Free Michigan Security Deposit Itemization — overview

A Michigan Security Deposit Itemization is the notice of damages a landlord must mail to the tenant under MCL 554.609 within 30 days after the termination of occupancy. It contains an itemized list of the damages claimed, with the estimated cost of repair of each item and the basis for each charge, a check or money order for the balance (or an electronic transfer within 10 days after mailing), and the required statement, in 12-point boldface type, that the tenant must respond by mail within 7 days. A landlord who sends no timely notice must return the full deposit, and a landlord who keeps a disputed amount without suing within 45 days or meeting another MCL 554.613 exception waives the damages and owes double the amount retained. The form on this page produces a complete itemized notice with a built-in deductions calculator; the rest of this guide walks through the legal framework, the deductible-versus-non-deductible standard, and the documentation requirements.

What this itemization does

A Michigan Security Deposit Itemization is the notice of damages a landlord must mail to a tenant under MCL 554.609 when claiming any part of a security deposit. It does three things at once.

First, it itemizes every claim. The notice contains “an itemized list of damages claimed for which the security deposit may be used as provided in section 7, including the estimated cost of repair of each damaged property item and the amounts and bases on which the landlord intends to assess the tenant.” A general line such as “deductions for cleaning and damage” gives neither the item, the cost nor the basis.

Second, it returns the balance. The notice must be accompanied by a check or money order for the difference between the damages claimed and the deposit held, or, under the 2026 amendment, the difference may be sent by direct deposit or electronic transfer within 10 days after the notice is mailed.

Third, it starts the tenant’s response clock. The notice must tell the tenant, in 12-point boldface type at least 4 points larger than the body, to respond by mail within 7 days or forfeit the amount claimed. The tenant’s response, or silence, decides whether the landlord can keep the amount claimed or must go to court within 45 days under MCL 554.613.

The form on this page produces a complete itemized notice with a built-in deductions calculator, automatic balance computation, the Michigan statutory reference, the boldface response statement and a mailing block. The remainder of this guide walks through the legal framework, the deductible-versus-non-deductible standard, and the documentation that supports each claim.

Michigan legal framework — MCL 554.601–.616

Michigan’s rules are in the Security Deposit Act, 1972 PA 348, MCL 554.601–554.616. Section 554.609 was amended by 2026 PA 102 (immediately effective September 21, 2026) to allow the balance to be sent electronically. The Act’s requirements may not be waived in a rental agreement except as the Act itself provides (MCL 554.606).

The provisions that matter for itemization

MCL 554.607 — permitted uses. The deposit may be used only to reimburse actual damages to the unit or an ancillary facility “that are the direct result of conduct not reasonably expected in the normal course of habitation of a dwelling,” and to pay rent in arrearage, rent due for premature termination of the rental agreement by the tenant, and utility bills the tenant did not pay.

MCL 554.609 — the notice of damages. Within 30 days after the termination of occupancy, the landlord mails the itemized list with the estimated cost of repair of each item and the amounts and bases of the charges, with a check or money order for the balance (or an electronic transfer within 10 days after mailing), and the boldface 7-day response statement. The list may not include damages claimed on a previous termination inventory checklist from before the tenant’s occupancy.

MCL 554.610–.612 — consequences and responses. Failure to give the notice within the 30 days constitutes agreement that no damages are due, and the full deposit must be remitted immediately. The tenant must give a forwarding address in writing within 4 days after termination; failing to do so relieves the landlord of the notice requirement without prejudicing the tenant’s later claim. The tenant responds to a notice by ordinary mail within 7 days, and the mailing date is the response date.

MCL 554.613 — keeping disputed amounts. Within 45 days after termination, and not after, the landlord may sue for a money judgment for the damages claimed, or must return the balance or an amount agreed in writing. The landlord may keep a disputed amount only after a judgment (or filing proof of inability to serve the tenant), or if the tenant gave no forwarding address, did not respond, agreed in writing, or the claim is entirely accrued unpaid rent for a period of actual or constructive possession. Failure to comply fully waives all claimed damages and makes the landlord liable for double the amount of the deposit retained.

Move-in steps that the notice of damages depends on

Move-in notice (MCL 554.603). A landlord may not require a deposit unless, no later than 14 days after the tenant takes possession, the landlord gives a written notice of the landlord’s name and address for communications under the Act, the name and address of the financial institution or surety holding the deposit, and the tenant’s obligation to provide a forwarding address in writing within 4 days after termination of occupancy. That last item must appear in 12-point boldface type at least 4 points larger than the body. If the landlord skips this notice, the tenant is relieved of the forwarding-address duty, and the landlord loses the MCL 554.613(1)(a) exception for tenants who give no address.

Holding the deposit (MCL 554.604) and the cap (MCL 554.602). The deposit must be placed in a regulated financial institution, unless the landlord posts a cash or surety bond with the secretary of state, and it may not exceed 1½ months’ rent. Until the landlord establishes a right to it, the deposit is the tenant’s property (MCL 554.605).

Inventory checklists under MCL 554.608

Michigan does not create a pre-move-out inspection right, but it does require inventory checklists at both ends. At the start, the landlord gives the tenant 2 blank copies of a commencement checklist (identical in form to the termination checklist), and the tenant has 7 days to return one with the unit’s condition noted; the checklist must carry a 12-point boldface notice to that effect. At the end, the landlord completes a termination inventory checklist listing all damages claimed. Those two documents are the backbone of the notice of damages. See our Michigan Move-In/Move-Out Checklist guide for the checklist procedure.

Federal anti-discrimination overlay

Independent of the Security Deposit Act, the federal Fair Housing Act (42 U.S.C. § 3601 et seq.) and Michigan’s fair housing law prohibit deposit-handling decisions that target tenants based on race, religion, national origin, familial status, disability, or other protected characteristics. A landlord who consistently charges higher cleaning amounts to families with children, or applies different deduction standards to tenants of certain backgrounds, invites a fair-housing claim with its own remedies, separate from MCL 554.613.

When and how to deliver

The 30-day clock, the 7-day response and the 45-day deadline

Michigan runs on three clocks. The landlord has 30 days after the termination of occupancy to mail the notice of damages with the balance. The tenant has 7 days after receipt to respond by mail. And the landlord has 45 days after the termination of occupancy, and not after, to sue for any damages the tenant disputes, or to return the balance or an amount agreed in writing (MCL 554.613). Document the date occupancy ended: key return, a signed key receipt or walk-through form, and photographs.

Within the 30 days, the notice goes out with a check or money order for the difference. If the landlord chooses electronic payment under MCL 554.609(3), the difference must be deposited to the tenant’s bank account or internet or mobile payment account or application within 10 days after the notice is mailed.

Worked example. A tenant’s occupancy ends on May 31 and the tenant mails a forwarding address on June 2, inside the 4-day window. The deposit was $1,500. The landlord’s termination checklist shows a broken bedroom door and carpet stained by a pet; the landlord mails a notice of damages on June 20 claiming $275 for the door (contractor estimate) and $325 for carpet stain treatment (cleaner’s estimate), with the boldface 7-day statement and a check for $900. The tenant mails a response on June 25 agreeing to the door charge in writing and disputing the carpet charge. The $275 door charge is no longer in dispute. To keep the $325, the landlord must file suit by July 15 (45 days after May 31), or return it, or get the tenant’s written agreement. Keeping it past July 15 without any of those waives the claim and exposes the landlord to double the amount retained.

Method of delivery

MCL 554.609(1) says the landlord “shall mail” the notice. First-class or certified mail satisfies that; certified mail with return receipt also documents when the tenant received it, which starts the tenant’s 7-day response period. Personal delivery or email can be used as an extra copy, but the notice itself should be mailed.

Delivery address

Mail to the forwarding address the tenant provided. MCL 554.611 requires the tenant to give a forwarding address in writing within 4 days after termination of occupancy, but only if the landlord gave the move-in notice MCL 554.603 requires, including the boldface statement about the 4-day duty. If the tenant did not provide an address after proper notice, the landlord is relieved of the notice-of-damages requirement; the tenant can still sue later for the deposit.

What to do if you discover damage after delivery

The Act ties the right to claim damages to a notice mailed within the 30 days, and MCL 554.610 treats a missing notice as an agreement that no damages are due. Complete the termination inventory checklist thoroughly before mailing, and do not count on adding items after the 30 days pass.

Categories of deductible expenses

MCL 554.607 says a deposit “may be used only for” the purposes it lists. Every line of the notice of damages must fit one of them.

1. Rent in arrearage and rent for premature termination

Rent in arrearage under the rental agreement, and rent due because the tenant terminated the agreement early, may be charged. Document it with the lease and the rent ledger. A claim based entirely on accrued unpaid rent for a period the tenant had actual or constructive possession is one of the amounts the landlord may keep without first obtaining a judgment (MCL 554.613(1)(d)). Late fees are not listed in MCL 554.607; itemize any lease late fee separately and expect it to be scrutinized.

2. Actual damages beyond the normal course of habitation

Actual damages to the unit or an ancillary facility that are “the direct result of conduct not reasonably expected in the normal course of habitation of a dwelling” (large holes, broken fixtures, pet damage, water damage from negligence, missing items) may be charged at the estimated cost of repair. The standard is covered in section 5.

3. Cleaning that repairs tenant-caused conditions

Cleaning is chargeable only when it repairs actual damage of that kind: pet contamination, heavy grease or smoke residue beyond ordinary living, trash and belongings left behind. Routine cleaning after ordinary use is not a permitted use. The notice must say what was cleaned and give its estimated cost; “general cleaning” identifies nothing.

4. Unpaid utility bills

Utility bills the tenant was responsible for and did not pay may be charged. Attach or reference the bill so the tenant can check the amount and period.

What you cannot deduct: ordinary deterioration from normal habitation, routine repainting or carpet cleaning between tenancies, damage claimed on a termination inventory check