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MI SB0022

MI SB0022
Housing: landlord and tenants; return of security deposit by electronic transfer; allow. Amends sec. 9 of 1972 PA 348 (MCL 554.609).


summary

Introduced
01/22/2025
In Committee
06/17/2025
Crossed Over
Passed
Dead

Introduced Session

103rd Legislature

Bill Summary

A bill to amend 1972 PA 348, entitled"An act to regulate relationships between landlords and tenants relative to rental agreements for rental units; to regulate the payment, repayment, use and investment of security deposits; to provide for commencement and termination inventories of rental units; to provide for termination arrangements relative to rental units; to provide for legal remedies; and to provide penalties,"by amending section 9 (MCL 554.609).

AI Summary

This bill amends Michigan's existing landlord-tenant law to update the process for returning security deposits after a tenant moves out. The bill allows landlords to return security deposit funds through electronic means like direct deposit or mobile payment apps, in addition to the traditional mailed check. When a landlord identifies damages to a rental unit, they must still send an itemized list of damages within 30 days of the tenant's move-out, detailing the estimated repair costs. The bill requires that the notice include a specific statement in bold type warning tenants they must respond within 7 days or forfeit the claimed damage amounts. Importantly, the bill stipulates that landlords cannot charge for damages that were noted on the initial move-in inventory checklist. If using electronic transfer, landlords must deposit the remaining security deposit funds into the tenant's designated account within 10 days of mailing the damage notice. These changes aim to modernize the security deposit return process and provide clearer communication between landlords and tenants.

Committee Categories

Housing and Urban Affairs

Sponsors (1)

Last Action

Placed On Order Of Third Reading (on 06/17/2025)

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