Landlords

C. Security Deposit TimelineSecurity Deposit Landlord’s Duties Tenant’s DutiesBeginning of Lease(generally move-in)MCL 554.602, 554.604, 554.605,554.608(2)Within 7 days from move-in(landlord and tenant may agree toa shorter period, but not a longerperiod)MCL 554.608(3)Within 14 days from move-inMCL 554.603Move-out(not necessarily the end of thelease)MCL 554.608(5)Within 4 day after move-outMCL 554.611Within 30 days after move-outMCL 554.609Within 7 days of tenant’s receiptof landlord’s itemized list ofdamagesMCL 554.612Within 45 days—not thereafter—of move-outMCL 554.613A security deposit, if required, shall notexceed 1 1 ⁄2 months’ rent.Deposit tenant’s security deposit in aregulated financial institution OR file asurety bond with the state.Provide tenant:1. A copy of the lease, and2. Two blank copies of the inventorychecklist.Recommendation: Keep tenant’scompleted checklist.Provide tenant in writing:1. Landlord’s name and address forreceipt of rent and communications;and2. Where tenant’s security deposit willbe held (name and address of thefinancial institution or surety bondcompany).3. Include specific statutory notice oftenant’s duty to provide forwardingaddress within 4 days of move-out.Complete a termination inventorychecklist, noting condition of rentalunit.Recommendation: Keep a copy oftenant’s forwarding address.Mail to tenant an itemized list ofdamages, with proper statutory noticeprovision claimed against tenant’ssecurity deposit accompanied by acheck or money order for thedifference. Only unpaid rent, unpaidutility bills, and damages to the rentalunit beyond reasonable wear and tearcaused by tenant may be claimedagainst the deposit (not cleaning fees).Watch for tenant’s response to theitemized list of damages by mail.To be entitled to keep the disputedamount of security deposit, file suitagainst tenant for damages—unless anexception applies.The security deposit is the lawfulproperty of the tenant.Recommendation: Read the lease(preferably before signing it) and allother information provided to youby the landlord. Request fromlandlord the inventory checklist and/or itemized list of damage reportfrom previous tenancy.Return to landlord the completedinventory checklist, noting conditionof rental unit (add pages ifnecessary); be sure to keep a copyyourself.Recommendation: Read theinformation provided to you by thelandlord.Recommendation: Remove allpersonal property, clean the rentalunit; turn in keys.Provide landlord in writing (notorally) your forwarding address.Recommendation: Watch for theitemized list of damages in the mail.Respond in detail, by ordinary mail,indicating agreement ordisagreement to the damagescharged.Be sure to count the days; the dateof mailing is considered the date ofresponse.If suit is filed, appear in court anddefend.Note: If suit is not filed, you mayfile suit for recovery of your securitydeposit.10