Renters in Detroit and Hamtramck are frequently encountering difficulties when attempting to recover their security deposits after moving out of their rental properties. This issue has led to prolonged efforts by tenants and financial strain, despite Michigan law outlining specific requirements for landlords regarding these funds.
Dana Kornberg’s experience highlights the challenges many face. After moving out of her Hamtramck rental in 2021, she spent years and countless hours pursuing her former landlord, Julie Zielinski, to reclaim her deposit. Despite obtaining a court judgment and a subpoena, the money was not returned. Earlier this year, Kornberg had to employ a private collector who visited Zielinski’s home, where a check for $1,863.76 was finally issued. Kornberg described the experience as stressful, stating, "It just feels like a complete abuse of power.” Zielinski did not respond to messages seeking comment.
Security deposits are typically collected by landlords at the start of a lease to cover unpaid bills or property damage beyond normal wear and tear. Otherwise, landlords are expected to return the full deposit to the renter upon move-out. While specific data on how often Detroit landlords wrongly keep deposits is not publicly available, Tony Degard, interim director of Lakeshore Legal Aid’s Detroit Eviction Prevention team, reports that renters frequently tell him their landlords withheld deposits. He noted hearing such complaints on a daily basis.
A national survey conducted by Zillow in 2024 indicated that fewer than half of tenants received their full security deposit back, with approximately one-quarter reporting they received none at all. Several tenants in Detroit and Hamtramck have reported similar experiences, including landlords refusing payment, offering partial refunds, or simply not responding to repayment requests.
Degard believes that landlords who do not return full deposits often assume tenants will not find it worthwhile to pursue the money. The process can be time-consuming, and the outcome remains uncertain, making it "a tall hill to climb" for even highly motivated tenants. These sums, while not always life-changing, can significantly impact a person’s finances and complicate the move to a new rental, as tenants often rely on a previous deposit to fund the next one.
Michigan law has specific requirements for tenants challenging deposit withholdings. Tenants are advised to complete a checklist and take pictures when moving in to document the property's condition, compare it with the move-out inspection, provide a forwarding address within four days of moving out, and dispute any deductions within seven days.
Monica Mahecha, who rented an apartment near New Center, decided not to pursue a small claims case for a $200 deduction from her security deposit. Her landlord, Titus Property Group, cited "an excessive number of holes that required additional plastering and painting beyond normal wear and tear." Mahecha felt the deduction was unjustified, as she was told she could hang items and caulked the holes when she left. She stated she lacked the time to go to small claims court for $200. Michael Martin, a property manager for Titus Property Group, said the deduction was reasonable, citing a $650 cost to repaint affected walls. Renters who win a judgment may be entitled to double their claims, a remedy Mahecha was not aware of.
Other deductions can involve fees not related to alleged damage. J Nelson and Jasmine Kaltenbach, who rented Detroit apartments from Bell Asset Management, each had $250 deducted from their security deposits for an "Inspection Fee." Neither tenant was informed why Bell charged this fee, and it was not included in their lease agreements. Nelson questioned the charge, asking, "Isn’t it your job to inspect the building?" Attorney Degard stated he would argue in court that an inspection fee is not a legal deduction. Kaltenbach ultimately decided it was not worth her time to pursue the money, stating, "After all was said and done, I just dropped it." Bell Asset Management did not respond to email inquiries, and Andrew Colom, the company’s listed resident agent, declined to comment. Nelson, however, plans to file a small claims suit for $460 Bell Asset Management kept from her deposit, alleging issues with drywall, bathroom caulking, and a shower diverter, which Nelson maintains resulted from regular use.
The process of reclaiming a security deposit can be complex and demanding, often requiring significant time and effort from tenants. Without dedicated pursuit, many renters find it difficult to recover funds they believe are rightfully theirs.
