Plymouth, MI asked in Landlord - Tenant for Michigan

Q: Can a landlord send a notice to pay rent or quit after agreeing to exchange tenant work for rent?

The landlord gave a verbal agreement on a month to month contract that the tenants could fix a molded out bathroom that the landlord couldn't afford to repair in exchange for rent for 6 months. The landlords then proceeded to put the home up for sale 3 months later and demanded tenants pay the rent due or send a bill with the noted the repairs. The tenants sent the bill (they own a home remodeling company) with company letter head with all repairs done. The landlords then sent a notice to pay rent or quit because there were no receipts for materials attached to the bill and gave tenants 30 days to pay back all 6 months worth of rent or legal action would be taken. Is the landlord allowed to do this? Everything is verbal and he said/she said.

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