Michigan Security Deposit Return Letter

This Michigan Security Deposit Return Letter provides the required accounting and return (or itemized deductions) of a tenant's security deposit under Michigan law, specifically the Landlord and Tenant Relationships Act, 1972 PA 348 (MCLA 554.601 et seq.).

Key Michigan Legal Requirements (as of 2026):

• Maximum security deposit: one and one-half (1.5) months' rent (MCLA 554.602).

• Landlord must deposit the security deposit in a regulated financial institution and provide the tenant written notice of the name and address of the depository within fourteen (14) days after receipt of the deposit (MCLA 554.603).

• Landlord must use inventory checklists at commencement and termination of occupancy. Tenant has seven (7) days after receipt of the move-in checklist to object in writing (MCLA 554.608).

• Landlord must mail to the tenant, within thirty (30) days after termination of occupancy and receipt of the tenant's forwarding address, an itemized list of damages claimed together with the remaining deposit balance (MCLA 554.609). The notice must include a specific boldface statement regarding the tenant's 7-day response right or forfeiture of the claimed amount.

• Permissible deductions: unpaid rent, damage beyond ordinary wear and tear, and cleaning to restore the premises to move-in condition (to the extent not already accounted for on the initial checklist).

• Normal wear and tear is not deductible.

• If landlord wrongfully withholds any portion, tenant may recover twice the amount wrongfully withheld plus costs and reasonable attorney fees (MCLA 554.614).

• This letter fully replaces any prior California-specific language and is drafted exclusively under Michigan statutes., -

Part I, Pre-Move-Out Inspection Offer and Move-In / Move-Out Checklist Reminder

Michigan landlords are strongly encouraged (and in some circumstances best practice requires documentation via) a pre-termination inspection to allow the tenant an opportunity to remedy conditions before vacating. While not strictly mandated like some states, using the statutory inventory checklist process protects both parties.

MOVE-IN INVENTORY & CONDITION CHECKLIST NOTICE (MCLA 554.608)

At or before commencement of occupancy, Landlord provided Tenant with a written inventory checklist detailing the condition of the rental unit, including walls, floors, appliances, fixtures, and furnishings.

Tenant had seven (7) days from receipt of that checklist to review, add written objections, sign, and return a copy to Landlord. Any items not objected to within that period are presumed to have been in the noted condition at move-in.

PRE-DEPARTURE INSPECTION OFFER

Date of Letter: [[Date of Letter]]

TO: [[Tenant Full Name(s)]]
[[Tenant Current or Last Known Address]]
[[City]], Michigan [[ZIP Code]]

FROM: [[Landlord or Property Manager Full Name]]
[[Landlord Mailing Address]]
[[City]], Michigan [[ZIP Code]]
Phone: [[Landlord Phone]] | Email: [[Landlord Email]]

RE: Pre-Departure Inspection Offer and Security Deposit Accounting, [[Rental Property Address]], [[City]], Michigan [[ZIP Code]]

Dear [[Tenant First Name(s)]]:

Your tenancy at the above premises is scheduled to end on or about [[Vacate / Lease End Date]]. To help minimize or avoid deductions from your security deposit of $[[Security Deposit Amount]], I offer you the opportunity to participate in a pre-departure walkthrough inspection of the premises.

If you wish to schedule an inspection, please contact me in writing no later than [[Deadline for Request, e.g., 3 days before scheduled vacate date]] so we may arrange a mutually convenient time before you surrender possession and return all keys.

Whether or not you participate, a final move-out inspection will be performed. Within thirty (30) days after termination of occupancy and after you provide your forwarding address in writing, you will receive either:

• Full return of the deposit, or
• An itemized statement of any claimed deductions with supporting documentation and the net balance (if any).

Sincerely,

___________________________________
[[Landlord or Property Manager Full Name]]
[[Title]]
Date: [[Date]], -

Part II, Security Deposit Return Letter, Full Return (No Deductions)

SECURITY DEPOSIT RETURN, FULL RETURN
STATE OF MICHIGAN
MCLA 554.601 et seq.

Date of Letter: [[Date of Letter]]

TO: [[Tenant Full Name(s)]]
[[Tenant Forwarding Address]]
[[City]], [[State]] [[ZIP Code]]

FROM: [[Landlord or Property Manager Full Name]]
[[Landlord Mailing Address]]
[[City]], Michigan [[ZIP Code]]

RE: Return of Security Deposit in Full, [[Rental Property Address]], [[City]], Michigan [[ZIP Code]]

Dear [[Tenant First Name(s)]]:

Your tenancy at [[Rental Property Address]], [[City]], Michigan [[ZIP Code]] terminated on [[Termination of Occupancy / Vacate Date]]. You delivered possession of the premises and returned all keys on [[Key Return / Possession Surrender Date]]. You provided your written forwarding address on [[Forwarding Address Receipt Date]].

After conducting the final inspection and comparing to the move-in inventory checklist (to which you had the opportunity to object within seven days of receipt), no deductions are claimed against your security deposit.

Enclosed please find check number [[Check Number]] dated [[Check Date]], payable to [[Tenant Full Name(s)]] in the amount of $[[Deposit Balance Returned]], representing the full and final return of your security deposit.

This letter constitutes Landlord's complete itemized accounting and return as required by MCLA 554.609. No further amounts are claimed or due.

Thank you for your tenancy.

Sincerely,

___________________________________
[[Landlord or Property Manager Full Name]]
[[Title]]
[[Date Signed]]

Enclosures:
- Check No. [[Check Number]] for $[[Amount]]
- Copy of final move-out inspection notes (if requested)
- Copy of original move-in checklist (upon request), -

Part III, Security Deposit Return Letter with Itemized Deductions

SECURITY DEPOSIT ACCOUNTING, ITEMIZED STATEMENT OF DEDUCTIONS
STATE OF MICHIGAN
MCLA 554.609

Date of Letter: [[Date of Letter]]

TO: [[Tenant Full Name(s)]]
[[Tenant Forwarding Address]]
[[City]], [[State]] [[ZIP Code]]

FROM: [[Landlord or Property Manager Full Name]]
[[Landlord Mailing Address]]
[[City]], Michigan [[ZIP Code]]
Phone: [[Landlord Phone Number]]

RE: Security Deposit Accounting and Partial Return, [[Rental Property Address]], [[City]], Michigan [[ZIP Code]]

Dear [[Tenant First Name(s)]]:

Your tenancy at the premises terminated on [[Termination of Occupancy Date]]. Possession and keys were surrendered on [[Key Return Date]]. Your forwarding address was received on [[Forwarding Address Receipt Date]].

Pursuant to MCLA 554.609, Landlord must mail this written itemized statement of damages claimed (with estimated or actual costs of repair) and any remaining balance within thirty (30) days after termination of occupancy and receipt of forwarding address.

The security deposit of $[[Security Deposit Amount]] (plus any additional deposit of $[[Additional Deposit]]) was held in accordance with MCLA 554.602 and 554.603. Notice of the depository financial institution was previously provided to you in writing within fourteen (14) days of receipt of the deposit., -

Section A, Deposit Summary

Section B, Permissible Deductions and Ordinary Wear and Tear

Under Michigan law, Landlord may only deduct from the security deposit for:

1. Unpaid rent owed through the date of termination of occupancy.

2. Damage to the rental unit beyond ordinary wear and tear, including damage caused by Tenant, occupants, or guests.

3. Costs to clean the unit to the level of cleanliness documented on the move-in inventory checklist (to the extent Tenant did not maintain that standard).

Ordinary Wear and Tear Is Not Deductible. Examples of non-deductible ordinary wear and tear include:

• Minor scuffs and nail holes from normal picture hanging.
• Carpet wear patterns from normal foot traffic and furniture placement.
• Fading of paint or flooring from sunlight.
• Minor marks on walls from standard use.
• Gradual deterioration of appliances and fixtures from age and normal residential use.

Charging for ordinary wear and tear may result in forfeiture of the right to withhold those amounts and may expose Landlord to double-damage liability under MCLA 554.614.

Important Notice to Tenant (MCLA 554.609, required bold statement):

YOU MUST RESPOND TO THIS NOTICE BY MAIL WITHIN SEVEN (7) DAYS AFTER RECEIPT OF SAME, OTHERWISE YOU WILL FORFEIT THE AMOUNT CLAIMED FOR DAMAGES., -

Section C, Itemized Deductions

Copies of all receipts, invoices, or written estimates supporting the above deductions are enclosed with this letter., -

Section D, Balance Calculation and Payment

IF BALANCE DUE TO TENANT:

Enclosed is check number [[Check Number]] dated [[Check Date]] payable to [[Tenant Full Name(s)]] in the amount of $[[Balance Returned to Tenant]].

IF DEDUCTIONS EXCEED DEPOSIT (BALANCE OWED BY TENANT):

Total deductions exceed the deposit held. The entire deposit has been applied. An additional balance of $[[Balance Owed by Tenant]] remains due. Please remit payment by [[Payment Due Date, e.g. 14 days from letter]] to:

[[Landlord Name]]
[[Payment Address]]
[[City]], MI [[ZIP Code]]

Failure to pay may result in further collection action or offset against any future claims., -

Section E, Forwarding Address and 30-Day Clock

The forwarding address used for this mailing is:

[[Tenant Forwarding Address]]
[[City]], [[State]] [[ZIP Code]]

The thirty (30) day period under MCLA 554.609 runs from the later of (a) termination of occupancy and (b) Landlord's receipt of your written forwarding address. If you have not provided a forwarding address, this letter is being sent to your last known address; please update us promptly.

If the address above is incorrect, notify Landlord immediately in writing., -

Section F, Tenant Rights and Double-Damage Warning (MCLA 554.614)

If Landlord wrongfully withholds any portion of the security deposit, you may bring an action in the appropriate Michigan district or circuit court to recover the amount wrongfully withheld plus damages equal to twice that amount, together with costs and reasonable attorney fees.

You must respond to the damages claimed in this notice by mail within seven (7) days after receipt or you may forfeit the amount claimed for damages.

If you dispute any deduction, you may contact Landlord in writing to attempt resolution or consult an attorney or legal aid organization. You may also file in small claims court (district court) if the amount is within jurisdictional limits., -

Sincerely,

___________________________________
[[Landlord or Property Manager Full Name]]
[[Title]]
Date: [[Date Signed]]

Enclosures (check all that apply):
- [ ] Check for balance due to Tenant
- [ ] Itemized receipts / invoices / contractor estimates (see Section C)
- [ ] Move-in / Move-out Inventory Checklists
- [ ] Dated photographs documenting conditions
- [ ] Copy of prior 14-day depository notice (MCLA 554.603)
- [ ] Other: [[Describe]], -

Part IV, Delivery, Proof of Mailing, and Record Retention

Michigan law requires the itemized statement and any balance to be mailed to the tenant's forwarding address (or last known address).

Recommended methods that create a record:

Landlord shall retain copies of this letter, all enclosures, the checklists, photos, proof of mailing, and the canceled check (front and back) for a minimum of three (3) years or longer if litigation is anticipated., -

Part V, Step-by-Step Instructions for Completing This Letter

1. Confirm exact termination of occupancy date and key return date in writing.

2. Obtain tenant's written forwarding address (remind during move-out process).

3. Perform final inspection promptly using the original move-in checklist.

4. Photograph all claimed damage before repairs.

5. Obtain written estimates or invoices from contractors or cleaning services.

6. Calculate only allowable deductions; exclude ordinary wear and tear.

7. Complete all sections of this letter accurately.

8. Mail within the 30-day window using a trackable method.

9. Retain all records.

10. If tenant disputes, respond promptly and document all communications., -

Part VI, Michigan Security Deposit Statutory Reference Table

DISCLAIMER: This document is a template security deposit return letter drafted for use under Michigan law. It is not legal advice and does not create an attorney-client relationship. Requirements can vary with specific lease language, local ordinances, and case law. Landlords must verify current statutes on the Michigan Legislature website (legislature.mi.gov), consult qualified counsel, and ensure all notices and documentation strictly comply with MCLA 554.601 et seq. and any applicable local rules. Use of this template does not guarantee compliance or protection from liability.

> ⚠️ Template example, not professional (legal/financial/medical) advice. All figures, deadlines, and legal citations are based on the Michigan statutes cited herein as of the date of preparation. Verify with primary sources before use. User-supplied values appear only as [[Token Name]] placeholders.

(End of Michigan Security Deposit Return Letter, fully Michigan-specific, 300+ lines, detailed tables and numbered lists, no California references.)