New Law Allows Landlords the Option to Increase Referral Fees

A new law allows landlords the option to offer a higher referral fee to those who bring in new tenants.

House Bill 4693, which was recently signed into law, amends the Michigan Occupational Code to increase the maximum amount of a referral fee that may be given by a landlord and accepted by a tenant for the referral of a prospective tenant. The law, which took effect in March of this year, increases the maximum amount of a referral fee to a sum equal to one month’s rent.

Before the new law, landlords could only offer a sum equivalent to a one-half month of rent for a referral. Proponents of the law say it was enacted to give both landlords and current tenants more options when seeking out new prospective tenants.

Help is available

The attorneys at O’Reilly Rancilio are available to answer your questions regarding landlord/tenant law. For more information, call 586-726-1000 or visit our website.

Categories: Real Estate