Michigan security deposit rules
Michigan limits security deposits to 1.5 months' rent. The deposit must be returned within 30 days after termination of occupancy the landlord must mail an itemized list of damages plus a check/money order for the balance (or return the full deposit). No interest is owed on the deposit under state law.
What the law requires
1.5 months' rent. Returned Within 30 days after termination of occupancy the landlord must mail an itemized list of damages plus a check/money order for the balance (or return the full deposit). Statute text read verbatim on FindLaw mirror (current as of Jan 1, 2025); legislature.mi.gov refused connections from this environment. 554.602: deposit 'shall not exceed 1 1/2 months' rent.' 554.609: itemized list mailed within 30 days after termination of occupancy, with required 12-point boldface 7-day response notice. No statutory interest on deposits (deposit must be held in a regulated financial institution or secured by a surety bond, 554.604). 2024-2026 change: 2026 PA 102, signed Sept 21, 2026 and effective immediately, amends MCL 554.609 to allow electronic return of the deposit (direct deposit, electronic transfer, mobile payment app) within 10 days after mailing the notice of damages (secondary source: Tilchin & Hall blog via search summary; article itself could not be fetched). Also April 2, 2025: source-of-income protection for landlords with 5+ units (secondary). Tenant must give forwarding address within 4 days of move-out (554.611).
- Deductions: unpaid rent and damage beyond normal wear and tear, itemised in writing. Cleaning and repainting after ordinary use are normal wear in most states.
- Deadline: the 30-day clock usually starts when the tenant moves out and, in many states, when a forwarding address is provided. Missing it typically forfeits the landlord’s right to keep any of the deposit and can add statutory damages.
- Pets: Michigan treats any money held to secure the lease as part of the 'security deposit' (MCL 554.601 definition), so a pet deposit counts toward the 1.5-month cap. Definition section not re-read this session; treat the pet point as UNVERIFIED.
- Interest: none required under state law. Cities in some no-interest states have their own ordinances, so check the municipal code where you rent.
Move-out checklist
- Give written notice of the move-out date and a forwarding address; many deadlines only start when the landlord has the address.
- Photograph every room after cleaning, with a timestamp. Request a joint inspection where the state allows one.
- If the deadline passes, send a written demand citing MCL 554.602 (cap); MCL 554.609 (30-day itemized list); MCL 554.613 (double damages). Small-claims court handles deposit disputes in every state and most cap the claim well above a typical deposit.
Related Michigan rules
- Late fees: No statute caps late fees or sets a grace period; fees must be in the written lease and are subject to common-law reasonableness (courts generally accept roughly 5-10%; secondary sources only). Late fee calculator.
- Notice to end a tenancy: Estate at will (month-to-month): either party may terminate by giving 1 month's notice (MCL 554.134(1)). Notice calculator.
- All rules on one page: Michigan landlord and tenant law.
Frequently asked questions
How much can a landlord charge for a security deposit in Michigan?
1.5 months' rent. Statute text read verbatim on FindLaw mirror (current as of Jan 1, 2025); legislature.mi.gov refused connections from this environment. 554.602: deposit 'shall not exceed 1 1/2 months' rent.' 554.609: itemized list mailed within 30 days after termination of occupancy, with required 12-point boldface 7-day response notice. No statutory interest on deposits (deposit must be held in a regulated financial institution or secured by a surety bond, 554.604). 2024-2026 change: 2026 PA 102, signed Sept 21, 2026 and effective immediately, amends MCL 554.609 to allow electronic return of the deposit (direct deposit, electronic transfer, mobile payment app) within 10 days after mailing the notice of damages (secondary source: Tilchin & Hall blog via search summary; article itself could not be fetched). Also April 2, 2025: source-of-income protection for landlords with 5+ units (secondary). Tenant must give forwarding address within 4 days of move-out (554.611).
How long does a landlord have to return a security deposit in Michigan?
Within 30 days after termination of occupancy the landlord must mail an itemized list of damages plus a check/money order for the balance (or return the full deposit). The statute is MCL 554.602 (cap); MCL 554.609 (30-day itemized list); MCL 554.613 (double damages).
Does a Michigan landlord have to pay interest on the security deposit?
No. Michigan law does not require interest on residential security deposits.
Are pet deposits limited in Michigan?
Michigan treats any money held to secure the lease as part of the 'security deposit' (MCL 554.601 definition), so a pet deposit counts toward the 1.5-month cap. Definition section not re-read this session; treat the pet point as UNVERIFIED.