Then

The measures took effect without major legal challenges.

Now

Minnesota became a model for other Democratic-led states prioritizing renter protections.

Why this matters now

Michigan followed a similar path, passing source-of-income protections in 2024 and now limiting fees and deposit rules.

Sources

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