New Michigan Law: Landlords Can't Discriminate on Tenant Income Source

[Drew Sygit]

New year, new laws (Senate bills 205, 206 & 207).

Effective January 2, 2025, Michigan landlords can no longer consider a tenant's source of income when screening them. 
(income = 3 x monthly rent, Debt-To-Income, etc. can still be used!)

The same also applies when considering a lease renewal or temination. 

The law does NOT apply to landlords:

With less then 5 rental units
That live in one unit of a duplex and rent out the other unit
That rent out rooms in the home they occupy

So, landlords can no longer state in their rental ads, "Section 8 not accepted".

The reverse is also true, "Section 8 only", cannot be used.

We've always recommended screening S8 tenants the same way as cash-paying tenants.

Landlords waiving application fees and/or security deposits only for S8 prospects may also be violating Fair Housing.

[Corby Goade]

Funny, my state looks at all of the states taking property rights away from owners and then passes laws that do the exact opposite- it's a great marketing strategy. In the last few years, they've made illegal:

-Rent controls of any kind

-Limiting of fees or screening charges

-The ability of HOAs to regulate STRs or LTRs in their neighborhood

That's just the start. I kind of get excited when I see these silly laws in other states, because I know mine will pass a law to give me MORE rights as a property owner in response to that.