A Michigan housing bill that took effect immediately contains a rent-payment rule that could affect how your lease is enforced.
Most gym and fitness studio owners in Michigan don't realize that a housing bill passed in recent legislative session includes a provision that directly affects how they can collect rent from their landlords—or how their landlords can collect from them.
Senate Bill 0373, which amends Michigan's landlord-tenant law, requires landlords to offer at least one fee-free method for tenants to pay rent. The rule is now in effect immediately upon enactment.
Under Section 3(1)(o) of the amended statute (MCL 554.633), a landlord cannot charge a fee on every available rent payment method. In plain terms: if your landlord currently charges a convenience fee on the online portal, a surcharge on credit card payments, and a fee on money orders—with no free option—that lease clause is now void.
The provision doesn't ban fees altogether. A landlord can still charge convenience fees on some payment methods (like credit card processing or online portal access). But at least one method must be completely free.
If you lease your gym or studio space in Michigan, this affects you directly. If you're a gym owner who also leases space to other fitness businesses, it affects how you can structure your lease terms.
The law applies to all residential and commercial tenancies in Michigan covered under the 1978 Landlord and Tenant Act. That includes most commercial leases for fitness facilities.
If your current lease includes rent payment terms that charge fees on every available method, that clause is unenforceable. A tenant can challenge it in court and seek either an injunction (a court order forcing compliance) or damages.
This means a landlord cannot legally enforce a lease clause that requires you to pay a fee no matter which payment method you choose. If you've been paying those fees, you may have grounds to dispute them.
Review your current lease. Look at the rent payment terms. If your landlord charges fees on all available payment methods, document it. You have grounds to request a modification or challenge the clause.
If you're negotiating a new lease or renewal, make sure the rent payment section explicitly includes at least one fee-free option. Common compliant structures include: free ACH bank transfer, free check payment, or free in-person payment at a designated location.
If you manage a fitness facility and lease space to other businesses, update your lease templates now to include at least one fee-free rent payment method. This protects you from tenant litigation and ensures your lease terms are enforceable.
The law took effect immediately, so there is no grace period. Any lease signed or renewed after enactment must comply.
Source: Michigan Senate Bill 0373, Section 3(1)(o), MCL 554.633.