Security deposit return law in Michigan

In Michigan, a landlord must return the security deposit within 30 days (MCL 554.602-554.613 (Landlord and Tenant Relationships Act, Act 348 of 1972)).

Return deadline: 30 days after the tenancy ends
Deposit cap: One and a half months' rent (conditions below)
Itemized list of deductions: Required
If you get it wrong: If the landlord claims damages, the landlord must sue within 45 days of the end of occupancy (unless the tenant agreed to the deductions in writing or another 554.613 condition applies); retaining the deposit without doing so waives all claimed damages and makes the landlord liable for double the amount of the security deposit retained (MCL 554.613).; MCL 554.602-554.613 (Landlord and Tenant Relationships Act, Act 348 of 1972). Verified 2026-08-06.

When the clock starts, and what goes with the money

Within 30 days after termination of occupancy the landlord must mail an itemized list of damages claimed, the estimated cost of repair of each item, and a check or money order for the difference, plus a 12-point boldface notice that the tenant must respond within 7 days or forfeit the amount claimed (MCL 554.609).
Inventory checklists at move-in and move-out are required (554.608).
The tenant must give a written forwarding address within 4 days of moving out; failure relieves the landlord of the damage-notice duty but does not kill the tenant's claim to the deposit (554.611).

How much you can collect

Michigan caps the security deposit at one and a half months' rent (MCL 554.602-554.613 (Landlord and Tenant Relationships Act, Act 348 of 1972)). The conditions attached to that cap matter as much as the number:

Deposit may not exceed one and one-half months' rent (MCL 554.602). No furnished-unit or pet carve-out; a required 'pet deposit' is part of the security deposit and counts against the cap.

What it costs to get this wrong

If the landlord claims damages, the landlord must sue within 45 days of the end of occupancy (unless the tenant agreed to the deductions in writing or another 554.613 condition applies); retaining the deposit without doing so waives all claimed damages and makes the landlord liable for double the amount of the security deposit retained (MCL 554.613).

Holding the deposit

The deposit must be held in a regulated financial institution, unless the landlord deposits cash or a surety bond with the Secretary of State (covering deposits up to $50,000 plus 25% of the excess), which frees the funds for the landlord's use (MCL 554.604).
Within 14 days of the tenant taking possession, the landlord must give written notice of the landlord's name and address, the depository or surety's name and address, and the tenant's 4-day forwarding-address obligation in 12-point boldface (554.603).
No interest is owed to the tenant.

Common questions

How long does a Michigan landlord have to return a security deposit?

30 days, under MCL 554.602-554.613 (Landlord and Tenant Relationships Act, Act 348 of 1972). Within 30 days after termination of occupancy the landlord must mail an itemized list of damages claimed, the estimated cost of repair of each item, and a check or money order for the difference, plus a 12-point boldface notice that the tenant must respond within 7 days or forfeit the amount claimed (MCL 554.609). When the clock starts and what goes back with the money is covered above.

Does Michigan cap the security deposit?

Yes, one and a half months' rent. Deposit may not exceed one and one-half months' rent (MCL 554.602). No furnished-unit or pet carve-out; a required 'pet deposit' is part of the security deposit and counts against the cap.

What happens if a Michigan landlord misses the deadline or withholds wrongly?

Does a Michigan security deposit have to be held a particular way?

The deposit must be held in a regulated financial institution, unless the landlord deposits cash or a surety bond with the Secretary of State (covering deposits up to $50,000 plus 25% of the excess), which frees the funds for the landlord's use (MCL 554.604). The rest is under "Holding the deposit" above.

The deposit paperwork is the part that gets lost. PropManager keeps the deposit on the lease, the move-out itemization with the tenant's file, and the refund in the ledger, so the record exists before a dispute does.

Sources

MCL 554.602-554.613 (Landlord and Tenant Relationships Act, Act 348 of 1972). Source: https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-Act-348-of-1972. Verified 2026-08-06.

General information, not legal advice. Check your own lease and any city or county ordinance before you rely on it.