## Security deposits in Michigan
Most rental disputes end up being about security deposits. Michigan regulates how much landlords can collect, where they hold it, and when they must return it.
### Michigan rules
- **Maximum amount:** 1.5 months rent
- **Return deadline after move-out:** 30 days
## What landlord can deduct
Generally allowed:
- **Past-due rent**
- **Damage beyond ordinary wear and tear**
- **Cleaning costs** (if specified in lease + reasonable)
- **Lease-violation costs**
- **Late fees** (if in lease + reasonable)
Generally NOT allowed:
- **Normal wear and tear** (carpet wear, paint fading, minor scuffs)
- **Pre-existing damage** documented at move-in
- **Routine cleaning** in absence of lease provision
- **Repairs the landlord should have done as part of normal maintenance**
- **Improvements / upgrades**
- **Out-of-state tenant pursuit costs**
## Where landlord must hold the deposit
Many states require:
- **Separate escrow / trust account** (CT, DC, FL, GA, IA, KY, MD, MA, MI, MN, NJ, NH, NY, NC, OK, PA, TN, etc.)
- **Interest on deposit** must be paid to tenant in some states (CT, FL, IL, MA, MN, NJ, NY, etc.)
- **Notice to tenant** of deposit location in some states
## Move-in / move-out inspections
**Best practice (and legal requirement in many states):**
- Move-in inspection with detailed condition report
- Photos of every room
- Both parties sign documenting condition
- Move-out inspection in tenant's presence
- Tenant gets opportunity to fix issues identified
Without a move-in inspection, landlord has hard time proving damage.
## Itemized statement of deductions
Most states require:
- **Written itemized list** of deductions
- **Receipts / estimates** for repairs
- **Sent to tenant within statutory deadline**
- **Forwarding address** required from tenant
Landlord failing to provide itemized statement may forfeit right to deductions entirely (in many states).
## Penalties for landlord violations
Common consequences:
- **Forfeit any deductions** — return full deposit
- **Double / triple damages** in many states
- **Statutory penalties** ($100-$500 per violation)
- **Attorney's fees** to tenant
- **Punitive damages** for bad-faith violations
## Recovering improperly withheld deposits
Tenant options:
1. **Demand letter** to landlord with state law citations
2. **Small claims court** — most deposit disputes
3. **State landlord-tenant court** — formal claim
4. **Tenant's-rights organizations** — legal aid
5. **Class action** if landlord systematically withholds
## Documentation that helps tenants
- **Move-in inspection** photos / report
- **Receipts** for cleaning / repairs done before move-out
- **Photos at move-out**
- **Lease + addenda**
- **Communications with landlord** (saved emails, texts)
- **Forwarding address** in writing to landlord
- **Witnesses** to condition at move-out
## Wear and tear vs damage
**Normal wear and tear (NOT deductible):**
- Minor carpet wear paths
- Paint fading / minor scuffs
- Worn appliance parts
- Minor wear on fixtures
- Worn flooring in high-traffic areas
- Faded curtains / blinds
**Damage (deductible):**
- Burn marks
- Pet stains / odors
- Holes in walls
- Broken fixtures
- Excessive cleaning needed
- Carpet stains beyond normal use
- Water damage from negligence
## Good landlord practices
- Detailed move-in inspection with photos
- Clear lease provisions on cleaning
- Get tenant's forwarding address at move-out
- Detailed itemized accounting
- Send certified mail with tracking
- Reasonable repair estimates
- Don't deduct for wear and tear
## What you should do
If you're a tenant in Michigan with a security deposit dispute: send written demand citing state law, then file in small claims court if not resolved. Most cases are tenant-friendly with good documentation. If you're a landlord: follow procedures carefully — penalties for non-compliance often exceed any legitimate deductions.
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*This guide is general information about Michigan law as of early 2026 and is not legal advice. Security deposit law is detail-specific. Talk to a licensed Michigan landlord-tenant attorney for complex disputes.*
This guide is for general information only and does not constitute legal advice. Laws change and outcomes depend on your specific situation — talk to a licensed attorney before acting on anything you read here.