Michigan caps security deposits and sets firm deadlines for returning them, all under the state’s Landlord-Tenant Act of 1972. This article covers the maximum deposit a landlord can collect, the notice a landlord must give at move-in, the 30-day return deadline, and the penalties a landlord faces for holding a deposit improperly. For the wider set of rules that govern rentals in the state, see the overview of Michigan landlord-tenant law.
The maximum deposit a Michigan landlord can charge
A landlord may require a security deposit for each rental unit, but the amount is fixed by statute. As of 2026, Mich. Comp. Laws § 554.602 limits a security deposit to no more than one and one-half months’ rent. A deposit set above 1.5 months’ rent exceeds what the act allows.
The cap covers money the landlord holds as security against damage or unpaid rent. It does not, by itself, resolve how a charge labeled a “nonrefundable fee” or “last month’s rent” is treated; a charge that functions as security for the landlord’s potential losses is generally analyzed as part of the deposit under the act. The Michigan State Housing Development Authority publishes plain-language rental resources for tenants that describe how these rules apply in practice.
What the landlord must tell you at move-in
Within 14 days after a tenant takes possession, the landlord must give the tenant written notice of three items under Mich. Comp. Laws § 554.603: the landlord’s name and address for receiving communications, the name and address of the financial institution or surety holding the deposit, and the tenant’s duty to provide a forwarding address within 4 days after moving out. The notice must include a specific warning about the forwarding-address requirement, printed in 12-point boldface type at least 4 points larger than the rest of the notice.
If the landlord never gives this move-in notice, the tenant is relieved of the obligation to provide a forwarding address. The way a tenancy ends also matters, because several deadlines run from the date possession ends. A tenant breaking a lease in Michigan and a tenant removed through the Michigan eviction process are both subject to the same return clock once occupancy is over.
The 30-day deadline to return your deposit
When the landlord claims any deductions, that itemized list must describe each item of damage, the estimated cost of repair, and the amount charged to the tenant, as required by Mich. Comp. Laws § 554.609. The list cannot include damage that was already noted on a move-in inventory checklist before the tenancy began.
Give a written forwarding address within 4 days
After moving out, a tenant provides the landlord a written forwarding address within 4 days, sent to the address the landlord supplied at move-in. Under
Mich. Comp. Laws § 554.611, failing to do so relieves the landlord of the duty to mail an itemized list, but it does not by itself defeat a later claim for the deposit.Wait for the landlord's response within 30 days
The landlord has 30 days from the end of the tenancy to mail the full deposit or an itemized list of damages plus a check for the difference, under Mich. Comp. Laws § 554.609.
Respond in writing within 7 days if you dispute the deductions
The itemized list must carry a boldface notice stating that the tenant has 7 days after receiving it to respond by mail, or forfeit the amount claimed. A tenant who disputes the deductions responds in writing within that 7-day window.
Watch the landlord's 45-day suit deadline
If the parties still disagree, the landlord has 45 days after the tenancy ends to file suit for the claimed damages, under Mich. Comp. Laws § 554.613. A landlord who neither returns the disputed amount nor sues within 45 days loses the right to keep it.
When the landlord claims deductions for damage
A landlord who keeps part of a deposit cannot simply hold the money. Under Mich. Comp. Laws § 554.613, the landlord must, within 45 days after the tenancy ends, either return the balance of the deposit or file a lawsuit for a money judgment on the claimed damages. A landlord may not retain any part of the deposit for disputed damages without first obtaining a money judgment, unless a listed exception applies, for example, the tenant failed to give a forwarding address, the tenant failed to respond to the itemized list within 7 days, or the amount claimed is only for actual unpaid rent.
Deductions apply to damage and unpaid obligations, not to the cost of conditions the landlord was already responsible for maintaining. Repairs that fall under the implied warranty of habitability in Michigan are the landlord’s obligation and are not a proper charge against a tenant’s deposit.
Penalties for a landlord who breaks the deposit rules
Missing the 30-day notice deadline carries a direct consequence. Under Mich. Comp. Laws § 554.610, a landlord who fails to mail the notice of damages within 30 days is treated as agreeing that no damages are due and must return the full deposit immediately.
That double-damages penalty is the tenant’s main leverage. It turns a landlord’s failure to follow the itemized-notice and 45-day suit rules into a claim worth twice the amount held back, separate from the deposit itself.
Frequently asked questions
Does the 1.5-month cap include a pet deposit or cleaning fee?
The cap in Mich. Comp. Laws § 554.602 applies to the security deposit, money held as security against damage or unpaid rent. A charge that functions that way is generally treated as part of the deposit and counts toward the 1.5-month limit, regardless of the label. A genuinely nonrefundable charge for a specific service can raise a separate question about whether it operates as security in disguise.
What happens if I never received the 14-day move-in notice?
Under Mich. Comp. Laws § 554.603, a landlord who fails to give the required move-in notice relieves the tenant of the duty to provide a forwarding address within 4 days. The tenant’s claim to the deposit itself is not lost by the landlord’s failure.
The landlord never sent a list and won’t return anything. What does the law say?
A landlord who does not mail an itemized list of damages within 30 days of the tenancy’s end is treated under Mich. Comp. Laws § 554.610 as agreeing that no damages are owed, and must return the full deposit. A landlord who fails to follow the return rules can also be liable for double the amount retained.
Can the landlord deduct for normal wear and tear?
Under Mich. Comp. Laws § 554.609, a landlord may deduct for “damage to the rental unit or other obligation against the security deposit,” and must provide an itemized list with the estimated repair cost for each item. Ordinary wear from normal use is not damage of that kind. The itemized list also cannot include items already noted on a move-in inventory checklist.
How does a tenant recover a deposit the landlord won’t pay?
A tenant who disputes withheld amounts responds in writing within 7 days of the itemized list, then can pursue the claim in district court if the landlord neither returns the money nor sues within 45 days. Michigan’s district courts hear these money claims, and the double-damages provision of Mich. Comp. Laws § 554.613 can apply when the landlord violated the return rules.
Sources
- Mich. Comp. Laws § 554.602, Security deposit; amount
- Mich. Comp. Laws § 554.609, Itemized list of damages; 7-day response
- Mich. Comp. Laws § 554.610, Effect of missing the 30-day notice
- Mich. Comp. Laws § 554.613, Action for damages; double-damages penalty
- MSHDA: Rental resources for Michigan tenants
- Michigan State Housing Development Authority (MSHDA)