Maryland Security Deposit Law: Return Deadline, Limits, and How to Get It Back

In Maryland, a landlord generally cannot charge more than one month's rent as a security deposit, must return the deposit (plus any interest owed) within 45 days after your tenancy ends, and can face penalties of up to three times the amount wrongfully withheld if they break the rules. These protections come from Maryland's security deposit statute, found in the Real Property Article (commonly cited as Md. Code, Real Property § 8-203). Because the law has changed in recent years and some cities and counties add their own rules, you should confirm the current section before relying on a specific figure.

How much a Maryland landlord can charge

Maryland caps the security deposit. For some time the limit was two months' rent, but a change that took effect in October 2024 lowered the cap to one month's rent for many tenancies. If a landlord demands more than the legal maximum, you may be entitled to recover up to three times the excess plus reasonable attorney's fees.

• The cap applies to the security deposit itself, not necessarily to separate, clearly-labeled fees (such as some pet or application fees), so read your lease carefully.
• Get a written receipt. Maryland requires landlords to provide a receipt and to tell you about your inspection rights, and failing to give a receipt can carry its own penalty.

The 45-day return deadline and itemized statement

After you move out and the tenancy ends, the landlord has 45 days to return your deposit with any interest due. If the landlord keeps all or part of the money, they must send you a written, itemized list of the damages they are claiming, along with a statement of the actual costs incurred, by first-class mail to your last known address within that same 45-day window.

• If the landlord does not send the itemized statement within 45 days, they generally forfeit the right to keep any of the deposit for damages.
• Always give your landlord a forwarding address in writing when you leave so the statement and check reach you.
• Maryland also gives you the right to be present at a move-out inspection. If you request it (typically in writing within a set time, often by certified mail), the landlord must notify you of the inspection date so you can attend.

What can and cannot be deducted

A landlord can deduct for unpaid rent, damage caused by you or your guests beyond ordinary use, and breach-of-lease costs. What they cannot charge you for is normal wear and tear — the gradual aging that happens from living in a place reasonably.

• Usually deductible: large holes in walls, broken fixtures, pet stains and odors, missing appliances, heavy filth requiring special cleaning, and unpaid rent or utilities.
• Not deductible (normal wear and tear): faded paint, minor scuffs, small nail holes, worn carpet from ordinary foot traffic, and lightly worn fixtures.
• Photos and video at move-in and move-out are your best friend. Maryland landlords are encouraged (and in some situations required) to document the unit's condition, and your own dated photos can disprove an exaggerated damage claim.

Interest on your deposit

In Maryland, security deposits of a certain size (historically $50 or more) earn interest while the landlord holds them, provided the deposit is held for at least six months. The interest rate has changed over time; in recent years it has been set at a low fixed rate (commonly around 1.5% per year, with adjustments tied to a Treasury benchmark) and accrues at six-month intervals. Because the exact rate and accrual rules are updated periodically, confirm the current figure with the Maryland Department of Housing and Community Development or your local district court before calculating what you are owed.

Penalties and how to sue in small claims

If a landlord withholds your deposit in bad faith or misses the deadlines, Maryland law allows a court to award you up to three times the amount wrongfully withheld, plus reasonable attorney's fees. That treble-damage penalty is a powerful incentive for landlords to follow the rules.

• These disputes are heard in the District Court of Maryland. You can file a small claims case there, and Maryland's small claims limit is $5,000 (cases above that amount can still be filed in District Court but follow more formal procedures).
• Start by sending a written demand letter that cites the 45-day deadline and asks for the deposit plus interest. Keep a copy.
• If that fails, file a complaint with the District Court, attach your lease, receipt, photos, demand letter, and the landlord's itemized statement (or note its absence), and serve the landlord.
• Small claims is designed for people without lawyers, but if the dollar amount is large, the facts are contested, or the landlord has a lawyer, it is worth consulting a Maryland tenant attorney or contacting legal aid — especially since you may recover attorney's fees.

This article is general legal information, not legal advice. Maryland landlord-tenant law changes, and Baltimore City and individual counties may have additional requirements, so confirm the current state rules and any local ordinances or speak with a Maryland attorney or legal aid office about your specific situation.