Summary — HB 4995 (2025): Tenant screening, reusable screening reports, and limits on credit-score-only denials
Purpose
- HB 4995 amends Michigan’s landlord–tenant statute (1972 PA 348) to: (1) prohibit using a prospective tenant’s credit score as the sole basis for denying tenancy; (2) allow landlords to accept “reusable screening reports” provided by prospective tenants; and (3) require transparency in tenant‑screening practices and limit certain application fees.
Key provisions
- Prohibition on sole use of credit score: The bill bars landlords from using a consumer credit score (defined as a numerical score from 300–850, including FICO) as the only factor to determine lease eligibility.
- Reusable screening reports (new): Establishes a reusable screening report as a consumer report prepared within the previous 45 days at the request and expense of the prospective tenant, made available directly to landlords or via compliant third‑party websites, and accessible to the landlord at no cost.
- If a landlord accepts a reusable screening report, the landlord may require the tenant to provide a written statement that no material change has occurred since the report was produced.
- Landlords who accept a reusable report may not charge a rental application fee for that applicant.
- Application fee limit and conditions: If a landlord declines a reusable report, the landlord may charge a rental application fee up to $25 — but only if the landlord complies with the bill’s disclosure requirements (see next item).
- Required pre‑application disclosures: Before accepting an application or charging a fee, landlords must provide prospective tenants written notice of key items (the text specifies at least the information that will be accessed for screening and the criteria that may lead to denial). Landlords who advertise rental premises online must state whether they accept reusable screening reports.
- Definitions and cross‑references: The bill aligns definitions with federal law (FCRA) for “consumer report” and “consumer reporting agency,” defines “rental application fee,” “security deposit,” “prospective tenant,” and “rental unit,” and adds sections 1e–1h to the statute to implement these rules.
- Remedies and penalties: The title and bill language indicate the act provides for legal remedies and penalties, though specific penalty amounts or enforcement mechanisms are not fully shown in the truncated text.
Who is affected
- Prospective tenants: Increased ability to supply recent consumer reports and avoid duplicate application fees; protection from being denied solely on a credit score.
- Landlords and property managers: New disclosure obligations, decisions about accepting reusable reports, potential caps on application fees, and administrative compliance (website notices, written disclosures).
- Consumer reporting agencies and third‑party screening services: Defined roles for reusable reports and requirements to comply with state and federal disclosure/use laws.
Procedural status and effective date
- Enacted and signed: The bill advanced through both chambers in May 2025, was signed by the Governor on June 20, 2025, and is effective September 1, 2025.
Practical considerations
- Landlords should update application forms, website listings, and screening policies to reflect the disclosure requirements and fee rules.
- Tenants may be able to obtain and reuse recent consumer reports to avoid multiple fees and to challenge denials based solely on credit scores.
- Small landlords should assess operational impacts (verifying reusable reports, documenting written statements, and complying with required disclosures).
Note: The provided text was partially truncated. Some procedural or penalty details referenced in the bill title are not fully shown in the excerpt and should be consulted in the enrolled/official version for complete enforcement provisions.
