Michigan Small Claims Court Tenant and Landlord Defendant Guide

How Tenant-Landlord Disputes End Up in Small Claims

After a lease ends, money disputes between tenants and landlords regularly land in Michigan's Small Claims Division. The claims are capped at $7,000 under MCL 600.8401 and limited to money damages — the court cannot order an eviction, force repairs, or compel a landlord to return a specific item. If the dispute is about who owes whom money after the tenancy, small claims is usually the right forum.

Important distinction: active evictions and possession disputes go through the Landlord-Tenant Division using summary proceedings (Form DC 102a), not small claims. If you received Form DC 84 (Affidavit and Claim, Small Claims), you are in the money-dispute track.

If You Are a Landlord Sued by a Former Tenant

The most common claim from tenants is a security deposit that was not returned or was returned with deductions the tenant disputes. Michigan's Security Deposit Act (MCL 554.601–554.616) imposes strict requirements:

The 30-day rule. If the tenant provides a forwarding address in writing within 4 days after ending occupancy, the landlord must, within 30 days after termination, mail an itemized list of claimed damages and any remaining deposit balance (MCL 554.609 and 554.611). Missing the notice deadline is treated as agreement that no damages are due, and the full deposit must be returned immediately (MCL 554.610).

Double damages. To retain a security deposit for disputed damages, a landlord generally must bring an action within 45 days after termination of occupancy. Failure to comply with MCL 554.613 waives the claimed damages and makes the landlord liable for double the amount of the security deposit retained.

What to bring to the hearing as a landlord defendant:

• The signed lease showing the deposit amount.
• A copy of the itemized damage list you mailed (with proof of mailing if possible).
• Move-in and move-out photos with timestamps.
• Repair invoices or contractor estimates for each deduction you made.
• Any communication with the tenant about the deposit.

If you did mail the itemization on time, your defense focuses on proving each deduction was legitimate. Normal wear and tear — paint fading, carpet aging, minor nail holes — cannot be charged against the deposit.

If You Are a Tenant Sued by a Former Landlord

Landlords sue former tenants in small claims for unpaid rent, lease-break penalties, or property damage beyond the security deposit. The claim amount on Form DC 84 tells you what the landlord is seeking.

Your defenses depend on what is being claimed:

Unpaid rent: Did you actually owe the rent? If you withheld rent because the landlord failed to make habitability repairs, Michigan law provides a defense — but you need documentation showing you notified the landlord of the issue before withholding.

Property damage: The landlord must prove the damage exceeds normal wear and tear and that the security deposit did not already cover it. If the landlord deducted for the same damage from the deposit and is now suing for more, point out the overlap.

Lease-break penalties: Some leases include an early termination fee. Whether that fee is enforceable depends on the lease language and whether the landlord mitigated damages by re-renting the unit.

What to bring as a tenant defendant:

• Your copy of the lease.
• Photos and videos of the unit's condition at move-in and move-out.
• Maintenance requests or complaints you submitted during the tenancy.
• Any written communication about the dispute.
• The security deposit itemization you received (or evidence that you provided a forwarding address within 4 days and the landlord did not mail the required notice within 30 days).

Counterclaiming in a Tenant-Landlord Case

If the landlord sues you and you believe the landlord owes you money from the same tenancy — unreturned deposit, overcharges, failure to refund prepaid rent — you can file a written counterclaim before the hearing date. A counterclaim filed in the existing small-claims case does not incur a second tiered commencement fee.

Similarly, if a tenant sues you and you believe the tenant still owes rent or caused damage beyond the deposit, you can counterclaim for that amount up to the $7,000 cap.

The Magistrate Hearing

Most tenant-landlord small claims hearings in Michigan are heard by an attorney magistrate, not a District Court judge. The magistrate asks both sides to present their version, reviews the documents, and issues a decision. If either party is unhappy with the magistrate's ruling, there is a 7-day window to appeal for a de novo rehearing before a judge.

The hearing is informal — no formal rules of evidence, no objections — but organized evidence still matters. A chronological binder with labeled tabs for the lease, photos, correspondence, and receipts makes a stronger impression than a stack of loose papers.

For a complete breakdown of all five response options, evidence organization strategies, and step-by-step hearing preparation, see the Michigan Small Claims Response Guide.

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