Security deposit law in Michigan

One and a half months' rent. The return rule is 30 days. The controlling text is Mich. Comp. Laws §§ 554.602-616.

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Michigan's deposit ceiling

One and a half months' rent.

Michigan's return deadline

30 days.

You have 30 days after the tenancy ends to return the deposit or mail an itemized list of damages with any balance. The tenant must give a forwarding address within four days of moving out to preserve their claim, but your 30-day duty stands.

The itemized statement rule

An itemized list of damages with the estimated cost of repair is required within 30 days, and failing to send it forfeits your right to keep the money. Send it by first-class mail to the forwarding address.

Where the deposit must be held

Deposits must be held in a regulated financial institution or secured by a bond, and you must disclose to the tenant where the deposit is held within 14 days of move-in.

Exposure for wrongful withholding

Up to 2x for noncompliance.

A landlord who keeps a deposit without the required itemized notice, or fails to sue for damages within 45 days when the tenant disputes, can be liable for up to twice the amount wrongfully withheld. The 30-day list and the follow-through on disputes are both required.

Compare Michigan with neighboring states

• Ohio: no statutory limit; return rule: 30 days.
• Indiana: no statutory limit; return rule: 45 days.
• Wisconsin: no statutory limit; return rule: 21 days.