Housing: landlord and tenants; reporting of rental payments to credit bureaus; provide for. Amends 1972 PA 348 (MCL 554.601 - 554.616) by adding sec. 1e.

Michigan Senate Bill 795 (SB0795) requires landlords to offer tenants the option to have their on-time rent payments reported to credit bureaus. This aims to help tenants build or improve their credit scores. Landlords can charge a fee for this service, capped at the lesser of their actual costs or $10 per month. Tenants can opt in or out at any time, but if they opt out, they must wait six months before opting back in. The bill excludes landlords of smaller residential buildings (15 or fewer units) unless they own multiple properties and are structured as certain types of business entities.

Supporters of SB0795 argue that it provides tenants, especially those with limited credit history, an opportunity to build their credit scores through consistent rent payments. This could enhance their financial stability and access to credit. The bill also offers flexibility, allowing tenants to opt in or out of the reporting service, and ensures that fees are reasonable and tied to actual costs incurred by landlords.

Critics of SB0795 express concerns that the bill may impose additional administrative burdens on landlords, particularly smaller property owners. They also worry that tenants who opt into the reporting service but later face financial difficulties could see negative impacts on their credit scores if they miss rent payments. Additionally, there is apprehension about the potential for landlords to misuse the reporting system, leading to disputes over the accuracy of reported information.