SECURITY DEPOSIT DEMAND LETTER

STATE OF MICHIGAN

SENT VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
AND FIRST-CLASS MAIL

[DATE]

[LANDLORD/PROPERTY MANAGER NAME]
[LANDLORD/PROPERTY MANAGER ADDRESS]
[CITY, STATE ZIP]

Re: DEMAND FOR RETURN OF SECURITY DEPOSIT
Former Tenant: [TENANT FULL NAME]
Rental Property Address: [RENTAL ADDRESS]
Lease Start Date: [DATE]
Move-Out Date: [DATE]
Security Deposit Amount: $[AMOUNT]

Dear [LANDLORD/PROPERTY MANAGER NAME]:

This law firm represents [TENANT FULL NAME] ("Tenant" or "Client") regarding your failure to return the security deposit for the above-referenced rental property in accordance with Michigan law. This letter constitutes formal demand for the immediate return of our Client's security deposit, plus all applicable damages and attorney's fees.

I. MICHIGAN LEGAL FRAMEWORK

A. Governing Law

Security deposits in Michigan are governed by the Michigan Security Deposit Act, MCL Section 554.601 et seq.

B. Security Deposit Limits

Under MCL Section 554.602, a landlord may not demand or receive a security deposit in excess of one and one-half (1.5) months' rent. If you collected a deposit exceeding this amount, you have violated Michigan law.

C. Return Deadline

Pursuant to MCL Section 554.609, a landlord must return the security deposit within thirty (30) days after:
1. Termination of the tenancy; AND
2. Delivery of possession by the tenant

The deposit must be returned with an itemized statement accounting for any amounts withheld.

D. Inventory Checklist Requirement

Under MCL Section 554.608, the landlord must:
- Provide the tenant with an inventory checklist at the start of the tenancy
- Allow the tenant to note the condition of the premises
- Provide a copy of the checklist signed by both parties

Failure to provide this checklist may limit the landlord's ability to claim deductions.

E. Separate Account and Disclosure Requirements

Under MCL Section 554.603 and 554.604, the landlord must:
- Deposit the security deposit in a regulated financial institution
- Provide the tenant with the name and address of the financial institution within 14 days
- May post a cash bond or surety bond instead of depositing the funds

F. Permissible Deductions

Under MCL Section 554.607, a landlord may retain from the security deposit only amounts necessary to:
- Pay unpaid rent
- Compensate for damages beyond reasonable wear and tear
- Pay for cleaning necessary to return the unit to move-in condition
- Other charges agreed to in writing

G. Prohibited Deductions

The landlord may NOT deduct for:
- Reasonable wear and tear
- Conditions existing prior to tenant's occupancy
- Conditions resulting from landlord's failure to maintain premises
- Damages not documented in the inventory checklist

II. FACTUAL BACKGROUND

A. Tenancy Information

B. Move-Out Circumstances

Notice Provided:
- Date Notice Given: [DATE]
- Notice Period: [NUMBER] days
- Method of Delivery: [ ] Hand-delivered [ ] Certified mail [ ] Email

Move-Out Details:
- Date Keys Returned: [DATE]
- Forwarding Address Provided: [ ] Yes [ ] No
- Date Forwarding Address Provided: [DATE]
- Move-Out Inspection: [ ] Requested [ ] Conducted [ ] Refused by Landlord [ ] Not offered

C. Condition of Premises at Move-Out

Our Client left the premises in the following condition:

[ ] Clean and in good repair - The premises were left in substantially the same condition as when our Client took possession, reasonable wear and tear excepted.

[ ] Professionally cleaned - Our Client hired [CLEANING COMPANY NAME] to professionally clean the premises on [DATE].

[ ] All personal property removed - All of our Client's personal belongings were removed from the premises.

[ ] No damage beyond normal wear and tear - Any changes to the premises were the result of normal, expected use during the tenancy.

[ ] Move-in/Move-out photos - Our Client has photographic documentation of the condition of the premises at both move-in and move-out.

III. LANDLORD'S VIOLATIONS

You have violated Michigan law in the following ways:

[ ] Failure to Return Deposit: You have failed to return any portion of the security deposit within the statutory 30-day period required under MCL Section 554.609.

[ ] Failure to Provide Itemization: You have failed to provide a written, itemized statement of deductions within the statutory period.

[ ] Excessive Security Deposit: You collected a security deposit exceeding 1.5 months' rent in violation of MCL Section 554.602.

[ ] Failure to Provide Inventory Checklist: You failed to provide an inventory checklist at the start of the tenancy as required by MCL Section 554.608.

[ ] Failure to Disclose Bank Information: You failed to provide the name and address of the financial institution holding the deposit.

[ ] Improper Deductions: You have made deductions that are not permitted by law, including:
- [ ] Deductions for reasonable wear and tear
- [ ] Deductions for pre-existing conditions
- [ ] Deductions not documented in inventory checklist
- [ ] Deductions exceeding actual cost of repairs
- [ ] Other improper deductions: [SPECIFY]

[ ] Bad Faith Retention: You have retained the deposit in bad faith, as evidenced by: [DESCRIBE EVIDENCE OF BAD FAITH]

IV. NORMAL WEAR AND TEAR

Michigan law distinguishes between "damage" for which a tenant may be charged and "reasonable wear and tear" for which a tenant may not be charged. Reasonable wear and tear includes deterioration that results from the intended use of the premises and ordinary operation of natural forces over time.

The following items, if deducted, constitute reasonable wear and tear and are NOT permissible deductions:

[ ] Minor scuff marks on walls from furniture
[ ] Small nail holes from hanging pictures
[ ] Worn carpet in traffic areas
[ ] Faded paint or wallpaper
[ ] Minor scratches on hardwood floors
[ ] Worn finish on bathroom fixtures
[ ] Slightly dirty mini-blinds
[ ] Dust or minor dirt requiring standard turnover cleaning
[ ] Worn door handles or locks
[ ] Other: [SPECIFY]

V. DAMAGES AND REMEDIES

A. Return of Security Deposit

B. Statutory Remedies

Under MCL Section 554.613, if a landlord fails to comply with the security deposit requirements:
- The tenant may recover double the amount wrongfully withheld
- The tenant may recover actual damages
- The tenant may recover reasonable attorney's fees

C. Attorney's Fees and Costs

Under MCL Section 554.613, our Client is entitled to recover reasonable attorney's fees and costs incurred in pursuing this claim.

D. Total Demand

VI. EVIDENCE IN OUR POSSESSION

Our Client has preserved the following evidence to support this claim:

[ ] Original lease agreement
[ ] Receipt or cancelled check for security deposit payment
[ ] Inventory checklist (if provided)
[ ] Move-in inspection report
[ ] Move-out inspection report (if conducted)
[ ] Photographs of premises at move-in (dated)
[ ] Photographs of premises at move-out (dated)
[ ] Video walkthrough at move-out
[ ] Copy of written notice to vacate
[ ] Proof of delivery of notice and forwarding address
[ ] Receipts for professional cleaning
[ ] Correspondence with landlord regarding deposit
[ ] Landlord's itemized statement (if provided)
[ ] Notice of bank holding deposit
[ ] Witness statements regarding condition of premises
[ ] Utility final bills showing service through move-out date
[ ] Other: [SPECIFY]

VII. DEMAND

We hereby demand that you take the following actions within fourteen (14) days of the date of this letter:

1. Return of Deposit: Pay to our Client the full amount of the security deposit: $[AMOUNT]

2. Total Payment: The total amount due is $[TOTAL AMOUNT]

Payment should be made by certified check or money order, payable to [TENANT NAME], and sent to:

[LAW FIRM NAME]
[ADDRESS]
[CITY, STATE ZIP]

Reference: [TENANT NAME] Security Deposit

VIII. CONSEQUENCES OF NON-COMPLIANCE

If you fail to comply with this demand within the time specified, we are authorized and prepared to:

1. File Suit: Commence legal action in Michigan Small Claims Court (for claims up to $6,500) or District Court for return of the deposit, double damages, attorney's fees, and costs.

2. Seek Double Damages: Request the court award double the amount wrongfully withheld pursuant to MCL Section 554.613.

3. Seek Attorney's Fees: Request the court award reasonable attorney's fees pursuant to MCL Section 554.613.

4. Report Violations: Report your conduct to:
   - Michigan Attorney General - Consumer Protection Division
   - Local Housing Authority
   - Better Business Bureau

5. Judgment Enforcement: Upon obtaining judgment, pursue all legal means of collection, including garnishment, levy, and lien on property.

IX. RESPONSE REQUESTED

Please respond to this demand in writing within fourteen (14) days. Your response should include:

1. Your position on the amount owed to our Client
2. Any documentation supporting claimed deductions
3. Payment or a good-faith settlement offer

If we do not receive a satisfactory response, we will file suit without further notice.

X. RESERVATION OF RIGHTS

This letter is written without prejudice to any and all rights and remedies available to our Client under applicable law, all of which are expressly reserved. Our Client does not waive any claims, defenses, or rights by sending this letter or by any subsequent negotiations.

Respectfully submitted,

[LAW FIRM NAME]

By: _________________________________
[ATTORNEY NAME]
[MICHIGAN BAR NUMBER (P#)]
[ADDRESS]
[CITY, STATE ZIP]
[TELEPHONE]
[EMAIL]

Attorneys for [TENANT FULL NAME]

ENCLOSURES:
[ ] Copy of lease agreement
[ ] Copy of security deposit receipt
[ ] Inventory checklist
[ ] Move-in/move-out photographs
[ ] Copy of notice to vacate
[ ] Copy of forwarding address notification
[ ] Copy of landlord's itemization (if any)
[ ] Cleaning receipts
[ ] Authorization to represent

cc: [TENANT NAME]
[PROPERTY MANAGEMENT COMPANY, if applicable]
[PROPERTY OWNER, if different from addressee]
[CLIENT FILE]

MICHIGAN SECURITY DEPOSIT QUICK REFERENCE

MICHIGAN-SPECIFIC PRACTICE NOTES

[ ] Inventory Checklist: Michigan requires landlords to provide an inventory checklist at the start of tenancy. Failure to do so may limit the ability to make deductions.

[ ] Double Damages: Michigan allows recovery of double the amount wrongfully withheld.

[ ] Bank Disclosure: Landlord must provide the name and address of the financial institution holding the deposit within 14 days.

[ ] Seven-Day Notice: If the landlord intends to make deductions, they must send an itemized list within 30 days. The tenant then has 7 days to respond.

[ ] Bond Alternative: Landlords may post a surety bond instead of depositing the security deposit.

[ ] Detroit: Detroit has additional local ordinances. Check city requirements.

[ ] Ann Arbor: Ann Arbor has strong tenant protections. Review local ordinances.

[ ] Forwarding Address: Tenant must provide forwarding address in writing.

This template is for informational purposes only and does not constitute legal advice. Security deposit laws may vary by locality. Consult a licensed Michigan attorney before use.