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Michigan Security Deposit Law

Michigan rules on security deposits for renters and landlords, with the statute or official page behind each answer. Last verified: 2026-10-23.

Short answer: 1.5 months' rent MCL 554.602

The rules in Michigan

Security deposit limit1.5 months' rent
Security deposit 'shall not exceed 1 1/2 months' rent.' A 'security deposit' includes any refundable fee or deposit and any prepaid rent other than the first month's rent (MCL 554.601(d), per the Legislature's Practical Guide, Rev. 3/2026). Landlord must give a written notice within 14 days after the tenant takes possession (landlord's name/address, where the deposit is held or bond info, and the 4-day forwarding-address warning) or the tenant is relieved of the forwarding-address duty (MCL 554.603).
Source: MCL 554.602
Deposit return deadline30 days after the tenant's occupancy ends: landlord must mail an itemized notice of damages with the balance, or return the full deposit. If the landlord wants to keep any disputed amount it must sue within 45 days after termination of occupancy.
Tenant must give a written forwarding address within 4 days after moving out; if not, landlord is relieved of the notice-of-damages duty but the tenant's claim to the deposit is preserved (MCL 554.611). Failure to send the notice within 30 days is treated as the landlord's agreement that no damages are due, and the full deposit must be remitted immediately (MCL 554.610). NEW: 2026 PA 102 (SB 22 of 2025, immediate effect Sept. 21, 2026) amended MCL 554.609 to let the landlord send the balance by direct deposit/electronic transfer to a bank account or internet/mobile payment account or app instead of a check or money order; the electronic deposit must be made within 10 days after mailing the notice of damages.
Itemized deductionsItemized notice of damages, mailed within 30 days after occupancy ends, listing each claimed damage, the estimated cost of repair for each item, and the amounts and bases for the charges, plus payment of any balance. Must include a bold notice (12-point boldface, at least 4 points larger than body text) that the tenant must respond by mail within 7 days or forfeit the amount claimed.
Tenant has 7 days after receipt to respond by ordinary mail, stating in detail agreement or disagreement with each item (MCL 554.612). Landlord may not charge damages already recorded on a prior tenant's termination inventory checklist. Move-in and move-out inventory checklists are mandatory where a deposit is required; tenant gets 2 blank checklists and returns one within 7 days of possession (MCL 554.608).
Interest on depositsNo statutory interest requirement
The act contains no interest-on-deposit requirement. Deposits must be kept in a regulated financial institution, unless the landlord files a cash or surety bond with the Secretary of State (covering all deposits up to $50,000 plus 25% of any amount above $50,000), in which case the landlord may use the money for any purpose.
Source: MCL 554.604
Penalty for withholdingDouble the amount of the deposit retained, and the landlord waives all claimed damages, if the landlord fails to comply fully with MCL 554.613
Generally the landlord may not keep any disputed part of the deposit without first obtaining a money judgment (or filing proof of inability to serve the tenant), except where the tenant gave no forwarding address, did not respond to the notice of damages, agreed in writing, or the claim is solely for unpaid rent for a period the tenant had possession (MCL 554.613(1)).

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Michigan vs. neighboring states

Security Deposits: Michigan vs. neighboring states
StateSecurity deposit limitDeposit return deadlineItemized deductions
Michigan1.5 months' rent
MCL 554.602
30 days after the tenant's occupancy ends: landlord must mail an itemized notice of damages with the balance, or return the full deposit. If the landlord wants to keep any disputed amount it must sue within 45 days after termination of occupancy.
MCL 554.609; MCL 554.610; MCL 554.613
Itemized notice of damages, mailed within 30 days after occupancy ends, listing each claimed damage, the estimated cost of repair for each item, and the amounts and bases for the charges, plus payment of any balance. Must include a bold notice (12-point boldface, at least 4 points larger than body text) that the tenant must respond by mail within 7 days or forfeit the amount claimed.
MCL 554.609; MCL 554.612; MCL 554.608
IndianaNo statutory cap on security deposits.
IC 32-31-3
Within 45 days after termination of the rental agreement and delivery of possession, the landlord must return the deposit minus itemized deductions. The landlord is not liable until the tenant provides a written forwarding mailing address.
IC 32-31-3-12, 32-31-3-14
Within 45 days after termination of occupancy, landlord must mail an itemized list of damages with the estimated cost of repair for each item, plus a check or money order for the balance. Deposits may be used only for actual damage beyond ordinary wear and tear, unpaid rent (including rent due for early termination), the last rent period if agreed in writing, and unpaid utility/sewer charges owed by the tenant.
IC 32-31-3-13, 32-31-3-14
OhioNo statutory cap
Ohio Rev. Code § 5321.16
Within 30 days after the rental agreement ends and possession is delivered, the landlord must send the itemized written notice of deductions together with the amount due.
Ohio Rev. Code § 5321.16(B)
Deductions (unpaid rent and damages from the tenant's noncompliance with § 5321.05 or the rental agreement) must be itemized and identified in a written notice delivered within 30 days.
Ohio Rev. Code § 5321.16(B)
WisconsinNo statutory cap on the amount of a security deposit.
Wis. Admin. Code ATCP 134.06; Wis. Stat. § 704.28
21 days. If the tenant leaves on the termination date, the clock starts on that date. If the tenant leaves or is evicted early, it starts on the termination date, or when a new tenancy begins if the landlord re-rents first. If the tenant leaves after the termination date, it starts when the landlord learns the tenant has left or been removed.
Wis. Stat. § 704.28(4); Wis. Admin. Code ATCP 134.06(2)
If anything is withheld, the landlord must give a written statement describing each item of damage or claim and the amount withheld for it, within the same 21-day deadline and by the same delivery method as the deposit. Normal wear and tear may never be deducted. Deductions not listed in § 704.28(1) are allowed only through a separate 'NONSTANDARD RENTAL PROVISIONS' document.
Wis. Admin. Code ATCP 134.06(3)-(4); Wis. Stat. § 704.28(1)-(2)

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Michigan Security Deposit Law FAQ

How much can a landlord charge for a security deposit in Michigan?
1.5 months' rent (MCL 554.602)
How long does a landlord have to return a security deposit in Michigan?
30 days after the tenant's occupancy ends: landlord must mail an itemized notice of damages with the balance, or return the full deposit. If the landlord wants to keep any disputed amount it must sue within 45 days after termination of occupancy. (MCL 554.609; MCL 554.610; MCL 554.613)
Does a landlord in Michigan have to give an itemized list of deposit deductions?
Itemized notice of damages, mailed within 30 days after occupancy ends, listing each claimed damage, the estimated cost of repair for each item, and the amounts and bases for the charges, plus payment of any balance. Must include a bold notice (12-point boldface, at least 4 points larger than body text) that the tenant must respond by mail within 7 days or forfeit the amount claimed. (MCL 554.609; MCL 554.612; MCL 554.608)
Does a landlord have to pay interest on a security deposit in Michigan?
No statutory interest requirement (MCL 554.604)
What happens if a landlord in Michigan wrongfully keeps a security deposit?
Double the amount of the deposit retained, and the landlord waives all claimed damages, if the landlord fails to comply fully with MCL 554.613 (MCL 554.613(2); MCL 554.610)

General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.