State law guide · Checked November 14, 2026

Michigan landlord rules: late fees, deposits and rent increases

Michigan's security deposit law is detailed and strict on deadlines. The statutes set no late fee limit and no rent cap. Here is what the Michigan Compiled Laws say, with the section for each rule.

Late fees in Michigan

Limit

None in the statute. MCL 554.601–554.616, 554.633

Grace period

None in the statute. MCL 554.601–554.616, 554.633

Other conditions

None specific to late fees. Your lease sets the fee. MCL 554.633

Security deposits in Michigan

Maximum deposit

One and a half months' rent. The law counts any required prepayment of rent beyond the opening rental period as part of the deposit. MCL 554.602, 554.601

Return deadline

30 days after occupancy ends to mail the notice of damages, with the balance of the deposit. If you don't send the notice in those 30 days, the law treats it as agreeing that no damages are due, and the full deposit is owed immediately. Since September 21, 2026, the balance may go by direct deposit or electronic transfer within 10 days after the notice is mailed. MCL 554.609, 554.610

Itemized deductions

Required: an itemized list of damages claimed, with the estimated cost of repair for each item. The notice has to tell the tenant, in 12-point bold type, to respond by mail within 7 days. A tenant who doesn't give a forwarding address in writing within 4 days after moving out isn't owed the notice. MCL 554.609, 554.611

Interest

The statute doesn't require it. MCL 554.601–554.616

How it's held

In a regulated financial institution. A landlord may use the money instead if a bond is filed with the secretary of state. Give the tenant the name and address of the institution or surety in writing within 14 days after they take possession. MCL 554.604, 554.603

Penalty

Double the amount of the deposit kept. To keep money for damages the tenant disputes, a landlord has 45 days after occupancy ends to file suit. A landlord who doesn't follow that rule waives the claimed damages and owes double the deposit kept. MCL 554.613

Rent increases in Michigan

Notice to raise rent

No statute sets a notice period for a rent increase. The closest rule covers ending a month-to-month tenancy: notice equal to the rent interval, so one month. Check your lease for its own notice term. MCL 554.134

Statewide cap

None in the statute. MCL ch. 554

City rent control

Not allowed. A local government may not adopt or enforce an ordinance that would have the effect of controlling the rent charged for private residential property. MCL 123.411

This page covers Michigan state law for ordinary residential rentals. Cities and counties can add their own rules, and subsidized housing and mobile home lots follow different ones.

Questions landlords ask

Free templates you can use in Michigan

These are plain templates that aren’t tied to one state. Fill in the numbers your statute and lease call for.

• Rent increase letter kit: increase notice, renewal offer, pricing worksheet and delivery log.
• Late rent notice kit: friendly reminder, past-due notice, payment plan and delivery log.
• Security deposit return kit: itemized return letter, wear-and-tear guide and move-out checklist.
• Move-in kit: inspection checklist and deposit receipt, signed by the tenant.
• Rent ledger: running tenant balances and printable statements.

This guide is general information, not legal advice. It summarizes state statutes as read on November 14, 2026; laws change and courts interpret them. Check the current statute (Michigan security deposit law, MCL 554.601–554.616) or talk to a local attorney before you act.