Mich. Comp. Laws § § 554.605
Security deposit as property of tenant.
Operative Text
Sec. 5. For the purposes of this act and any litigation arising thereunder, the security deposit is considered the lawful property of the tenant until the landlord establishes a right to the deposit or portions thereof as long as the bond provision is fulfilled, the landlord may use this fund for any purposes he desires.
Under MCL § 554.601 et seq. § 554.605, a security deposit is legally treated as the tenant's property for the duration of the tenancy and any related legal proceedings. The landlord does not acquire ownership of those funds unless and until they demonstrate a valid legal basis for retaining all or part of the deposit. Once the required bond provision is satisfied, the landlord is permitted to use the deposit funds for any purpose they choose, but that use does not extinguish the tenant's underlying ownership interest until a right to the deposit is properly established.
Plain English — not legal advice.
MCL § 554.601 et seq. § 554.605 makes clear that compliant operators treat security deposit funds as belonging to the tenant until a lawful basis for retention is documented and established. Operators who satisfy the bond requirement may use the deposit funds operationally, but they remain accountable for those amounts if no valid claim against the deposit is later proven. Property managers generally maintain clear records of any deductions and ensure the bond provision is fulfilled before accessing deposit funds.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Under MCL § 554.601 et seq. § 554.605, the law recognizes a security deposit as your property unless and until a landlord proves a legitimate right to keep it. If a landlord retains deposit funds without establishing that right, this provision may be raised as part of a legal claim or defense in any related litigation. Tenants who believe their deposit has been wrongfully withheld may consider contacting a local tenant-rights organization or consulting a licensed attorney familiar with Michigan landlord-tenant law to understand available options.
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 13, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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