Michigan Security Deposit Law: Deadlines & Penalties

Michigan landlords have 30 days after the tenant moves out to either return the full security deposit or mail a notice of damages listing each item claimed and its estimated repair cost. The balance must come with the notice by check or money order, or, under a 2026 amendment, by electronic transfer to the tenant's account within 10 days after the notice is mailed. Deductions are limited to actual damage beyond normal living, unpaid rent, rent due for ending the lease early, and unpaid utility bills.

Tenants have duties too. Within 4 days after moving out, you must give the landlord a forwarding address in writing. If you don't, the landlord no longer has to send a notice of damages, although you can still pursue the deposit. When you receive a notice of damages, you have 7 days to respond by mail if you disagree, or you may forfeit the amount claimed.

If the tenant disputes the damages, the landlord generally can't keep the disputed amount unless the landlord files a court action within 45 days after the tenancy ends, or the claim is based entirely on unpaid rent. A landlord who doesn't follow these rules waives the claimed damages and can be ordered to pay double the amount of the deposit retained.