Michigan security deposit law

• Mail an itemized notice of damages, with the estimated repair cost of each item and a check for any balance, within 30 days after the tenant's occupancy ends.
• Within 45 days after occupancy ends, the landlord must either sue for the disputed damages or return the balance; otherwise the landlord cannot keep the disputed amount.
• The tenant must give a written forwarding address within 4 days after moving out.
• The tenant must respond by mail within 7 days after receiving the notice of damages, saying in detail which charges they agree or disagree with.

The tenant must give a written forwarding address within 4 days after moving out. If not, the landlord need not send the notice of damages, but the tenant can still claim the deposit. This duty applies only if the landlord gave the required written notice within 14 days of move-in.

Required: Yes. Itemized list of damages with the estimated repair cost of each item and the basis for each charge, plus a bold-type notice that the tenant must respond within 7 days.

The deposit may cover only actual damage resulting from conduct not reasonably expected in the normal course of living in a home, plus unpaid rent, rent from early termination, and unpaid utilities (MCL 554.607).

The statute does not address nonrefundable fees. A security deposit includes any money returnable to the tenant if the unit is returned in the required condition, and any required prepaid rent other than the first full rental period.

• Interest required: No. No statewide interest requirement.
• Separate account required: Yes. The deposit must be placed in a regulated financial institution, unless the landlord files a cash or surety bond with the Secretary of State covering the deposits (MCL 554.604).
• Move-in inspection required: Yes. Landlord must give 2 blank inventory checklists at move-in; the tenant returns one within 7 days. The landlord completes a matching checklist at move-out (MCL 554.608).

A landlord who does not fully comply with § 13 waives all claimed damages and owes the tenant double the amount of the deposit retained (MCL 554.613).

No bad-faith test. Missing the 30-day notice of damages counts as agreeing no damages are due, and the full deposit must be returned immediately (MCL 554.610).

District Court small claims division limit is $7,000 (MCL 600.8401). Court information

Before filing, many tenants send a written demand first. Write a Michigan demand letter →

• Within 14 days of move-in, the landlord must give written notice of the landlord's address, the bank or surety holding the deposit, and the tenant's 4-day forwarding-address duty in bold type (MCL 554.603).
• If the tenant does not respond to the notice of damages within 7 days, the landlord may keep the amounts claimed.
• As of September 21, 2026 (2026 PA 102), a landlord may send the balance by direct deposit or electronic payment instead of a check, within 10 days after mailing the notice of damages.
• Mobile home spaces are rental units under the act.

• Michigan Landlord-Tenant Act, 1972 PA 348 (MCL 554.601–554.616) Retrieved October 11, 2026.
• MCL 600.8401 (small claims limit) Retrieved October 11, 2026.

Laws change. This page was checked against the sources above on October 11, 2026. It is legal information, not legal advice; see our methodology.