| Quick Facts | Answer |
| Acceptable Deductions | Unpaid rent and utilities
Costs of damage |
| Return Deadline | 30 days |
| Itemized Deductions | Required |
| Penalty for Late Return | 2x Amount Wrongfully Withheld |
For laws on security deposit collections and holdings in Michigan, click here.
Some cities and counties may have regulations which are different from those presented here. Always check local laws.
Security Deposit Deductions in Michigan
In Michigan, the following can be deducted from security deposits:
- Unpaid rent and utilities
- Costs of damage excluding normal wear and tear
Most states, such as Michigan, do not have a legal limit on how much a landlord can charge for damages except that the charges must be reasonable and reflect actual landlord expenses.
If the cost of the damages exceeds the amount of the security deposit, landlords are entitled to seek additional damages from the former tenant.
What is Considered Normal Wear and Tear in Michigan?
“Normal wear and tear” is damage and deterioration to a property that happens over time using an ordinary and reasonable level of care. Normal wear and tear includes things like:
- Gently worn carpets
- Lightly scratched glass
- Faded paint and flooring
- Lightly dirtied grout
- Loose door handles
- Stained bath fixtures
“Damage” is described by Michigan law as deterioration which results from “conduct not reasonably expected in the normal course of habitation of a dwelling.” Examples include:
- Heavily stained, burned, or torn carpets
- Broken tiles or windows
- Holes in the wall
- Missing fixtures
Can the Landlord Charge for Replacing the Carpet in Michigan?
Landlords in Michigan can charge for replacing the carpet if it is damaged beyond normal wear and tear.
A carpet that is slightly discolored or gently worn will be considered normal wear and tear. A carpet with visible stains, major discoloration and rips will be considered excessively damaged.
Can the Landlord Charge for Nail Holes in Michigan?
Illinois landlords can charge a tenant for nail holes if they damage the walls in a way that doesn’t demonstrate an ordinary and reasonable level of care.
Tenants have the right to use the walls within their unit in a reasonable way. This includes inserting small nails or thumbtacks to hang posters or pictures.
However, large holes from drilling, multiple nail holes, large nail holes, and holes made for hanging heavier things may be considered damage, and thus chargeable to the tenant.
Can the Landlord Charge a Cleaning Fee in Michigan?
Landlords in Michigan cannot make deductions from the security deposit for cleaning unless the tenant causes damage that can only be repaired by cleaning, such as wine stains on the carpet.
The law does not prevent landlords from charging a non-refundable cleaning fee separate from the security deposit.
Can the Landlord Charge for Painting in Michigan?
Michigan landlords can charge for painting, except for normal wear and tear. For example, a landlord might be able to charge for:
- Damage to the paint beyond normal wear and tear
- Tenant repainting without the landlord’s consent
- Tenant repainting with consent, but not doing the work to a professional standard
Normal paint wear includes:
- Minor scrapes from daily use
- Fading due to sunlight
- Minor cracks in the original paint.
Landlords can charge for repainting if the damage is not the result of ordinary care. This includes stains, large or deep scratches, and water damage.
Security Deposit Returns in Michigan
Landlords must return a security deposit as a check or money order by regular mail to the tenant’s forwarding address with an itemized list of damages (if there are deductions) no later than 30 days after the tenant vacates the rental unit.
How Long Do Landlords Have to Return Security Deposits in Michigan?
Michigan landlords have 30 days after the tenant vacates the rental unit to return the security deposit.
Do Landlords Owe Interest on Security Deposits in Michigan?
Michigan law does not require landlords to provide interest on held security deposits. If the security deposit is placed in an account that gains interest, it belongs to the landlord unless stated otherwise in the lease agreement.
How Do Landlords Give Notice in Michigan?
If deductions are to be made from the security deposit, an itemized list of damages must be sent by mail to the tenant’s forwarding address. The tenant must send a written response by mail within seven days of receiving the itemized list, indicating whether they agree or disagree with the charges.
If the tenant disagrees with the charges, the landlord must either:
- Return the disputed portion of the security deposit to the tenant
- File an action in court for a money judgment within 45 days after the tenant vacates the rental unit
However, the landlord is not required to file a court case to retain a portion of the security deposit if:
- The tenant failed to provide a forwarding address (unless the landlord failed to notify them of this responsibility)
- The tenant failed to respond to the notice of damages within seven days
- The tenant agreed in writing to the charges
- The amount withheld is used entirely to cover unpaid rent
The landlord’s written notice must include the following language word-for-word in 12-point boldface type at least 4 points larger than the body of the notice:
You must respond to this notice by mail within 7 days after receipt of same, otherwise you will forfeit the amount claimed for damages.
Can a Security Deposit Be Used for Last Month’s Rent in Michigan?
Michigan law does not forbid the security deposit from being used for any outstanding rent. If a tenant demands the use of the security deposit instead of paying rent, the landlord can begin the eviction process during the last month of the tenancy.
Security Deposit Disputes in Michigan
If landlords do not return the security deposit or provide an itemized statement of damages (if any) within the required time period, tenants can file a claim in court for up to twice the amount of the deposit wrongfully withheld.
Tenants can also take legal action against a landlord for failure to return any disputed portion of the security deposit if a court case for a money judgment is not filed in time.
How Can Tenants File a Dispute for a Security Deposit in Michigan?
If a landlord fails to perform their obligations regarding a security deposit, the tenant can file a dispute in the small claims division of District Court if the amount of damages is less than $7,000. If the amount is greater, the tenant must file a civil case in the District Court.
A small claims case regarding the return of a security deposit must be filed within six years. Cases are filed in the county where the defendant lives or does business.
An attorney is not required or allowed, except for attorneys representing themselves. Filing fees are $30 to $70, depending on the amount sought in damages.
Sources
- 1 Mich. Comp. Laws § 554.607
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A security deposit may be used only for the following purposes:
(a) Reimburse the landlord for actual damages to the rental unit or any ancillary facility that are the direct result of conduct not reasonably expected in the normal course of habitation of a dwelling.
(b) Pay the landlord for all rent in arrearage under the rental agreement, rent due for premature termination of the rental agreement by the tenant and for utility bills not paid by the tenant.
Source Link - 2 Smolen v. Dahlmann Apartments, Ltd., 127 Mich. App. 108, 118 (Mich. Ct. App. 1983)
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A landlord may not claim cleaning expenses against a tenant’s security deposit. The tenant is entitled to that portion of his security deposit kept by the landlord to defer the expense of cleaning the premises. Thus, we hold that a landlord who retains part of a tenant’s security deposit for cleaning violates the MCPA.
Source Link - 3 Mich. Comp. Laws § 554.609
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In case of damage to the rental unit or other obligation against the security deposit, the landlord shall mail to the tenant, within 30 days after the termination of occupancy, an itemized list of damages claimed for which the security deposit may be used as provided in section 7, including the estimated cost of repair of each property damaged item and the amounts and bases on which he intends to assess the tenant. The list shall be accompanied by a check or money order for the difference between the damages claimed and the amount of the security deposit held by the landlord and shall not include any damages that were claimed on a previous termination inventory checklist prior to the tenant’s occupancy of the rental unit. The notice of damages shall include the following statement in 12 point boldface type which shall be at least 4 points larger than the body of the notice: “You must respond to this notice by mail within 7 days after receipt of same, otherwise you will forfeit the amount claimed for damages.”.
Source Link - 4 Mich. Comp. Laws § 554.613
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(1) Within 45 days after termination of the occupancy and not thereafter the landlord may commence an action in a court of competent jurisdiction for a money judgment for damages which he has claimed or in lieu thereof return the balance of the security deposit held by him to the tenant or any amount mutually agreed upon in writing by the parties. A landlord shall not be entitled to retain any portion of a security deposit for damages claimed unless he has first obtained a money judgment for the disputed amount or filed with the court satisfactory proof of an inability to obtain service on the tenant or unless:
(a) The tenant has failed to provide a forwarding address as required by section 11.
(b) The tenant has failed to respond to the notice of damages as required by section 12.
(c) The parties have agreed in writing to the disposition of the balance of the deposit claimed by the landlord.
(d) The amount claimed is entirely based upon accrued and unpaid rent equal to the actual rent for any full rental period or portion thereof during which the tenant has had actual or constructive possession of the premises.
(2) This section does not prejudice a landlord’s right to retain any security deposit funds as satisfaction or partial satisfaction of a money judgment obtained pursuant to summary proceedings filed pursuant to chapter 57 of Act No. 236 of the Public Acts of 1961, as amended, being sections 600.5701 to 600.5759 of the Compiled Laws of 1948 or other proceedings at law. Failure of the landlord to comply fully with this section constitutes waiver of all claimed damages and makes him liable to the tenant for double the amount of the security deposit retained.
Source Link - 5 Mich. Comp. Laws § 600.8401
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A small claims division is created in each district as a division of the district court. A judge of the district court shall sit as judge of the small claims division. The jurisdiction of the small claims division shall be confined to cases for the recovery of money in which the amount claimed does not exceed the following:
(a) Beginning September 1, 2012, $5,000.00.
(b) Beginning January 1, 2015, $5,500.00.
(c) Beginning January 1, 2018, $6,000.00.
(d) Beginning January 1, 2021, $6,500.00
(e) Beginning January 1, 2024, $7,000.00.
Source Link - 6 Mich. Comp. Laws § 600.8301
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(1) The district court has exclusive jurisdiction in civil actions when the amount in controversy does not exceed $25,000.00.
(2) The district court has jurisdiction over civil infraction actions.
Source Link - 7 Mich. Comp. Laws § 600.5807(9)
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The period of limitations is 6 years for an action to recover damages or money due for breach of contract that is not described in subsections (2) to (8).
Source Link - 8 Mich. Comp. Laws § 554.615
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The attorney general or any affected individual may bring an action to enforce this act in a court of competent jurisdiction in the county where the defendant resides or does business.
Source Link - 9 Mich. Comp. Laws § 600.8408(1)
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An attorney at law, except on the attorney’s own behalf, a collection agency or agent or employee of a collection agency, or a person other than the plaintiff and defendant, except as is otherwise provided in this chapter, shall not take part in the filing, prosecution, or defense of litigation in the small claims division.
Source Link
