What does Maryland require of landlords who take a security deposit?
Maryland caps a security deposit at one month's rent per unit, counts prepaid last month's rent as part of it, and requires a written receipt inside the lease with seven specific notices. The deposit goes into an interest-bearing Maryland bank account within 30 days and comes back with interest, less lawful deductions, within 45 days of move-out.
How much you can collect
Real Property section 8-203 limits a deposit to the equivalent of one month's rent per unit, however many tenants share it. A security deposit includes last month's rent paid in advance. The only exception allows up to two months when the tenant qualified for utility assistance through the Department of Human Services, the lease requires the tenant to pay utilities directly to the landlord, and both sides agree to the amount in writing.
Charging too much lets the tenant recover up to three times the extra amount plus attorney fees, at any time during the tenancy or within two years after it ends.
Example a made-up owner rents a unit for $1,600 and collects $1,600 as a deposit plus $1,600 as last month's rent. Because prepaid last month's rent counts as part of the deposit, the owner holds $3,200 against a $1,600 cap. The $1,600 excess exposes the owner to up to $4,800 plus fees.
The receipt, line by line
The receipt must be part of the written lease (8-203(c)), and section 8-203.1 lists what it must tell the tenant:
- The right to a move-in inspection with the landlord, and a written list of existing damage, if the tenant asks by certified mail within 15 days of moving in.
- The right to be present at the move-out inspection, if the tenant sends certified mail at least 15 days before moving with the move date and new address.
- The landlord's duty to inspect within 5 days before or after that move date.
- The landlord's duty to tell the tenant the inspection date in writing.
- The right to receive, by first-class mail within 45 days after the tenancy ends, a written list of charges against the deposit with actual costs.
- The landlord's duty to return any unused part of the deposit by first-class mail within 45 days.
- A statement that breaking the deposit law can make the landlord liable for up to three times the amount withheld, plus attorney fees.
Keep a copy of the receipt for two years after the tenancy ends. A landlord who gives no written receipt owes the tenant $25.
Where the money has to sit
- In a federally insured financial institution doing business in Maryland, at a branch located in the state.
- In accounts used only for security deposits, which bear interest.
- Deposited within 30 days of receiving it.
- With account totals at least equal to all the deposits you owe.
- Alternatively, in insured certificates of deposit at Maryland branches, or in federal or Maryland government securities.
If you sell the building, you stay liable for any deposit and interest you fail to hand to the buyer with an accounting of the original amount, date and tenant.
Move-out: the 45-day clock
Within 45 days after the tenancy ends, mail the tenant a list of damages with an itemized statement of costs, and return the rest of the deposit with interest. Missing the list forfeits your right to keep anything for damage, and withholding without a reasonable basis exposes you to three times the amount withheld plus fees. Different steps apply to a tenant who was evicted or abandoned the unit: they get 45 days to demand the deposit by mail, and you then have 45 days to respond.
Interest is simple, at the greater of the one-year Treasury rate on the first business day of the year or 1.5%, counted in full months from the day you received the deposit. None is due on deposits under $50 or held less than six months.
Example a made-up $1,500 deposit is held for 26 full months in years when 1.5% is the greater rate. Interest is $1,500 x 1.5% x 26 / 12 = $48.75. With $300 of documented damage, the owner mails the list and $1,500 + $48.75 - $300 = $1,248.75 within 45 days.
Our deposit interest guide compares Maryland's rate with other states.
If the tenant offers a surety bond
A Maryland tenant may buy a surety bond instead of paying all or part of the deposit. You may not require one and do not have to accept one. If you do, the bond cannot exceed two months' rent, and the bond plus any cash deposit together cannot exceed two months' rent. The surety must tell the tenant in writing that the premium is nonrefundable, that the bond is not insurance for the tenant, and that the tenant still owes unpaid rent and damage.
How DoorKeeping helps with Maryland deposits
Each property in DoorKeeping keeps its own bank account and record of deposits held, so you can see that the deposit account balance covers every deposit you owe. The lease with its deposit receipt is e-signed and stored in the property's documents, and the bank feed records the date each deposit arrived, which is the date interest starts. DoorKeeping gives no legal advice; read the statute or ask your attorney before relying on any of this.
Sources
- Maryland Real Property section 8-203, Security deposits, read Oct 30, 2026
- Maryland Real Property section 8-203.1, Receipt for security deposit, read Oct 30, 2026
Questions
- What is the maximum security deposit in Maryland?
- One month's rent per unit, including any last month's rent paid in advance. Up to two months is allowed only in a narrow utility assistance case agreed in writing.
- How long does a Maryland landlord have to return a deposit?
- 45 days after the tenancy ends, with interest and a mailed, itemized list of any damages withheld.
- What happens if a Maryland landlord gives no deposit receipt?
- The landlord owes the tenant $25, and the receipt is also where the tenant learns the inspection and return rights the statute requires.