Michigan Security Deposit Laws: Complete 2025 Guide

Know every dollar’s destiny—from maximum limits to getting your refund fast. Use our interactive checklist to lock in a stress-free move-out.

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Michigan renter carefully reviews a security-deposit disclosure form before signing the lease

Maximum Deposit Limit

Cap: 1.5 months’ rent

Under MCL 554.602, landlords cannot demand more than one-and-a-half months’ rent as a security deposit. This maximum security deposit Michigan 2025 rule includes any pet or key deposits—stacking fees is illegal if they push the total past the cap.

The law covers all rental dwellings, from downtown studios to single-family homes. Violating the cap opens landlords to automatic double-damages liability plus attorney fees.

Comparison of Maximum Deposit Limits (2025)
State Deposit Cap Statute
Michigan1.5 monthsMCL 554.602
OhioNo state capORC 5321.16
IndianaNo state capIC 32-31-3-12
Wisconsin1 monthWis. Stat. 704.28

Accepted Deposit Types

Cash, check, money order

Landlords traditionally accept cash, personal checks, or money orders. Michigan law does not require them to accept credit cards, although electronic transfers (ACH, Zelle, Venmo) are trending for paper-free convenience. Always secure a receipt, regardless of payment method.

Security Deposit Receipt Rules

14-day deadline

MCL 554.603 obligates landlords to deliver a written receipt within 14 days of receiving your deposit. The receipt must disclose:

  • Landlord’s name & business address
  • Rental unit address
  • Name & address of the bank where funds are held

Failure to issue a compliant receipt bars the landlord from retaining any part of the deposit—even for legitimate damages.

Move-In/Move-Out Inspection Checklist

Right to be present

Michigan’s Truth-in-Renting Act grants tenants the right to join both inspections. The landlord must supply a blank move-in checklist when the lease begins, then schedule the move-out walk-through at a “reasonable time.” Keep signed copies safe—they’re gold in court.

Landlord and tenant use a checklist to inspect each room at move-in to document pre-existing conditions
  • Walls & paint
  • Flooring & carpets
  • Windows & locks
  • Plumbing fixtures
  • Appliances & serial numbers

Timelines for Return

30-day refund clock

How long does a landlord have to return a security deposit in Michigan? Answer: 30 calendar days after you move out, assuming you met the “forwarding-address” rule below.

Refund & Notice Timeline (with Michigan security deposit interest rate 0.6 % APR)
ActionDeadlineStatute
Tenant provides forwarding addressWithin 4 days of vacatingMCL 554.611
Landlord mails refund or itemized listWithin 30 daysMCL 554.609
Tenant disputes deductionsWithin 7 days of receiptMCL 554.613
No “wear & tear” charges

Landlords can deduct for:

  • Unpaid rent or utilities
  • Actual damages beyond normal wear and tear vs damage Michigan law
  • Late fees expressly stated in the lease
  • Court costs from a legal eviction

They cannot deduct for repainting a room that merely faded, nor replace an entire carpet because of one wine stain.

Disputing Unfair Deductions

7-day rebuttal window

You have exactly seven days to contest an itemized list—send a certified mail security deposit dispute Michigan letter outlining each contested charge. Use our Sample Letter Tool Free Generator to auto-draft your rebuttal.

  1. List each charge you dispute.
  2. Cite supporting evidence (photos, receipts).
  3. Demand refund within 7 days to avoid court.

Landlord’s Duty for Itemized List

Line-item breakdown

Michigan landlords must provide a written list of damages with actual costs or estimates. A lump-sum “Cleaning: $500” violates the law. If omitted, the landlord forfeits the entire deposit and may owe double damages.

How to Document Your Unit

Timestamp everything

Photos are the cheapest insurance you’ll ever buy. Shoot wide-angle pics of every wall, ceiling, and floor. Include:

  • Close-ups of pre-existing damage
  • Utility meter readings
  • Serial numbers on major appliances
  • Video walk-through for audio context
Tenant photographs a scratched hardwood floor as evidence for future security-deposit disputes

Small Claims for Security Deposit

Limit now $8,000

small claims court security deposit Michigan threshold rose to $8,000 in 2025. Filing fees average $45 – $70, depending on claim amount. Many districts offer online forms.

Need to sue? Small-claims threshold just went to $8,000 in 2025—double what it was last year.
  • Serve the landlord via certified mail or process server.
  • Bring photos, the move-in checklist, and the itemized damages list Michigan example.
  • Ask for mediation first—judges appreciate demonstrated good faith.

Common Landlord Tactics

Know the playbook

Expect these moves:

  • Full carpet replacement. Counter with depreciation tables.
  • “Painting fee.” Paint is normal wear unless smoke or crayon damage.
  • Future rent deduction. Illegal unless lease authorizes “last-month’s rent” and it fits within the deposit cap.
  • Excessive cleaning charges. Provide before/after photos to rebut.

Tenant FAQ

Michigan imposes no explicit deadline, but best practice—and many leases—require deposit of funds within 5 business days. If your check hasn’t cleared after two weeks, ask for confirmation to ensure the money is held in an escrow account.

No. Michigan’s 1.5-month cap includes any sum meant for last month’s rent. Charging beyond that violates MCL 554.602 and entitles you to double damages.

Yes, but modestly. The Michigan security deposit interest rate is set each January by the Department of Treasury—0.6 % for 2025. Landlords must either credit or pay this interest annually.

Abandonment triggers the same 30-day timeline, but landlords can deduct additional re-renting costs if reasonable and documented. Always surrender keys and provide a forwarding address to avoid dispute.

Only if the surcharge covers actual cleaning costs beyond routine turnover and does not exceed the cap. Ask for receipts; otherwise dispute as an illegal fee.

Landlords must absorb any fee they choose to incur. Tenants are entitled to the full principal plus interest unless otherwise agreed in writing.

Interactive Documentation Checklist

Use this move-out inspection checklist Michigan PDF alternative to track every must-have document. Progress saves in your browser.

  • Timestamped room-by-room photos
  • Full-unit video walk-through
  • Appliance serial numbers
  • Utility meter readings
  • Signed move-in checklist
  • Copy of signed lease & addenda
  • Security-deposit receipt
  • Any repair requests & emails
  • Itemized damages list (move-out)
  • Certified-mail receipts

Related Guides

Move-In & Move-Out
Disputing Deposit Deductions
Tenant Privacy Rights

Next Steps & External Resources

Bottom line: Meticulous documentation and fast certified-mail responses keep your money safe—before, during, and after your Michigan lease.