Lansing, Michigan – For Michigan renters, paying the rent itself should no longer come with a mandatory extra charge just for choosing the available payment system. A newly signed law requires landlords to give tenants at least one way to make their monthly payment without paying an added fee.
The change is part of a four-bill bipartisan package signed by Gov. Gretchen Whitmer on Sept. 21, covering rental payments, security deposits, insurance pricing and certain federally approved medical incentives. While the measures stretch across several industries, two directly affect the everyday financial relationship between renters and landlords. Michigan governor’s office announcement
Read also: Michigan launches $1.3 billion campus building push across 27 colleges and universities
Senate Bill 373, sponsored by state Sen. Mary Cavanagh, requires every rental agreement to include at least one payment method that does not carry an additional fee. That means tenants cannot be placed in a situation where every available option for paying rent comes with a surcharge.
“There’s nothing more frustrating than trying to pay a bill online only for companies to raise the price at the last second with additional fees,” Whitmer said. “Michiganders deserve affordable systems that work for them.”
Read also: New mobile health unit brings vaccines and support directly into Genesee County neighborhoods today
A second measure modernizes how renters can receive money back after moving out. Senate Bill 22, sponsored by state Sen. Sarah Anthony, allows security deposits to be returned electronically, including through direct deposit or an internet-based transfer. The change gives landlords and renters another option beyond traditional methods for returning deposits.
The other two bills move beyond housing but follow the package’s broader consumer-cost theme. Senate Bill 1013, sponsored by state Sen. Jeremy Moss, prohibits insurers from setting rates based on a customer’s willingness to pay more. The legislation puts into law protections contained in a 2024 Michigan Department of Insurance and Financial Services bulletin concerning the practice known as price optimization.
Senate Bill 1052, sponsored by state Sen. Stephanie Chang, changes Michigan’s definition of kickbacks and bribes so certain arrangements and patient incentives approved by the Centers for Medicare and Medicaid Services are not unintentionally captured by the state prohibition. The governor’s office said those supports can include fertility preservation, travel assistance and care coordination.
Read also: Genesee County outlines key deadlines for absentee voting, registration and early voting
The administration presented the four measures as part of its broader effort to lower household costs. It pointed to earlier actions including changes to the retirement tax that it says save about 500,000 households an average of $1,000 annually, an expanded Working Families Tax Credit benefiting more than 650,000 families, and previously issued $400-per-vehicle auto insurance refunds.
For renters, however, the most immediate change is straightforward: when the monthly rent comes due, there must now be at least one way to pay it without another fee being added simply for making the payment.