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 an itemized damage list with a check for the undisputed balance. 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 July 7, 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 undisputed balance within 30 days of move-out.

Cited to MCL 554.602 and 5 more Michigan statutes · Verified July 7, 2026

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 an itemized damage list with a check for the undisputed balance. 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, accompanied by payment of the difference, and including the statutory 7-day-response notice in 12-point boldface. Damages claimed on the move-in checklist from a prior tenancy cannot be re-claimed.
Separate account required	Yes
Interest owed to tenant	No
Account & interest rules	Not addressed by statute
Pet deposits	No separate statutory category; refundable pet deposits count toward the 1.5-month cap. Deposits/fees may not be charged for service animals under fair-housing law.
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 July 7, 2026), landlordatlas.com/laws/security-deposits/michigan/" — free to cite and quote with a link (how these records are verified). Every figure above is cited to the Michigan statute in the citations section below.

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

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.
2024 PA 179 did not change deposit mechanics — The act was amended by 2024 PA 179, which added source-of-income protections. Nothing in that amendment changed how deposits work.

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 an itemized damage list with a check for the undisputed balance. 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.

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 (verified 2026) Official source
MCL 554.611 (verified 2026) Official source
MCL 554.613 (1)-(2) (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.