Free Michigan Security Deposit Itemization

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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.

▶ Watch: Michigan Security Deposit Itemization — MCL 554.609 explained

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 checklist from before this tenant moved in, re-leasing costs (advertising, commissions), or anything outside MCL 554.607. And a disputed amount cannot be kept at all without a judgment sought within 45 days or another MCL 554.613 exception.

Wear and tear vs. damage — the standard

The wear-versus-damage distinction is the single most important analytical question in security deposit deductions, and the most common source of deposit disputes. MCL 554.607(a) draws the line: actual damages resulting from conduct not reasonably expected in the normal course of habitation can be charged; ordinary living cannot. The challenge is identifying which side of the line a given condition falls on.

The statutory standard — MCL 554.607(a)

Normal wear and tear is not a phrase the Michigan Act uses; instead, MCL 554.607(a) allows the deposit to cover “actual damages to the rental unit or any ancillary facility that are the direct result of conduct not reasonably expected in the normal course of habitation of a dwelling.” Deterioration that is reasonably expected from living in a home is outside that category: paint that fades from sunlight, carpet that flattens in high-traffic areas, minor scuffs on walls from furniture and movement, small nail holes from picture hanging, light scratches on hardwood floors, and mineral deposits in bathroom fixtures from normal water use.

Damage is deterioration beyond normal wear caused by the tenant’s negligence, abuse, intentional acts, or pets. Examples: large holes in walls (more than nail-hole size), broken windows, broken fixtures, broken cabinets, pet stains in carpet, pet odor in subfloor or padding, water damage from unreported leaks, smoke damage, missing items, significant cleaning needs from food spills or hoarding, structural damage of any kind.

Borderline cases — and how to resolve them

Most disputes are not at the extremes; they are in the borderline. A few common borderline scenarios with the Michigan analysis:

Carpet replacement. Carpets have a useful life of approximately 8–10 years. If a carpet was new at the start of a 5-year tenancy and is replaced at lease end, the replacement is at least 50% wear-and-tear and not chargeable. Even if the carpet has visible stains from the tenant, the landlord can typically charge only the portion of the carpet’s remaining useful life consumed by the damage — not the full replacement cost. A useful-life proration is the defensible approach; charging full replacement value for normal-end-of-life carpets routinely fails in court.

Repainting. Paint has a useful life of approximately 2–4 years for residential rentals. A tenant of three years cannot generally be charged for repainting at lease end if the paint shows only normal wear; the paint had a planned replacement in that timeframe. If the tenant caused specific damage (large stains, holes, smoke discoloration), the cost of repairing the specific damage is chargeable, but full repainting of a unit that was already due for repaint is not.

Cleaning. Cleaning is chargeable only where it repairs actual damage from conduct not reasonably expected in the normal course of habitation, such as heavy grease, pet contamination, smoke residue, hoarding cleanup or trash and belongings left behind. Routine turnover cleaning after ordinary living is not an MCL 554.607 purpose.

Pet damage. Pet stains in carpet, scratches on doors and floors from pet claws, urine smell in subfloor or padding, and damage to walls from pets are all chargeable as damage. The deduction is for the specific damage, not for general wear of the unit.

Documentation that supports a wear-versus-damage finding

The strongest evidentiary record consists of: the commencement inventory checklist the tenant returned under MCL 554.608, the termination inventory checklist listing the damages claimed, date-stamped photographs from the same angles at both ends, estimates or invoices that specifically describe what was charged, and (for older items) a useful-life calculation showing the proration. If a disputed charge goes to court under MCL 554.613, that record is the landlord’s proof.

The notice of damages and the 7-day response rule

Michigan does not require receipts. It requires a notice with specific contents, and it builds a response procedure around it. Getting the notice right, and handling the response correctly, is what decides whether the landlord can keep the amount claimed.

Estimated cost and basis for each item

The list gives “the estimated cost of repair of each damaged property item and the amounts and bases on which the landlord intends to assess the tenant.” An estimate is enough at this stage; keep the contractor’s estimate or invoice, because if the tenant disputes the charge the landlord must prove it in court.

The boldface response statement

MCL 554.609(4) requires this statement, in 12-point boldface type that is at least 4 points larger than the body of the notice: “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.” The PDF this form generates prints it in 14-point bold, with the body text at 10 points or smaller.

The tenant’s response

Under MCL 554.612, the tenant responds by ordinary mail to the address the landlord gave under MCL 554.603, within 7 days, stating in detail agreement or disagreement with each charge; the mailing date is the response date. If the tenant does not respond, MCL 554.613(1)(b) allows the landlord to keep the amount claimed.

If the tenant disputes a charge

The landlord may keep a disputed amount only by obtaining a money judgment in an action filed within 45 days after termination of occupancy, or by filing proof that the tenant could not be served, unless another MCL 554.613 exception applies:

• No forwarding address was provided as MCL 554.611 requires.
• No response to the notice was mailed within 7 days (MCL 554.612).
• A written agreement on the disposition of the amount claimed exists.
• The claim is entirely accrued unpaid rent for a period of actual or constructive possession.

The most common failure is keeping a disputed amount without suing within 45 days. Under MCL 554.613, failure to comply fully with that section waives all claimed damages and makes the landlord liable for double the amount of the deposit retained.

Required information for the document

MCL 554.609 does not prescribe a form, but it fixes the notice’s contents: the itemized list with estimated costs and bases, the balance, and the boldface response statement. Together with ordinary evidentiary needs, that sets the minimum elements.

Header information

The parties. Full landlord name (or property management company), full tenant names (all tenants on the lease), property address, and the dates of tenancy (lease start, vacate date). Without these, the document cannot be authenticated as the statement for this tenancy.

Deposit information

The deposit total. The original security deposit amount (no more than 1½ months’ rent under MCL 554.602). A required prepayment of “last month’s rent” is itself a security deposit under MCL 554.601(d), so list it and show how it was applied.

Itemized deductions

Each claim listed separately with: a specific description (not “cleaning” but “remove pet urine stains from bedroom carpet”), the estimated cost of repair, the basis for charging the tenant, the category (damage, cleaning of damage, unpaid rent, rent for premature termination, utilities) and a reference to the supporting estimate, invoice, bill or checklist entry.

Calculation

The total of deductions, the deposit balance returned (deposit minus deductions, if positive), or the additional amount owed by the tenant (if deductions exceed deposit). Show the math; do not just give the bottom-line balance.

Attached documentation

The termination inventory checklist entries, estimates or invoices, utility bills and rent ledger supporting each claim. The statute does not require them to be attached, but they are the landlord’s proof if the tenant disputes the notice. Photographs strongly support the claims.

Delivery and signature

The boldface 7-day response statement, the landlord’s address for the tenant’s response, method and date of mailing, the address used, how the balance was sent (check, money order, or electronic transfer within 10 days), landlord signature with printed name and title, and date.

Common mistakes that expose landlords to damages

Most Michigan deposit disputes turn on whether the landlord followed the Act’s sequence, not on whether the damage was real. These are the recurring problems.

Vague descriptions

“Cleaning.” “Wall repair.” “General damage.” These do not give the item, the estimated cost of repair or the basis for the charge that MCL 554.609(1) requires. Specific entries do: “Patch and repaint two 4-inch holes in living room wall, estimated $145 (contractor estimate on file); tenant-caused per termination checklist.”

Charges for ordinary habitation

Charging to repaint a 3-year-old paint job, to replace an 8-year-old carpet with ordinary wear, or to patch small picture-hanging nail holes charges for conduct reasonably expected in the normal course of habitation, which MCL 554.607 does not allow.

Missing the boldface statement

A notice without the 7-day response statement in 12-point boldface type at least 4 points larger than the body does not meet MCL 554.609(4), and it undercuts the landlord’s ability to rely on the tenant’s silence.

Missing the 30-day mailing

The notice must be mailed within 30 days after termination of occupancy. Otherwise MCL 554.610 treats the landlord as agreeing that no damages are due, and the full deposit must be remitted immediately.

Holding the balance

The notice must be accompanied by a check or money order for the difference, or the difference must be sent electronically within 10 days after the notice is mailed. Holding it “until the tenant agrees” does not comply.

Emailing instead of mailing

The Act says the landlord “shall mail” the notice. An email alone does not show compliance with MCL 554.609(1).

Keeping a disputed amount without suing

If the tenant disputes the charges within 7 days, the landlord must sue within 45 days after termination of occupancy, return the balance, or reach a written agreement. Keeping the money anyway waives all claimed damages and makes the landlord liable for double the amount retained (MCL 554.613).

Tenant rights and MCL 554.613 damages

Michigan tenants have several rights tied to the deposit, and the Act backs them with waiver and double damages. Understanding them is the landlord’s clearest motivation for procedural compliance.

Right to a mailed notice within 30 days, or the full deposit

The tenant is entitled to a notice of damages mailed within 30 days after termination of occupancy, with the balance. Without it, the landlord is treated as agreeing that no damages are due and must remit the full deposit immediately (MCL 554.610).

Right to dispute, and to make the landlord go to court

A tenant who disputes the charges by mail within 7 days cannot lose the disputed amount unless the landlord obtains a money judgment in an action begun within 45 days after termination of occupancy, or another MCL 554.613 exception applies. The deposit remains the tenant’s property until the landlord establishes a right to it (MCL 554.605).

Double the amount retained under MCL 554.613

Failure of the landlord to comply fully with MCL 554.613 “constitutes waiver of all claimed damages and makes him liable to the tenant for double the amount of the security deposit retained.” If a landlord keeps $800 of a disputed deposit without suing, the landlord waives the $800 claim and is liable for double the amount retained, $1,600.

Enforcement

The attorney general or any affected individual may bring an action to enforce the Act in the county where the landlord resides or does business (MCL 554.615). The Act’s requirements may not be waived in the rental agreement except as the Act provides (MCL 554.606).

Small claims jurisdiction

Many Michigan deposit disputes are heard in the small claims division of the district court, which handles claims up to $7,000 (MCL 600.8401, the limit beginning January 1, 2024). The procedure is informal, and the notice, checklists, estimates and proof of mailing carry most of the weight.

Anti-retaliation framework

Michigan’s retaliation rule (MCL 600.5720) operates in possession cases: a judgment for possession may not be entered if, among other grounds, the termination was intended primarily as a penalty for the tenant’s attempt to secure or enforce rights under the lease or the law, and a presumption favoring that defense can arise when the tenant sought official action within 90 days before the eviction case. A deposit dispute that becomes part of an eviction fight should be reviewed with counsel with that defense in mind.

Attorney’s fees

The Security Deposit Act (MCL 554.601–.616) does not itself contain an attorney-fee provision. Whether fees are recoverable in a deposit case depends on the lease and other Michigan law, which is a question for counsel before litigation.

Bottom line for landlords. A notice of damages mailed within 30 days, with estimated costs, the balance and the boldface response statement, followed by a lawsuit within 45 days on anything disputed, is the procedure the Act requires. Skipping a step can cost the entire claim plus double the amount retained. The form on this page handles the mechanics; the analysis above is the legal context.

Michigan statute reference table

Michigan statute citations are to the Michigan Compiled Laws as currently in effect (MCL 554.609 as amended by 2026 PA 102, immediately effective September 21, 2026). Local ordinances may layer additional requirements on top of state law and should be consulted independently for properties in covered cities.

Frequently asked questions

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This form and the accompanying guidance are provided for general informational purposes only and do not constitute legal advice. Michigan landlord-tenant law has technical requirements that can change with legislation and case law. The notice of damages (MCL 554.609), the no-notice rule (MCL 554.610), the tenant response (MCL 554.612) and the 45-day suit and double-damages rule (MCL 554.613) depend on facts and case-specific circumstances that this general guidance cannot fully address. Always verify current requirements with the applicable Michigan statutes or a qualified Michigan landlord-tenant attorney before relying on this notice in any contested deposit-deduction situation. Review Michigan security deposit laws.