Legal Question in Real Estate Law in Michigan

They will likely try to justify it by saying extra paperwork or time is involved when an owner doesn't reside at the property, and has a tenant there. Which in a way is true. Is it costing them an extra $50 a month? Who knows, and probably not. Yes it seems more fair to perhaps have a 1 time fee for approving a new tenant's residency, and not a monthly fee. However, homeowner's associations generally have a lot of leeway when making rules, raising dues, assessing extra costs, etc. Chances are there is a provision in the bylaws that is a general catch-all that says the association can raise or impose new fees for any reason, as necessary.

If you want to challenge it, I'd suggest talking to your assn's contact person, such as a board member or manager, and negotiate a more fair fee, like the 1-time fee (each time the tenant changes). As leverage, you can say that the $50/mo forever is unfair and that you will challenge it in court, and/or not pay the fee. In lieu of being uncooperative, and in the spirit of not spending another second on this, negotiate something in the middle, and everyone can go on with their lives.