Michigan requires residential landlords to properly manage tenants' security deposits.
As a landlord you must deposit all security deposits collected from tenants into a regulated financial institution (e.g., bank, credit union, etc.). You have two options for the deposited funds:
- Keep the funds in the account and use them only for the purposes authorized by law (Landlord Tenant Relations Act, MCL 554.601 et seq); or
- If you intend to use the money for other purposes, you must secure a Landlord Tenant Security Deposit Bond and comply with the Security Deposits Annual Certification requirements with the Department of Attorney General.