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Michigan Security Deposit: The 30-Day Notice of Damages

A Michigan landlord who wants to use part of a security deposit for damages “shall mail to the tenant, within 30 days after the termination of occupancy, a notice of damages” (MCL 554.609(1)). If the landlord misses that window, MCL 554.610 makes it the landlord’s agreement that no damages are due, and the full deposit is owed immediately. This article describes the statute; it is not legal advice.

What the notice must contain

Start with the termination inventory checklist, which the landlord completes under MCL 554.608(5). Then build the notice from it:

  1. An itemized list of damages claimed that the deposit may cover under MCL 554.607: actual damages that are “the direct result of conduct not reasonably expected in the normal course of habitation of a dwelling”, plus unpaid rent, rent due for premature termination and unpaid utility bills.
  2. The estimated cost of repair of each item and the amounts and bases on which the landlord intends to assess the tenant (554.609(1)).
  3. No damage already claimed on a previous termination inventory checklist from before this tenant moved in (554.609(2)).
  4. The balance: a check or money order for the difference between the damages claimed and the deposit held (554.609(2)), or a direct deposit (below).
  5. The printed sentence in 12 point boldface, at least 4 points larger than the body (554.609(4)): “You must respond to this notice by mail within 7 days after receipt of the notice of damages, otherwise you will forfeit the amount claimed for damages.” Read literally, 12 point and 4 points larger together mean body text of 8 point or smaller. The statute text does not address that; ask a Michigan attorney how to format the notice.

Direct deposit, new in 2026

The History line shows 554.609 was amended by 2026 PA 102, immediate effect September 21, 2026. Subsection (3) says a notice “may not be accompanied by a check or money order” if the landlord sends the difference by direct deposit or electronic transfer to a bank account, or to an internet or mobile payment account or application. That landlord must deposit it “within 10 days after mailing the notice of damages.” The statute text does not say how a landlord obtains the account details; ask an attorney.

The tenant’s side

Worked calendar

The statute text does not say how to count weekends or holidays; the court rules do, and they are outside these files; ask the court clerk or an attorney, and when in doubt finish early. The statute does not define “termination of occupancy” in the files we use. We assume the tenant moves out and returns possession on Monday, November 2, 2026, and count November 3 as day 1.

DateDayEvent
Mon Nov 2, 20260Occupancy ends (assumed)
Fri Nov 64Tenant’s forwarding address due (554.611)
Mon Nov 2321Landlord mails the notice
Wed Nov 2523Tenant receives it (assumed)
Wed Dec 230Last day to mail the notice (554.609(1)); tenant’s 7 days from receipt also end
Thu Dec 331A notice mailed now is late; also the end of 10 days after the Nov 23 mailing, for a direct deposit (554.609(3))
Thu Dec 1745End of the 45 days in MCL 554.613(1): sue for the claimed damages or return the balance

Money example: deposit $1,200; bedroom carpet burn $420 and unpaid water bill $85, total $505. The balance owed is $1,200 − $505 = $695, by check, money order or direct deposit.

Our template; the statute lists the contents, not the wording:

Date mailed: [date]
To: [tenant], [forwarding address]
From: [landlord name and address for communications under the Act]
Unit: [address]. Occupancy ended: [date]. Deposit held: $1,200.00

1. Bedroom carpet burn | [what happened; checklist line] | $420.00
2. Unpaid water bill   | [period; bill attached]       | $85.00
Total claimed: $505.00
Balance: $695.00 [check or money order enclosed | direct deposit]

You must respond to this notice by mail within 7 days after receipt of the notice of damages, otherwise you will forfeit the amount claimed for damages.

If the notice is late

Under 554.610 the landlord “shall remit to the tenant immediately the full security deposit.” Do not merge that with 554.613(2): separately, failing to comply fully with 554.613 waives all claimed damages and makes the landlord liable for “double the amount of the security deposit retained.” Which applies to a given dispute is a question for a Michigan attorney.

Common mistakes

Checked against the text published on legislature.mi.gov on 5 October 2026.

Sources

Related guides

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.

Want the complete picture? The Michigan Small Landlord Compliance Guide puts the security deposit, lease, notice and eviction rules of the Michigan Compiled Laws in one place, with each rule cited to the statute text.

Get the guide — $29

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