Michigan Statewide Rule
Michigan Security Deposit Law: 1.5-Month Cap, 30-Day Itemized Return, Double Damages
Key Facts
- Deposit cap
- 1.5 months' rent
- Return deadline
- Itemized list and balance mailed within 30 days of move-out
- Itemized statement
- Required; must list estimated repair cost of each damaged item and warn tenant of 7-day response window
- Statute
- MCL 554.602, 554.609, 554.613 (Landlord-Tenant Act, Act 348 of 1972)
- Penalty
- Double the amount of the security deposit retained for non-compliant or bad-faith withholding
Summary
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.
Sec. 9. In case of damage to the rental unit or other obligation against the security deposit, the landlord shall mail to the tenant, within 30 days after the termination of occupancy, an itemized list of damages claimed for which the security deposit may be used as provided in section 7, including the estimated cost of repair of each property damaged item and the amounts and bases on which he intends to assess the tenant. The list shall be accompanied by a check or money order for the difference between the damages claimed and the amount of the security deposit held by the landlord and shall not include any damages that were claimed on a previous termination inventory checklist prior to the tenant's occupancy of the rental unit. The notice of damages shall include the following statement in 12 point boldface type which shall be at least 4 points larger than the body of the notice: "You must respond to this notice by mail within 7 days after receipt of same, otherwise you will forfeit the amount claimed for damages.".
Full Breakdown
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.
Violations & Penalties
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.
Frequently Asked Questions
How much can a landlord charge for a security deposit in Michigan?
How long does a landlord have to return a security deposit in Michigan?
What can a landlord deduct from a security deposit in Michigan?
Sources
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