Michigan’s Security Deposit Act is one of the most detailed in the country, and it rewards tenants who follow its steps. Detroit renters who return the move in checklist, give a forwarding address within four days, and answer the landlord’s damage notice within seven days are in a strong position. In the city of Detroit, about 128,100 of 258,000 occupied homes, or 49.7 percent, are rented, according to the U.S. Census Bureau’s 2020 to 2024 American Community Survey (Homzora Detroit dataset, Table B25003). The median gross rent is $1,074 a month (Homzora Detroit dataset, Table B25064), and the median renter household earns $30,178 a year (Homzora Detroit dataset, Table B25119), so the median rent equals about 43 percent of the median renter household’s gross income.
Homzora is a housing research publisher, not a law firm. This article explains the law in plain English and is not legal advice for your situation.
Quick answers
- Cap: one and a half months’ rent (MCL 554.602).
- Damage notice: mailed within 30 days after you move out (MCL 554.609).
- Your reply: within 7 days of receiving the notice (MCL 554.612).
- Penalty: a landlord who does not comply waives its damage claim and owes double the amount kept (MCL 554.613).
How much a Detroit landlord can charge
A security deposit may not exceed one and a half months’ rent (MCL 554.602). At Detroit’s median gross rent of $1,074, that is a maximum of $1,611. Within 14 days after you take possession, the landlord must give you written notice of its name and address, the financial institution or bond company holding your deposit, and your duty to provide a forwarding address within four days after you move out (MCL 554.603).
The deposit must be held at a regulated financial institution, unless the landlord files a cash or surety bond with the Secretary of State (MCL 554.604).
The move in checklist
The landlord must give you two blank copies of an inventory checklist at move in. You have 7 days after taking possession to complete it and return one copy, and you may ask for a copy of the last move out checklist from the prior tenant (MCL 554.608). The landlord may not charge you for damage that was recorded on the prior tenant’s move out checklist (MCL 554.609). Treat this checklist as your most important document.
What can be deducted
The deposit may be used only for actual damage resulting directly from conduct not reasonably expected in normal living, for unpaid rent, for rent owed because the tenant ended the lease early, and for unpaid utility bills (MCL 554.607). The rights in the act cannot be waived (MCL 554.606).
The four day forwarding address rule
You must give the landlord your forwarding address in writing within 4 days after you move out. If you do not, the landlord is relieved of sending the itemized notice of damages, although this does not end your claim to the deposit (MCL 554.611).
The 30 day damage notice
Within 30 days after you move out, the landlord must mail an itemized list of damages with estimated repair costs and the basis for each charge, along with a check or money order for any balance (MCL 554.609). Since September 21, 2026, the landlord may instead pay the balance electronically, such as by direct deposit or a payment app, within 10 days after mailing the notice (Michigan Public Act 102 of 2026; MCL 554.609).
The notice must warn you, in bold type, that you must respond by mail within 7 days or lose the amount claimed (MCL 554.609). If the landlord sends no notice within 30 days, it is treated as agreeing that no damages are due and must immediately return the full deposit (MCL 554.610).
Your 7 day reply
You must respond by ordinary mail within 7 days, stating in detail which charges you accept and which you dispute. The date you mail the response counts as the date of your response (MCL 554.612). Keep a copy and proof of mailing.
The 45 day rule and double damages
Within 45 days after the tenancy ends, the landlord must either file suit for the damages it claims or return the balance. Without a court judgment, the landlord can keep money only in limited cases, such as when you gave no forwarding address, did not respond to the notice, agreed in writing, or the claim is entirely for unpaid rent for a period you had possession. A landlord who does not comply waives all claimed damages and owes double the amount of the deposit it kept (MCL 554.613).
When the building is sold
The original landlord remains liable for the deposit until it transfers the deposit to the new owner and tells you the new owner’s name and address, the new owner complies with the deposit holding rules, or the deposit is returned (MCL 554.614).
A worked example
Suppose you paid a $1,611 deposit, the most allowed at the median rent. You move out June 30 and mail your forwarding address July 2. On July 25 you receive a notice claiming $900 for carpet damage that appears on your move in checklist. You mail a detailed dispute on July 28. If the landlord neither returns the balance nor sues by August 14, 45 days after move out, it waives the claim and may owe double the amount kept (MCL 554.613).
A sample dispute letter
Date: 2026. To: [landlord]. Re: Notice of damages for [address]. I received your notice on 2026. I accept these charges: [list]. I dispute these charges: [item, amount, and reason, such as listed on my move in checklist]. Under MCL 554.613, you must return the balance or file suit within 45 days after my tenancy ended. My forwarding address is [address]. Sincerely, [name].
Detroit rules that matter
- Certificate of compliance: Detroit rental owners must register and pass a 15 point inspection to receive a certificate of compliance (City of Detroit, rental ordinance update (August 2025)).
- Rent escrow: tenants whose unit lacks a certificate of compliance or has documented safety violations can apply to pay rent into a city escrow program while repairs are made, if rent is current (City of Detroit, Rent Escrow Program; City of Detroit, Rent Escrow Rules (September 2025)).
- Retaliation in escrow: under the escrow rules, an adverse change within 90 days is presumed retaliatory (City of Detroit, Rent Escrow Rules (September 2025)).
- Right to counsel: free eviction defense for eligible Detroit residents (City of Detroit, Right to Counsel 2025 Annual Report).
Key terms
- Inventory checklist: the move in and move out condition record required by Michigan law (MCL 554.608).
- Notice of damages: the itemized list the landlord must mail within 30 days.
- Waiver: a landlord that misses the rules gives up its claim to the damages (MCL 554.613).
- Forwarding address: the written new address due within 4 days after you move out.
Build your evidence file
Landlord and tenant disputes are usually decided by documents. Keep these together from the day you sign:
- The signed lease, every addendum, and every renewal.
- Receipts or bank records for the deposit and each rent payment.
- Dated photos and video of every room at move in and move out.
- Copies of every repair request and the landlord’s replies.
- Every notice you send or receive, with proof of delivery.
Keep copies somewhere other than your phone, such as an email to yourself, so they survive a lost device.
Before you sign your next lease
- Ask who owns and who manages the property, and get contact details in writing.
- Read the clauses on early termination, subletting, renewal, late fees, and notice before you sign.
- Confirm the deposit amount, where it will be held, and how it will be returned.
- Walk through the unit, note existing damage in writing, and keep a signed copy.
- Ask how much notice the landlord gives before a rent increase or a non renewal.
Help in Detroit
Detroit residents with household income at or below 200 percent of the federal poverty level can get a free lawyer in eviction cases in 36th District Court through the city’s Right to Counsel program, which works with providers including the United Community Housing Coalition, Michigan Legal Services, and Lakeshore Legal Aid (City of Detroit, Right to Counsel 2025 Annual Report). The United Community Housing Coalition runs an eviction defense helpline at 313.725.4646 (United Community Housing Coalition). Rent, income, and tenure figures in this guide are free to download from the Homzora Detroit data library.
Frequently asked questions
How much can a Detroit landlord charge for a deposit?
No more than one and a half months’ rent (MCL 554.602).
What happens if I miss the 7 day reply?
The notice must warn that you lose the amount claimed if you do not respond by mail within 7 days (MCL 554.609; MCL 554.612). Reply on time even if you agree with some charges.
Does my landlord owe interest?
The deposit holding sections cited in this guide do not require interest (MCL 554.604).
Can my landlord pay me by app?
Yes, since September 21, 2026, by direct deposit, electronic transfer, or a payment app within 10 days after mailing the notice (MCL 554.609).
Sources
- Homzora Detroit dataset, Table B25003
- Homzora Detroit dataset, Table B25064
- Homzora Detroit dataset, Table B25119
- MCL 554.602
- MCL 554.609
- MCL 554.612
- MCL 554.613
- MCL 554.603
- MCL 554.604
- MCL 554.608
- MCL 554.607
- MCL 554.606
- MCL 554.611
- Michigan Public Act 102 of 2026
- MCL 554.610
- MCL 554.614
- City of Detroit, rental ordinance update (August 2025)
- City of Detroit, Rent Escrow Program
- City of Detroit, Rent Escrow Rules (September 2025)
- City of Detroit, Right to Counsel 2025 Annual Report
- United Community Housing Coalition
- Homzora Detroit data library