What are the laws governing the return of a security deposit?

In Michigan, both landlords and tenants are guided by the laws surrounding security deposits outlined by the Michigan Security Deposit Law. The law dictates how much a landlord can charge in a security deposit, when the landlord must return it, and when deductions can be made from the deposit. First, a landlord in Michigan is only allowed to charge up to one and a half times the monthly rent for a security deposit. This deposit should be kept in an escrow account located in the state of Michigan, and the landlord must provide the tenant with a notice of where the security deposit is held. If the tenant is in good standing and their lease is up, the landlord then has 30 days to return the security deposit or provide an itemized list of any deductions made from the deposit. Any damages must be greater than $25 for the landlord to deduct from the deposit. If a tenant has not been able to retrieve their security deposit within the 30 days, they may be able to file a claim with the small claims court in the county where the property is located. The tenant has one year to file a claim and may be able to retrieve twice the amount of the security deposit plus court costs. By following the Michigan Security Deposit Laws, landlords and tenants are better protected in case of disagreements about the return of the security deposit. Tenants should keep a record of the amount of the security deposit paid and the date received. This can be used to verify the amount of the deposit returned in the future.

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What are the laws governing the return of a security deposit?

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