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Michigan Landlord-Tenant Law 2026: The Complete Handbook

1.5-month deposit cap, 14-day deposit notice, inventory checklists, Truth in Renting notice, 7-day demand for possession. Every Michigan rule with statutes.

Tenby Team·

Quick answer

Michiganlate fee & security deposit rules (2026)

In Michigan, a landlord's late fee has no statutory cap (it must be reasonable and stated in the lease), and no grace period is required by state law. Security deposits are limited to 1.5x rent and must be returned within 30 calendar days of move-out, held in a separate/escrow account.

  • Late fee cap: No statutory cap
  • Grace period: None required by state law
  • Max security deposit: 1.5x rent
  • Deposit return deadline: 30 calendar days after move-out
  • Deposit escrow: Required
  • Statutes: Mich. Comp. Laws § 554.602

Tenby is an AI-powered property management platform for independent landlords managing 1-50 rental units. Tenby's compliance engine is loaded with Michigan-specific rules — security deposit deadlines and notices, required disclosures, and eviction notice requirements — automatically enforced for every Michigan property.

Michigan's landlord-tenant relationship is governed primarily by Chapter 554 of the Michigan Compiled Laws, including the security deposit act (MCL 554.601 et seq.) and the Truth in Renting Act (MCL 554.634). Michigan has no late fee cap and no rent control, but its security deposit paperwork requirements are unusually procedural — miss a notice deadline and you can lose the right to keep any of the deposit. Here's everything you need to know.

Security deposits in Michigan

RuleMichigan Law
Maximum deposit1.5 months' rent (Mich. Comp. Laws § 554.602)
Return deadline30 days after move-out (Mich. Comp. Laws § 554.609)
Escrow required?Yes — must be held at a regulated financial institution (Mich. Comp. Laws § 554.603)
Interest required?No
Itemized deductions?Yes (Mich. Comp. Laws § 554.609)
Pet deposit allowed?Yes

Key details:

  • The deposit is capped at 1.5 months' rent (MCL 554.602)
  • The deposit must be held at a regulated financial institution (or secured by a surety bond) (MCL 554.603)
  • 14-day deposit notice: within 14 days of the tenant taking possession, you must give written notice of (1) your name and address for communications, (2) the financial institution or surety holding the deposit, and (3) the tenant's obligation to provide a forwarding address within 4 days of termination — including the statutory 12-point boldface forwarding-address notice (MCL 554.603)
  • Inventory checklists: you must provide two blank inventory checklists at move-in; the tenant has 7 days to complete and return one (MCL 554.608)
  • Return the deposit or an itemized statement of damages within 30 days after the tenant vacates (MCL 554.609)

> Check your deposit: Use our free Michigan security deposit calculator to verify your deposit amount, notices, and return deadline are compliant.

Eviction process in Michigan

Michigan evictions follow a formal court process. Self-help evictions (changing locks, removing belongings, shutting off utilities) are illegal.

Step 1: Serve proper notice

ReasonNotice PeriodNotice Type
Nonpayment of rent7 daysDemand for Possession (Mich. Comp. Laws § 554.134(2))
Month-to-month termination30 daysNotice to Quit

Right to cure: Michigan gives tenants a statutory right to cure nonpayment (MCL 554.134) — paying the rent owed within the 7-day window stops the eviction on that basis.

Step 2: File the eviction case

If the tenant neither pays nor vacates within 7 days, file an eviction action in the court with jurisdiction over the property.

Step 3: Court hearing

Both parties present their case. Bring the lease, the served Demand for Possession, the inventory checklists, and your payment records.

Step 4: Judgment and execution

If the court rules for the landlord, a judgment issues and a court officer executes it if the tenant still refuses to leave.

Late fees in Michigan

RuleMichigan Law
Grace periodNot required by statute
Maximum feeNo statutory cap — must be in the lease
Must be in lease?Yes
Daily fees allowed?Yes, if specified in lease

> Calculate your late fee: Use our free Michigan late fee calculator to check if your proposed fee is compliant with Michigan law. Also try our prorated rent calculator for move-in/move-out calculations and rent estimate tool to see if your rent is at market rate.

Michigan has no statutory grace period and no statutory late fee cap — the lease controls. Courts can still refuse to enforce a fee they consider an unreasonable penalty, and remember that lease clauses in Michigan must survive Truth in Renting Act scrutiny (prohibited clauses are void under MCL 554.633). Best practice: keep late fees in the 5-10% range of monthly rent.

Landlord entry in Michigan

RuleMichigan Law
Notice required?Yes — 24 hours is the standard
Minimum notice period24 hours
Emergency exceptionsEmergencies permit entry without notice as a practical matter

Give tenants at least 24 hours' notice before non-emergency entry, and put the entry procedure in your written lease.

Required disclosures in Michigan

Michigan landlords must handle the following:

  1. Truth in Renting notice — written residential leases must state the lessor's notice address and include the statutory Truth in Renting notice in 12-point type or larger, advising that the agreement must comply with the Act and that the tenant may seek a lawyer's help about any provision (MCL 554.634). The Act separately voids prohibited lease clauses (MCL 554.633)
  2. Security deposit notice (14-day) — the written deposit notice described above, due within 14 days of the tenant taking possession (MCL 554.603)
  3. Move-in inventory checklist — two blank inventory checklists at move-in; tenant has 7 days to complete and return one (MCL 554.608)
  4. Domestic violence release-rights notice — if the lease does not contain the statutory DV release provision, you must post visible written notice in the property-management office or deliver written notice at lease signing that a tenant with reasonable apprehension of danger from domestic violence, sexual assault, or stalking may have rights to release from the lease under MCL 554.601b (2010 PA 199)
  5. Lead paint disclosure — for properties built before 1978, including the EPA "Protect Your Family From Lead in Your Home" pamphlet (federal requirement)
  6. Rent increase rules in Michigan

    • No rent control — Michigan state law prohibits local rent control ordinances (Mich. Comp. Laws § 123.411)
    • For month-to-month tenancies, the 30-day termination notice effectively sets the notice floor for rent increases
    • Cannot raise rent during a fixed-term lease unless the lease includes a rent increase clause
    • There is no cap on the amount of a rent increase

    Maintenance obligations

    Landlord must:

    • Maintain the property in habitable condition
    • Comply with applicable building and housing codes
    • Keep essential systems (plumbing, heating, electrical) in working order
    • Keep common areas safe and clean
    • Make repairs within a reasonable time after notice — Tenby tracks a 14-day repair window for Michigan properties

    Tenant must:

    • Keep the unit clean and sanitary
    • Use fixtures, appliances, and systems reasonably
    • Not damage or destroy the premises
    • Complete and return the move-in inventory checklist within 7 days
    • Notify the landlord of needed repairs promptly
    • Allow reasonable access for necessary repairs (with proper notice)

    Tenant rights in Michigan

    Tenants in Michigan have the right to:

    • Habitable housing — the landlord must maintain the premises fit for habitation
    • Rent withholding — Michigan permits rent withholding when the landlord fails to maintain the property (follow the proper procedure)
    • Repair and deduct — Michigan recognizes a repair-and-deduct remedy for necessary repairs the landlord won't make
    • Right to cure nonpayment — paying within the 7-day Demand for Possession window defeats a nonpayment eviction (MCL 554.134)
    • Deposit protections — 1.5-month cap, regulated-institution holding, the 14-day deposit notice, inventory checklists, itemization, and the 30-day return deadline
    • Truth in Renting protections — prohibited lease clauses are void (MCL 554.633)
    • Domestic violence release rights — tenants facing domestic violence, sexual assault, or stalking may have rights to release from the lease (MCL 554.601b)

    How Tenby helps Michigan landlords

    Tenby's compliance engine handles Michigan-specific requirements automatically:

    • 1.5-month deposit cap enforced at lease creation
    • 14-day deposit notice deadline tracking with the required contents checklist (MCL 554.603)
    • Move-in inventory checklist workflow with the 7-day tenant return window (MCL 554.608)
    • 30-day deposit return tracking with countdown alerts and itemized statements
    • Truth in Renting notice reminder at lease creation (MCL 554.634)
    • DV release-rights notice tracking (MCL 554.601b)
    • 7-day Demand for Possession timeline guidance with cure-period tracking
    • Late fee reasonableness guidance since Michigan has no statutory cap

    The bottom line

    Michigan is moderately landlord-friendly on money terms — no late fee cap, no rent control (MCL 123.411), a workable 1.5-month deposit cap — but unforgiving on deposit procedure. The key requirements to remember: deposit at a regulated institution, the 14-day written deposit notice, two inventory checklists at move-in, the 30-day return deadline with itemization, the Truth in Renting notice in every written lease, and a 7-day Demand for Possession (with right to cure) before filing an eviction. Nail the paperwork sequence, document everything, and you'll avoid most legal issues.

Landlord Law Watch

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This guide is current today — but Michigan's late fee caps, deposit rules, grace periods, and notice requirements change more often than most landlords realize. Law Watch monitors the statutes and emails you the moment Michigan moves: what changed, old vs. new, and what to update in your lease.

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