Mediation vs Small Claims in Michigan

Find the fastest, cheapest way to resolve your landlord-tenant dispute—without guessing.

Neutral mediator facilitates landlord-tenant discussion in Michigan

Renters across Michigan face the same headache-inducing issues: security deposits that never arrive, broken furnaces ignored in the dead of winter, or surprise fees that nuke monthly budgets. When talks with a landlord stall, most tenants assume they must sue—or simply swallow the loss. Yet Michigan offers two low-cost, consumer-friendly paths for resolving these conflicts: mediation and small claims court.

Choosing the right track saves weeks of stress and hundreds in fees. This guide lays out each option in plain English, compares costs and timelines, and gives you step-by-step action plans so you can decide—today—whether to pick up the phone for a mediator or file form DC-84 at district court.

On This Page

What Is Mediation?

Mediation is a voluntary, confidential meeting where a neutral third party—called a mediator—helps you and your landlord negotiate a solution. In Michigan, most housing mediations run through the Community Dispute Resolution Program (CDRP). Sessions last one to three hours, cost between $0 and $80, and end with a written agreement signed by both sides.

Good for:

  • Open communication breakdowns—repairs, late fees, future rent adjustments.
  • Ongoing tenancies where you still need to live peacefully in the unit.
  • Landlords willing to negotiate but unsure of legal footing.

Because settlements are drafted as contracts, they are enforceable in court if one party backtracks. Learn more in our upcoming mediation-services guide.

Tenant and landlord shake hands after reaching a mediation agreement in Michigan

What Is Small Claims Court?

Small claims is a division of Michigan’s district courts that handles disputes worth $7 000 or less. You can’t have a lawyer argue for you, which means lower cost—but also that you must prepare evidence and speak for yourself. Filing fees range from $30 to $70, plus service costs.

Typical timeline:

  • Filing → hearing in roughly 45–90 days depending on docket.
  • Judgment issued day of hearing or mailed within a week.
  • Collection actions (garnishment, liens) start after 21-day appeal window.

Good for:

  • Security-deposit withholding after you’ve moved out.
  • Illegal late fees or overcharges where money is the only remedy.
  • Cases where the landlord ignores calls, letters, and mediation offers.

For a detailed walkthrough, see our upcoming small-claims guide.

Exterior of a Michigan district court where small claims hearings are held

Mediation vs Small Claims: Pros & Cons

Factor Mediation Small Claims
Cost $0–$80 (often free) $30–$70 filing + service fees
Speed 1–3 weeks to schedule 45–90 days to hearing
Control of Outcome Full—parties craft their own deal Judge decides; limited appeal
Enforceability Contract; can convert to judgment Court judgment; enforceable by law
Relationship Impact Often preserves landlord-tenant ties Typically damages relationship
Privacy Confidential session Public record

Step-by-Step Guidance

A. Mediation Path

  1. Gather lease, photos, payment ledger, and any texts or emails.
  2. Call your local CDRP center or apply online.
  3. Complete a brief intake call outlining issues and desired outcome.
  4. Schedule the session; choose in-person or Zoom.
  5. Attend mediation (usually under 3 hours) and draft a signed agreement.
  6. Optionally file the agreement with district court for added enforceability.

B. Small Claims Path

  1. Confirm your claim is ≤ $7 000 and within the 6-year statute of limitations.
  2. Send a certified demand letter giving the landlord 7 days to pay.
  3. Complete court form DC-84; attach evidence copies.
  4. File at the district court where the property is located; pay the fee.
  5. Serve the landlord via certified mail or process server.
  6. Organize evidence: photos, move-in checklist, receipts, statutes.
  7. Attend the hearing; present facts clearly. Ask for costs and interest.
  8. If you win, collect the judgment—wage or bank garnishment options are covered in our eviction guide.

When to Choose Each

Mediation Is Ideal If…

  • You still occupy the rental and need ongoing cooperation.
  • The main issue is repairs, communication, or payment plan.
  • You value privacy and want a quick, flexible outcome.

Small Claims Is Best If…

  • Tenancy has ended and only money is at stake.
  • Landlord ignores letters or refuses dialogue.
  • You need an enforceable judgment for garnishment.

Quick Checklist

  • Do you need repairs completed within 14 days? No → Court might be faster.
  • Is your claim strictly about dollar amounts? Yes → Court likely better.
  • Do you expect to stay in the unit? Yes → Try mediation first.
  • Does the landlord refuse certified letters? Yes → File in court.

Real-World Scenarios

Sam moved out of his Grand Rapids apartment and the landlord withheld $1 200 for “deep cleaning.” In mediation, photos showed the place spotless. Within 90 minutes both sides agreed on a $200 cleaning fee and a payment deadline—saving Sam a two-hour drive and $70 filing fee. This illustrates how a security deposit dispute mediation can resolve money fights quickly.

Lisa’s landlord stacked $450 in late fees on a $900 unit. Mediation failed because the landlord insisted on keeping every dollar. Lisa filed small claims, citing Michigan late fee laws. The judge reduced the fee to $45 and awarded Lisa court costs—proof that filing small claims against landlord in Michigan can pay off when fees are unreasonable.

A Kalamazoo tenant lost heat during a polar vortex. Rather than wait weeks for court, a CDRP center scheduled same-day mediation. The landlord agreed to install space heaters that night and complete furnace repairs within 48 hours, showing how landlord tenant mediation Michigan can solve urgent habitability crises.

Mark’s landlord entered his unit without notice three times. Mark filed small claims for statutory damages but settled during the court’s pre-trial mediation: the landlord paid $800 and signed a written promise to give 24-hour notice. This hybrid approach shows courts often blend both options.

Frequently Asked Questions

Yes. Once both parties sign the written settlement, it becomes a contract enforceable in district court. Many CDRP centers offer a simple form to “convert” the deal into a consent judgment, giving you the same enforcement powers—garnishment, liens—as any other court order.

Lawyers may advise you, but only you can speak at the hearing unless both sides stipulate otherwise and the judge approves. Many tenants hire an attorney to prepare exhibits and coach them—then appear solo to keep costs down.

File a motion to convert the agreement into a judgment if you haven’t already. Once entered, you can pursue garnishment or liens exactly like any other judgment. Document non-compliance—emails, photos, dated notes—to show the breach.

Michigan’s six-year statute of limitations applies to contract claims, including deposits. Practically, filing within one year keeps evidence fresh and boosts credibility. Remember to send a certified dispute letter within 7 days of receiving an itemized list—per state law—before suing.

Typically no. Tenant-screening databases track evictions, not civil money claims you file. However, judgments appear on public court dockets, so a diligent landlord could find them. Keeping documentation professional and showing you acted reasonably helps if questions arise.