Michigan Sublease Agreement Template

A Michigan sublease agreement allows a current tenant (or “sublessor”) to rent out a home, apartment, condo, or other property to a third party (or “subtenant”). The original lease should state whether the initial tenant has the right to sublease the property.

As the sublessor, you are still responsible for paying monthly rent to the landlord and any damage the subtenant may cause, and following all state laws regarding the eviction process, security deposits, and all other landlord-tenant matters.

Laws & Requirements

Sublease and Assignment Provision Laws: Michigan Legislature, A Practical Guide for Tenants and Landlords, p.11.

Security Deposit Obligations: A security deposit in Michigan must be returned within 30 days of the end of the sublease.

Notices: Sublessors must provide subtenants seven days’ written notice to pay rent or leave. They also need to give 30 days’ written notice of the intent not to renew the sublease as well as the original lease.

Permission to Sublet

Tenants do not have the right to sublet by default; subletting depends on the lease terms.

• Laws: It is essential to check your lease first, as some landlords prohibit subletting, while others require written consent.
• Explicit Written Consent: Yes, unless the original lease is silent on subleasing.
• Landlord’s Right to Reject: Landlords can deny sublease requests and screen potential subtenants, rejecting them for legally acceptable reasons, such as criminal history or low income.

Tax Obligations

Lodgings Tax

• Short-term rentals of 30 days or less are subject to state Use Tax and Lodgings Tax (Mich. Admin. Code R. 205.88).
• Register with the Department of Treasury before collecting taxes for short-term rentals; check local tax authority for additional lodging tax obligations.

Tax Rates by County

• Additional taxes may apply based on location.
• For example, taxes in Kent County include the 6% Michigan State Use Tax and the 5% Hotel-Motel Tax.

Filing Frequency

• Monthly (due by the 20th day of the month following the end of the filing period), quarterly (due by the 20th day of the month following the end of the filing period), and annually (due February 28).
• File returns even with no rental income during the period (“zero dollar returns”).

Making Payments

• Taxes can be paid online via the Michigan Department of Treasury.
• Failure to file on time may result in penalties, interest, and legal action.