Legal fees in a lease (Detroit, MI)

Detroit, MI · Member since 2017 · 17 posts · 3 votes

I am in the process of studying Michigan and Detroit law. Presently, when a renter does not pay rent on time a charge for a 7 day notice ($10). Then we also charge them $400 ( that is a charge to file the paperwork, the lawyer and any other legal fees incurred) for the eviction process. I am just checking if this is in line and allowed by Michigan law. Any thoughts on this.

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Greg ScottPro Member
Rental Property Investor · SE Michigan · Member since 2014 · 4k+ posts · 6k+ votes
6y
Why guess that someone knows what they are talking about.
The State of Michigan publishes a guide for landlords https://www.legislature.mi.gov...
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Alethea Sealy
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Detroit, MI · Member since 2017 · 17 posts · 3 votes
6y
Oh my, thank you so much Greg I really appreciate this.
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Leonard Caron
Member since 2020 · 11 posts · 11 votes
6y
If they can't pay rent, you think they'll be able to pay legal fees? Direct quote from my attorney several evictions ago.
He's also told me that in his experience, filing for a money judgement is fine, but actually trying to collect is a waste of time. If they can't pay rent, they just don't have the money. Maybe there is a mythical tenant who just decides not to pay rent for whatever reason.
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Wendy PattonBusiness Member
Real Estate Consultant · Clarkston, MI · Member since 2009 · 864 posts · 350 votes
6y
@Alethea Sealy Also in Michigan there are rules - thanks Greg - however some judges do allow extra charges beyond the rules, but some are sticklers for the rules. In the city of Detroit, always plan on sticklers - no way will they allow $400 - I have never seen that anywhere in MI in 30 years. Follow the rules Greg posted and you will be smooth sailing. Better yet, pick great tenants that you won't have to evict (yeah yeah yeah I know they sometimes fool us).
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Drew SygitBusiness Member
Property Manager · Royal Oak, MI · Member since 2012 · 13k+ posts · 9k+ votes
6y
@Alethea Sealy: you will need to break down the $400 charge into each underlying charge.
EXAMPLE:
1) Court filing fee - allowed
2) Attorney fee - allowed, within reason
3) Other court fees - allowed
4) Your fee - depends on the judge & timing.
When you get a judgment for eviction, the judge will write on it what charges are legally allowed.
If the tenant pays within the 10 days allowed by Michigan statute, that's all you can charge. AFTER the 10 days is up, you can add your reasonable fees that they will have to pay to stay.
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