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New Bill to Increase Security Deposits

A new bill, HB 6126, was introduced to change the allowable amount of a security deposit for a rental from 1.5 times the monthly rent to two times the monthly rent plus $100. The change will provide the option for rental property owners to increase the upfront security deposit for those situations where tenants are responsible for expenses, such as water, that go unpaid.

Many tenants choose to let the landlord keep their security deposit in lieu of paying the last month’s rent. This creates a situation whereby the landlord is left without a financial recourse to recover other damages allowed under the Michigan Landlord-Tenant Relationship Act.

 

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