General information, not legal advice. Landlord-tenant rules change, and cities and counties can add their own. Check the current statute and local ordinances, and talk to a licensed attorney before you act.
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The short version
- A security deposit may not exceed one month's rent per unit, with a limited exception up to two months' rent for tenants in a state utility assistance arrangement.
- Within 45 days after the tenancy ends, the landlord must return the deposit with interest, less any amounts properly withheld.
- If any amount is kept, the landlord must mail a written list of the damages with an itemized statement of costs within 45 days, or lose the right to withhold.
- Deposits of $50 or more earn simple interest at the one year U.S. Treasury rate set at the start of each year, or 1.5 percent, whichever is greater.
- A landlord who keeps any part of a deposit without a reasonable basis can owe up to three times the amount withheld plus attorney fees.
Since the Renters' Rights and Stabilization Act of 2024, most Maryland deposits are limited to one month's rent. Landlords must hold deposits in a Maryland bank account, pay interest and return the balance with an itemized list within 45 days.
Maryland security deposits at a glance
| Rule | Maryland | Law |
|---|---|---|
| Deposit limit | A security deposit may not exceed one month's rent per unit, with a limited exception up to two months' rent for tenants in a state utility assistance arrangement. | Md. Code, Real Property 8-203 |
| Deadline to return the deposit | Within 45 days after the tenancy ends, the landlord must return the deposit with interest, less any amounts properly withheld. | Md. Code, Real Property 8-203 |
| Itemized deductions | If any amount is kept, the landlord must mail a written list of the damages with an itemized statement of costs within 45 days, or lose the right to withhold. | Md. Code, Real Property 8-203 |
| Interest on deposits | Deposits of $50 or more earn simple interest at the one year U.S. Treasury rate set at the start of each year, or 1.5 percent, whichever is greater. | Md. Code, Real Property 8-203 |
| Penalty for wrongful withholding | A landlord who keeps any part of a deposit without a reasonable basis can owe up to three times the amount withheld plus attorney fees. | Md. Code, Real Property 8-203 |
How much you can collect
Deposit limit. A security deposit may not exceed one month's rent per unit, with a limited exception up to two months' rent for tenants in a state utility assistance arrangement. (Md. Code, Real Property 8-203)
Holding the deposit
Where the deposit is held. Deposits must be placed within 30 days in a dedicated account at a Maryland branch of a federally insured institution, or in insured certificates of deposit. (Md. Code, Real Property 8-203)
Interest on deposits. Deposits of $50 or more earn simple interest at the one year U.S. Treasury rate set at the start of each year, or 1.5 percent, whichever is greater. (Md. Code, Real Property 8-203)
Receipts and notices. The landlord must give a written deposit receipt, which can be part of the lease, explaining the tenant's right to a move in inspection on request within 15 days and to attend the move out inspection. (Md. Code, Real Property 8-203 and 8-203.1)
Deductions and normal wear and tear
A deposit can cover unpaid rent and damage beyond normal wear and tear. Everyday aging, such as faded paint, small nail holes or light carpet wear, is not damage.
Itemized deductions. If any amount is kept, the landlord must mail a written list of the damages with an itemized statement of costs within 45 days, or lose the right to withhold. (Md. Code, Real Property 8-203)
Returning the deposit
Deadline to return the deposit. Within 45 days after the tenancy ends, the landlord must return the deposit with interest, less any amounts properly withheld. (Md. Code, Real Property 8-203)
Penalties for wrongful withholding
Penalty for wrongful withholding. A landlord who keeps any part of a deposit without a reasonable basis can owe up to three times the amount withheld plus attorney fees. (Md. Code, Real Property 8-203)
Mistakes to avoid
- Skipping a dated move-in condition report with photos, then having nothing to compare against at move out.
- Charging for normal wear and tear.
- Missing the return deadline, even by a few days.
- Not asking for a forwarding address before the tenant leaves.
- Losing track of deposit money by mixing it with operating funds without a ledger.
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General information, not legal advice.
Verify current law
We last checked these Maryland rules on . Laws change and cities can add their own, so confirm the current text before you rely on it, and talk to a Maryland attorney about your situation.
Laws named on this page
- Md. Code, Real Property 8-203
- Md. Code, Real Property 8-203 and 8-203.1
Official sources
Maryland forms for this topic
Letters and checklists for this topic
The parts people misread.
Is there a limit on security deposits in Maryland?
A security deposit may not exceed one month's rent per unit, with a limited exception up to two months' rent for tenants in a state utility assistance arrangement. Source: Md. Code, Real Property 8-203.
How long does a Maryland landlord have to return a deposit?
Within 45 days after the tenancy ends, the landlord must return the deposit with interest, less any amounts properly withheld. Source: Md. Code, Real Property 8-203.
Do Maryland landlords have to pay interest on deposits?
Deposits of $50 or more earn simple interest at the one year U.S. Treasury rate set at the start of each year, or 1.5 percent, whichever is greater. Source: Md. Code, Real Property 8-203.
What happens if a Maryland landlord keeps a deposit wrongly?
A landlord who keeps any part of a deposit without a reasonable basis can owe up to three times the amount withheld plus attorney fees. Source: Md. Code, Real Property 8-203.