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HB 6086

Housing: landlord and tenants; purchase of rental property by tenants; provide for. Creates new act.

2025-2026 Regular Session Introduced by Erin Byrnes and 13 co-sponsors

Tenants or their associations must be offered a bona fide opportunity to buy certain rental properties before landlords can sell to third parties.

bill electronically reproduced 06/16/2026
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Bill Summary · HB 6086

Overview

HB 6086 establishes a tenant-facing right of first offer to purchase certain rental properties in Michigan. The bill aims to give tenants or their authorized tenant association the first opportunity to buy a rental property from the landlord before the landlord can sell to a third party, after meeting a bona fide offer of sale.

Purpose and intent

  • Provide tenants with the first opportunity to purchase a rental property from the landlord.
  • Create a defined process to determine when a bona fide offer of sale exists and what counts as a sale.
  • Clarify who may represent tenants in exercising this purchase right (individual tenant or tenant association).

Key provisions and changes

  • Definitions (Sec. 3):
    • Bona fide offer of sale: An offer that is at least as favorable as terms accepted in an arm’s-length third-party contract, or, if no such contract exists, terms comparable to a willing buyer-seller price or appraised value.
    • Rental property: Includes buildings with one or more rental units (apartments, boardinghouses, rooming houses, single- or multi-family dwellings). Excludes hotels/motels used for guests, and owner-occupied premises rented only occasionally during absences.
    • Rental unit: A dwelling unit used as a home by a tenant (and related premises promised for tenant use).
    • Sale: Transfer of any present interest in the property for money or other value.
    • Tenant: Person occupying a rental unit with landlord consent for agreed consideration.
    • Tenant association: An association representing a majority of tenants (includes housing cooperatives); excludes ownership or creation by the property owner.
  • Right of first offer (Sec. 5):
    • Effective date: Starting when the act becomes effective.
    • Process before any sale action: Before the landlord offers the rental property for sale, sells it, solicits third-party offers, accepts unsolicited offers, or issues a notice to vacate for demolition or discontinuance of housing use, the landlord must first offer the property to tenants or the tenant association.
    • Purchase terms: The offer to tenants must reflect a bona fide offer of sale (as defined) – meaning terms no less favorable than a third-party arm’s-length offer, or terms comparable to market value if no arm’s-length sale exists.
    • Tenant response: Tenants or the tenant association would have the opportunity to purchase on those terms before the property can move to third-party sale.

Who is affected

  • Landlords of rental properties covered by the act.
  • Tenants living in those rental properties, collectively through a tenant association or individually.
  • Tenant associations representing a majority of tenants in a property.

Procedural and timeline aspects

  • The act requires landlords to pause any sale process to offer the property first to tenants/tenant associations on bona fide terms.
  • The process applies before:
    • Offering for sale to third parties
    • Accepting third-party sale offers
    • Issuing notices to vacate for demolition or discontinuance of housing use
  • The act does not specify a specific timeframe for tenants to respond or close beyond defining a bona fide offer; such procedural timelines (response windows, closing deadlines) are not enumerated in the text provided.
  • Effective date: Not explicitly stated in the excerpt; “Beginning on the effective date of this act” implies future enactment once enacted.

Potential impacts

  • Increased tenant leverage in purchasing rental properties, potentially slowing displacement and increasing tenant stability.
  • Possible changes to property sale dynamics, with landlords needing to assess tenant readiness and financing prior to pursuing third-party sales.
  • Impacts on housing supply and turnover in Michigan, depending on how readily tenants can assemble financing and exercise the purchase option.
  • Administrative implications for landlords to maintain records and provide bona fide sale terms to tenants or their associations.

Summary

HB 6086 creates a statutory right of first offer for tenants or their associations to purchase rental properties before the owner can sell to a third party. A bona fide offer of sale must be at least as favorable as terms accepted in an arm’s-length sale or be comparable to market/value terms if no arm’s-length contract exists. The act defines who qualifies as a tenant and what constitutes rental property and a tenant association, and requires landlords to present a bona fide purchase opportunity before any sale activity or notices related to demolition or discontinuance. If enacted, the bill would affect landlords, tenants, and tenant associations in Michigan, shaping the process and timeline for sales of rental properties.

Compiled from official sources — confirm details with the bill’s official record.

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