Tenant Rights When Landlord Sells in Michigan: Complete Tenant + Landlord Guide
When a Michigan rental changes hands, tenants do not lose their rights and landlords do not get a fresh slate. Michigan landlord-tenant law treats the lease as a contract that runs with the land: the new owner steps into the seller’s shoes.
The Lease Survives the Sale
A fixed-term lease in Michigan does not terminate when the property is sold. The tenant has the right to remain through the original term at the original rent. Month-to-month tenancies also survive, but either party can terminate them with 30 days written notice aligned with the rental period (MCL 554.134).
What the Buyer Inherits
The new owner inherits the lease terms, the rent amount, the security deposit obligation, any rent concessions, any pending repair obligations, and TIRA violations baked into the existing lease. They also inherit liability for pre-closing landlord misconduct unless allocated back to the seller in the purchase agreement.
Security Deposit Transfer Rules
Under MCL 554.604, security deposits must be held in a regulated Michigan financial institution. At closing, standard practice is to credit the buyer for the full deposit balance. Within statutory notice window, the new owner must provide each tenant with written notice of the new landlord’s name, address, and bank holding the deposit.
Notice and Showings During the Sale
Michigan does not have a statewide statute mandating a specific notice period before a landlord enters for showings. The lease controls. If silent, courts apply a reasonableness standard, typically 24 hours notice during reasonable hours. Some Michigan cities (Ann Arbor, East Lansing) have stricter rules.
Can a Michigan Landlord Terminate a Lease to Sell Vacant?
Not unilaterally for a fixed-term lease. Options: wait for the term to expire, negotiate cash-for-keys, pursue eviction for legitimate cause, or sell the property subject to the lease. Selling subject to lease is increasingly common because cash investors actively prefer occupied properties.
When You Want a Buyer Who Knows the Rules
Offer Now Michigan buys occupied Michigan rentals routinely and handles the tenant notification, deposit assumption, and lease compliance work as part of the transaction. Call (810) 547-1135.