Michigan House Bill HB4891

Michigan 2023-2024 Regular Session

• Introduced: 7/18/23
• Refer: 7/18/23

Caption

Housing: landlord and tenants; rental application fees; require to be refunded if the application is denied. Amends title of 1972 PA 348 (MCL 554.601 - 554.616) & adds sec. 7a.

Impact

The implementation of HB4891 would directly impact both landlords and tenants in Michigan by establishing clearer rules around application fees. Tenants would benefit from the added financial security of knowing that their application fees would be refunded in cases of denial, which may encourage more individuals to apply for rental units. On the other hand, landlords might face increased administrative requirements and potential disputes regarding fee refunds, especially in relation to the handling of background checks. This could lead to changes in how landlords process applications and screen potential tenants.

Summary

House Bill 4891 seeks to amend the existing regulations governing landlord-tenant relationships, particularly regarding the handling of application fees for rental units. The bill proposes that if a landlord denies a prospective tenant's application, they are required to refund the application fee paid by the tenant. However, it stipulates that the portion of the application fee attributable to background checks does not need to be refunded if the landlord provides the tenant with a copy of the associated background screening report. This amendment aims to provide greater financial protection for potential renters who are denied housing.

Contention

Debate around HB4891 may focus on the fairness and feasibility of requiring landlords to refund application fees. Supporters argue that the change is necessary to protect tenants from unjust financial burdens, while critics may highlight the logistical challenges landlords face in managing application fees and the potential for increased costs associated with processing refunds. There's also concern about the implications for landlords' decision-making, potentially leading them to become more stringent in their application reviews to avoid having to issue refunds.