Maryland Security Deposit Laws: Limits & Return Timelines

Understanding your rights around security deposits in Maryland is essential for protecting your finances as a renter. Maryland law puts strict rules on how much a landlord can collect for a security deposit, what deductions are legal, and when your deposit must be returned after you move out. This article gives you clear, up-to-date guidance, referencing official Maryland government sources.

What Are the Maximum Security Deposit Limits in Maryland?

Maryland landlords may not charge more than two months’ rent as a security deposit, no matter what type of rental unit or agreement you have. This limit applies to each rental agreement, and collecting more is strictly illegal.

• If you pay more than the legal limit, you may be entitled to up to three times the excess amount as damages.
• Your security deposit must be held by the landlord in a separate account and not commingled with the landlord’s personal funds.

Read the statute on Maryland Security Deposit Limits for the full legal details.

When and How Should Security Deposits Be Returned?

After you move out, your landlord must return your security deposit within 45 days of the end of your tenancy. This timeline is set by Maryland law and applies whether you had a written lease or not.

• Your landlord can only deduct the cost of repairing damages beyond normal wear and tear, or for unpaid rent. "Normal wear and tear" cannot be charged against your deposit.
• Maryland law requires the landlord to provide an itemized list of any deductions, including actual costs and receipts, mailed to your last known address.
• If your landlord fails to return your deposit or provide this written list within 45 days, you may be entitled to double your deposit plus interest.

The rules are clearly stated in Maryland Real Property § 8-203.

Interest on Security Deposits

Security deposits held for 6 months or more must earn simple interest at a rate set by the state (currently 1.5% per year or the US Treasury yield, whichever is higher). The landlord must include this interest when returning your deposit.

You can find the current interest rate and calculation guidelines on the Maryland Department of Labor’s Security Deposit FAQ.

What Forms or Notices Are Required?

• Move-Out Inspection: You have the right to be present for a final inspection of the rental unit. To exercise this right, notify your landlord in writing by certified mail at least 15 days before your move-out date. The landlord must then schedule the inspection within five days before or after your move-out.

While Maryland does not provide a universal official form for requesting the final inspection, sample notice templates may be available through local county resources or you can view guidance on Maryland Office of the Attorney General - Landlord/Tenant.

Filing a Complaint or Taking Action

• If your security deposit is not returned on time or you disagree with deductions, you may file a claim in Maryland District Court, which oversees landlord-tenant disputes in the state.
• No specific "Security Deposit Return Form" exists statewide. Instead, renters can use the Maryland District Court's Small Claims process (Form: DC-CV-001 - Complaint for Summary Ejectment/Landlord-Tenant) to recover their deposit. See more at Maryland Courts' Landlord-Tenant Forms.

Example: If your landlord refuses to return your deposit, collect all documentation (lease, paid rent receipts, move-out inspection notes, correspondence), fill out the DC-CV-001 form, and submit it to the District Court. Follow all instructions carefully.

FAQ: Maryland Security Deposit Limits & Return Deadlines

1. What is the maximum security deposit a landlord can charge in Maryland?
   By law, a landlord cannot ask for more than two months’ rent as a security deposit.
2. How soon after moving out should I get my security deposit back in Maryland?
   Your landlord must return your deposit and any interest within 45 days of the end of your tenancy.
3. What deductions can my landlord legally make from my security deposit?
   Only for damage beyond normal wear and tear or unpaid rent; routine cleaning or small repairs shouldn't be deducted.
4. How do I dispute a deposit deduction in Maryland?
   You may negotiate with your landlord, and if you disagree, you have the right to file a claim in District Court. You’ll need documentation to support your case.
5. What if my landlord doesn't return my deposit on time?
   You could recover up to three times your deposit as damages if your landlord acts in bad faith, plus interest.

Need Help? Resources for Renters

• Maryland District Court - Landlord-Tenant Information
• Maryland Department of Labor - Landlord-Tenant
• Maryland Office of the Attorney General - Landlords & Tenants: Tips and Guidance
• Maryland District Court (Tribunal for Tenancy Disputes): https://www.mdcourts.gov/

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1. Maryland Real Property Code § 8-203: Security Deposit Law
2. Maryland District Court - Landlord-Tenant Resources: Landlord-Tenant Self-Help
3. Maryland Department of Labor - Landlord-Tenant: Official Housing Site
4. Maryland Office of the Attorney General: Guidance for Landlords and Tenants

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