Michigan Security Deposit Limits & Return Deadlines Explained

If you're renting a home or apartment in Michigan, understanding security deposit rules can help you avoid surprises when you move out. Michigan law sets clear limits on how much your landlord can charge for a security deposit, outlines how those funds must be handled, and states when and how they're to be returned. This article breaks down Michigan’s requirements in straightforward terms, so you know exactly what to expect as a tenant.

What Is the Maximum Security Deposit Your Landlord Can Charge?

In Michigan, a landlord may not require a security deposit greater than one and a half months’ rent. For example, if your monthly rent is $1,000, the total security deposit cannot exceed $1,500.^[1]

• This maximum applies regardless of your payment history or whether you have pets (additional "pet deposits" are included in the calculation).
• Any additional funds collected beyond prepaid rent (such as cleaning deposits) are considered part of your security deposit by law.

How Landlords Must Handle Security Deposits

Michigan law requires landlords to either:

• Deposit the security deposit in a regulated financial institution and provide the tenant with the name and address of that institution; or
• File a bond with the Secretary of State for the full amount held as security deposits.

Landlords must give you, in writing, the name and address of the bank or institution where your deposit is held within 14 days of you moving in. This information helps protect your deposit should the property change ownership.

Security Deposit Return Deadlines in Michigan

Your landlord is required to return your security deposit (minus any lawful deductions) or provide an itemized list of deductions within 30 days after you move out and return possession of the unit.^[2]

• If deductions are made (such as for unpaid rent or damages beyond normal wear and tear), your landlord must give you an itemized list of each deduction and the amount kept for each.
• If your landlord fails to send you this itemized list within 30 days, they lose the right to keep any part of your deposit (unless you owe outstanding rent).

How to Respond to the Landlord’s Claim for Deductions

After receiving the landlord’s itemized deductions, you have seven days to dispute any claim in writing. If you do not respond within seven days, the deductions stand as stated by the landlord.

Common Lawful Deductions from Security Deposits

Landlords may keep part of your security deposit for:

• Unpaid rent or utility bills
• Damage to the property (other than normal wear and tear)
• Costs allowed by your lease agreement

They cannot charge you for repairs needed due to normal use, such as minor carpet wear or faded paint.

Essential Forms and Deadlines for Renters

• Inventory Checklist (Required Form): When you move in, your landlord must provide you with a Inventory Checklist. Complete this within 7 days and return it to your landlord. This protects you from being held responsible for pre-existing damages.
• Notice of Forwarding Address: When you move out, you must provide your landlord with your new address in writing within 4 days after moving out. This enables your landlord to send your security deposit or deductions statement to the correct address. A simple written note stating your new address is sufficient. The law does not provide an official form, but the process is explained in the Michigan Security Deposit Act.

If you do not provide your forwarding address within this window, your landlord is not obligated to send you the itemized list, but they cannot keep your deposit without cause.

Filing a Complaint or Dispute

If your landlord does not return your security deposit within the required 30 days, or you disagree with deductions, you may pursue a claim in your local district court (also known as Small Claims Court for amounts up to $6,500). The Michigan Courts handle residential tenancy disputes.

• Submit a complaint using a Summons and Complaint (Form CC 85). This form starts the small claims process for money owed (such as a security deposit).
• Be sure to include all supporting documentation, including your lease, correspondence, the inventory checklist, and proof of your forwarding address notice.

The relevant Michigan law is the Michigan Security Deposit Act (Public Act 348 of 1972).^[1]

Frequently Asked Questions (FAQ)

1. Can my landlord ask for more than one and a half months’ rent as a deposit in Michigan?
   No, Michigan law strictly sets the security deposit limit at 1.5 times your monthly rent, including any additional or pet deposits.
2. How long does my landlord have to return my security deposit after I move out?
   Michigan landlords have 30 days to return your deposit or provide an itemized list of deductions after you move out and return the keys.
3. Do I have to give my landlord a forwarding address?
   Yes, Michigan law requires you to provide your landlord with your new address in writing within 4 days after moving out in order to receive your security deposit or a statement of deductions.
4. What should I do if my landlord doesn’t return my security deposit?
   You may file a claim in Michigan’s Small Claims Court or District Court for the return of your deposit. Keep records and use the appropriate court forms.
5. What counts as "normal wear and tear" in Michigan?
   Normal wear and tear refers to changes from everyday use, like minor scuffs or carpet fading, and cannot be deducted from your deposit.

Key Takeaways for Michigan Renters

• Security deposits in Michigan cannot exceed one and a half months’ rent, and must be returned (or itemized) within 30 days after move-out.
• Always use the inventory checklist on move-in and provide a written forwarding address on move-out to protect your rights.
• If you have a dispute, Michigan’s District and Small Claims Courts can help resolve the issue fairly.

Need Help? Resources for Renters

• Michigan Attorney General: Consumer Protection – Information and complaint options for renters.
• Michigan Courts Self-Help Center – Guidance on filing small claims and understanding your rights.
• Michigan State Housing Development Authority (MSHDA) – Renter Resources
• Michigan Security Deposit Act (official text)

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1. Michigan Security Deposit Act, Public Act 348 of 1972
2. Michigan State Housing Development Authority: Security Deposits

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