Archive for March 1st, 2010


What is considered a Security Deposit?

Posted on March 1st, 2010 by Miranda

Any prepayment of rent (other than the first full month’s rent) is considered part of the security deposit.  In addition, any  Refundable fees – by definition- are deemed “security deposits”.  Nonrefundable fees are not; and they can be assessed in any amount and for any reason but the reason for the fee must be made clear.  A nonrefundable fee may not cover anything already covered by a refundable fee.  In the state of Michigan, a security deposit is not to exceed 1 1/2 times the monthly rent.  EXAMPLE:  If the monthly rent is $600 than the maximum the landlord can receive for a security deposit is $900 ($600 x 1.5 = $900).

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