The landscape of rental property management in Michigan is shifting in 2025 with the passage of a new Source of Income Bill on April 2nd that directly impacts landlords across the state.
As the rental market evolves, staying informed and compliant with this update is essential to protecting your investment and avoiding legal pitfalls. United Properties is committed to keeping property owners ahead of this change and ensuring their rental policies remain aligned with the latest regulations.
Overview of Michigan’s Source of Income Bill
What Is the Source of Income Bill?
One of the most significant legislative changes impacting housing so far this year is the Source of Income Bill (a.k.a. “Anti-Discrimination Housing Bill”) which aims to create a fairer market by ensuring all applicants are evaluated on their qualifications and not just their source of income. The goal is to reduce barriers for low-income renters. Under this bill, rental applicants using income benefits from sources like housing vouchers, social security, and veterans’ benefits cannot be denied solely due to receiving these forms of assistance.
This bill was part of a larger package that was originally introduced with broader and stricter provisions. However, following advocacy from landlord associations and other groups, the final version better represents a balanced approach to these changes, protecting renters while still allowing property owners to set clear screening criteria.
How This Law Impacts Landlords
The changes necessary as a result of the bill will have a few impacts on landlords, including:
- Adjustments to Screening Processes
- Legal and Financial Risks of Non-Compliance
- Potential Shifts in Rental Demand
Adjustments to Lease Agreements and Screening Processes
With the introduction of the Source of Income Bill, landlords and property management companies must revise their screening criteria to ensure legal compliance. As a result of this shift, United Properties is updating our income criteria to reflect vouchers and other valid sources as an acceptable form of income and removing “no vouchers” from listings.
Making these changes to our application policy, screening processes, and listings ensures we (and, therefore, all of our clients) are aligned with the requirements and can contribute to ensuring fair housing access to a larger and more diverse pool of applicants.
Legal and Financial Risks of Non-Compliance
Failure to comply with this new regulation can result in penalties, including fines, legal disputes, and potentially even lawsuits. Under the changes brought by this bill, landlords and property management companies could face discrimination claims if they choose to reject tenants based on their source of income, putting their business and investments at significant legal and financial risk.
We encourage all landlords and property management companies to comply with the new changes to protect their assets while having an opportunity to better support our communities.
Potential Impact on Rental Pricing and Demand
This isn’t just a legal requirement; it’s an opportunity! Accepting housing vouchers expands your pool of potential tenants while ensuring reliable income when requirements like HAP contract terms are met.
By widening the pool of potential tenants, rental demand may increase! As more tenants apply for available rentals, property owners may find that their properties rent more quickly, reducing turnover costs associated with vacancy lengths.
Common Concerns About Housing Vouchers & How to Mitigate Them
With one of the protected sources of income being housing vouchers, we want to address the fact that many landlords have reservations about accepting tenants who will be using housing vouchers, often due to misconceptions or past experiences.
- Concerns About Payment Reliability: Some property owners worry about inconsistent payments. However, voucher programs provide stable, government-backed rent payments so long as the terms of the contract are met, reducing the risk of late, partial, or missed payments.
- Tenant Screening Limitations: Landlords may fear they won’t have control over tenant selection. While lawful income sources cannot be used to deny an applicant, property owners can still set screening criteria related to credit history, rental references, and conduct.
- Bureaucratic Delays: Some owners are hesitant due to potential delays in inspections and paperwork. Working with an experienced property management company like United Properties can help streamline the process and minimize administrative burdens.
Understanding these factors can help property owners make informed decisions and see the potential benefits of broadening their applicant pool.
Steps for Compliance
Updating Rental Policies and Screening Criteria
To stay ahead of this legal change, rental property owners should review and update their rental policies. Ensuring that tenant screening practices align with the new regulations will help prevent discrimination claims and maintain compliance with Michigan’s evolving legal landscape.
Revising Lease Agreements to Reflect Legal Updates
Lease agreements should be reviewed and updated to reflect the inclusion of tenants utilizing housing vouchers. Clear documentation can protect landlords in the event of disputes and demonstrate good-faith efforts to follow the law.
Staying Informed and Partnering with Experts
Navigating legal changes can be complex, but landlords don’t have to do it alone. Staying informed through local housing authorities, legal advisors, and property management updates is crucial. United Properties actively tracks regulatory developments and assists property owners in implementing necessary changes to ensure ongoing compliance and property success.
How United Properties Keeps Owners Ahead of Housing Law Changes
At United Properties, we understand that staying compliant with new housing laws can be overwhelming. Our team continuously monitors legislative changes and updates our policies and procedures accordingly while keeping you in the loop. By partnering with us, landlords gain peace of mind knowing their investments are protected.
If you have questions about how Michigan’s Source of Income Bill affects your rental property, reach out to us today.
Are you worried about receiving rental payments late? Check out our Rent Shield Program! With Rent Shield, you’ll have the security of knowing that you’ll receive the full rental amount on time, regardless of whether the tenant has paid the full amount by the first.
Sergio joined United Properties in 2020. He is a graduate from Pickens Technical College as a Nurse Assistant and as a Small Animal Care Provider in 2010. In the past nine years, Sergio has had various jobs, all focused around customer service.
Eden joined United Properties in 2016. Eden graduated from Davenport University in 2015 with an Associate’s in Business Administration. She’s the Executive Assistant to the Owner of United Properties, with a focus on procedural documentation. She enjoys playing guitar, reading, and doing outdoor activities. Eden is trilingual and able to communicate in English, Spanish, and American Sign Language. 
David joined the United Properties team in 2019 as the Director of Client Relations and Business Development. In this capacity, he is responsible for leading all leasing, application underwriting, tenant relations, accounts receivable, process improvement, remote workers, and general office functionality (essentially anything outside of maintenance and service). David comes from a longstanding career at a Fortune 15 company primarily in a sales and customer service leadership role.
Matthew joined the United Properties in early 2020. He is a graduate of Lee University with a bachelor’s in Intercultural Studies and also a master’s in Discipleship and Christian Formation. Matthew serves as a project manager over the Rent Ready process. He has 20 years of construction experience and over 10 years of experience in leadership positions. He oversees a team of technicians and schedules outside vendors getting properties back to the United rent-ready standard so that they can be leased again.
Carla joined United Properties in late 2019 as a billing specialist. Carla ensures invoices are received from contractors and bills them out in a timely fashion.
Cristina joined United Properties as the Accounting and Billing Team Lead in October of 2020. She has experience as a technology professional, an English-Spanish translator, and has worked the past several years as the treasurer of her condominium.
Rick joined United Properties in 2020 as a Service Coordinator and then later transitioned to the Collections team, where his customer service shines. Rick has an extensive background in customer service and enjoys being able to resolve issues. He and his wife are raising their two kids and in his free time, Rick enjoys making his own homemade jerky.
Harriet joined United Properties as a Accounting & Billing Specialist in February of 2021. She has experience as a bookkeeper and a Property Manager for a Real Estate account. She was a working student during her college days. Harriet loves cleaning because she thinks it is therapeutic. She also loves watching series during her free time, and she’s a fur mom of one dog. Her inspiration to work every day is her family.
Diego has an extensive background in customer service and, most recently in Maintenance and
Paulina joined United in early 2021 as a Leasing Assistant. She has a background studying social work, with several years of experience in customer service. She speaks English and Spanish fluently and loves to learn. Paulina enjoys small road trips and cold, rainy weather. Her dog is her favorite thing in the world.
Jessica has a Bachelor’s Degree in Financial strategies and public accounting and is studying a masters in Blockchain and Fintech regulation. She has previous experience as a customer service representative. She speaks English and Spanish. She loves taking long walks with her three dogs, hiking and road tripping during the weekends.
Chris Good is new to the United Properties Team since June 2022 as a Business Development Manager. With years of experience in both the construction industry (Master Electrician) and the Real Estate industry (Broker), he will closely work with new and experienced investors to facilitate their real estate goals.
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Soroya has been with United Properties since March 2025. Her problem-solving, time management, and communication skills help her shine when working collaboratively with tenants and prospects. She is currently pursuing a degree in Cyber Security at Davenport University. Thanks to her tech-savviness, she excels at navigating and troubleshooting common technology and software issues.