Tag: rental

Five Stories That Matter in Michigan This Week – June 27, 2025

  1. Supreme Court Eliminates Heightened Standard for Student Disability Discrimination Claims

The U.S. Supreme Court unanimously ruled in A.J.T. v. Osseo Area Schools that students with disabilities suing for damages under the Americans with Disabilities Act and Section 504 of the Rehabilitation Act need not prove “bad faith” or “gross misjudgment” by their school district. The case involved a teenager with severe epilepsy whose school refused to accommodate her afternoon-only attendance schedule, prompting her parents to sue for discrimination.

Why it Matters: This decision eliminates a circuit split that created inconsistent legal standards across the country and makes it significantly easier for students with disabilities to pursue successful discrimination claims against schools.

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  1. Collateral Consequences: How Criminal Convictions Can Jeopardize Your Professional License

When people think about the consequences of a criminal conviction, they typically focus on the immediate penalties: fines, probation, jail time. But licensed professionals—doctors, nurses, lawyers, teachers, real estate agents, and others—the consequences can extend far beyond the courtroom. A criminal case doesn’t just threaten your freedom. If you’re a licensed professional, it can threaten your livelihood.

Why it Matters: Licensed professionals have more at stake than the average person facing criminal charges, but with early legal counsel from an attorney who understands both criminal law and licensing law and a proactive plan, you can minimize the damage and, in many cases, preserve your ability to work. Don’t make the mistake of waiting until your criminal case is over to start thinking about your license. By then, it may be too late. Read more from your Fraser Trebilcock attorney.

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  1. Michigan Cannabis Exceeds $272 Million in May ‘25

Cannabis sales surpassed $272 million in May 2025, via the monthly report from the Michigan Cannabis Regulatory Agency. Michigan adult-use sales came in at $272,065,398.45, while medical sales came in at $553,315.50, totaling $272,618,713.95.

Why it Matters: While the prices of cannabis and cannabis-related products continue to decrease and make consumers happy, growers on the other hand are seeing profits decrease resulting in them seeking ways to halt new licenses to be granted in an effort to steady prices.

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  1. Senate Bill Introduced Aimed at Amending the Truth in Renting Act

Senate Bill 373 was recently introduced as legislation aimed at amending the Truth in Renting Act, which would prohibit rental agreements from including a provision that imposes an additional charge or fee on allowable methods of paying rent, as well as specify that there be made available at least one fee-free payment method.

Why it Matters: According to officials, “Under the bill, a rental agreement also could not include a provision that imposed an additional charge or fee on all methods for the payment of rent allowed under the rental agreement. The bill specifies that if a rental agreement allowed for more than one method of payment of rent, the agreement would have to include a provision that allowed at least one payment of rent to be used without the tenant incurring an additional charge or fee.”

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  1. Coverage Position vs. Reservation of Rights Letters: What They Are and Why Timeliness Matters

When a claim comes in and there are coverage issues, insurers have two key tools to protect their position: the Coverage Position Letter (CPL) and the Reservation of Rights (RoR) letter. These letters serve related but distinct purposes, and sending them promptly can help prevent miscommunication, disputes, and legal exposure.

Why it Matters: Timely, specific communication helps preserve legal defenses, avoid unintended estoppel, and demonstrate good faith. Whether used separately or together, these letters allow insurers to stay proactive, protect their position, and encourage a more informed dialogue with insureds.

Related Practice Groups and Professionals

Criminal Law | Robert Andretz
Licensing & Regulatory | Robert Andretz
Cannabis Law | Sean Gallagher
Real Estate | Jared Roberts
Insurance | Dakota Larson

Michigan’s Principal Residence Exemption and Short-Term Rentals

Lake CottageConcerned about losing your homestead exemption because you have been renting your home for more than 14 days per year?  Fear not, as the Michigan Court of Appeals recently ruled in the taxpayer’s favor on this issue.  Michigan’s Principal Residence (the “PRE”), also referred to as the Homestead Exemption, exempts “a principal residence…from the tax levied by a local school district for school operating purposes…if an owner of that principal residence claims an exemption as provided…” M.C.L.A. 211.7CC(1).  An owner of such property may claim an exemption by filing an affidavit with the local tax collecting unit in which the property is located.  A principal residence is defined in the statute as “the 1 place where an owner of the property has his or her true, fixed and principal home to which, whenever absent, he or she intends to return…” M.C.L.A. 211.7dd (c).

The Michigan Court of Appeals (“MCA”) recently overturned a Michigan Tax Tribunal (“MTT”) decision in which the Tribunal found “that petitioner was the owner of the property, that the property was residential, and that the petitioner had occupied the property for the majority” of the tax years in question.  Rentschler v. Township of Melrose ___ Mich ___, ___ NW(20__) ___ Docket No. 336333  The MTT denied the PRE because the petitioner had rented out the residence for more than 14 days each year., relying on guidelines issues by the Michigan Department of Treasury for the PRE which states:  “[I]f an owner rents his property for more than 14 days a year, the property is not entitled to a principal residence exemption.”  The petitioner admitted that he had in fact rented the property for 14 or more days per year.  The exact number of days the property was rented in each year is not referenced in the MCA decision.

The MCA reviewed the requirements for a PRE and noted that the statute “sets forth multiple scenarios disqualifying a property from receiving a PRE exemption, none of which applies to the petitioner in this case.”  Further the Michigan PRE guidelines do not have the force of law.  Various Michigan statutes provide that while a properly issued rule has force of law, guidelines do not.  Accordingly, the MCA ruled “the PRE guideline provision relied on relied on by the Tribunal is erroneous and inconsistent with the GPTA (Michigan General Property Tax Act – added).  Renting one’s home for more than 14 days does not disqualify a homeowner from the PRE.”

Given the widespread rental of homes in Michigan which qualify for the PRE, it is doubtful that this is the end of this controversy.  Numerous Michigan homeowners utilize online service such as AirBnB and VRBO to facilitate the short-term rental of their homes, or bedrooms within their homes, as an added source of income.  The MCA Opinion left open the question of how many rental days is too many, which will likely be determined by the legislature.  For the time being, homeowners who have availed themselves of a PRE exemption are safe from losing it due to short-term rentals of their property.

Fraser Trebilcock Attorney Norbert T. Madison, Jr.Norbert T. Madison, Jr. is a highly regarded corporate and real estate attorney with more than three decades of experience. Primarily focused on real estate matters, Norb represents clients in all facets of the practice, including the purchase, sale, leasing, and financing of various types of real estate, as well as the development of industrial, office, retail, condominium and residential real estate. Contact Norb at 313.965.9026 or nmadison@fraserlawfirm.com.