While condominiums are designed primarily with owner-occupancy in mind, the Michigan Condominium Act authorizes broad leasing discretion unless an Association’s documents contain individual restrictions. Some Co-owners purchase Units specifically for investment. Others lease their Units after relocation, while waiting for market conditions to improve, or during periods of prolonged absence. The Act provides rights to protect Associations navigating administration when the person occupying a Unit is not the owner.
Identity, Contact Information, and Details
Right: The Association is entitled to disclosure of the lease 10 days in advance, a copy of the proposed lease, a copy of the signed lease, the name and contact information for the tenant, the rent amount and due date, and the term of the lease.
Source: MCL 559.212(2)
Comment: For all condominiums, the Association must have current contact information for the Co-owner. Disclosing a lease inherently informs the Association that the Co-owner is offsite, and that correspondence should be sent other than to the Unit. This avoids situations where meeting notices, budgets and financials, or other mail goes to a tenant and does not reach the Co-owner.
For attached condominiums or others where the Association performs maintenance on the homes, the Association must have current contact information for the person in possession. This is necessary for coordinating access for fire suppression inspections, seasonal irrigation maintenance, and repair in the event of water leaks.
The term of the lease guides the Association on when to look for updated contact information, and the rent amount and schedule provides statistical information and assists the Association in its right to rent interception.
Compliance and Eviction
Right: Tenants must comply with the Master Deed, Bylaws, and Rules and Regulations, and this must be a term of the lease. The Association may evict a tenant who violates the Condominium Documents.
Source: MCL 559.165, MCL 559.212(3-4)
Comment: Tenants are not exempt from the responsibilities of condominium residency just because they do not own the Unit. Requiring the lease to contain this provision eliminates the potential argument that a tenant owes duties only to the landlord and not to the Association. This requirement may be met either directly in the text or as a rider or addendum provided by the Association.
Condominium unit ownership includes the right of residency. Associations cannot evict a Co-owner or prevent them from residing in their Unit. This does not extend to tenants. When a tenant violates the Condominium Documents, the Association may send a certified letter to the Co-owner of the Unit. The Co-owner then has fifteen days to correct the tenant’s violation or provide evidence that it did not occur. After fifteen days, if the Association determines that the tenant’s violation is not corrected, or may be repeated, it may sue for eviction against the tenant, money damages against the tenant, money damages against the Co-owner, or any combination. The tenant may not be able to challenge eviction by the Association.[1]
Rent Interception
Right: When a Co-owner has unpaid assessments to the Association, the Association may contact the tenant and intercept the rent due to the landlord. The tenant must comply, or the Association may pursue eviction. The landlord cannot pursue eviction.
Source: MCL 559.212(5)
Comment: A Co-owner landlord is not allowed to profit from a rental when they are not fulfilling their responsibilities to the Association. The Association is entitled to rent to satisfy that liability. Making the demand may be enough. Frequently, a tenant who receives a rent interception letter will Immediately contact the Co-owner landlord for clarification, leading to payment by the landlord to avoid further enforcement action. Alternatively, for unresponsive Co-owner landlords, successful rent interception is an inexpensive collection alternative to a lawsuit or foreclosure.
We Can Help
If your condominium association needs assistance managing leased Units or establishing rental restrictions, then Tilchin & Hall, P.C., can help. Please call us at (248) 349-6203 or email us using the form below.
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[1] https://www.tilchinhall.com/blog/2021/07/warning-if-you-rent-a-condominium-or-live-in-one-that-you-do-not-own-you-may-not-be-able-to-challenge-an-eviction-by-the-condominium-association/
