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Michigan late fee laws for rent: banned lease terms and the seven-day notice

DoorKeeping team

3 min read

Michigan's list of banned lease terms in the Truth in Renting Act (MCL 554.633) does not set a late fee cap. It does bar an extra fee on every payment method the lease allows, and it voids any term that violates it. For unpaid rent, MCL 554.134(2) lets a landlord end the tenancy with a written 7-day notice to quit.

What does the Truth in Renting Act ban?

The Truth in Renting Act, 1978 Act 454, lists lease provisions that are prohibited, and MCL 554.633 says a provision that violates it is void. The list runs to about fifteen categories. Among them are waiving habitability remedies, waiving security deposit protections, confessions of judgment, requiring a power of attorney from the tenant, and unilaterally changing lease terms after they begin, with limited exceptions.

The list does not set a late fee percentage, a dollar cap or a required grace period. So in the section I read, the late fee amount is a lease matter. Whether a particular fee clause would hold up is a question for a Michigan attorney.

Can you charge a fee for paying rent a certain way?

Subdivision (o) bars an additional charge or fee on all methods for the payment of rent allowed under the lease. If the lease allows more than one method, at least one must be usable with no extra charge. This matters for late fees because a fee tied to how the tenant pays is a different thing from a fee for paying late.

Example a made-up owner of a four-unit building lets tenants pay by bank transfer, check or card. Rent is $1,450. The owner adds a $40 charge to card payments. That is allowed only if bank transfer or check stays free of any extra charge. If the owner put the $40 on every method, the lease term would collide with subdivision (o).

How much notice before you can file for unpaid rent?

MCL 554.134(2) says that if a tenant neglects or refuses to pay rent, the landlord may terminate the tenancy by giving the tenant a written 7-day notice to quit. MCL 600.5714(1)(a) lets a landlord use summary proceedings to recover possession when the tenant fails or refuses to pay within 7 days from the service of a written demand for possession for nonpayment of the rent due. A fee added to a lease does not change those time periods.

Write the rent due and the date of service on the demand and keep proof of service, since the seven days run from service.

What should you keep on file?

Keep each charge visible on its own ledger line in Michigan: rent, the late fee, and any payment-method charge you may legitimately offer. If a tenant questions a charge, you can point to the lease term for it and show that at least one way to pay carries no extra cost.

How DoorKeeping handles it in Michigan

DoorKeeping posts the late fee you approved from your lease as its own line, sends the tenant a reminder, and keeps payments free of any extra charge from DoorKeeping. Rent and payments stay in your own bank accounts. DoorKeeping never holds your money and sends a payment only when you approve it. This is general information, not legal advice. Confirm your lease with your own Michigan attorney.

Sources

  1. MCL 554.633, Prohibited provisions (Michigan Legislature), read Oct 30, 2026
  2. MCL 554.134, Termination of tenancy for nonpayment of rent (Michigan Legislature), read Oct 30, 2026
  3. MCL 600.5714, Summary proceedings to recover possession (Michigan Legislature), read Oct 30, 2026

Questions

Is there a maximum late fee in Michigan?
MCL 554.633, the list of banned lease terms, sets no late fee cap. The lease sets the amount, and a void term cannot be enforced.
Can a Michigan landlord charge extra for a payment method?
Not on every method. If the lease allows several ways to pay, at least one must carry no additional charge (554.633(o)).
How many days of notice for unpaid rent in Michigan?
A written 7-day notice to quit under MCL 554.134(2), and a 7-day demand for possession under MCL 600.5714(1)(a).

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