In Michigan, a landlord cannot require a security deposit larger than 1.5 times one month’s rent. After you move out, the landlord has 30 days to mail an itemized list of damages, or the deposit comes back to you in full. The tenant has duties too: give a forwarding address within 4 days of moving out, and answer any damage notice within 7 days. This guide walks through each rule, in order, for tenants and landlords.
TL;DR
- The cap is 1.5 times monthly rent, set by MCL 554.602.
- Tenants must send a forwarding address in writing within 4 days after moving out.
- Landlords must mail an itemized notice of damages within 30 days after the tenancy ends, or return the whole deposit.
- A landlord who keeps a deposit without suing or refunding within 45 days can owe double the amount retained.
- Pet and cleaning fees are treated differently from refundable security deposits.
Table of Contents
- How much a landlord can charge
- What landlords must do with the deposit during the tenancy
- The move-out timeline, step by step
- What can come out of the deposit
- Pet fees, cleaning fees and assistance animals
- If the landlord does not return your deposit
- Tips for tenants
- Tips for landlords
- Our perspective
- Selling a rental instead of managing it
- FAQ
- Sources
How much a landlord can charge
Michigan law says a landlord may not require a security deposit that is more than 1.5 times the monthly rent, according to Section 554.602 of the Michigan Compiled Laws. The cap applies to residential rentals.
Here is the math at a few common Metro Detroit rent levels:
| Monthly rent | Maximum security deposit (1.5x) |
|---|---|
| $900 | $1,350 |
| $1,200 | $1,800 |
| $1,500 | $2,250 |
| $2,000 | $3,000 |
A few practical points follow from the cap:
- The cap covers the security deposit, not every payment at move-in. First month’s rent is rent, not a deposit.
- If a landlord asks for more than the cap, the amount over the limit is not something you have to pay. Raise it in writing before you sign.
- Waivers do not help the landlord. Michigan Legal Help describes the state’s tenant and landlord guidance as treating deposits as the tenant’s property until the landlord establishes a right to keep them, and agreements giving up that protection are unenforceable.
What landlords must do with the deposit during the tenancy
Landlords do not get to treat deposit money as their own cash. The state’s tenant and landlord publication explains that the landlord must place the funds in a regulated financial institution. The alternative is to file a cash or surety bond with the Secretary of State, which is what a landlord does if they want to use the funds for other purposes.
There is also a paperwork duty. Under the Landlord and Tenant Relationships Act, within 14 days of a tenant taking possession the landlord must give written notice that includes:
- The landlord’s name and contact information.
- The name and address of the financial institution or surety holding the deposit.
- A statement that the tenant must give a forwarding address after moving out.
Tenants: check your lease packet or move-in email for this notice. If you never got it, ask for it in writing. It tells you exactly where your money sits.
Landlords who manage a handful of units often hand this work to a professional. Our guide on how to choose a property manager covers what to ask about deposit handling and recordkeeping.
The move-out timeline, step by step
The whole process runs on short clocks. Here is the sequence.
Day 0 to 4: the tenant sends a forwarding address
The tenant must notify the landlord in writing of a forwarding address within 4 days after the tenancy ends. The Landlord and Tenant Relationships Act says that if you miss this window, the landlord is relieved of the duty to send a notice of damages. Your later claim to the deposit is not prejudiced, according to the Michigan Judicial Institute’s benchbook.
Still, do not gamble on that. Send the address the day you hand over keys, by a method that leaves a record: email plus a letter, or certified mail. It is the easiest way to keep the whole process clean. If you are also changing your mail across agencies, see the Michigan address change order so nothing important goes to the old unit.
Within 30 days: the landlord’s itemized notice
If the landlord claims any part of the deposit for damage or another obligation, they must mail an itemized notice of damages within 30 days after the tenancy ends, per MCL 554.609. The notice has to carry a statement in 12-point boldface type, at least 4 points larger than the body text. It tells the tenant to respond by mail within 7 days or give up the claimed amount.
If the landlord misses the 30-day deadline, the law treats it as an agreement that no damages are due, and the full deposit must be returned right away, as the state’s tenant and landlord guide puts it.
Within 7 days of the notice: the tenant responds
If you disagree with the list, answer in writing by mail within 7 days. Say which items you dispute and why. Attach photos, your move-in checklist and receipts if you have them. Failing to respond costs you only the specific amounts claimed, not the entire deposit, as the benchbook explains. Even so, respond. Silence makes your position weaker.
Within 45 days: the landlord must sue or refund
The landlord who wants to keep money you dispute must start a court action for a money judgment within 45 days after the tenancy ends. A landlord who misses that deadline waives the claimed damages and can be liable for double the amount of the deposit retained, per the Act’s text. Michigan Legal Help summarizes it the same way: if the landlord neither files a case nor returns the deposit in that period, the tenant may sue for twice the deposit.
Courts take this seriously. The Judicial Institute’s benchbook discusses case law such as Tree City Properties v Perkey, which reinforces that strict compliance with the statute is required to avoid double liability.
What can come out of the deposit
Not every dollar the landlord spends on a unit can be taken from the deposit. By statute, the deposit may be used only for:
- Actual damage to the unit or an ancillary facility that results from conduct not reasonably expected in normal habitation.
- Rent in arrears.
- Rent due for premature termination of the lease.
- Unpaid utility bills.
Michigan Legal Help puts it plainly: rent owed, unpaid utilities, or damage beyond normal wear and tear.
Wear and tear versus damage
The statute’s wording, conduct not reasonably expected in normal habitation, is the test. As a working guide, not a legal list:
| Usually normal use | Usually damage |
|---|---|
| Light scuffs and nail holes from pictures | Large holes in walls or broken doors |
| Faded paint after years of living | Crayon, paint or smoke staining |
| Worn carpet in walkways | Burns, pet stains or tears in carpet |
| Minor cracks from settling | Broken windows or fixtures |
A move-in condition checklist signed by both sides, plus dated photos, settles most arguments before they start. Landlords should do the same at move-out and itemize costs with receipts or estimates.
Pet fees, cleaning fees and assistance animals
A security deposit is meant to be refundable. Pet fees and cleaning fees are generally non-refundable, according to Michigan Legal Help. That distinction matters on your lease: a fee labeled as non-refundable is not a deposit, and one labeled as a deposit should come back unless there is a lawful deduction.
The common question is whether a pet deposit is charged per pet or per household. Michigan’s statutes quoted here do not answer it, so the lease controls. Read it before signing, and remember that any deposit counts toward the overall cap.
Assistance animals are different. Landlords can have a pet policy, but cannot ban assistance animals or charge pet fees for them.
If the landlord does not return your deposit
Work through this order:
- Confirm the dates. When did the tenancy end, and when did you send your forwarding address?
- Check whether you received a notice of damages, and whether it was mailed within 30 days.
- Send a written demand for the deposit, citing the statute and the amount.
- If 45 days pass with no refund and no court case from the landlord, you may sue for double.
- File in small claims. Disputes over deposits can be heard in Michigan small claims court.
One caution for landlords: the deposit statute covers only deposit-based claims. The Judicial Institute notes it does not restrict other remedies for unpaid rent or damages, so a missed deadline does not necessarily erase a separate claim. Lease terms also cannot override the statute. A landlord cannot condition a refund on something the Act does not allow, as Michigan Legal Help clarifies.
For a dispute worth real money, talk to a Michigan landlord-tenant attorney or a legal aid office. Rules for specific lease situations are narrower than any overview can cover.
If past debts are what keep landing you on the wrong side of rental applications, credit clearance for home rentals is one more area worth looking into.
Tips for tenants
- Photograph and video every room on move-in day and move-out day.
- Keep the 14-day notice about where the deposit is held.
- Send the forwarding address in writing, with proof of delivery.
- Return keys with a written note stating the date.
- Respond to any damage notice within 7 days, in writing.
Tips for landlords
- Never collect more than 1.5 months’ rent as a deposit.
- Send the 14-day written notice at the start of every tenancy.
- Calendar the 30-day and 45-day deadlines the day the tenant leaves.
- Use the required 12-point boldface statement in every damage notice.
- Keep itemized costs tied to actual damage, not routine turnover.
If you rent to voucher holders, our Section 8 management guide for Detroit landlords covers how program rules sit alongside deposit practices.
Our perspective
We spend our days looking at Metro Detroit housing from the money side: sellers who need out quickly, buyers lining up funds, owners holding rentals they no longer want. Deposits show up in all of it. A tenant waiting on a refund is often trying to fund the next move. A landlord who slips on a 30-day or 45-day deadline can turn a small repair dispute into a double-damages problem.
Our view is simple: clear timelines protect both sides, and the statute is written to reward the party who documents. That is why we publish plain guides and independent rankings instead of paid listings. Providers cannot pay for placement on CompareSpot, so when an owner decides to sell a tenant-occupied rental, hire a manager or find an agent, the ranking reflects research and customer sentiment, not advertising.
If you are a landlord who would rather not manage deposits, notices and deadlines yourself, a good property manager is worth vetting carefully. If you want out of a rental altogether, comparing local cash buyers and agents side by side saves time.
Bryan
Selling a rental instead of managing it
Some landlords decide the deposit paperwork, repairs and turnover are no longer worth it. If that is you, we rank local options by type. Cash home buyers across Metro Detroit are one route when you want speed and no repairs. Real estate agents in Metro Detroit are the route when you want to market the property at full price. Our rankings are editorial, and providers cannot buy a spot.
FAQ
How much can a landlord charge for a security deposit in Michigan?
The maximum is 1.5 times one month’s rent. On $1,200 rent, that is $1,800. The limit comes from MCL 554.602.
How long does a landlord have to return a security deposit in Michigan?
If the landlord is claiming any part of it, they must mail an itemized notice of damages within 30 days after you move out. If that deadline is missed, the full deposit is owed back. Without a refund or a court filing within 45 days, you may sue for double.
Do I have to give my forwarding address?
Yes, in writing within 4 days after moving out. If you do not, the landlord does not have to send a damage notice, but you can still claim your deposit later. Sending it on time avoids needless disputes.
Are pet fees refundable in Michigan?
Pet fees and cleaning fees are generally non-refundable, unlike security deposits. Your lease should say which one you are paying. Assistance animals are not subject to pet fees.
Sources
- MCL 554.602, Michigan Legislature
- MCL 554.609, Michigan Legislature
- Tenants and Landlords, Michigan Legislature
- Landlord and Tenant Relationships Act, Act 348 of 1972
- Specific Landlord-Tenant Laws, Michigan Judicial Institute benchbook
- Specific Landlord-Tenant Laws, Michigan Judicial Institute (2026)
- Specific Landlord-Tenant Laws, benchbook case law
- An Overview of Security Deposits for Landlords, Michigan Legal Help
- Security deposits overview, Michigan Legal Help
- Landlord Rights and Responsibilities, Michigan Legal Help
- An Overview of Small Claims Court, Michigan Legal Help
- Credit clearance for home rentals