Michigan Requires a Fee-Free Rent Payment Method, Not Every Method Free

The newly signed law limits mandatory payment surcharges. Electronic convenience options can still differ.

By Kseniya Dzigava · October 3, 2026
Michigan Requires a Fee-Free Rent Payment Method, Not Every Method Free - original conceptual illustration
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At least one route must avoid an extra fee

Michigan's newly signed Public Act 103 bars rental agreements from imposing an additional charge on every permitted rent-payment method. The enacted text says a lease allowing more than one method must provide at least one that does not add a charge or fee.

The law took effect September 21, according to the official act. The practical protection is an available fee-free way to pay rent, not a declaration that every credit-card portal, transfer service or optional convenience route must be free.

Check the actual lease provision

Check the lease, payment instructions and actual surcharge before assuming a particular online option is prohibited. If all allowed methods require a fee, the enacted provision is directly relevant; if an accessible fee-free route exists, the analysis is different.

The governor's consumer package also addresses other renter and insurance issues, but those distinct laws should not be blended into an unlimited ban on all housing charges. Preserve the written payment terms and ask which method meets the new requirement. The recent enactment narrows mandatory payment-fee practices without changing the rent amount or promising a fixed refund in every dispute.

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