| Surprisingly, the easiest way to understand the act
is to read it backwards! Start with one of the final sections of the Act. |
~ |
| Section 554.613: Section 13 (1) Within 45 days
after termination of occupancy and not thereafter the landlord may commence an action in a
court of competent jurisdiction for a money judgment for damages which he has claimed or
in lieu thereof return the balance of the security deposit held by him to the tenant or
any amount mutually agreed upon in writing by the parties. A landlord shall not be
entitled to retain any portion of a security deposit for damages claimed unless he has
first obtained a money judgment for the disputed amount or filed with the court
satisfactory proof of an inability to obtain service on the tenant or unless: |
* (a) The tenant
has failed to provide a forwarding address as required by Section 11.
* (b) The tenant has failed to
respond to the notice of damages as required by Section 12.
* (c) The parties have agreed in
writing to the disposition of the balance of the deposit claimed by the landlord.
* (d) The amount claimed is
entirely based upon accrued and unpaid rent equal to the actual rent for any full rental
period or portion thereof during which the tenant has had actual or constructive
possession of the premises. |
| (2) This section does not prejudice a landlord's
right to retain any security deposit funds a satisfaction or partial satisfaction of a
money judgment obtained pursuant to summary proceedings filed pursuant to Chapter 57 of
Act No. 236 of the Public Acts of 1961, as amended, being sections 600.5701 to 5759 of the
Compiled Laws of 1948 or other proceedings at law. Failure of the landlord to comply fully
with this section constitutes waiver of all claimed damages and makes him liable to the
tenant for double the amount of the security deposit retained. |
~ |
| So much for the legalese; what does it mean? Let's
start with the last sentence. Failure of the landlord to comply fully with this section
constitutes waiver of all claimed damages and makes him liable to the tenant for double
the amount of the security deposit retained. If you do not do what Section 13 says, you
can't sue your tenant for damages done to your apartment and your tenant can sue you for
two times the amount of the deposit that you withheld. Now I know you don't like that
already but get over it. You can take this issue up with your state legislator later;
right now learn how to deal with it. |
~ |
| So, what do you have to do to comply with Section
13? Unless you fall within one of the exceptions, you have to do one of two things within
45 days of the day the tenant moved out. Either commence an action in a court of competent
jurisdiction (Small Claims Court) for a money judgment for damages which are claimed or
return the balance of the security deposit to the tenant. In other words, you need the
consent of either the tenant or the judge to keep the security deposit. |
~ |
| But wait! There are four exceptions to this rule.
You need to be familiar with them. |