Disputing Security Deposit Deductions in Michigan

Overview

Roughly half of Michigan renters forfeit some portion of their security deposit—often because they don’t understand the tight 30-day refund rule or the seven-day objection window baked into state law. This guide walks you through every step of the dispute process—from photographing your apartment on move-out day to collecting a judgment in small claims court—so you can reclaim money that landlords sometimes keep by default.

We structured the page chronologically. First you’ll review your legal rights, then gather bullet-proof evidence, draft a certified objection letter, negotiate, and, if necessary, sue. Bookmark the table of contents on the left to jump directly to the phase you’re in.

Statutory Rights Under Michigan’s Security Deposit Act

Michigan Compiled Laws §554.609–613 spell out everything landlords and tenants must do with security deposits. Knowing each section keeps you on firm footing when the itemized list arrives.

§609 – Deposit Limit & Trust Account: Landlords may collect up to 1.5 months’ rent. Funds must remain in a Michigan financial institution or hold a surety bond.
§610 – Inventory Checklist: Landlord must provide a blank move-in checklist within seven days. Signing it later is optional—you can add “received but not reviewed” to avoid disputes.
§611 – Forwarding Address Rule: Tenants must give a forwarding address within four days of vacating. Remember it with the mnemonic “FOUR-ward your address.” Without it, the landlord can keep the deposit until they receive your address.
§612 – 30-Day Itemized List: Landlords have 30 calendar days to mail an itemized list and any refund. They carry the burden of proving each deduction is reasonable.
§613 – Double Damages: If the landlord violates §612, you can sue for 2× the amount wrongfully withheld plus court costs. Keep this hammer in your back pocket.

Formula for Double Damages: (Deposit – Legal Deductions) × 2 + Filing Fees + Interest

Key Deadlines Under Michigan Law
Event	Party Responsible	Days Allowed	Statute
Provide move-in checklist	Landlord	7 after lease signing	§610
Return checklist	Tenant	7 after receipt	§610
Forwarding address notice	Tenant	4 after move-out	§611
Mail itemized list & refund	Landlord	30 after move-out	§612
Object to deductions	Tenant	7 after receipt	§613
File lawsuit (optional)	Tenant	Within 45 total days*	§613

*45 days isn’t a hard limit but filing sooner shows urgency and preserves fresh evidence.

Preparing Evidence

Winning a dispute is 80 % paperwork and 20 % persuasion. Follow this evidence playbook the moment you decide to move:

Download our move-out checklist and walk room-to-room marking pre-existing damage.
Shoot time-stamped photos & video. Most smartphones embed EXIF data proving when the image was taken. Don’t strip metadata when exporting.
Keep receipts for professional carpet cleaning or patch kits. Courts favor third-party invoices over self-reported elbow grease.
Ask a friend to witness the condition. Have them sign a short statement (see witness template).

Quick Tip: Printed screenshots of text messages are admissible if you can verify sender numbers and dates. Screenshot the entire conversation—not just the juicy line.

Typical Deduction Categories & Likely Outcomes
Deduction Type	Often Allowed?	Evidence Tenant Should Gather	Avg. Small-Claims Award
General Cleaning	Rarely	Move-out photos showing broom-clean unit Professional cleaning receipt	Tenant wins 80 %
Full Carpet Replacement	Unlikely	Photos of minor stains Carpet age receipt (depreciation)	Tenant wins 70 %
Painting Entire Unit	Unlikely	Photos of normal wear Invoice from landlord’s painter	Tenant wins 65 %
Unpaid Rent	Likely	Bank statements, receipts Email confirming balance	Landlord wins 90 %
Broken Appliance	Case-by-case	Photos of normal use Appliance age & lifespan chart	Split decisions

Sending the Dispute Letter

Michigan law gives you seven calendar days to object after receiving the itemized deduction list. Send your letter by certified mail with return receipt (USPS Form 3800) so the clock stops the day you drop it in the mail.

Copy this pre-filled dispute letter

USPS Form 3800 certified-mail receipt used for dispute letters

Want a customized version? Use our Interactive Sample Letters tool.

Negotiation Tactics

Most deposit wars settle before reaching a courtroom. Landlords dislike court as much as tenants do. Use these psychology-backed tactics:

Mirror their language. Repeat key phrases from their itemized list—“I respect your concern about carpet lifespan”—before presenting counter-evidence.
Offer a split. If the dispute is small, suggest meeting halfway. Judges like people who attempted compromise.
Leverage references. Remind the landlord future landlords may contact them—you’d prefer both parties speak well of each other.
Put everything in writing. Confirm verbal agreements with a same-day email. Paper trails win cases.

Still stuck? Suggest community mediation. It’s free in many Michigan counties and can draft a legally binding agreement in hours.

Filing in Small Claims Court

If talks fail, small claims is your next move. Michigan raised the limit to $7 000 in 2025, which covers nearly all residential deposits.

File in the district court where the rental property sits.
Complete form DC-84; attach a copy of your dispute letter and evidence.
Pay the filing fee ($55–$150 based on claim size).
Serve the landlord via certified mail (court will do this) or a process server.
Prepare three copies of all evidence: photos, receipts, lease, certified-mail receipts.
Arrive early on court day. Dress business-casual. Speak to facts.
If you win and the landlord doesn’t pay, garnish wages or bank funds—steps in our forthcoming small-claims guide.

Frequently Asked Questions

Courts treat an un-cashed check as if the money were held. You can still claim the full amount. Bring bank statements showing the outstanding check to prove funds were available.

Rarely. Small claims in Michigan covers monetary losses, not emotional damages. However, double damages under §613 plus court costs often make tenants whole.

No. Professional cleaning receipts strengthen your case by proving you left the unit in rentable condition. Judges often reimburse these costs.

Michigan statutes specify “mail.” Certified mail with return receipt remains the gold standard. Courts accept email only if the landlord acknowledges receipt in writing.

You may lose leverage but not necessarily the case. File quickly and explain why you were late—courts sometimes waive strict deadlines for good cause.

Minor nail holes fall under ordinary wear and tear. Large wall anchors or excessive holes can justify small deductions. Photos at move-in and move-out decide the issue.