Paying by the Rules

Michigan residential landlords should review their rent-collection procedures following a new amendment to the Truth in Renting Act. Effective September 21, 2026, the amended law requires landlords to offer at least one way for tenants to pay rent without incurring an additional fee.

Significantly, the law does not ban all payment fees. Landlords may continue offering optional fee-bearing methods (subject to other applicable requirements) provided that a fee-free alternative is available. Noncompliant lease provisions can expose landlords to claims under the Act.

In light of this change to the law, residential landlords should confirm that a fee-free method is available, update lease forms and payment instructions as appropriate, and ensure that the options have been clearly explained to tenants. It is worth noting that the new law does not apply to commercial leases.

If you have questions about how this change may affect your rent-collection practices or would like assistance reviewing lease documents and payment procedures, please contact us today at 248.477.6300.