getting our security back?

Question

i live in michigan. we were told by our landlord two days before we moved that he did not have our $750 deposit. doesn't the landlord have to put that money in a separate account from his to collect interest, or can he just spend it on what he wants. he said he'll be good for it, but when?

Answer 1

Actually all of the above is wrong. I suggest you actually read the law, not just give a website to find it.
In MI, the landlord DOES have to have a separate account for the Rental monies. This includes deposit, utilities, and rent ALL IN ONE. It does NOT have to be interest bearing either. MI does NOT require interest to be paid on deposits.
Acermill - you are wrong. You may try to SUE for double the deposit. But in MI courts, you will not win. I had a tenant try it and lost. Mine was all because SHE claimed she didnt get the accounting because I sent it regular mail instead of certified. However, she goofed. She cashed her check that I sent her with the accounting. The judge also told her that he would not allow any more money to be paid to a tenant than what was paid. It is NOT a mandatory fee as stated in the pamphlet, it is up to the judge.
Spadezgurl22 & Charlie D - You both are wrong about the interest. In MI there is no law about an interest bearing account. All monies are put into a separate account and used for anything pertaining to the rentals. I have 12 rentals and ALL 12 tenants monies go into that one account. It is used for ALL the rentals.
Now the problem here is that the landlord doesnt have the $750 deposit she put out. He obviously spent it. It is up to him BY LAW to SEND it to her within 30 days with an accounting or she will have a court case. Now that brings up another question. Does she have to receive it in 30 days or does he have to send it out within 30 days? The answer is:
He has the full 30 days from the end of the contract (end of month) to get his accounting together and then send it to her. So he can wait until the 30th day to send it out. This also gives him time to make the repairs he is charging her for because he needs to send a copy of the receipt of what he bought (supplies) or paid for the repair to her with the accounting.
All states and cities have different requirements. It is best, as a tenant, to check with them before renting about any questions you have.
And to the people answering here. Dont just look up a web site, read it CAREFULLY before you give these people advise. I looked at both sites given and their answers are not even in it. Some people, unfortunately, take advise here that is totally wrong.
Example, NOWHERE in the websites for MI deposits does it say it has to be an interest bearing account and NOWHERE does it say that they will get DOUBLE the deposit back. The pamphlet only says they can TRY and SUE for double the deposit.

Answer 2

Oh, this is totally illegal. Yes he does need to put in a separate account to draw interest during your whole stay. I would contact a lawyer and see what your options are.
And saying he's good for it, is like saying I have wings!
In most states all landlords must return the security deposit, minus damages, plus interest, to the resident with in 21 days from the day they move out.

Contact a lawyer, you may also sue him in small claims court and he may have to pay for court costs if you work it right.

You may want to request a book from you local attorney generals office, right of tenants and landlords, everything is stated in that as far as your rights and the landlords obligations.
http://www.rentlaw.com/dep/michigandeposit.htm
http://www.megalaw.com/mi/top/milandlord.php

The above sites may help you further, the second has places to contact to help get your security deposit back.

Good luck!!!
S

Answer 3

I don't know if the laws are different in every state, but where I've lived, the landlord hold the deposit in an interest bearing account. He gets to collect the interest but must return the initial deposit to the tenant as long as the tenant didn't break any of the rules of the lease, and left the apartment in the same condition as when he/she moved in.

P.S. You probably already know this, but I'll say it anyway. Never trust someone who says, "I'm good for it." Get everything in writing.

Answer 4

I would call your states departement of commerce or if there is a govenment listing to see what your rights are. In the midwest states I live in it is a law that the landlord keep a security deposit in an account bearing interest. At best, I would get something in writing from this person stating he has not returned your money as of yet so you have something to take him to small claims court with if he fails to act reasonably about it.

Answer 5

In Michigan, your landlord has thirty days to return your security or show cause why he is not returning it. If he fails to do either within 45 days, you may take him to small claims court and collect DOUBLE your security deposit from him as a penalty for his failure to perform.

Answer 6

In my state a landlord has 30 days to return deposit....
If you gave him a 30day notice he should have it...
This is showing poor management on his count.
I would hope that when he rents to next person he gives you their deposit...
"Sounds like this is what he is doing"
Good Luck collecting

Answer 7

yes your landlord is supposed to put it in an iterest bearing account. usually interest is about .05% so u shoudl have accruded an additional 37.50 in interest on ur security. I would speak to your landlord and give him a week to reimburse you.

Answer 8

In most states, he does NOT need to keep it in a special account, but DOES owe you interest.
Now go get the money; it's yours.