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News · Detroit region

Detroit tenants lose deposits to slow courts

Legal aid officials say many renters give up on reclaiming withheld funds because the recovery process is costly and complex.

By Rafael Bailey ·

Illustration for: Detroit tenants lose deposits to slow courts
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Dana Kornberg waited four years to receive a check for $1,863.76. The tenant left her Hamtramck apartment in 2021 and spent that time pursuing her former landlord, Julie Zielinski, for the money. A court judgment and a subpoena did not force the payment. A private collector had to visit Zielinski's home earlier this year to obtain the check.

Kornberg now keeps the check on her refrigerator door. She described the process as stressful and felt the landlord abused her power. Zielinski did not respond to messages from reporters by voicemail or email.

Tony Degard, interim director of Lakeshore Legal Aid’s Detroit Eviction Prevention team, said he hears complaints about withheld deposits daily. He believes many landlords hold onto money because they expect tenants to give up. The legal process is time-consuming and the outcome is uncertain.

A 2024 national survey by Zillow found that fewer than half of tenants received their full security deposit back. About one-quarter said they received nothing. In Detroit and Hamtramck, six tenants told reporters their landlords refused to pay, offered partial refunds, or ignored requests for repayment.

Michigan law sets strict requirements for tenants who challenge deductions. Renters must complete a checklist and take photos upon move-in. They must provide a forwarding address within four days and dispute any deductions within seven days. Kornberg had access to a pro bono attorney and thorough documentation, which helped her case.

Monica Mahecha chose not to pursue a small claims case after her landlord, Titus Property Group, deducted $200 from her deposit. The company cited excessive holes in the walls that required plastering and painting. Mahecha said her landlord allowed wall decorations and she caulked the holes before leaving. She said she lacked the time to go to court for $200.

Michael Martin, a property manager for Titus, said by email that the deduction was reasonable. He stated the cost to repaint the affected walls was $650. Mahecha was not aware that tenants who win a judgment may be entitled to double their claims.

Bell Asset Management deducted $250 from the deposits of tenants J Nelson and Jasmine Kaltenbach for an Inspection Fee. Neither tenant was told why the fee existed, and it was not in their leases. Nelson plans to file a small claims suit. Bell deducted another $210 from Nelson's deposit for alleged damage to drywall and bathroom fixtures, which she attributed to normal wear. Kaltenbach said she dropped the issue after deciding it was not worth missing work. Bell’s resident agent, Andrew Colom, declined to comment.

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