Tenants moving between rental properties in Detroit and Hamtramck face growing difficulties in retrieving their full security deposits, with legal advocates reporting that withheld funds represent a routine frustration for local renters, as Outlier Media reported.
While state guidelines dictate that landlords return security deposits in full unless funds are needed to cover unpaid utility bills or physical damage exceeding normal wear and tear, area legal workers say improper withholdings happen regularly. Tony Degard, who serves as interim director of Lakeshore Legal Aid’s Detroit Eviction Prevention team, stated that renters report withheld security deposits to him on a daily basis. Degard noted that property owners frequently withhold funds assuming tenants will find the legal process too cumbersome to pursue.
The broader trend reflects broader national figures. Data from a 2024 national survey conducted by Zillow revealed that less than half of surveyed tenants recovered their entire security deposit after moving out. Furthermore, roughly one-quarter of respondents indicated that their former landlords kept the entirety of their deposit.
For many residents, losing a deposit creates immediate financial disruption. Security deposits returned from a previous home are frequently counted on to pay the initial deposit for a new residence. Even small deductions can strain personal budgets, yet the effort required to contest them deters many renters from taking action.
Legal obstacles and time constraints often prevent residents from seeking legal recovery. Under Michigan law, tenants who choose to challenge deposit deductions must adhere to precise administrative steps. Moving into an apartment requires filling out a condition checklist and taking photographs to document the property's initial state for comparison during move-out inspections. After leaving, renters must supply a forwarding address within four days and formally challenge any landlord deductions within seven days.
In some instances, persistent legal action does yield results, though the process can span years. Dana Kornberg moved out of her Hamtramck rental property in 2021. Her former landlord, Julie Zielinski, did not return her deposit, leading to years of effort by Kornberg to reclaim her money. Even after securing a court judgment and a subpoena, the funds were not repaid until a private collector visited Zielinski’s home earlier this year, resulting in a check written for $1,863.76. Kornberg noted to Outlier Media that the ordeal felt like a stressful abuse of power. Zielinski did not respond to voicemail and email messages seeking comment.
Kornberg was able to pursue the matter because she had thoroughly documented her tenancy and secured assistance from a pro bono attorney. For others, the calculation to fight back is less feasible.
Monica Mahecha, who rented an apartment near New Center for roughly a year and a half before moving out in late June, had $200 deducted from her deposit by her landlord, Titus Property Group. The property management company cited excessive wall holes requiring plastering and painting. Mahecha stated she had caulked the holes before leaving and was previously told hanging items was acceptable, but she decided against taking the matter to small claims court due to the time involved. Michael Martin, a property manager for Titus Property Group, stated in an email that the deduction was reasonable, noting that repainting the affected walls cost $650. While tenants who win small claims judgments can be awarded double their original claim, Mahecha was unaware of that legal remedy.
Other tenants report unexpected operational fees deducted directly from their deposits. Renters J Nelson and Jasmine Kaltenbach both leased Detroit apartments managed by Bell Asset Management. Each had $250 subtracted from their security deposits labeled as an inspection fee, despite no such fee being outlined in their lease agreements or explained to them. Degard stated he would argue in court that an inspection fee is not a legal deduction. Outlier Media sent an email to Bell Asset Management's general address but received no response, and Andrew Colom, the company's listed resident agent, declined to comment.
Kaltenbach, who is a member of Outlier Media's Detroit Documenters program, decided against taking time off work to pursue the $250 in court, choosing to drop the matter. Meanwhile, Bell Asset Management withheld an additional $460 from Nelson's deposit, citing issues with drywall, shower hardware, and bathroom caulking. Nelson disputed those claims, asserting the conditions resulted from normal wear, and stated an intention to file a small claims lawsuit to recover the funds.
