Michigan Compiled Laws

Mich. Comp. Laws § 554.607 (2026)

Security deposit; permissible uses.

✓ current as of July 2026

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LANDLORD AND TENANT RELATIONSHIPS

Act 348 of 1972

554.607 Security deposit; permissible uses.

Sec. 7.

A security deposit may be used only for the following purposes:

(a) Reimburse the landlord for 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.

(b) Pay the landlord for all rent in arrearage under the rental agreement, rent due for premature termination of the rental agreement by the tenant and for utility bills not paid by the tenant.

History: 1972, Act 348, Eff. Apr. 1, 1973

PopularName Notes:

Landlord-Tenant Act

Notes of Decisions

Cited in 5 cases (1 in the last 5 years), 1983–2023 · leading case: Smolen v. Dahlmann Apts., Ltd, 338 N.W.2d 892 (Mich. Ct. App. 1983).

Sort: Relevance Newest Treatment

Smolen v. Dahlmann Apts., Ltd, 338 N.W.2d 892 (Mich. Ct. App. 1983). · cites it 5× “” MCL 554.607; MSA 26.1138(7). Consequently, a landlord may not use a tenant’s security deposit for any purposes other than those listed in the statute.”

Hovanesian v. Nam, 539 N.W.2d 557 (Mich. Ct. App. 1995). “MCL 554.607; MSA 26.1138(7). A landlord must satisfy certain requirements in order to retain a security deposit.”

Lesatz v. Stand. Green Meadows, 416 N.W.2d 334 (Mich. Ct. App. 1987). “In Count ii, plaintiffs allege that defendants included claims on the itemized damages list not permitted by the ltra, MCL 554.607; MSA 26.1138(7), which provides: A security deposit may be used only for the following purposes: (a) Reimburse the landlord for actual damages to…”

Gabrielle Beebe v. Ag Mgmt. Co. LLC (Mich. Ct. App. 2023). “609 provides, in pertinent part: In case of damage to the rental unit or other obligation against the security deposit, the landlord[2] shall mail to the tenant, within 30 days after the termination of occupancy, an itemized list of damages claimed for which the security deposit…”

Iwanski v. Fed. Home Loan Mortg. Corp. (In re Iwanski), 477 B.R. 67 (E.D. Mich. 2012). “§ 554.607. A landlord is also entitled to retain a security deposit for 45 days after termination of the occupancy, and to begin an action for a money judgment against the former tenants during that time.”

Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.