Michigan Security Deposit Law: A 2026 Landlord's Guide
How much can you charge in Michigan?
1.5 months' rent. Inventory checklists at move-in/move-out are mandatory.
Returning the deposit: the 30 days deadline
After the tenancy ends, Michigan gives you 30 days to return the deposit. Itemized damage list required; tenant has 7 days to respond with forwarding address rules. Blowing the deadline is the single most common way landlords lose deposit disputes — courts read these statutes strictly, and in many states a late or missing itemization forfeits your right to keep anything.
What you can deduct
- Unpaid rent and other amounts the lease authorizes
- Damage beyond normal wear and tear — holes in walls, broken fixtures, pet damage
- Never normal wear and tear — faded paint, carpet worn by ordinary use, minor scuffs
The dispute is almost never about the rule — it's about the evidence. Date-stamped move-in and move-out photos plus an itemized statement with receipts is what wins in small-claims court.
Interest and holding requirements
Michigan has no general statewide requirement to pay interest on residential security deposits (local ordinances can differ — check your city). Some states in this position still regulate where deposits are held; see Mich. Comp. Laws § 554.602–.616 for any account or disclosure rules that apply to you.
Track every deposit — and settle it correctly when the tenant leaves
LandlordPro tracks every deposit you hold, carries it across lease renewals, walks you through the return-vs-keep settlement with an itemized record, and reminds you of Michigan's deadline. Free to start — up to 4 units.
Start tracking deposits free →Frequently asked questions
How much can a landlord charge for a security deposit in Michigan?
1.5 months' rent is the statutory maximum. See Mich. Comp. Laws § 554.602–.616.
How long does a Michigan landlord have to return a security deposit?
30 days after the tenancy ends, generally with an itemized statement of any deductions. Missing the deadline can forfeit your right to deduct — and in many states triggers statutory damages.
What can a landlord deduct from a deposit in Michigan?
Typically unpaid rent, damage beyond normal wear and tear, and other charges the lease authorizes. Normal wear and tear — faded paint, worn carpet from ordinary use — is never deductible. Documentation (move-in/move-out photos and an itemized list) is what wins disputes.
Handling Michigan deposits with LandlordPro
LandlordPro keeps a ledger of every deposit you hold — who paid it, which lease it secures, and what happened to it. When a tenancy ends, the settlement workflow records what you returned and what you kept (with reasons), generates a tenant-facing settlement statement, and books any kept portion into your income reports correctly. Combined with the Michigan eviction guide and move-in/move-out inspections with photos, you'll have the paper trail that deposit statutes reward.
LandlordPro is a software tool, not a law firm. This page summarizes statutes as of June 2026 for general information; amounts, deadlines, and requirements change. Verify Mich. Comp. Laws § 554.602–.616 or consult a licensed attorney in Michigan before acting.