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In Michigan, landlords use a rental application to screen tenants before they sign a lease. Landlords almost always require a non-refundable fee for approving a tenant. The application gives the landlord pertinent information about the prospective tenant and allows them to collect consent for a background check. Upon approval, a lease is drafted within 24-48 hours.
Application fee - There is no restriction on how much a property manager can request as application charges (no law).
Security deposit - The property manager can't charge a tenant for one and a half (1.5) months' lease as an initial deposit (§ 554.602).
Every property manager or landlord is aware of the "essential" nature of background checks on prospective tenants. The rental housing market is booming in many Michigan communities, providing opportunities for landlords, property managers, and even individual renters to make money. Tenant screening in Michigan is crucial now more than ever because it's important to keep in mind that not all tenants are great for business.
Property managers in Michigan should think about the following options for background checks on prospective tenants:
Criminal background checks at the state and county levels
Civil record checks at the state and county levels
Reports on credit
Searches for bankruptcy, court/tax liens, and civil judgments
Asset and business entity searches
While all of these searches may not be required for a simple background check, it's crucial to consider all types of properties and tenants when considering a Michigan tenant screening.
background check
Along with a credit report, a background check will inform you of a potential tenant's criminal history. It's critical to understand that past criminal activity need not always be a deal breaker. For instance, if a candidate can explain the incident honestly and sincerely, a minor traffic infraction or a prior misdemeanor may not accurately reflect their character. However, this section of the background check can give you a clearer idea of the kind of tenant you might be renting to.
Protecting your fellow tenants is something you have to do as a landlord. You could be held accountable if you don't run a background check and end up renting to someone who turns out to be risky.
Reliable References
Finally, if a tenant can give you at least one to three trustworthy references, that's a good sign. Ask their current or former landlord about their tenancy when you have the chance. As a result, you'll be able to judge how they'll behave as tenants. On the other hand, if their references are unimportant or unfavorable, that raises a red flag.