Multi year lease - price increase

[Balaji Srinivasan]

Hello - 

I am in the process of renting out a property and fortunately (for me), i have a very high quality of tenants who have applied and i am trying to find out how to select the best.

1. Is it legal in Michigan to do a 2 year lease that includes a price increase at the end of the first year? ex: 1800 / month changing to 1900 /month at the end of the first year?

2. In competitive situations when you have multiple people interested, does a best and final approach work, so the tenants can offer incremental rent or term etc?

I'm normally in the opposite situation where i offer a discount to get a highly qualified tenant so i am surprised by this situation. 

Thanks

BAlaji