Michigan Security Deposit Law: Limits, Deadlines, and Penalties
What Michigan landlords can charge, when deposits must be returned, and what it costs to get it wrong. Last reviewed 2026-08-12.
How much can a landlord charge in Michigan?
A security deposit may not exceed one and a half months' rent (MCL 554.602). Required prepayments of rent beyond the first full rental period are treated as part of the security deposit and count toward the cap.
Michigan has no separate pet deposit statute; a refundable pet deposit is part of the security deposit and counts toward the 1.5-month cap.
When must the deposit be returned?
Within 30 days after termination of occupancy the landlord must mail the itemized notice of damages and a check for the difference, or the full deposit if there are no claims. The tenant must give a forwarding address in writing within 4 days of moving out; failing to do so relieves the landlord of the notice-of-damages requirement (but not of the duty to account for the deposit).
The 30-day notice must itemize each claimed damage with its estimated repair cost and include the statutorily required text telling the tenant to respond within 7 days. Michigan also mandates move-in and move-out inventory checklists documenting the unit's condition.
What happens if a landlord misses the deadline?
If the tenant disputes the deductions and the landlord neither refunds nor files suit within 45 days of the end of occupancy, the landlord waives the claimed damages and becomes liable for double the amount of the security deposit retained (MCL 554.613).
Interest and holding requirements
Michigan does not require landlords to pay tenants interest on security deposits.
The deposit must be held in a regulated financial institution, or the landlord may keep use of the funds by filing a cash or surety bond with the Secretary of State; within 14 days of move-in the landlord must give written notice of its name and address and the financial institution holding the deposit (MCL 554.603-554.604).
Recent changes to the law
No changes to the deposit rules themselves. Public Act 179 of 2024 (effective April 2, 2025) amended the Landlord and Tenant Relationships Act to add source-of-income discrimination protections and lease-termination rights for domestic violence survivors, leaving the 1.5-month cap and 30-day return rule intact.
What Michigan landlords get wrong
Michigan's process is unusually choreographed and the deadlines run both ways. Landlord: 14-day notice of where the deposit is held, inventory checklists in duplicate at move-in (tenant returns one within 7 days), itemized damage notice plus refund check within 30 days of move-out. Tenant: forwarding address within 4 days, written response to the damage notice within 7 days. The step small landlords miss most: if the tenant disputes your deductions, you must actually sue within 45 days of move-out to keep the money — you cannot simply hold it — or you owe double. Deposits also cannot exceed 1.5 months' rent, including any pet deposit.
The law itself
Frequently asked questions
How much can a landlord charge for a security deposit in Michigan?
No more than one and a half months' rent. The cap is inclusive: a refundable pet deposit, key deposit, or required prepaid rent beyond the first rental period all count as part of the security deposit. On a $1,200 rent, everything refundable you collect up front cannot exceed $1,800. Nonrefundable fees are outside the deposit act but must be genuinely nonrefundable and disclosed.
How long does a Michigan landlord have to return a security deposit?
30 days after the tenant moves out. Within that window the landlord must mail an itemized list of damages with estimated repair costs and a check for the balance. The tenant must provide a forwarding address in writing within 4 days of leaving; without it, the landlord is excused from mailing the damage notice, though the tenant can still pursue the deposit.
What happens if a tenant disputes security deposit deductions in Michigan?
The tenant has 7 days after receiving the damage notice to respond in writing. Once the tenant objects, the landlord cannot keep the disputed money unless the tenant agrees in writing or the landlord files a lawsuit within 45 days of the end of occupancy. A landlord who retains the funds without suing waives the damage claims and owes the tenant double the amount wrongfully retained.
Where must a Michigan landlord keep security deposits?
Either in a regulated financial institution such as a bank or credit union, or the landlord can use the funds freely after posting a cash or surety bond with the Michigan Secretary of State. Within 14 days of the tenant taking possession, the landlord must give written notice of the landlord's name and address and the institution where the deposit is held. No interest is owed to the tenant.
Keep reading
Deposit deadlines are easy to miss — until they cost you triple.
Vantric tracks your leases, deposits, and move-out dates in one place, built for landlords with 1–10 units.
Start Free TrialThis page is general information, not legal advice. Statutes change — verify against the official text linked above or consult a local attorney before acting.