Michigan’s New Rental Laws Cut Fees and Modernize Security Deposit Returns: Authorities confirm

Michigan renters gained significant new protections after Governor Gretchen Whitmer signed a package of housing-related bills on September 21, 2026. The legislation addresses two longstanding frustrations for tenants: mandatory fees attached to rent payments and slow security deposit returns. Together, the measures aim to reduce financial pressure on renters across the state while giving landlords updated tools to manage their obligations.

Under the new rules, landlords must provide at least one fee-free method for tenants to pay rent each month. Paid options such as credit card payments or online portals that carry processing charges are still permitted, but a no-cost alternative must always be available. A separate law now allows landlords to return eligible security deposit funds electronically — through direct deposit, electronic transfer, or a mobile payment platform — rather than relying solely on mailed checks. The bills drew broad legislative backing, with the security deposit measure, Senate Bill 22, clearing both the Senate and the House without a single opposing vote before reaching the governor’s desk. The rent fee bill, Senate Bill 373, passed with more division, moving through the Senate 24-12 and the House 99-5, and was co-sponsored by four other Democratic lawmakers. A third measure, Senate Bill 1013, bars property and casualty insurers from using price optimization — the practice of setting premiums based on how much a customer is willing to tolerate rather than on actuarial risk factors — and passed the Senate 34-3 on July 2, 2026.

State Senator Mary Cavanagh, who introduced the rent payment bill after observing that extra fees were straining families’ housing budgets, called the measure a major step toward addressing the housing crisis and ensuring every Michigan resident has a fair opportunity to afford a place to live. State Senator Sarah Anthony, sponsor of the electronic deposit return bill, said moving is already an expensive transition and that waiting on deposit funds only adds to that burden, arguing the change brings meaningful financial breathing room to renters while also helping landlords avoid delays once a move is complete.

Renters preparing to move out should ensure their landlord has the details needed to process a return electronically, and a forwarding address remains important under Michigan’s existing deposit framework. State law generally gives landlords 30 days after a tenant vacates to either return the deposit or provide an itemized statement of any deductions. For context on what renters face locally, Apartments.com listed the average studio rent in Flint at $667 per month as of September 2026, while Ann Arbor averaged $1,603 per month for a studio and $1,691 for a one-bedroom unit. The new laws are in effect now, and renters with questions about their rights can consult the relevant public acts directly.