Security deposit interest in Michigan
No — Michigan does not require landlords to pay interest on security deposits.
There is no interest to calculate — here is what does apply
Michigan sets no interest requirement, so there is no figure to work out. The rules below are the ones that decide whether you get your deposit back in full, which is usually the larger sum anyway.
Deadline to return your deposit
30 days after the tenancy ends.
Miss it and the consequences below start to apply.
What to do next
- Give your landlord a written forwarding address. Several states make the return duty conditional on it, and Michigan's rules are summarised below.
- Photograph the unit at move-out, dated, before you hand back the keys. The dispute is almost always about condition.
- If the deadline passes, put the request in writing and cite Mich. Comp. Laws Sec. 554.601 to 554.616 (Landlord-Tenant Act, Act 348 of 1972). Keep a copy of what you sent and when.
Not legal advice. This is general information, not legal advice. Security deposit laws change and vary by jurisdiction. Verify with the cited statute or consult a licensed attorney in your state before taking action.
What does Michigan law actually say?
Michigan does not require landlords to pay interest on residential security deposits. The deposit must be placed in a regulated financial institution, but the landlord may instead use the money for any purpose whatsoever if they file a cash or surety bond with the secretary of state covering the full deposits up to 50000 dollars plus 25 percent of any excess, so no tenant interest arises. Deposits are capped at one and one-half months' rent.
Within 14 days of the tenant taking possession the landlord must give written notice of their name and address, the name and address of the financial institution or surety, and the tenant's duty to supply a forwarding address in writing within 4 days of moving out, with a prescribed boldface warning. Where damages are claimed the landlord must mail an itemised list within 30 days of termination, including the estimated repair cost of each item and the basis of assessment, accompanied by a cheque or money order for the balance, and must not include damages already noted on a move-in checklist. The notice must carry a boldface statement warning the tenant to respond in writing within 7 days or forfeit the amount claimed.
What if your landlord does not comply?
No interest obligation, so no interest penalty. Failure to give the initial 14-day notice relieves the tenant of the obligation to provide a forwarding address. A landlord who fails to mail the itemised list and balance within 30 days forfeits all claims against the deposit and is liable for double the amount wrongfully retained under Section 554.613. A tenant who does not respond within 7 days forfeits the amount claimed.