Michigan 45-Day Deposit Rule: Sue or Return, and Double Damages

Under MCL 554.613(1), a Michigan landlord has 45 days after the occupancy ends, “and not thereafter,” to sue for the damages claimed or return the balance of the security deposit. Under subsection (2), failing to comply fully waives all claimed damages and makes the landlord liable for “double the amount of the security deposit retained.” That is a different penalty from the one in MCL 554.610.

The rule in subsection (1)

Within 45 days after termination of the occupancy, the landlord “may commence an action in a court of competent jurisdiction for a money judgment for damages which he has claimed” or, in lieu of suing, return the balance of the deposit to the tenant, or “any amount mutually agreed upon in writing by the parties.”

The default is blunt. A landlord “shall not be entitled to retain any portion of a security deposit for damages claimed” unless the landlord first obtained a money judgment for the disputed amount, filed “satisfactory proof of an inability to obtain service on the tenant,” or one of four exceptions applies. The sections in our files do not define “termination of the occupancy”; if the move-out date is unclear (late key return, belongings left behind), ask an attorney which date starts the clock.

The four retention exceptions

1. (a) The tenant did not give a forwarding address as required by MCL 554.611: a written address within 4 days after the occupancy ends.
2. (b) The tenant did not respond to the notice of damages as required by MCL 554.612: by ordinary mail within 7 days of receipt, with the mailing date counting as the response date.
3. (c) The parties agreed in writing to the disposition of the balance of the deposit claimed.
4. (d) The amount claimed is “entirely based upon accrued and unpaid rent equal to the actual rent for any full rental period or portion thereof” during which the tenant had actual or constructive possession. A claim that mixes rent with a damage item does not fit (d) on its face.

Subsection (2) adds that the section does not prejudice the landlord’s right to keep deposit funds as satisfaction of a money judgment from summary proceedings or other proceedings at law.

Two penalties, not one

Do not merge them. The first returns the full deposit, once. The second doubles the amount retained. How a court measures “retained” when part of the deposit was already returned is not answered by the text. Under MCL 554.615, the attorney general or any affected individual may bring an action to enforce the Act.

A worked timeline

Assumptions (ours): the occupancy ends Monday, 2 November 2026, which we count as day 0; the deposit is $1,500; the landlord claims $600 in damages, so the check for the difference under MCL 554.609(2) is $900; the tenant receives the notice on Tuesday, 24 November.

Tenant never responds: exception (b) applies and the landlord may keep the $600 without a judgment. Tenant disputes by mail: on these assumptions none of the four exceptions applies unless the parties agree in writing. To keep the $600, the landlord needs a judgment or filed proof that the tenant cannot be served, and the 45-day rule means suing by 17 December or returning the $600. If neither happens, subsection (2) points to waiver of the $600 claim and liability for double the amount retained; on its face that reads as $1,200.

Common mistakes

• Treating the 30-day and 45-day deadlines as one. They run from the same event but are separate duties with separate penalties.
• Keeping a disputed amount after the tenant answers, with no judgment, no written agreement and no suit filed.
• Relying on exception (d) for a claim that also includes damage items.
• Assuming the exceptions also stop the 45 days for returning the balance. The text does not say; return any undisputed balance within 45 days and ask an attorney.
• Using the wrong start date for the clock, or counting the last day late.

Questions for a Michigan attorney

• Which court, forms and filing fees apply to a deposit claim? None of that is in the statute text.
• How do weekends and holidays affect day 45?
• How is “retained” measured under subsection (2)?

Checked against the text published on legislature.mi.gov on 5 October 2026. This is information about the statute, not legal advice.

Sources

• MCL 554.613 — Michigan Legislature, Michigan Compiled Laws
• MCL 554.610 — Michigan Legislature, Michigan Compiled Laws
• MCL 554.609 — Michigan Legislature, Michigan Compiled Laws
• MCL 554.611 — Michigan Legislature, Michigan Compiled Laws
• MCL 554.612 — Michigan Legislature, Michigan Compiled Laws
• MCL 554.615 — Michigan Legislature, Michigan Compiled Laws

Related guides

• Michigan Security Deposit: The 30-Day Notice of Damages
• Michigan Security Deposit Maximum: 1 1/2 Months' Rent
• Michigan Security Deposit Written Notice: 14-Day Rule, MCL 554.603
• Michigan Landlord Inventory Checklist Requirements (MCL 554.608)
• Michigan Deposit Refunds by Direct Deposit: The 2026 Change
• Michigan 7-Day Demand for Possession for Unpaid Rent
• Michigan Month-to-Month Notice to Quit: MCL 554.134 Explained
• Michigan Eviction Process: Summary Proceedings, Step by Step
• Michigan Landlord Lockout and Utility Shutoff: MCL 600.2918
• Michigan Lease Clauses Landlords Cannot Use (Truth in Renting)
• Michigan Source-of-Income Law and the 5-Unit Exemption

Informational only, not legal advice. Statute text checked against the Michigan Compiled Laws (MCL 554.131 to 554.139, 554.601 to 554.616, 554.631 to 554.641 and 600.2918, 600.5701 to 600.5759) as published at legislature.mi.gov on October 5, 2026. Statutes change and a court may read them differently than a summary does; for a dispute, an eviction or anything expensive to get wrong, talk to a Michigan landlord-tenant attorney.