Bill
HB 4770
Bans pre-tenancy fees; caps rental application fees at $50, requires disclosure in ads/website, and refunds denied applications, with civil fines and attorney fees for violations.
HB 4770 Summary (Michigan)
Overview
- Bill: HB 4770
- Title: Housing: landlord and tenants; rental application fee requirements; provide for. Amends title & sec. 1 of 1972 PA 348 (MCL 554.601) & adds sec. 7a.
- Purpose: To regulate landlord-tenant interactions specifically around pre-tenancy and application fees, requiring transparency, limiting fees, and providing remedies for violations.
- Status and History: Introduced August 14, 2025 by Rep. Morgan; referred to Committee on Regulatory Reform. Several procedural actions shown: Read first time (Aug. 14, 2025), referred to Regulatory Reform; electronic reproduction date 08/14/2025. Companion SB 2442 exists.
What the bill does (Key Provisions)
- Prohibition on pre-tenancy fees: Beginning on the effective date, landlords may not require a prospective tenant to pay a pre-tenancy fee.
- Rental application fee cap: Landlords may charge a rental application fee, but the cost must not exceed $50 per rental unit.
- Disclosure requirements: The cost of a rental application fee must be disclosed in any advertisement or posting for the rental unit or on the landlord’s website.
- Refund requirement if denied: If a prospective tenant’s application is denied, the landlord must refund the rental application fee within 60 days after denial.
- Enforcement and penalties:
- First violation: civil fine not more than $500.
- Second or subsequent violation: civil fine of not less than $1,000.
- Courts may also order payment of the tenant’s reasonable attorney fees and related costs.
- Remedies and costs: In addition to civil fines, a court may award attorney fees and costs to the tenant for actions brought under this section.
- Definitions (selected):
- Landlord: Includes owners, lessors, sublessors, and agents who manage or collect rent.
- Pre-tenancy fee: Fees charged before lease signing (examples include wait list, décor, pet application, unit touring, holding, option, or move-in fees). Not considered a rental application fee.
- Rental application fee: Fee charged to perform background screening (includes cost of obtaining/assessing a consumer report).
- Rental unit: Broadly defined to include apartments, boarding houses, mobile home spaces, etc.
- Source of income: Includes housing assistance, vouchers, Social Security, and similar programs (with exclusions for certain ineligible or unverified incomes and housing assistance not approved within 30 days after required information is provided).
- Consumer report: As defined under federal law (15 USC 1681a).
Impact and who is affected
- Affects landlords and property managers who screen prospective tenants.
- Prospective tenants gain protection against onerous pre-tenancy charges and receive clearer, capped application costs.
- Tenants denied a rental may recover the application fee; landlords face monetary penalties and potential attorney-fee awards if they violate the new rules.
Procedural/Timeline Aspects
- Effective date tied to the amendatory act adding Sec. 7a (i.e., once enacted).
- Ongoing enforcement through civil fines and potential court-ordered remedies.
- Related legislation: Companion bill SB 2442 (same subject in Senate).
Notes
- The bill amends 1972 PA 348 (MCL 554.601) and adds Section 7a, expanding protections around the repayment of certain fees to prospective tenants and clarifying fee practices in rental advertisements and applications.
Compiled from official sources — confirm details with the bill’s official record.
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