Maryland Security Deposit and Damage Deposit Rules Explained

Understanding the distinctions between security deposits and damage deposits is essential for Maryland renters. Knowing your rights—and what landlords can and cannot do with your deposit—protects your finances and ensures you can confidently move out when your lease ends.

Security Deposits and Damage Deposits: What’s the Difference?

In Maryland, most rental agreements ask for a security deposit, but sometimes landlords refer to a ‘damage deposit.’ Legally, Maryland treats both terms the same: any money taken to secure the rental against possible damages, unpaid rent, or other lease violations is a security deposit under the law.

• Security Deposit: Money held by your landlord to cover unpaid rent, damage beyond normal wear and tear, or other lease violations.
• Damage Deposit: Another name for all or part of a security deposit; not a separate legal category in Maryland.

The maximum total deposit a landlord can require—no matter what it is called—is equal to two months’ rent.

Your Rights and Protections Under Maryland Law

Maryland's main law for renters and landlords is the Maryland Code, Real Property § 8-203. This law sets out strict rules for how landlords must handle, return, or withhold security deposits.

• Written receipt: Landlords must give you a written receipt for your deposit.
• Separate account: Your deposit must be kept in a separate account at a Maryland banking institution.
• Interest: Deposits earn simple interest (at least 1.5% annually or the U.S. Treasury yield curve rate, updated yearly).
• Refund period: You must receive your deposit (plus interest), minus any valid deductions, within 45 days of moving out.
• Reasons for deduction: Only unpaid rent, damage beyond normal wear and tear, or other valid lease violations can be deducted—these must be explained in writing with supporting documentation.

Key Forms Maryland Renters Should Know

• Security Deposit Dispute (District Court Complaint) –
  Form Name: Complaint (Landlord and Tenant) DC-CV-082
  When to use: If your landlord withholds your deposit unfairly, you can file a complaint in the District Court of Maryland.
  Practical example: A renter moves out, the landlord does not return the deposit or provides no explanation for deductions within 45 days; the renter submits this form to start the complaint process.
  Download the official District Court Complaint Form (DC-CV-082)

For official guidance, review the Maryland District Court Civil Forms page.

The Tribunal for Rental Disputes in Maryland

All rental disputes, including those about security or damage deposits, are handled by the District Court of Maryland. This court is where you file complaints against your landlord for deposit issues.

How Do Security Deposit Refunds Work in Maryland?

Getting your deposit back involves a few key steps:

• Schedule a move-out inspection with your landlord (you can request advance notice—at least five days before your move-out date).
• Leave the rental “broom clean” and document its condition with photos.
• Provide your landlord with a forwarding address in writing.
• Wait up to 45 days for a written notice about deductions and your refund.

Normal Wear and Tear: What Can Be Deducted?

Landlords can only deduct for damage that goes beyond “normal wear and tear.” This means reasonable use—like faded paint or worn carpets—can’t be deducted. Broken windows, large holes in walls, or missing fixtures might qualify as damages.

Taking Action: Filing a Complaint in Maryland

If you believe your deposit was withheld without a valid reason, you can file a complaint in the District Court of Maryland. Here are the basic steps:

• Complete the Complaint (Landlord and Tenant) DC-CV-082 form.
• File it at the District Court location where the rental property is located.
• Attach evidence, such as your lease, communication records, and move-out inspection photos.

The court may schedule a hearing. You can represent yourself, and the court will decide if the landlord has to return all or part of your deposit.

FAQ: Maryland Security Deposit and Damage Deposit Questions

1. What is the maximum deposit my landlord can charge in Maryland?
   The maximum deposit—including any amount labeled as a damage deposit—is two months’ rent.
2. Does my deposit earn interest while held by my landlord?
   Yes, Maryland law requires deposits to accrue interest. You are entitled to this earned interest when your deposit is returned.
3. How soon should I get my deposit back after moving out?
   Your landlord must return your deposit (plus interest), minus any deductions, within 45 days of the lease ending.
4. Can my landlord deduct for normal wear and tear?
   No, only actual damage beyond normal wear and tear, unpaid rent, or other lease violations qualify for deductions.
5. What can I do if my deposit isn't returned properly?
   You may file a complaint in the District Court of Maryland using the official form DC-CV-082.

Conclusion: Key Takeaways for Maryland Renters

• Security deposits and damage deposits are subject to the same legal protections in Maryland.
• Know your refund rights—landlords must return your deposit and interest within 45 days, with written explanations for any deductions.
• If deposit rules aren’t followed, you can file a complaint with the District Court of Maryland using official forms.

Being informed helps you protect your money and assert your rights as a renter.

Need Help? Resources for Renters

• District Court of Maryland – Handles all rental disputes and security deposit complaints
• Maryland Department of Housing and Community Development: Renter Resources – Guidance and tenant resources
• Maryland Attorney General: Landlord-Tenant Rights – Info on tenant rights and complaint options

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1. Maryland Code, Real Property § 8-203 (Security Deposits)
2. District Court of Maryland – Landlord/Tenant Information
3. Maryland Attorney General – Landlord/Tenant Rights
4. Complaint (Landlord and Tenant) DC-CV-082 – Official Form

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