Can a landlord refuse to return a security deposit?
Yes, but only by following state law. A landlord can always deduct payment for back rent, tenant utilities, and when the tenant has damaged the premises in a way that devalues the property. However, if the problems are considered normal wear and tear, the tenant cannot be penalized. Michigan law requires that an inventory, or move in condition, check list be filled out and signed by all parties at the time of possession, to help determine what damage can be charged to the tenant when they vacate. Many tenants and landlords take the extra precaution of photographing damages both at the beginning and termination of occupancy to avoid damages disputes. In Michigan, the landlord should return the deposit less deductions for cleaning and repair within 30 days after the tenant moves out. The tenant may dispute any claims against the security deposit, however the tenant must do so in writing within seven days of receipt of the notice. Should the landlord fail to refund the security deposit or