Michigan Security Deposit Law

Author: Kasee Godwin
Date: 11.10.2023

Navigating Michigan Security Deposit Law: Essential Information for Landlords and Tenants

Understanding security deposit laws in Michigan is crucial for landlords and tenants. These regulations safeguard the interests of both parties, promoting fairness and transparency in the rental process. This article offers a comprehensive overview of Michigan’s security deposit law, equipping landlords and tenants with the knowledge to handle rental agreements confidently.

What is a Security Deposit in Michigan?

In Michigan, a security deposit is a monetary guarantee the tenant provides to the landlord before occupying a rental property. It serves as a safeguard for the landlord against property damage or unpaid rent. The law dictates the maximum amount a landlord can charge, the method of deposit storage, and the process for its return upon tenancy termination.

Maximum Security Deposit Limit

Michigan law stipulates that landlords can charge up to one and a half times the monthly rent as a security deposit. This cap includes pet and similar deposits but excludes nonrefundable fees, such as cleaning and preparation fees. Overcharging is illegal and may lead to penalties.

Storing the Security Deposit

Landlords must place security deposits in a separate, regulated bank account. They must provide tenants with written notice of the bank location and deposit receipt within 14 days of receiving the deposit.

Deductions and Damages

Landlords can deduct from the security deposit for unpaid rent, damages beyond normal wear and tear, and other lease violations upon tenant departure. However, they cannot withhold any part of the deposit for regular wear and tear.

Returning the Deposit

Landlords must return the security deposit with an itemized list of deductions within 30 days after tenancy termination. If the landlord fails to do this or disputes arise, tenants can object to the landlord’s notice of damages within seven days, prompting the landlord to file a claim in court within 45 days of occupancy termination.

The Importance of Understanding Michigan Security Deposit Law

Both landlords and tenants must familiarize themselves with Michigan security deposit law to safeguard their interests. Tenants can ensure the return of their full deposit by adhering to lease terms, while landlords can avoid legal issues and maintain positive tenant relationships.


Qira aims to keep this information as up-to-date as possible. The content provided here is informational and should be different from legal counsel. Please refer to the relevant government sources to check for any changes or updates to the law.


Kasee Godwin

Position: Director of Marketing
Social Networks

Kasee is the Director of Marketing for Qira. She has nearly 15 years of experience in the real estate marketing industry, including 10 years on the client side. In her spare time, she enjoys reading science fiction, exploring new wineries, and fostering Golden Retrievers.

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