How do I dispute a security deposit return in Michigan?

Michigan's Truth in Renting Act and Security Deposit Act (MCL §§ 554.601–.616) tightly regulate the deposit process.

1. Deposit Cap

Maximum deposit is 1.5 months' rent (MCL § 554.602).

2. Tenant's 4-Day Forwarding Address Requirement

Within 4 days after termination, the tenant must provide a written forwarding address. Failure to do so means the tenant loses the right to recover the deposit through statutory remedies (§ 554.611). Always send certified mail.

3. Landlord's 30-Day Itemization

Within 30 days of termination, the landlord must mail an itemized list of damages along with any refund check (§ 554.609). The list must include the amount claimed for each item.

4. Landlord's 45-Day Suit Requirement

If the tenant disputes the deductions in writing within 7 days, the landlord has 45 days from termination to commence a court action to retain any portion of the deposit. Failure to sue within 45 days forfeits the landlord's right to any deduction (§ 554.613).

5. Double-Damage Penalty

A landlord who wrongfully retains the deposit is liable for double the amount wrongfully withheld if bad faith is shown (§ 554.613(2)).

6. Allowed vs. Prohibited Deductions

Permitted: unpaid rent, damages beyond reasonable wear and tear, lawful charges from the lease. Prohibited: ordinary wear and tear, routine cleaning, repainting after a long tenancy.

7. District Court & Limitations

Disputes are heard in Michigan district court small claims (up to $7,000) or general civil division. The statute of limitations is 6 years for written contracts (MCL § 600.5807).

This is legal information, not legal advice.