A buried provision in Michigan's housing bill will reshape how small-business landlords—including gym owners—can charge for rent payments starting September 2026.
Most gym and fitness studio owners who lease their space don't realize that Michigan's recently signed housing bill, SB0373, contains a provision that will directly affect their landlord's payment practices—and potentially their own, if they collect rent from subtenants or manage multiple locations.
Effective September 21, 2026, Michigan law will require landlords to offer at least one fee-free method for tenants to pay rent. The provision, found in Section 3(1)(o) of the bill, amends the 1978 Tenant Rights Act (MCL 554.633).
Here's the key language: any rental agreement clause that charges fees on every available rent-payment method is void by operation of law. That means such clauses are automatically unenforceable—no court action needed.
If you lease a gym or studio space, your landlord may currently recover processing costs—credit-card fees, online-portal charges, ACH transaction fees—by charging you on all payment channels. Under the new law, that won't be allowed.
Your landlord will have three practical options:
If your landlord doesn't comply, the offending fee clause becomes void. You would have the legal right to refuse payment fees on any method, and your landlord couldn't enforce a clause requiring them.
Review your current lease. If your rent payment terms include fees on all available methods—or if fees are simply charged without exception—flag this with your landlord before September 2026. A proactive conversation now can prevent disputes later.
If you're negotiating a new lease or renewal, ask your landlord how they plan to comply. Will they designate one free method? Will they adjust rent to cover processing costs? Getting clarity in writing protects both parties.
For gym owners who collect rent from subtenants or operate multiple locations where you function as a landlord, the same rule applies to you. You'll need to ensure your payment terms offer at least one fee-free option by the effective date.
This isn't a dramatic change, but it is a real one. Michigan law now explicitly protects tenants—including small-business tenants like gym owners—from being charged fees on every rent-payment method. Landlords must offer at least one free option. If yours doesn't, the fee clause is unenforceable.
The effective date is September 21, 2026. Plan accordingly.
Source: SB0373, Section 3(1)(o), amending MCL 554.633 of the 1978 Tenant Rights Act.