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Selling a house with tenants in Michigan.
You can sell a Michigan rental home with tenants still living in it, but their lease and security deposit come along with the sale. Here is what Michigan law says.
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How it works in Michigan.
Michigan does not require a landlord to wait until a lease ends before selling. A fixed-term lease generally continues after a sale, so the buyer takes the property subject to the tenant's rights unless the lease says otherwise. Michigan's security deposit rules, part of 1972 PA 348, spell out what the selling landlord must do with the deposit. Month-to-month tenancies follow a separate notice rule found in Michigan's statutes.
Showings are where most friction happens. Michigan has no single statute that sets a fixed notice period for landlord entry, so the lease terms carry a lot of weight, and tenants keep a right to quiet enjoyment. Giving reasonable advance notice and working around the tenant's schedule tends to go a long way. A Michigan landlord-tenant attorney can review your lease before you list.
Michigan specifics
What to know in Michigan.
Fixed-term leases generally survive a sale
In Michigan, a tenant with a fixed-term lease can generally stay until the lease ends at the agreed rent, even after the home is sold. The exception is a lease with a clause allowing early termination on sale. A buyer who wants to live in the home usually waits for the lease to end or reaches a voluntary agreement with the tenant.
Security deposits must be transferred or returned
Under MCL 554.614, the selling landlord stays liable for the security deposit until it is transferred to the new owner with written notice to the tenant by ordinary mail, giving the new owner's name and address, or until the deposit is returned. That notice step protects both the seller and the tenant. Keep a copy of what you send.
Month-to-month notice follows the rent period
Under MCL 554.134, either side may end a tenancy at will with one month's notice, and when rent is paid more often than every three months, the notice period equals the rent-payment interval. Leases and local rules can add requirements, so an attorney can confirm the notice that fits your situation. Ending a tenancy still requires following Michigan's court process if the tenant does not leave.
No set statutory notice for showings
Michigan has no specific statute setting how much notice a landlord must give before entering, so the lease controls. Twenty-four hours' notice during normal business hours is widely treated as reasonable practice. Tenants have a right to quiet enjoyment, and some leases do not allow showings at all without the tenant's agreement.
The buyer cannot rewrite the lease alone
A new owner generally takes the lease as it stands and cannot change its terms without the tenant's written consent, apart from legally required changes. If you or a buyer want the home vacant, any move-out arrangement has to be voluntary. Doorbloom shares your property details with professionals, and many investors are used to buying homes with tenants in place.
This is general information, not legal or tax advice. Rules can change and every situation is different, so confirm the details for your case with a Michigan attorney or the appropriate office.
Your options
There is more than one path.
List with an agent, occupied or after the lease ends
An agent can market the home to the widest group of buyers and coordinate showings with your tenants. Waiting until the home is vacant opens it to buyers who want to live there, but it may mean a period with no rent. Selling while occupied keeps income coming but can make showings harder.
Offer the tenants a chance to buy
Your tenants already know the home and may want to stay for good. If they can get financing, this can be a smoother sale with less disruption for everyone. In some places tenants have specific rights when a rental is sold, so check local rules either way.
Explore offers from investors and professionals
Some investors look for rentals they can keep operating with the current tenants. Through a platform like Doorbloom, you can describe the property and lease situation, hear from interested professionals, and choose whether to talk to anyone. Compare any offer with what a listing might bring before deciding.
How it works
Three clear steps.
- 1
Tell us about your home
Share the address, condition and your timeline. It takes about a minute, and we only ask what is needed for the next step.
- 2
Review who is interested
Real estate investors and professionals review your home. You see who they are before anyone gets your contact details.
- 3
Choose your next step
Talk to the people you want, compare your options, or decide not to sell. There is no pressure and no obligation.
Questions
Questions from Michigan homeowners.
Does a lease end when a house is sold in Michigan?
Generally no. A fixed-term lease usually continues after a Michigan sale, and the tenant can stay until it ends unless the lease has a termination-on-sale clause. A landlord-tenant attorney can review your lease language.
How much notice does a Michigan landlord need to give before a showing?
Michigan does not have a statute setting a specific entry notice period, so the lease terms matter most. Many landlords treat 24 hours' notice as a reasonable minimum. Respecting the tenant's quiet enjoyment helps showings go smoothly.
What happens to the tenant's security deposit when I sell in Michigan?
Under MCL 554.614, you remain responsible for the deposit until you transfer it to the buyer and notify the tenant in writing with the buyer's name and address, or return it to the tenant. Keep records of the transfer and notice.
How do I end a month-to-month tenancy in Michigan before selling?
Under MCL 554.134, a tenancy at will can generally be ended with notice equal to the rent period, typically one month. If the tenant does not move out, the landlord generally must go through the court eviction process. An attorney can confirm the right notice form and timing.
Is Doorbloom buying my house?
No. Doorbloom is a platform that connects Michigan homeowners with real estate investors and professionals. Any offer comes from them, and nothing is binding until you sign a purchase agreement.
What does it cost?
Creating an account and telling us about your home is free for homeowners.
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