Real Estate Accounting in Detroit
Detroit portfolios are built heavily on acquisition and rehabilitation of older single-family stock, which means most tenancies begin in a unit whose condition has just changed. Michigan makes the record of that condition the foundation of every later deduction.
Proud AppFolio Stack™ Partners, working directly inside your AppFolio instance.
Michigan rules that apply here
- Deposit return deadline
- 30 calendar days
- Statute
- MCL 554.609
Why Michigan Real Estate Professionals Choose REA
AppFolio Expertise, Applied to Detroit
Experts in AppFolio Bookkeeping
Michigan requires a move-in inventory checklist at the start of a tenancy, and it is not a formality. It is the baseline against which any move-out damage claim is measured, and without it a landlord is asserting that damage occurred without documented evidence of the prior state. In a portfolio where units were recently rehabbed, that baseline is also the only record distinguishing new work from tenant damage, and the two look identical a year later.
Assigned, Responsive Team
The move-out consequence in Michigan is total rather than proportionate. Under MCL 554.609 the itemised list of damages, including the estimated cost of repair for each item and the basis for the assessment, must be mailed within 30 days after termination of occupancy. Failure to comply constitutes agreement by the landlord that no damages are due, and the full deposit must be returned. The right does not shrink, it disappears.
Accurate Monthly Bookkeeping
There is a second deadline behind the first. Where the landlord has claimed damages and the tenant disputes, the landlord must commence an action within 45 days of the tenant vacating or lose the ability to retain the funds, with double damages available to the tenant. So a Detroit portfolio has two clocks running from every move-out, and most systems track neither.
Deposit Compliance for Detroit Portfolios
MCL 554.609
Michigan MCL 554.609 requires the itemised list of damages, including the estimated cost of repair for each item and the basis for the assessment, to be mailed within 30 days after termination of occupancy. Failure to comply constitutes AGREEMENT by the landlord that no damages are due and the full deposit must be returned, so the right to retain does not shrink, it disappears. A second clock follows: where damages are claimed and disputed, an action generally must be commenced within 45 days of the tenant vacating or the tenant may recover double.
Michigan caps the deposit at one and a half months' rent measured against the rent actually charged, and requires a move-in inventory checklist that functions as the baseline for every later deduction. Because the cap follows current rent, a deposit rolled forward when a tenant transfers units can quietly exceed the permitted maximum, so it has to be recalculated on transfer rather than carried across.
All Michigan requirementsHow we keep you inside it
- Deposit liabilities tracked per tenant in AppFolio, so a 30 calendar days deadline is answerable from the ledger
- Trust accounts reconciled three ways every month
- Deduction documentation recorded against the correct ledger
- Aging deposits flagged before the statutory window closes
Appfolio Bookkeeping Services from REA
Available to Detroit Operators
Trust Bookkeeping
Leverage Appfolio's powerful bookkeeping capabilities with REA's tailored service.
See how it worksCorporate Bookkeeping
REA's skilled team, in combination with Appfolio's comprehensive toolset, addresses the complexity of your corporate financial activities.
See how it worksBank Reconciliations
Employing Appfolio's state-of-the-art system, REA offers bank reconciliation services that brings meticulous accuracy to your finances.
See how it worksFinancial Diagnostic Cleanup
REA utilizes Appfolio's advanced diagnostic tools to swiftly and effectively troubleshoot financial anomalies.
See how it worksTrust Compliance
REA pairs its accounting prowess with Appfolio's detailed reporting to deliver comprehensive Trust Compliance Verification services.
See how it worksAppFolio Accounting & Bookkeeping Services
For Detroit Portfolios
- Process Review & Set Up
- Bank Reconciliations
- AP / AR
- Accurate NOI, Balance Sheets
- Recording HUD's & Accruals
- Owner Distributions
- Monthly Statements & Reports
- Management Fees
- Corporate Bookkeeping
- Tenant Chargebacks
Take the Whole Close, or One Function
Detroit operators use REA for the full monthly close or for the single function that has become a bottleneck. Each one is performed inside your AppFolio instance.
Trust Accounting
Compliant, audit-ready trust funds
Learn moreBank Reconciliation Services
Three-way reconciliation, every account
Learn moreAccounts Payable & Receivable
Bills paid, rent collected, owners paid
Learn moreBookkeeping Cleanup & Catch-Up
Back books fixed and current
Learn moreCAM Reconciliation
Annual commercial true-ups
Learn moreExperts In All Property Types
- Single-Family
- Multifamily
- Student Housing
- Affordable Housing
- Community Associations
- Commercial
Experts In All Property Types
Residential, commercial and everything in between. The asset class changes what the books have to prove, and our teams are staffed accordingly.
- Single-Family
- Multifamily
- Student Housing
- Affordable Housing
- Community AssociationsSee the page
- CommercialSee the page
Check Out What Our Clients Have To Say About Us
Property Managers, Investors & Owner Operators
As REA exclusively specializes in Real Estate, I rest easy knowing my financials are precise every month while saving money at the same time, an invaluable benefit.
I highly recommend Real Estate Accounting (REA) services from this group. They truly are great and have helped us tremendously at a time we needed it the most. I felt very comfortable giving up all my accounting responsibilities to this team and I'm still glad I made the decision to work with this group. Nothing less than an amazing experience!
REA and team have been nothing but excellent helping our firm with its day to day financial needs. Their expertise, professionalism, and timeliness have made our lives so much easier. We foresee a long relationship with REA and team.
Frequently Asked Questions
Does the move-in checklist really matter?
It is the baseline for every later deduction. Without it you are asserting damage with no documented evidence of the prior condition, which is especially costly in a recently rehabbed unit where new work and tenant damage look the same a year on.
What happens if we miss the 30-day itemisation?
Michigan treats it as agreement that no damages are due and the full deposit must be returned. The right to retain does not reduce, it disappears entirely.
Is there another deadline after the 30 days?
Yes. Where damages are claimed and disputed, an action generally has to be commenced within 45 days of the tenant vacating, with double damages exposure otherwise. Two clocks run from every move-out.
More in Michigan
Other Michigan markets, the platforms we work in, and the functions available on their own.
AppFolio Bookkeeping for Detroit
Schedule a call and we will review your AppFolio setup, your Michigan deposit handling, and what it takes to close clean every month.