Michigan's Landlord-Tenant Act caps a residential security deposit at one and one-half months' rent. A landlord who keeps any of the deposit for damages must mail the tenant an itemized list within 30 days of move-out. Bad-faith retention without following the statute makes the landlord liable for double the amount retained.
Under MCL 554.602, a security deposit "shall not exceed 1 1/2 months' rent." A deposit may be used only for damages beyond reasonable wear and unpaid rent or utilities (MCL 554.607). The tenant must give the landlord a written forwarding address within 4 days of termination of occupancy (MCL 554.611); failure to do so relieves the landlord of the duty to send a damage notice but does not forfeit the tenant's claim to the deposit. Within 30 days after occupancy ends, a landlord withholding any part of the deposit must mail an itemized list of damages with the estimated cost of each repair, plus a check for the balance owed (MCL 554.609). The notice must warn the tenant in boldface that they have 7 days to respond by mail or forfeit the claimed amount.
Under MCL 554.613, failure of the landlord to comply fully with the itemized-notice section "constitutes waiver of all claimed damages and makes him liable to the tenant for double the amount of the security deposit retained." A landlord must commence a court action for damages within 45 days after termination of occupancy or return the balance.
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