Michigan landlord security deposit bonds.
From $125.

Michigan landlords must normally hold security deposits in a regulated bank account, but under MCL 554.604 you can instead use the funds if you file a bond with the Secretary of State that the Attorney General accepts. The bond is priced at 2% of the bond amount plus a $25 fee, $125 minimum.

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Lets you use security deposit funds instead of holding them in a regulated account, under MCL 554.604

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Amount covers all deposits up to $50,000, plus 25% of any amount over $50,000

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Priced at 2% of the bond amount plus a $25 fee, $125 minimum — a quick soft credit check may apply and never affects your score

2% + $125 minpriced by your bond amountFrom $125your exact price at applicationSoft pullnever affects your score

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How it works

Three steps. One sitting.

Enter your amount, consent to a soft pull, and file the executed bond with the Secretary of State. Here is the whole thing:

TODAY · ONLINE

Apply online

Your business details, the bond amount your deposits require, and the effective date. The only extra step is a one-time consent to a soft credit pull.

RIGHT AWAY

Approved

Most are approved as soon as you apply. The soft pull never affects your score. If it needs a second look, one to two business days at most.

SAME DAY

File with the Secretary of State

Receive the executed bond ready to deposit with the Secretary of State; the Attorney General reviews it for sufficiency. Wet-ink originals mailed when the office insists.

About this bond

What it is and who needs it.

What the bond actually guarantees

Michigan's Landlord and Tenant Relationships Act (Act 348 of 1972) normally requires a landlord to keep tenants' security deposits in a regulated financial institution. MCL 554.604 gives an alternative: a landlord may use the deposit money for any purpose if they deposit a cash or surety bond with the Secretary of State.

The bond must secure the entire deposits up to $50,000, plus 25% of any amount exceeding $50,000, and it must be acceptable to the Attorney General — who can reject it only on reasonable criteria relating to the bond's sufficiency. It runs for the benefit of the tenants who made the deposits.

If you wrongfully retain a deposit, a tenant (or their legal representative) can sue on the bond directly in district court. It is not insurance for you — if the surety pays a tenant, you repay the surety. Enter the amount your deposits require and see your exact price at the application — pricing starts from $125.

MCL 554.604 (Act 348 of 1972)Under MCL 554.604, a landlord may use security deposit money for any purpose if they deposit with the Secretary of State a cash or surety bond, acceptable to the Attorney General, securing the entire deposits up to $50,000.00 and 25% of any amount exceeding $50,000.00. The bond is for the benefit of the tenants, who may sue on it directly. Confirm your required amount based on your total deposits held.

You need this bond if you're

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A landlord who wants to use deposit funds rather than hold them in a separate regulated account

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Managing a larger portfolio where the deposit-segregation rule ties up significant cash

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A property management company holding deposits across many tenancies

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Replacing an expiring deposit bond already on file with the Secretary of State

One application, issued instantly.

These are the actual underwriting fields, including a one-time consent to a soft credit pull. Submit once and your bond is issued when you pay.

Start the application →

FAQ

Common questions.

How much is the Michigan landlord security deposit bond?The premium is 2% of the bond amount plus a $25 fee, $125 minimum — set by the amount your deposits require, not by credit or underwriting tier. The bond amount itself is set by statute: it must cover all deposits up to $50,000, plus 25% of any amount above $50,000. Enter that figure and your exact price appears at the application.

Why would I post this bond?Normally Michigan makes you hold tenants’ deposits in a regulated bank account, untouched. MCL 554.604 lets you instead use that money for any purpose if you post this bond — useful if segregating deposits ties up cash you would rather deploy.

How do I size the bond?Take your total security deposits held. Cover the first $50,000 in full, then add 25% of anything above $50,000. For example, $90,000 in deposits requires a $50,000 + $10,000 = $60,000 bond. Send us your numbers if you want us to confirm.

Is there a credit check?A quick soft credit check may apply — never a hard inquiry, no impact on your score. It informs approval only; the price itself is set by your bond amount at 2%, $125 minimum.

Who has to approve the bond?You file it with the Secretary of State, and the Attorney General reviews it for sufficiency. The AG can find a bond unacceptable only on reasonable criteria relating to its sufficiency, and must explain why in writing.

Which A-rated carriers underwrite these bonds?Typically Arch Insurance Company (A.M. Best A+) or Nationwide Mutual Insurance Company (A.M. Best A). Which one writes your bond depends on the bond type and your state. The carrier's name and official signature are printed on the bond you receive.

How do I contact Light RFP about this bond?Email insurance@lightrfp.com. It reaches the bond team at Light RFP Risk Management Services LLC (NY DFS License # PC-1978982). Write to us about quotes, applications, bond forms or certificates. We will respond within 24 hours.

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Michigan landlord security deposit bonds.From $125.