Reference: the security deposit rule in each state and covered city. To settle a deposit, use the free Deposit settlement tool.

Reference

Security deposit rules in Michigan

Michigan: return the deposit within 30 calendar days of the day the tenant vacated. 554.613(1): within 45 days after termination of occupancy the landlord must sue for the disputed damages or return the balance. No retention for disputed damages without a judgment or a listed exception. From 2026-09-21 (2026 PA 102): if the balance is paid by direct deposit or electronic transfer instead of a check with the notice, it must be deposited within 10 days after mailing the notice of damages (start = the notice mailing date, not a tenant demand). Interest: no. Penalty if the rule is not followed (no bad faith needed): 2x the amount withheld. (MCL 554.601-554.616 (Landlord-Tenant Act, 1972 PA 348))

The rule in plain words

Return by: 30 calendar days after the day the tenant vacated.
Deductions allowed: unpaid rent, lease break fee, unpaid utilities, damage beyond wear. Normal wear and tear never. Depreciation: none.
Interest: No.
Penalty: 2x the amount withheld if the rule is not followed (no bad faith needed).
Deposit cap: 1.5 month(s) of rent.

The rule text

In case of damage to the rental unit or other obligation against the security deposit, the landlord shall mail to the tenant, within 30 days after the termination of occupancy, a notice of damages that contains an itemized list of damages claimed for which the security deposit may be used as provided in section 7, including the estimated cost of repair of each damaged property item

MCL 554.609(1). Source: MCL 554.609 Itemized list of damages, read 2026-10-09.

Notes on this rule (2)

Trap: 30 days for the notice, 45 days to sue or return disputed amounts; the tenant has 7 days to respond to the notice.
The clock runs from termination of occupancy (move-out), not lease end.

Worked example

A $2,000.00 deposit; the tenant moved in on June 1, 2023 and out on September 30, 2026. Intended deductions: $300.00 unpaid rent, $150.00 cleaning and a $1,200.00 carpet that was 5 years old.

Return by: October 30, 2026
30 calendar days after the day the tenant vacated.
Allowed deductions: $1,500.00
Of $1,650.00 claimed.
Refund due: $500.00
Interest $0.00.

The draft statement for this example

DRAFT ITEMIZED STATEMENT OF SECURITY DEPOSIT
Rule: MCL 554.601-554.616 (Landlord-Tenant Act, 1972 PA 348) (Michigan)
Move-out date: September 30, 2026

Security deposit held                            $2,000.00
Deduction: Unpaid rent                            -$300.00
Deduction: Carpet                               -$1,200.00
Total deductions                                -$1,500.00
Refund due to tenant                               $500.00
Return by                                   October 30, 2026

Notes:
- Itemized under MCL 554.601-554.616 (Landlord-Tenant Act, 1972 PA 348).

Settle a deposit in Michigan

required

Where and how much

The state sets the rules; a covered city adds its own.

StateCityAdds the city's ordinance where we cover one.Deposit heldMonthly rentChecks the deposit cap.Units in the buildingInterest depends on it in IL, NY.

Dates

The dates start the clock.

Tenant moved outTenancy startedFor interest and item ages.Lease endedIf not the move-out day.Forwarding address receivedStarts or holds the clock in CT, IA, MN, RI, SD, TX, WY.Tenant's written demand receivedStarts the clock in AZ, KS, MD, MS, OK, SC, UT.New tenant moved inCan start the clock in WI, WV.Notice of claim sentFlorida: the day you sent the notice of your claimReturn period in the lease (days)The lease may set it in CO, ID, ME.

The tenant gave the notice the statute requiresChanges the deadline in AK.Repairs exceed the deposit and need a contractorCan extend the deadline in VA, WV.

Check as of another date

Check as ofDefaults to today. Use it to see where a past or future date stands.

Deductions

What you intend to keep; leave it empty to return everything. An item's age depreciates carpet, paint, blinds and appliances.

Deduction 1

CategoryAmountItem age or install dateNormal wear and tearOrdinary aging: never deductible.

Up to 9 lines.

Documentation

Some states require receipts or dated photos before a deduction stands.

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Computes and cites the published rule; it is not legal advice. You sign the statement: check the statute, your lease and any local ordinance first. Read the disclaimer.

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