Michigan Fair Housing Act: An Overview

Key Takeaways

• Michigan Adds Extra Protected Classes: In addition to federal protections, the Michigan Fair Housing Act includes age and marital status as protected classes.
• Consistent Screening and Advertising Are Essential: Landlords should use standardized application criteria and avoid discriminatory language in rental advertisements to remain compliant with fair housing regulations.
• Proper Documentation Protects Your Rental: Keeping clear records of advertisements, applications, screening decisions, and communication helps demonstrate compliance and can protect landlords.

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The Michigan Fair Housing Act protects residents from discrimination in housing and establishes clear rules that landlords and property managers must follow. For rental property owners, understanding these laws is essential to maintaining compliant and professional rental practices.

Fair housing requirements are one part of a larger legal framework that also includes Michigan landlord-tenant laws governing rental agreements, tenant rights, and landlord responsibilities.

The Act outlines protected classes, prohibited discriminatory behaviors, and the responsibilities landlords have when advertising, screening tenants, and managing rental properties. Failing to follow these guidelines can lead to legal consequences and costly disputes.

In this guide from Bokani Property Management Group, we’ll break down what the Michigan Fair Housing Act covers, the protections it provides, and what landlords need to know to stay compliant while operating a successful rental property business.

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Understanding Michigan Fair Housing: 8 Key Points for Landlords

In Michigan, these laws extend beyond federal requirements, creating additional responsibilities for property owners throughout the state.

1. Expanded Protected Classes in Michigan

Michigan goes beyond federal Fair Housing protections by adding age and marital status as protected classes. This means you cannot make rental decisions based on whether applicants are young, elderly, single, married, divorced, or widowed.

These additional protections reflect Michigan's commitment to preventing discrimination in housing. When screening tenants in Michigan, focus solely on legitimate business criteria like credit history, income verification, and rental references.

Your decision-making process must never consider an applicant's age or marital status, as doing so could expose you to legal challenges and potential penalties from the Michigan Department of Civil Rights.

2. Advertising Restrictions

Your rental advertisements in Michigan must carefully avoid language that suggests preference for or against protected classes. Phrases like "ideal for single professionals" or "perfect for retirees" could violate Fair Housing laws.

Instead, focus on describing your property's features, amenities, and location without referencing who might be the "ideal" tenant. When creating marketing materials, consider how your words might be interpreted by different audiences.

Even seemingly innocent descriptions like "quiet building" might be seen as discriminatory against families with children. Review all advertising content with a Fair Housing lens to ensure compliance before publication across any platform.

3. Standardized Application Process

Creating a consistent screening process is your best protection against discrimination claims in Michigan. Develop written criteria that applies equally to all applicants, specifying your requirements for credit scores, income-to-rent ratios, and rental history.

These same standards should also guide other rental policies, such as how you collect and handle security deposits, to ensure every applicant and tenant is treated fairly.

This standardized approach demonstrates your commitment to fair treatment throughout the tenant selection process. Once established, apply these criteria uniformly to every applicant without exception.

Document your evaluation process and keep records of how each applicant measured against your standards. This documentation becomes invaluable if you ever need to demonstrate that your rental decisions were based on legitimate business factors rather than discriminatory reasons.

4. Reasonable Accommodations and Modifications

Michigan landlords must accommodate tenants with disabilities by allowing reasonable changes to rules or physical spaces. Accommodations might include permitting service animals in no-pet buildings or providing reserved parking spaces close to entrances.

These adjustments help ensure equal housing opportunities for individuals with disabilities. Physical modifications to the property, such as installing grab bars or wheelchair ramps, are also permitted at the tenant's expense.

You cannot unreasonably deny these requests or charge additional fees for approved accommodations. Remember that service animals are not pets under Fair Housing law and cannot be subject to pet fees or deposits.

5. Familial Status Protections

Under Fair Housing law in Michigan, familial status protects families with children under 18. This means you cannot refuse to rent to someone because they have kids, nor can you treat them differently than other applicants.

It's illegal to steer families toward certain buildings or units based on the presence of children. Your occupancy standards must apply equally to everyone.

You cannot set stricter limits for families with children than for adults without children, unless you are following a specific local health or safety code. Always ensure your policies are consistent and do not unfairly target households with kids.

6. Michigan-Specific Exemptions

While federal law exempts owner-occupied buildings with four or fewer units, Michigan's laws have some additional nuances. These exemptions are specific and depend on factors like who owns and lives in the property.

It's a common area of confusion for many landlords across the state. However, be very careful before assuming your property is exempt. These exceptions are quite narrow and often misinterpreted.

Most rental situations in Michigan fall under full Fair Housing compliance, so it is wise to operate as if you are covered unless you have received definitive legal advice confirming an exemption applies to your specific situation.

7. Enforcement and Penalties

The Michigan Department of Civil Rights is the primary agency that enforces Fair Housing laws within the state. They investigate complaints filed by individuals who believe they have experienced discrimination.

Fair housing rules also apply during later stages of the tenancy, including situations involving lease enforcement or evictions. This process is thorough and can involve significant scrutiny of your rental practices and records.

Violations can lead to serious financial consequences. Landlords may be ordered to pay actual damages to the complainant, civil penalties, and even the complainant's attorney fees.

These penalties increase for subsequent violations, making compliance essential for protecting your business and finances.

8. Documentation Best Practices

Keeping meticulous records is your most powerful tool for demonstrating Fair Housing compliance. Document every step of your rental process, from initial inquiries to final decisions.

This includes saving all advertisements, applications, tenant screening reports, and communication with prospective tenants. When you make a decision, write down the legitimate business reasons behind it.

For example, note if an applicant was denied due to insufficient income or a poor rental history, referencing your established criteria. This detailed paper trail provides clear evidence that your decisions were fair and non-discriminatory if your practices are ever questioned.

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Bottom Line

Understanding and following the Michigan Fair Housing Act is essential for protecting your rental business and avoiding costly legal issues.

By implementing fair screening practices, compliant advertising, and proper documentation, landlords can create a more professional and legally sound rental operation. Working with an experienced property management team can make compliance much easier.

Bokani Property Management Group helps Michigan rental property owners navigate Fair Housing requirements while protecting their investments and streamlining day-to-day operations.