HOUSE BILL No. 4012


     January 13, 1999, Introduced by Rep. Jelinek and referred to the Committee on Family and Civil Law.


        A bill to amend 1972 PA 348, entitled

   "An act to regulate relationships between landlords and tenants
   relative to rental agreements for rental units; to regulate the
   payment, repayment, use and investment of security deposits; to
   provide for commencement and termination inventories of rental
   units; to provide for termination arrangements relative to rental
   units; to provide for legal remedies; and to provide penalties,"

   by amending section 2 (MCL 554.602).

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         Sec. 2.  (1) A landlord may require a security deposit for

 2    each rental unit.  A security deposit shall be required and main-

 3    tained in accordance with the terms of this act and shall not

 4    exceed 1-1/2 months' rent.

 5         (2) IN THE CASE WHERE MORE THAN 1 TENANT SIGNS A RENTAL

 6    AGREEMENT, THE LANDLORD SHALL ALLOW THE APPORTIONMENT OF THE

 7    SECURITY DEPOSIT EQUALLY AMONG THE PARTIES.





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 1         (3) UPON EXPIRATION OR TERMINATION OF A LEASE IN WHICH 1 OR

 2    MORE TENANTS HAVE SIGNED A RENTAL AGREEMENT AND APPORTIONED THE

 3    SECURITY DEPOSIT, THE LANDLORD SHALL RETURN THE APPORTIONED SHARE

 4    OF THE SECURITY DEPOSIT TO THE TENANTS IN THE MANNER PROVIDED FOR

 5    UNDER THIS ACT.  THE LANDLORD MAY RENEW THE LEASE WITH SUBSTI-

 6    TUTED PARTIES OR MAY EXECUTE A NEW LEASE AND SHALL ACCEPT AN

 7    APPORTIONED SECURITY DEPOSIT.  THIS SUBSECTION DOES NOT ALLOW A

 8    LANDLORD TO RETAIN AN APPORTIONED SHARE OF A SECURITY DEPOSIT

 9    BELONGING TO A TENANT NOT SUBJECT TO THE RENEWED OR NEW LEASE.






































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