Michigan Security Deposit Rules: Caps, Lawful Deductions & Penalties (2026)

How much a landlord can charge, and which deductions are actually legal

At a glance

Who this covers — and who it does not

This page covers how much a landlord may charge in Michigan, and which deductions from a residential deposit are lawful. It assumes the tenancy has ended and the question is what may be withheld.

It does not cover:

How much the landlord may charge in the first place

One and one-half months' rent (MCL 554.602). A landlord may require a security deposit for each rental unit, but it shall not exceed 1 1/2 months' rent.

Caps frequently carry exceptions — smaller landlords, furnished units, or pets are treated differently in most states. Read the provision itself rather than relying on the headline figure.

Which deductions the statute permits

Claimed deductionPermitted in Michigan
Damages claimed on an itemized notice with estimated repair costsPermitted, if substantiated
Accrued and unpaid rent (MCL 554.613(1)(d))Permitted, if substantiated
Damage beyond ordinary wear and tear (subject to the notice and judgment requirements)Permitted, if substantiated

Which deductions the statute does not permit

Claimed deductionPermitted in Michigan
Any damage not itemized in a timely notice of damagesNot permitted
Any retention without first obtaining a money judgment or a qualifying exceptionNot permitted
Damages claimed on a previous termination inventory checklist prior to occupancyNot permitted
Any amount retained after failure to comply with the notice requirements (waiver + double damages)Not permitted

Whether a specific charge is lawful depends on the facts — how old the damage is, whether the lease addressed it, and whether the landlord can document the cost. A charge being in the "permitted" column does not make it automatically collectable.

Who has to prove what

The landlord must itemize each claimed damage with its estimated repair cost and basis. Failure to fully comply with the notice requirements waives all claimed damages and subjects the landlord to double the amount retained. To retain any portion, the landlord must generally first obtain a money judgment (§554.613(1)).

In Michigan the burden sits with the landlord. This matters strategically: if the burden is theirs, your task is to request the documentation rather than to prove the deduction wrong. MCL 554.609(1), 554.613 ↗

What you can claim if deductions are unlawful

Tools that exist in Michigan

Double the amount retained, not the full deposit

On failure to fully comply, the landlord waives all claimed damages and is liable for double the amount of the security deposit retained — keyed to the disputed portion, not the full deposit.

MCL 554.613(2) ↗

A money judgment is normally required to retain

Michigan is unusually strict: the landlord generally cannot retain any portion of the deposit for claimed damages unless it first obtains a money judgment, files proof of inability to serve, or fits a narrow exception (no forwarding address, no 7-day response, written agreement, or pure unpaid rent).

MCL 554.613(1) ↗

30 days for the notice, 45 days to sue

The landlord must mail the itemized notice within 30 days, but has 45 days after termination to either commence an action for a money judgment or return the balance. These are two distinct clocks.

MCL 554.613(1) ↗

Statute of limitations: 6 years on a written contract

A deposit claim under a written lease is an action on a written contract, subject to a 6-year limitations period under MCL 600.5807(8).

MCL 600.5807(8) ↗

Common landlord defences and how to answer them

““I kept the deposit for damages.””

Michigan requires an itemized notice of damages with estimated repair costs mailed within 30 days. Without a money judgment or a qualifying exception, you may not retain any portion. Provide the itemized notice, or return my deposit.

MCL 554.609(1), 554.613(1)

““You did not respond to my notice.””

The notice must state that I had 7 days to respond (2026 Act 102). I responded in writing within that period, preserving my right to dispute the claimed damages.

MCL 554.609(4)

““I never got a forwarding address.””

I provided a forwarding address within 4 days of vacating as required by §554.611. Absent that, the notice and refund obligations still attach.

MCL 554.611

Where sources disagree

Some widely circulated summaries of Michigan deposit law state things the statute does not say. We list the disagreements rather than picking a side silently.

Penalty basis (full deposit vs amount retained)

SourceWhat it says
Some multi-state checklists2x the deposit
MCL 554.613(2)double the amount of the security deposit retained

What we follow: 2x the amount retained

The statute says "double the amount of the security deposit retained," keyed to the disputed portion, not the full deposit.

Return deadline (30 vs 45 days)

SourceWhat it says
Some summaries45 days
MCL 554.609(1) and 554.613(1)30 days (notice) + 45 days (landlord to sue)

What we follow: 30 days for the notice

The 30-day clock is the tenant-facing return/notice deadline; the 45-day clock is the landlord's separate deadline to sue. Reporting "45 days" alone misstates the return obligation.

Sources and how to verify them

Every figure on this page comes from the official text, not from a summary. The table below lists each provision used and the date it was last checked against the source.

StatuteLast verifiedSource
MCL 554.609(1) 2026-10-15 official text ↗
MCL 554.613(2) 2026-10-15 official text ↗
MCL 554.609(1), 554.613 2026-10-15 official text ↗
MCL 554.613(1) 2026-10-15 official text ↗
MCL 600.5807(8) 2026-10-15 official text ↗

Primary reference: MCL 554.609. Where the official text and a secondary summary disagree, this page follows the official text and says so. Amendments are recorded on the site changelog.

When you need a lawyer instead of a tool

A self-help letter is the right starting point for a single deposit you can document. Get legal help if:

Local legal aid organisations and tenant unions offer free help for qualifying cases. They are independent of this site — we list them because they are the right place to go, not because they link here.

More Michigan guides

Michigan Security Deposit Return

→ All Michigan tenant rights topics

Common questions

What can a landlord not deduct from my Michigan deposit?

The statute does not permit deductions for: any damage not itemized in a timely notice of damages; any retention without first obtaining a money judgment or a qualifying exception; damages claimed on a previous termination inventory checklist prior to occupancy; any amount retained after failure to comply with the notice requirements (waiver + double damages).

Who has to prove that a deduction was justified in Michigan?

The landlord. The landlord must itemize each claimed damage with its estimated repair cost and basis. Failure to fully comply with the notice requirements waives all claimed damages and subjects the landlord to double the amount retained. To retain any portion, the landlord must generally first obtain a money judgment (§554.613(1)).

How much can a landlord charge as a deposit in Michigan?

One and one-half months' rent (MCL 554.602). A landlord may require a security deposit for each rental unit, but it shall not exceed 1 1/2 months' rent.

Is ordinary wear and tear deductible from my Michigan deposit?

No. The statute excludes ordinary wear and tear.