Most residential leases and rental agreements in Maryland require a security deposit. This is a dollar amount, usually one month's rent, that's intended to cover damage to the premises beyond normal wear and tear, and to cushion the financial blow if a tenant skips out early on the lease without paying. Here’s a summary of Maryland landlord-tenant laws that cover the use and return of security deposits.
Yes. Under Maryland landlord-tenant laws, a landlord may charge a tenant the equivalent of two months' rent for the security deposit.
To learn more about steps that tenants can take to protect their security deposit after they've paid it, check out Nolo's article Protect Your Security Deposit When You Move In.
Under Maryland law, a landlord must return the tenant's security deposit within 45 days after the tenant has moved out.
Learn more about tenants' rights and landlords' obligations when it comes to the return of the security deposit in Nolo's chart Cleaning and Repairs a Landlord Can Deduct from a Security Deposit and Nolo's article Get Your Security Deposit Back.
Yes. Landlords in Maryland must provide a receipt that describes the tenant's rights to move-in and move-out inspections (and to be present at each), the tenant's right to receive itemization of the deposit deductions and balance (if any), and penalties for the landlord's failure to comply. Landlords in Maryland must also pay interest on security deposits of $50 or more, when the landlord has held the deposit for at least six months.
Within 45 days of termination of tenancy, interest must be paid at the daily U.S. Treasury yield curve rate for 1 year, as of the first business day of each year, or 1.5% a year, whichever is greater, less any damages rightfully withheld.
Interest accrues monthly but is not compounded, and no interest is due for any period less than one month. (See the Department of Housing and Community Development website for a calculator.) Deposit must be held in a Maryland banking institution.
If you want to go right to the source and look up Maryland law on security deposits—or if you're writing a letter to your landlord or tenant and want to cite the applicable law—the relevant statute(s) can be found at Maryland Code Annotated [Real Property] statutes 8-203, 8-203.1, and 8-203.8. Visit the Maryland General Assembly's website to read Maryland statutes, or check out the Library of Congress’s legal research site.