$ecurity Deposit
Off the Beaten Path

The security deposit is a sum of money paid to the property owner to guarantee the terms of the lease. According to the Michigan Security Deposit Law, the amount must not exceed one and a half times the monthly rent. Responsibilities for the security deposit rest with both the tenant and property owner.

Security deposits can only be withheld for damages beyond normal wear and tear, unpaid rent, and unpaid utilities. A security deposit cannot be used for cleaning fees, application fees or late fees. The property owner must prove he/she has a right to the money.
There are laws governing the details of how security deposits are to be handled. You and your landlord must follow this schedule:

Within 14 days after the tenant’s occupancy: The property owner must notify in writing what the property owner’s address is, where the security deposit is being held, and the tenant’s duty to supply a forwarding address within four days after vacancy.

These terms are often included in the lease. The landlord may use the security deposit during the duration of the lease provided that a surety bond is posted with the Secretary of State.

When you move out: Return your keys and remove all your property. Take photographs in case a dispute arises.

Within four days: Provide the property owner with a forwarding address in writing where they may send your security deposit. Keep a copy of this letter.

Within seven days: After the tenant moves out the property owner must return the deposit or a list of the damages plus the unused portion of the deposit and inform the tenant(s) that they must respond in writing to the property owner’s written list of damages within seven days of receiving the list. If you did not receive the full security deposit and disagree with the damages, send the property owner a letter listing the points of dispute. Keep a copy and remember, if you do not respond within seven days, you lose your right to the money.

Within 30 days: If the property owner does not contact you within 30 days, you are entitled to the full deposit immediately. Send a letter, certified mail/return receipt, to your property owner demanding the deposit. You send it this way through the post office in order to have evidence that you sent it. Make a copy of this letter. If you receive the letter back unopened, keep it and do not open it.

Within 45 days: The disputed deposit must either be returned or a legal action started by the property owner. If the property owner has not contacted you or started a legal action within 45 days, you are entitled to double the amount of the deposit withheld.

It will probably be necessary for you to take legal action if you have not received your deposit within 45 days. Inform your property owner you will begin court action unless you receive double the amount withheld. Send the letter certified mail/return receipt and keep a copy of it. By following the schedule above, you will have sufficient evidence in court. For legal assistance, contact the MSU/DCL Rental Housing Clinic, at 336-8088.

Evictions

Eviction is a legal process which removes the tenant from the rented premises with or without the tenant’s consent. The most common reasons property owners evict tenants are: nonpayment of rent, damage to the property, causing a serious and continuing health hazard, engaging in illegal activities, or violation of the terms of the lease.

With any of these violations, the property owner may serve you a “notice to quit.” This may be for seven to thirty days depending on the reason. This means that within seven days the eviction process will begin. The tenant must either move or correct the situation at the end of seven days. Responsibility of rent still rests with the tenant until the lease expires or the property is rented.

Requirements for the eviction notice include: tenant’s name, address, description of the premises, the reason for the eviction, date, and the property owner’s signature. A termination of tenancy for a month-to-month agreement does not need to state a reason.

Important points to remember:

• The notice must be served in written form and served by the property owners.
• When you receive notice to quit or believe you have been illegally evicted, consult an attorney.
• When the notice to quit expires, this means the property owner can now file for a court hearing.
• When you receive the summons, keep it and be on time for the court hearing. The summons tells you when and where your court hearing is being held. If you do not go, you will automatically lose. Before court, try resolving the problem with the property owner. You may be able to work out a solution. If you do go to court, bring legal representation.
• You retain the right to appeal if you lose in court.
• Actual eviction can only occur after the property owner has won in court and the appeal period is over. Only a bailiff with a court order can eject a tenant.

For assistance with evictions, contact: MSU-DCL Rental Housing Clinic, 336-8088.