Michigan Security Deposit Laws: Limits, Deductions and Deadlines

By TenantLoop teamUpdated 2 min read

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General information, not legal advice. Landlord-tenant rules change, and cities and counties can add their own. Check the current statute and local ordinances, and talk to a licensed attorney before you act.

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The short version

  • A security deposit cannot exceed one and a half months of rent.
  • Within 30 days after occupancy ends, the landlord must mail an itemized list of damages with a check or electronic payment for any balance.
  • The list must show each claimed damage with its estimated repair cost and include a bold statement that the tenant must respond by mail within 7 days or lose the amount claimed; damage noted on the move in checklist cannot be charged.
  • A landlord who does not follow the notice rules waives all claimed damages and is liable for twice the amount of the deposit kept; to keep disputed money the landlord must sue within 45 days after the tenancy ends.
  • State law generally does not require landlords to pay interest on security deposits.

Michigan's Security Deposit Act caps deposits at one and a half months of rent and sets strict paperwork rules. Landlords who miss the 30 day itemized notice lose the right to claim damages, and tenants must give a forwarding address within 4 days of moving out.

Michigan security deposits at a glance

RuleMichiganLaw
Deposit limitA security deposit cannot exceed one and a half months of rent.MCL 554.602
Deadline to return the depositWithin 30 days after occupancy ends, the landlord must mail an itemized list of damages with a check or electronic payment for any balance.MCL 554.609
Itemized deductionsThe list must show each claimed damage with its estimated repair cost and include a bold statement that the tenant must respond by mail within 7 days or lose the amount claimed; damage noted on the move in checklist cannot be charged.MCL 554.609
Interest on depositsState law generally does not require landlords to pay interest on security deposits.Security Deposit Act
Penalty for wrongful withholdingA landlord who does not follow the notice rules waives all claimed damages and is liable for twice the amount of the deposit kept; to keep disputed money the landlord must sue within 45 days after the tenancy ends.MCL 554.613

How much you can collect

Deposit limit. A security deposit cannot exceed one and a half months of rent. (MCL 554.602)

Holding the deposit

Where the deposit is held. Deposits are kept at a regulated financial institution, unless the landlord posts a cash or surety bond with the state that allows the money to be used. (MCL 554.604)

Interest on deposits. State law generally does not require landlords to pay interest on security deposits. (Security Deposit Act)

Receipts and notices. The landlord's written notice within 14 days of move in must name the institution or surety holding the deposit and explain the 4 day forwarding address rule. (MCL 554.603)

Deductions and normal wear and tear

A deposit can cover unpaid rent and damage beyond normal wear and tear. Everyday aging, such as faded paint, small nail holes or light carpet wear, is not damage.

Itemized deductions. The list must show each claimed damage with its estimated repair cost and include a bold statement that the tenant must respond by mail within 7 days or lose the amount claimed; damage noted on the move in checklist cannot be charged. (MCL 554.609)

Returning the deposit

Deadline to return the deposit. Within 30 days after occupancy ends, the landlord must mail an itemized list of damages with a check or electronic payment for any balance. (MCL 554.609)

Penalties for wrongful withholding

Penalty for wrongful withholding. A landlord who does not follow the notice rules waives all claimed damages and is liable for twice the amount of the deposit kept; to keep disputed money the landlord must sue within 45 days after the tenancy ends. (MCL 554.613)

Mistakes to avoid

  • Skipping a dated move-in condition report with photos, then having nothing to compare against at move out.
  • Charging for normal wear and tear.
  • Missing the return deadline, even by a few days.
  • Not asking for a forwarding address before the tenant leaves.
  • Losing track of deposit money by mixing it with operating funds without a ledger.
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Verify current law

We last checked these Michigan rules on . Laws change and cities can add their own, so confirm the current text before you rely on it, and talk to a Michigan attorney about your situation.

Laws named on this page

  • MCL 554.602
  • MCL 554.609
  • Security Deposit Act
  • MCL 554.613
  • MCL 554.604
  • MCL 554.603

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Is there a limit on security deposits in Michigan?

A security deposit cannot exceed one and a half months of rent. Source: MCL 554.602.

How long does a Michigan landlord have to return a deposit?

Within 30 days after occupancy ends, the landlord must mail an itemized list of damages with a check or electronic payment for any balance. Source: MCL 554.609.

Do Michigan landlords have to pay interest on deposits?

State law generally does not require landlords to pay interest on security deposits. Source: Security Deposit Act.

What happens if a Michigan landlord keeps a deposit wrongly?

A landlord who does not follow the notice rules waives all claimed damages and is liable for twice the amount of the deposit kept; to keep disputed money the landlord must sue within 45 days after the tenancy ends. Source: MCL 554.613.

TenantLoop team · reviewed

Written by the team building TenantLoop. Our guides are general information for landlords and property managers; check current law and talk to a qualified professional before you act.