Do You Need a License to be a Landlord in the City of Detroit and Michigan?
The long story short is this: No, you do not need a license to rent residential property in Michigan if you’re a landlord who wants to do it yourself. As of right now, the state does not have a licensing system for landlords.
However, you will need a brokerage license if you want to show other people’s properties. Also, this can vary from city to city. For example, Oak Park requires that you register as a landlord and get a license, then each property has its own inspection cost. That’s why we always recommend looking up the requirements in your area.
All this may come as a surprise to some people because many other states do require licensing. In Michigan, there is no central regulatory agency that landlords must register with or get permission from before they can start renting their properties.
However, just because the state of Michigan does not require licensing, that does not mean there are no rules or regulations that landlords must follow.
Let’s look at how you can rent a property in the Michigan City of Detroit to ensure that you’re conducting your business legitimately.
What is the Process for Renting a Property in the Rest of Michigan?
Renting a property in the rest of Michigan is much simpler than in the CIty of Detroit. Landlords do not need to register their property with the city or get a certification of occupancy. However, they must still comply with all federal, state, and local laws.
These laws cover various topics such as fair housing, health and safety, lead-based paint disclosure, security deposits, and evictions. Ignoring these laws means you might be fined or, in worse cases, face more serious repercussions.
You can find the entire list of laws that apply to all Michigan landlords to ensure you are following them.
Renting a property in Michigan is relatively simple, but there are still some rules and regulations that landlords must follow. By familiarizing yourself with these laws, you can avoid any legal problems down the road—avoid any chances of getting fined or jailed.
What is the Process for Renting a Property in Detroit?
Renting a property in the City of Detroit is a bit more complicated than in other parts of Michigan. This is because the city has its own set of rules and regulations that landlords must follow. Here’s an outline of what the process involves:
1. Registering Your Property
First, landlords must register their property with the city. This can be done online or in person at the City Clerk’s office. Landlords must provide basic information about their property, such as the address and square footage. There is also a fee for registering your property.
2. Obtain Certification
Next, landlords must obtain certification from the city that their property is fit to rent. This process is called “Certification of Occupancy,” which is required for all rental properties in the City of Detroit.
Now, the certification process includes a visual inspection of the property to ensure it meets all city code requirements. Also, landlords must provide proof that they have liability insurance. Once the property is certified, the landlord will receive a city occupancy certificate.
3. Advertise Your Property
After the property is registered and certified, landlords can start advertising their units for rent. They can do this online, in newspapers, or by simply posting signs in the neighborhood. Interested renters will contact the landlord to schedule a showing, and the process continues.
4. Sign a Lease Agreement
Once a renter has been found, the landlord and tenant will sign a lease agreement. This document should spell out all the rights and responsibilities of both parties. The lease should be signed by both the landlord and the tenant, and each party should keep a copy for their records.
5. Tenant Move-In
And last but not least, the final step is for the tenant to move in and start paying rent. Landlords must provide tenants with a “Move-In Checklist” which outlines all the conditions of the unit. Tenants should go through the unit and make sure everything is in working order before they sign the lease and move in.
Stay Legal, Stay Lucrative
To be a successful landlord, you need to ensure that you’re following all the rules and regulations not just to protect your tenants, but also to protect yourself. This can be a bit of a hassle, but it’s worth it to avoid any legal problems. By staying up-to-date on the latest laws and keeping your property in compliance, you minimize risk and maximize profitability.
For more information about landlord-tenant law in Michigan, get in touch with us at Logical Property Management. We can help you navigate the complicated world of rental property law and make sure you are in compliance with all the latest rules and regulations.
Give us a call today!