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Michigan Laws to Know Before Investing In Rental Real Estate

Landlord-Tenant Law Book on a Desk with a GavelWhenever new Muskegon investors seriously think about acquiring a single-family rental property, what consistently comes to mind are the operational aspects of the investment: finding tenants, managing property maintenance, and collecting rent. What you may not actually know is that there is furthermore an astoundingly large number of laws and legal matters that relate to buying and leasing rental homes.

Conceding that most federal laws will definitely apply to rental properties nationwide, many laws that you have got to know are those on the books of your state, county, or even city. Because of this, it is key to do your research and secure clear know-how of these laws before you take possession of an investment property.

Real Estate Agency and Licensing Law

One of the critically important people on your investing team is your real estate agent. The laws that govern the relationship between an agent and their clients differ from state to state. As an investor, it’s really important to take into account what your real estate agent can and cannot legally do, from disclosures to acting in a dual agency capacity.

But naturally, it’s understandable that real estate agents may or may not be updated on property management laws. You should as well have a good grasp of the procedures required by Michigan for obtaining and keeping a real estate license and double-check to completely make sure that your agent’s license is current and in good standing.

Transfers of Ownership

Another state-specific set of laws you should grasp are those closely involved with voluntary and involuntary ownership transfers. Voluntary transfers of ownership are those that crop up when a rental property is bought. Although, there are particular differences among state laws as to who will handle the transfer (your real estate agent or an attorney, for example), whether title insurance is required, who pays closing costs, and who owns the property on the day of closing.

Then again, you should equally learn your state laws about involuntary ownership transfers. These transfers normally take place when the heirs of a deceased property owner inherit the property. Taking in these laws can help you put together a plan and make the process much easier whether you inherit property or leave your property to someone else.

Limitations on Use

In practically all states, local regulations will direct how a property owner may handle their property. Zoning ordinances, deed restrictions, historic preservation programs, and environmental review laws can all limit how a property owner may deal with their land or structures.

As an investor, it’s significant to understand well any local ordinances that may disturb your plans to renovate or lease the property you intend to buy. You should as well monitor if any occupancy laws impact your strategy to use the property as a rental.

Fair Housing and Others

There are federal, state, and even various local laws intended to protect tenants’ rights and prevent discrimination. So while understanding your federal tenants’ rights laws is really important, you also need to figure out whether your state has supplemented those laws with stricter versions of their own. You should furthermore check earnestly for any rent control policies that may apply, both current and those to be enacted soon enough.

Comprehending your local Landlord/Tenant laws and habitability standards will definitely help you manage your investment property the right way. Tenants’ rights laws can cover an unimaginable array of things, from security requirements to frequency and notification about rent increases.


Really understanding all of the key laws in Michigan can be a lot of work, for that reason it is acceptable for quite a lot of rental property investors to hire Muskegon property management experts instead. At Real Property Management Investment Solutions, we comprehend all the ins and outs of state and federal laws and can guarantee that your investment properties are leased and managed in accordance with those laws. Call today at 616-419-4578.

We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.

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