Are landlords allowed to charge an application fee in accordance with Fair Housing Law?
Yes, landlords are allowed to charge an application fee in accordance with Fair Housing Law in Michigan. The Michigan Fair Housing Center states that a landlord may charge a reasonable fee in order to cover the costs of processing an application, including credit and background checks. However, the fee must be the same for all applicants. The landlord cannot charge a higher fee for certain applicants based on their race, color, religion, sex, national origin, familial status, or disability. Michigan law also states that a landlord may not collect a security deposit in advance of the lease signing, except for the amount of the application fee, which must be refunded to the applicant if their application is denied. Additionally, the landlord must provide the applicant with a receipt detailing the amount collected, the date it was collected, and the purpose for which it is intended. Finally, the landlord must also provide the applicant with a written statement of the landlord’s selection criteria, which the landlord must follow in determining who to accept as a tenant. This ensures that the landlord selects tenants based on objective criteria and does not deny an applicant because of their race, color, religion, sex, national origin, familial status, or disability.
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