Short answer: In Michigan, a security deposit can't exceed 1.5 months' rent. Within 30 days after the tenant moves out, the landlord must mail an itemized list of damages with the balance, or return the deposit. Miss that notice and you forfeit the right to keep any of it. Disputed amounts require filing suit within 45 days.
The rules at a glance
| Rule | What the law says | Statute |
|---|---|---|
| Maximum deposit | No more than 1.5 months' rent | MCL 554.602 |
| Notice at move-in | Within 14 days of possession: landlord's name and address, where the deposit is held, and the tenant's duty to give a forwarding address within 4 days after moving out (with the required bold-print statement) | MCL 554.603 |
| Where it's held | A regulated financial institution, unless the landlord posts a cash or surety bond with the Secretary of State | MCL 554.604 |
| Inventory checklists | Tenant gets 2 blank move-in checklists and returns one within 7 days; a move-out checklist follows | MCL 554.608 |
| Allowed deductions | Actual damages beyond normal wear, unpaid rent, unpaid utilities | MCL 554.607 |
| Itemized notice | Within 30 days after occupancy ends, mailed with the balance | MCL 554.609 |
| Missing the notice | Treated as agreeing no damages are due; full deposit due immediately | MCL 554.610 |
| Disputed amounts | Landlord must sue within 45 days after occupancy ends; noncompliance can mean double the amount retained | MCL 554.613 |
What changed in 2026?
2026 Public Act 102 (immediate effect September 21, 2026) amended MCL 554.609 so the balance can be refunded by direct deposit or electronic transfer, including to a bank account or payment app, and must be deposited within 10 days after the notice is mailed. Read the current statute text for the exact conditions.
A move-out workflow that protects the deposit decision
- Move-out day: walk the unit with the move-in checklist and take dated photos and video of every room.
- Same week: get written estimates for cleaning, repairs and hauling, so the deductions are documented.
- Separate normal wear (faded paint, light carpet wear) from damage (holes, burns, broken fixtures, trash left behind).
- Before day 30: mail the itemized notice with the balance, to the forwarding address if the tenant gave one.
- Keep copies of everything.
How a turnover crew helps
A crew that sends before photos and itemized notes from the first visit gives you the documentation the 30-day notice needs. See our rental turnover timeline and move-out cleaning checklist.
Sources
- Michigan Legislature: MCL 554.602 (deposit limit)
- Michigan Legislature: MCL 554.603 (required notice)
- Michigan Legislature: MCL 554.604 (where deposits are held)
- Michigan Legislature: MCL 554.607 (allowed uses)
- Michigan Legislature: MCL 554.608 (inventory checklists)
- Michigan Legislature: MCL 554.609 (30-day itemized notice)
- Michigan Legislature: MCL 554.610 (missing the notice)
- Michigan Legislature: MCL 554.613 (45 days to sue; double damages)
- Michigan Legal Help: An Overview of Security Deposits for Landlords
This guide is general information, not legal advice. Rules change, so check the official sources above before you rely on them.
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