Michigan Security Deposit Rules

Know the cap, the deadlines, and the exact steps to protect every dollar of your deposit.

Stacks of cash and apartment keys symbolize a Michigan security deposit

Maximum Deposit Limits

The Michigan security deposit maximum is one-and-a-half months’ rent. That ceiling applies to all upfront fees that are meant to be refundable—including so-called “pet deposits” and “last-month’s rent.” Anything labelled “non-refundable” still counts toward the cap if the money is intended to cover damage or unpaid rent.

Because landlords sometimes blur the lines between deposits and fees, document the monthly rent shown on your lease. If your rent is $1,200, the most a landlord can hold as a deposit is $1,800—no add-ons.

Michigan Security Deposit Limit & Related Rules
Aspect Michigan Rule Citation
Maximum cap 1.5 months’ rent MCL 554.602
Pet deposits & other refundable fees Must fit inside the 1.5-month cap MCL 554.602(1)
Non-refundable “cleaning” or “amenity” fees Illegal if intended to cover damage; legitimate only if true service charge and disclosed MI Truth-in-Renting Act
Required interest No statutory interest, but funds must stay in escrow account MCL 554.604
Tip: Pay the deposit with a separate check or electronic transfer so you can easily prove the exact amount later.

Receiving & Returning Deposits

Within 14 days of receiving your money, the landlord must provide a written receipt that lists the bank name and account number where your funds reside. Michigan law also requires the landlord to hand you an inventory checklist so you can document existing damage. Complete that checklist within seven days, attach photos, and return a copy—keeping your own file in cloud storage.

At move-out, the landlord must return funds—or mail an itemized list of deductions—within 30 calendar days, but only after you supply a forwarding address. Always give that address in writing within four days of leaving the unit. A quick email works, but certified mail adds extra protection.

Pro move: Shoot a video walk-through right before you hand over keys. Courts love time-stamped evidence.

Key Timelines & Deadlines

Missing one step can cost you hundreds. Here are the non-negotiable deadlines every Michigan renter and landlord must follow.

Michigan Security Deposit Timeline
Event Deadline Statute
Landlord issues inventory checklist Within 14 days of lease signing MCL 554.608
Tenant completes & returns checklist Within 7 days of move-in MCL 554.608
Tenant provides forwarding address Within 4 days after vacating MCL 554.611
Landlord mails refund or itemized list Within 30 days after move-out MCL 554.609
Tenant disputes deductions Within 7 days of receiving itemized list MCL 554.613
  1. Sign lease → receive checklist.
  2. Document unit → return checklist.
  3. Move out → send forwarding address.
  4. Landlord sends refund or list.
  5. Agree or dispute within 7 days.

How to Dispute Improper Deductions

You have just seven calendar days to dispute an itemized list. Use certified mail or email with read-receipt and attach:

If negotiation fails, file a small-claims action for up to $7,000 in your local district court. Michigan judges may award double damages plus attorney fees if the landlord acted in bad faith. Check our small-claims guide before filing.

Michigan Security Deposit FAQ

Thirty calendar days after you move out—but only if you provided a forwarding address within four days. Miss that step and the landlord’s clock never starts. See our timeline section for the full sequence.

Not if the fee is meant to cover damage. Any refundable amount—pet-related or otherwise—counts toward the 1.5-month cap. A clearly disclosed, non-refundable cleaning fee is legal only if it truly covers a service and doesn’t push total upfront costs above the cap.

The landlord’s 30-day deadline pauses until you supply it. Without that address, you could forfeit your right to sue for double damages. Always email and mail your address—then keep proof of delivery.

Michigan law does not mandate that landlords pay interest to tenants. They must, however, hold the funds in a regulated financial institution and disclose the bank on your receipt.

Only if damage is beyond ordinary wear—like burn holes or large stains. Replacing an entire carpet due to normal aging is considered a landlord cost and is not deductible.

Yes. Michigan’s Truth-in-Renting Act gives tenants the right to be present during both move-in and move-out inspections. Missed it? You can still document the condition with photos and reference our Move-In / Move-Out guide.

Related Guides

Bottom line: Mastering these Michigan security deposit rules keeps your cash safe. Browse the related guides above for deeper dives into each step.