What are the security deposit rules in Michigan?
Michigan caps security deposits at one and a half months' rent, and a landlord must return the deposit or mail an itemized damage list with payment of the undisputed balance within 30 days of move-out.
Deposits must be held in a regulated financial institution or secured by a bond filed with the state, and within 14 days of move-in the landlord must give the tenant written notice of where the deposit is held. Tenants must provide a forwarding address within four days of leaving. If a tenant disputes deductions, the landlord must sue within 45 days or waive the claim entirely — and a landlord who wrongly retains the deposit is liable for double the amount retained.
Michigan security deposits at a glance
| Maximum deposit | 1.5 months' rent — Any refundable fee or prepaid rent beyond the first rental period (e.g. 'last month's rent') counts toward the cap as part of the security deposit. |
|---|---|
| Return deadline | 30 days |
| Deadline conditions | Within 30 days after termination of occupancy the landlord must return the deposit or mail an itemized damage list with a check for the undisputed balance. Tenant must provide a written forwarding address within 4 days of moving out; failure relieves the landlord of the notice-of-damages duty (but not the tenant's underlying claim to the deposit). |
| Itemization required | Yes |
| Itemization rules | Itemized list of claimed damages with estimated repair cost for each item, accompanied by payment of the difference, and including the statutory 7-day-response notice in 12-point boldface. Damages claimed on the move-in checklist from a prior tenancy cannot be re-claimed. |
| Separate account required | Yes |
| Interest owed to tenant | No |
| Account & interest rules | Not addressed by statute |
| Pet deposits | No separate statutory category; refundable pet deposits count toward the 1.5-month cap. Deposits/fees may not be charged for service animals under fair-housing law. |
| Non-refundable fees allowed | Not addressed by statute |
| Penalty for violation | If the landlord retains any disputed portion without suing for a money judgment within 45 days of termination of occupancy (and no exception applies), the landlord waives all claimed damages and is liable for double the amount of the security deposit retained (MCL 554.613(2)). |
| Tenant forwarding-address duty | Written forwarding address within 4 days of termination of occupancy (MCL 554.611). |
Notes and caveats
Statute citations
- MCL 554.602 Official source
- MCL 554.603 Official source
- MCL 554.604 (1) Official source
- MCL 554.609 Official source
- MCL 554.611 Official source
- MCL 554.613 (1)-(2) Official source
How this record was verified: Web verification against legislature.mi.gov statute text (MCL 554.602, 554.604, 554.605, 554.607, 554.609, 554.613) and the Michigan Judicial Institute Landlord-Tenant Benchbook (courts.michigan.gov) for 554.611, 554.134, 554.633 context.