Benton Harbor, MI Code of Ordinances Ch. 20 Art. V Landlord-Tenant Code §§ 20-88 – 20-164 § 20-145
Security deposit
Operative Text
(a) Any advance or deposit of money, regardless of its denomination, whose primary function is to secure the performance of a rental agreement or any part thereof, shall be governed by this section. This money shall be held and administered for the benefit of the tenant. The tenant’s claim to such money shall be prior to that off any creditor of the landlord, including a trustee in bankruptcy, even if such security funds are comingled. (b)Within thirty (30) days after the vacation of the rental unit by the tenant, the landlord shall return to the tenant any security deposits posted by the tenant, less any amount due the landlord from the tenant for rent owed or damage to the rental unit caused by the tenant. (c) If less than the full security deposit is returned to the tenant, the landlord shall provide the tenant with written, itemized list of the disposition of the amount not returned. (d) If a security deposit of an amount in excess of one month’s rent is held by the landlord for a period greater than one year, the landlord shall be required to pay interest at a per annum rate of not less than three (3) percent over the term of occupancy. (e ) The willful retention of a security deposit in violation of this section by a landlord whose interest has expired or terminated shall be a violation of this article. (Ord. of 6-9-77, § 7.02) State law reference-Security deposits, MCL 554.601 et seq., MSA 26.1138(1) et seq.
Section 20-145 of the Benton Harbor Landlord-Tenant Code governs any money collected upfront to secure a rental agreement, regardless of what it is called. Such funds are legally held for the tenant's benefit, and the tenant's claim to that money takes priority over the landlord's creditors—even in bankruptcy. Within 30 days of a tenant vacating, the landlord must return the deposit minus documented deductions for unpaid rent or tenant-caused damage, and if any amount is withheld, a written itemized statement is required. If a deposit exceeding one month's rent is held for more than a year, the landlord must pay interest at a minimum annual rate of 3%.
Plain English — not legal advice.
Operators subject to § 20-145 of the Benton Harbor Landlord-Tenant Code generally maintain security deposit funds separately and treat them as money held in trust for the tenant, since the tenant's claim is superior even to creditors in bankruptcy. Compliant landlords return deposits—or the remaining balance after documented deductions—within 30 days of unit vacation, accompanied by a written, itemized accounting of any amounts withheld. When a deposit exceeds one month's rent and is held for more than one year, compliant operators track the accrual of interest at no less than 3% per annum and include that amount in any final accounting. Willful retention of a deposit after a landlord's interest has expired or terminated is treated as a violation of the article under § 20-145(e).
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Under § 20-145 of the Benton Harbor Landlord-Tenant Code, tenants have a legally protected claim to any security deposit they paid, and that claim ranks ahead of the landlord's creditors. If a landlord fails to return the deposit—or the remaining balance with a written itemized explanation—within 30 days of move-out, that failure may constitute a violation of the ordinance. Tenants who believe a deposit has been wrongfully withheld may consider documenting the timeline and condition of the unit, reviewing the state law referenced in § 20-145 (MCL 554.601 et seq.), and reaching out to a local tenant-rights organization or legal aid office to understand available remedies.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 14, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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