How to Hold and Return a Security Deposit in Michigan

Managing a Security Deposit in Michigan

In Michigan, you may not charge more than one and a half months' rent as a security deposit. Unlike other states, Michigan has legal requirements about inspecting the apartment upon the beginning and end of the sublease; you must provide your subtenant with two blank copies of an inventory checklist upon the beginning of the sublease that details the current condition of the apartment to keep track of any damages that might occur.

Storing the Deposit

You are required to deposit the security deposit in a bank or deposit a cash bond with the Secretary of State. Within 14 days of your subtenant’s move-in date, you must provide them a written notice with your name and address, the name and address of the bank where you are keeping the deposit, and information stating the tenant’s obligation to provide a forwarding address where the security deposit can be returned upon the end of the sublease.

Returning the Deposit

You can keep all or some of a subtenant’s security deposit if the unit is returned to you with damages that exceed normal wear and tear or if you need to cover unpaid rent or utilities. You have 30 days after the end of the sublease term to return the security deposit. If you plan to withhold any amount from the security deposit, you must mail a written, itemized list of damages, utilities or rent owed to the subtenant's last known address. If the subtenant disputes any of the charges in writing, you have 45 days to file suit with the court to be entitled to keep the amount you claim.