How much can a landlord charge for a security deposit in Michigan?

1.5 months' rent — Any refundable fee or prepaid rent beyond the first rental period (e.g. 'last month's rent') counts toward the cap as part of the security deposit.

How long does a landlord have to return a security deposit in Michigan?

30 days. The clock runs from termination of occupancy, and the landlord must either return the deposit or mail a notice of damages with an itemized list of the damages claimed. The balance goes with the notice as a check or money order, or, since September 21, 2026, the landlord may instead send it by direct deposit or electronic transfer to the tenant's bank account or to an internet or mobile payment account or application; a landlord who pays that way sends no check with the notice and must get the money into the tenant's account within 10 days after mailing the notice. The tenant must give a written forwarding address within 4 days of moving out.

What happens if a landlord does not return the deposit on time in Michigan?

A landlord who holds on to a disputed portion of the deposit without suing for a money judgment within 45 days of termination of occupancy waives all claimed damages and owes the tenant double the amount retained, where no exception applies (MCL 554.613(2)).

Do landlords have to pay interest on security deposits in Michigan?

No — Michigan does not require interest on the security deposit to be paid to the tenant.

What are the security deposit rules in Michigan?

Verified October 1, 2026 All Michigan topics →

Michigan caps security deposits at one and a half months' rent, and a landlord must return the deposit or mail an itemized damage list with payment of the balance not claimed for damages within 30 days of move-out.

Cited to MCL 554.602 and 9 more cited sources · Verified October 1, 2026

Since September 21, 2026 the balance may be sent by direct deposit or electronic transfer instead of a check or money order, and money sent that way must reach the tenant's account within 10 days after the damage notice is mailed. Deposits must be held in a regulated financial institution or secured by a bond filed with the state, and within 14 days of move-in the landlord must give the tenant written notice of where the deposit is held. Tenants must provide a forwarding address within four days of leaving. If a tenant disputes deductions, the landlord must sue within 45 days or waive the claim entirely — and a landlord who wrongly retains the deposit is liable for double the amount retained.

Michigan security deposits at a glance

Maximum deposit	1.5 months' rent — Any refundable fee or prepaid rent beyond the first rental period (e.g. 'last month's rent') counts toward the cap as part of the security deposit.
Return deadline	30 days
Deadline conditions	The clock runs from termination of occupancy, and the landlord must either return the deposit or mail a notice of damages with an itemized list of the damages claimed. The balance goes with the notice as a check or money order, or, since September 21, 2026, the landlord may instead send it by direct deposit or electronic transfer to the tenant's bank account or to an internet or mobile payment account or application; a landlord who pays that way sends no check with the notice and must get the money into the tenant's account within 10 days after mailing the notice. The tenant must give a written forwarding address within 4 days of moving out. The 30 days run from termination of occupancy. Failure to give the forwarding address relieves the landlord of the notice-of-damages duty, but not the tenant's underlying claim to the deposit.
Itemization required	Yes
Itemization rules	Itemized list of claimed damages with estimated repair cost for each item, mailed within 30 days and accompanied by a check or money order for the difference, or, where the landlord sends the difference by direct deposit or electronic transfer instead, with the money deposited in the tenant's account within 10 days after the notice is mailed. The notice must include the statutory 7-day-response statement in 12-point boldface at least 4 points larger than the body. Damages claimed on a termination checklist from before this tenancy cannot be re-claimed (MCL 554.609).
Separate account required	Yes
Interest owed to tenant	No
Account & interest rules	Not addressed by statute
Pet deposits	A pet deposit counts inside the general deposit cap and has no figure of its own. The pet-deposit rule, pet rent and fees, and the assistance-animal rules are on the pets and assistance animals page.
Non-refundable fees allowed	Not addressed by statute
Penalty for violation	A landlord who holds on to a disputed portion of the deposit without suing for a money judgment within 45 days of termination of occupancy waives all claimed damages and owes the tenant double the amount retained, where no exception applies (MCL 554.613(2)).
Tenant forwarding-address duty	Written forwarding address within 4 days of termination of occupancy (MCL 554.611).

Cite this page: "Landlord Atlas, Michigan Security Deposit Laws (verified October 1, 2026), landlordatlas.com/laws/security-deposits/michigan/" — free to cite and quote with a link (how these records are verified). Everything above is cited in the citations section below.

Generate a Michigan security-deposit return letter — free, no signup, built on the same verified Michigan law as this page.

Editable Michigan deposit kit — the deposit disposition letter, the move-in receipt with the custody and interest statements, a deposits-held register with the return deadline computed, and the rules fact sheet built on the verified Michigan rules on this page, in Word, fillable PDF and Excel.

Notes and caveats

These rules cannot be waived by lease — Michigan's deposit rules come from the Landlord-Tenant Relationships Act, MCL 554.601 et seq., and MCL 554.606 makes their requirements non-waivable.
The 2024 source-of-income acts did not change deposit mechanics — Three 2024 acts that took effect April 2, 2025 amended the act: 2024 PA 179 added the source-of-income definition and title language, 2024 PA 178 added the source-of-income protections in MCL 554.601c, and 2024 PA 199 added the civil action in MCL 554.601d. None of them amended the deposit sections, MCL 554.602 to 554.616.
The 14-day notice has required contents — A landlord who requires a security deposit must give the tenant, no later than 14 days after the tenant takes possession, a written instrument stating the landlord's name and address for receiving communications under the act, the name and address of the financial institution or surety holding the deposit, and the tenant's duty to give a written forwarding address within 4 days after moving out. That instrument must carry the statutory warning about the forwarding-address duty in 12-point boldface type at least 4 points larger than the body of the notice or the lease. A landlord who leaves the information out cannot rely on the tenant's failure to give a forwarding address (MCL 554.603).
Returning the balance electronically — Since September 21, 2026, a landlord may send the deposit balance that goes with a notice of damages by direct deposit or electronic transfer to the tenant's bank account, or to an internet or mobile payment account or application, instead of enclosing a check or money order. A landlord who uses that route must deposit the money in the tenant's account within 10 days after mailing the notice of damages. The 30-day deadline for mailing the notice and the itemized list are unchanged, and a check or money order remains available. The same act updated the statement the notice must carry, which now reads: "You must respond to this notice by mail within 7 days after receipt of the notice of damages, otherwise you will forfeit the amount claimed for damages." (MCL 554.609(2)–(4), as amended by 2026 Public Act 102).
The statute says 'regulated financial institution', never 'separate account' — The yes on the separate-account line rests on MCL 554.604(1): the security deposit must be deposited in a regulated financial institution. The section does not use the word separate and does not bar keeping deposits in an account that holds other money. A landlord who files a cash or surety bond with the Secretary of State, securing the deposits in full up to $50,000 and 25% of any amount above $50,000, may use the money for any purpose.

Common questions: Michigan security deposits

Each answer is the verified value from the table above, restated as a direct answer. Free to quote with a link to this page.

How much can a landlord charge for a security deposit in Michigan?: 1.5 months' rent — Any refundable fee or prepaid rent beyond the first rental period (e.g. 'last month's rent') counts toward the cap as part of the security deposit.
How long does a landlord have to return a security deposit in Michigan?: 30 days. The clock runs from termination of occupancy, and the landlord must either return the deposit or mail a notice of damages with an itemized list of the damages claimed. The balance goes with the notice as a check or money order, or, since September 21, 2026, the landlord may instead send it by direct deposit or electronic transfer to the tenant's bank account or to an internet or mobile payment account or application; a landlord who pays that way sends no check with the notice and must get the money into the tenant's account within 10 days after mailing the notice. The tenant must give a written forwarding address within 4 days of moving out.
What happens if a landlord does not return the deposit on time in Michigan?: A landlord who holds on to a disputed portion of the deposit without suing for a money judgment within 45 days of termination of occupancy waives all claimed damages and owes the tenant double the amount retained, where no exception applies (MCL 554.613(2)).
Do landlords have to pay interest on security deposits in Michigan?: No — Michigan does not require interest on the security deposit to be paid to the tenant.
Can a landlord charge a non-refundable fee in Michigan?: Not addressed by statute.

Citations

MCL 554.602 (verified 2026) Official source
MCL 554.603 (verified 2026) Official source
MCL 554.604 · (1) (verified 2026) Official source
MCL 554.609 · (1)–(4) (verified 2026) Official source
MCL 554.611 (verified 2026) Official source
MCL 554.613 · (1)-(2) (verified 2026) Official source
2026 PA 102 (amending MCL 554.609) · Sec. 9(3) (verified 2026) Official source
MCL 37.1102 · (2) (verified 2026) Official source
MCL 37.1503 (verified 2026) Official source
MCL 750.502c · (11), (14) (verified 2026) Official source

How this record was verified: Web verification against legislature.mi.gov statute text (MCL 554.602, 554.604, 554.605, 554.607, 554.609, 554.613) and the Michigan Judicial Institute Landlord-Tenant Benchbook (courts.michigan.gov) for 554.611, 554.134, 554.633 context. October 1, 2026: every section of the Landlord and Tenant Relationships Act (MCL 554.601 to 554.616), MCL 554.134, 554.139, 554.633 and 123.411, the summary proceedings chapter (MCL 600.5701 to 600.5759), MCL 600.2918 and MCL 8.6 were read again on legislature.mi.gov, which stated the Michigan Compiled Laws complete through Public Act 103 of 2026. 2026 Public Acts 102 and 103 are the only acts of 2025 or 2026 that amended a section these answers rest on, and both are stated on these pages. MCR 4.201 was read in the Michigan Court Rules published on courts.michigan.gov (updated July 31, 2026; the rule was last amended effective May 1, 2024).