Housing: landlord and tenants; return of security deposit by electronic transfer; allow. Amends sec. 9 of 1972 PA 348 (MCL 554.609).
Summary
Senate Bill 22 amends Michigan’s landlord-tenant law governing the return of security deposits after a tenant moves out. Under current law, a landlord who claims damages against a security deposit must mail the tenant an itemized notice of damages within 30 days after the tenancy ends and include a check or money order for any remaining balance. This bill keeps that basic framework but adds an option for landlords to return the balance by direct deposit or electronic transfer instead of by paper check or money order.
The bill also requires that, if the landlord uses an electronic method, the funds must be deposited into the tenant’s bank account or internet/mobile payment account within 10 days after mailing the notice of damages. The notice must still include the statutory warning that the tenant must respond by mail within 7 days or forfeit the amount claimed for damages. The bill does not change the landlord’s obligation to provide an itemized list of damages or the general timing of the notice, but it modernizes the refund method to include digital payment options.
Impact
SB 22 would amend section 9 of the Michigan Security Deposit Act (1972 PA 348, MCL 554.609) to expressly authorize landlords to return security-deposit balances through direct deposit or electronic transfer to a tenant’s bank or payment app account. This would supplement, rather than replace, the existing requirement to mail a notice of damages and would create a new compliance pathway for landlords who choose electronic repayment. It affects landlords and tenants statewide by updating the legal method for refunding security deposits and may reduce reliance on paper checks and money orders.
Sentiment
The available voting history suggests the bill was received favorably, with the committee reporting it out 11-0 without amendment. No committee transcript was provided, so there is no recorded floor or committee debate to indicate significant opposition. Overall, the bill appears to have been treated as a practical modernization measure rather than a controversial policy change.
Contention
The main policy issue is the shift from traditional paper refund methods to electronic transfers. Supporters are likely to view the bill as a convenience and efficiency improvement for landlords and tenants, especially for faster payment delivery. Potential concerns could include tenant access to banking or payment apps, privacy, and ensuring that electronic transfers are reliable and traceable, but no specific objections are documented in the provided materials. Because the bill was reported unanimously and without amendment, there is no evidence of substantial contention in committee.
Housing: landlord and tenants; methods of communication between landlords and tenants; update. Amends secs. 3, 9, 10, 11, 12 & 13 of 1972 PA 348 (MCL 554.603 et seq.).
Housing: landlord and tenants; reuse of certain tenant screening reports; allow. Amends title & sec. 1 of 1972 PA 348 (MCL 554.601) & adds secs. 1e, 1f, 1g & 1h.
Limits security deposits to one month's rent; requires landlords to return the full security deposit and any accrued interest to which the tenant is entitled less any amount retained by the landlord within 21 days of the end of the lease.
Housing: landlord and tenants; prohibition of the use of prospective tenants' credit scores as a sole deciding factor for lease eligibility and allowance for landlords to accept reusable screening reports; provide for. Amends title & sec. 1 of 1972 PA 348 (MCL 554.601) & adds secs. 1e, 1f, 1g & 1h.
Housing: landlord and tenants; reporting of rental payments to credit bureaus; provide for. Amends 1972 PA 348 (MCL 554.601 - 554.616) by adding sec. 1e.