Detroit renters face years of legal hurdles to reclaim withheld security deposits
A new investigation reveals that strict state filing rules and landlord indifference leave many tenants unable to recover thousands of dollars, with some waiting four years for payment.
By Luka Evans ·
For Dana Kornberg, the return of $1,863.76 in security deposits required a four-year battle that ended only when a private collector visited her former landlord's home. She vacated her Hamtramck rental in 2021, but the money did not return until earlier this year. The delay illustrates a growing friction point for Michigan renters: the gap between leaving a property and actually receiving funds owed under state law.
The financial stakes are tangible. Michigan law mandates that landlords return deposits in full unless specific deductions apply. If a tenant wins a court judgment, they may be entitled to double the amount claimed. However, the legal process is rigid. Tenants must submit a forwarding address within four days of moving out and dispute any deductions within seven days. They are also expected to document the unit's condition with photos and checklists upon move-in to compare against move-out inspections.
Tony Degard, interim director of Lakeshore Legal Aid’s Detroit Eviction Prevention team, says he hears complaints about withheld deposits daily. He argues that many landlords keep the money because they assume tenants will not expend the effort to sue. "It's a tall hill to climb," Degard said. "It takes a very motivated tenant to want to go all the way with this."
Not every dispute involves large sums, but even small amounts create financial strain. Monica Mahecha moved out of a New Center apartment in June after her landlord, Titus Property Group, deducted $200 for plastering and painting. Mahecha caulked the holes herself and decided against filing a small claims case. "I just don't have the time to go to small claims court for $200," she said. Michael Martin, a property manager for Titus, stated by email that the repaint cost was $650 and the deduction was reasonable.
Some fees appear to be standard practice rather than damage repairs. J Nelson and Jasmine Kaltenbach both rented from Bell Asset Management and were each charged a $250 inspection fee. The charge was not listed in their leases. "Isn't it your job to inspect the building?" Nelson asked. Bell's general email address received no response, and Andrew Colom, the company's listed resident agent, declined to comment.
Kaltenbach gave up on recovering her money after weighing the cost of taking time off work. Nelson, however, is proceeding with a small claims suit for $460, which Bell withheld citing drywall and shower issues. "I'm going to start that filing process," Nelson said. "I've been fighting tooth and nail for what's legally mine."
A 2024 Zillow survey found that fewer than half of tenants nationally received their full deposit back, while about one-quarter received none. In Detroit and Hamtramck, a review of six tenant cases showed that landlords either refused payment, offered partial refunds, or ignored requests entirely.
