Michigan security deposit rules.
The Michigan rules for residential security deposits in plain English: how much can be charged, how fast it comes back, whether interest is owed, and what catches operators out.
Last reviewed · Statute: Mich. Comp. Laws §§ 554.602–.616 · Not legal advice
How much can be charged
Capped at 1.5 months’ rent.
When it has to come back
30 days for itemised statement and refund of remaining balance.
Interest
No interest is required.
Where the money has to sit
Deposits must be held in a regulated Michigan financial institution, or a surety bond posted with the Secretary of State.
What catches operators out
- The landlord must hand over two blank inventory checklists at the start of the lease; the tenant completes and returns one within seven days of taking possession.
- The tenant has seven days after receiving the itemised list to dispute deductions by mail; the landlord must then sue within 45 days to keep disputed amounts.
What this looks like with Standby in Michigan.
When a resident takes a Standby certificate there is no cash deposit to hold, so the cap, the return deadline and the interest rules above have nothing to attach to. You are covered up to the full deposit and draw on it when you need to.
When a resident pays cash instead, Standby handles that deposit under your lease and Michigan law, so your team is not tracking return deadlines by hand.
This page summarises the most common single-family and multifamily residential rule in Michigan. Furnished units, senior leases, mobile-home tenancies and short-term rentals can differ, and city ordinances may override the state default. Check the statute before relying on a figure for a specific lease.