Your Security Deposit Rights in Maryland
Updated 4 days ago (March 7, 2026)
Maryland Security Deposit Cap
Maryland caps security deposits at two months' rent under Real Property Code Section 8-203. This cap applies to all residential rental units in the state and includes any payment that functions as security for the tenant's obligations, regardless of what the landlord calls it. Pet deposits, cleaning deposits, and other upfront security charges are all included in the two-month limit.
The landlord must hold the deposit in an escrow account in a Maryland financial institution. The account must be separate from the landlord's personal or business funds. The landlord must provide the tenant with a written receipt showing the amount, the institution name and address, and a statement of the tenant's rights regarding the deposit.
Maryland also limits the deposit increase for existing tenants. If the landlord raises the deposit (due to a rent increase, for example), they can only increase it by the amount the new two-month cap exceeds the current deposit. The landlord cannot retroactively increase the deposit to a higher amount than what the current cap allows.
Interest Requirements
Under Section 8-203.1, landlords must pay interest on security deposits if the deposit exceeds $50. The interest rate is set annually by the Maryland Department of Housing and Community Development. The rate is typically 3% or the rate paid by the financial institution, whichever is greater.
Interest must be paid to the tenant within 30 days after the end of each year of the tenancy, either by direct payment or as a credit against rent. If the landlord fails to pay interest, the tenant can demand it at any time. Failure to hold the deposit properly or pay interest is a violation of the statute.
The interest requirement is in addition to the deposit return requirement. When the deposit is returned at the end of the tenancy, it must include all accrued and unpaid interest. The total return (deposit plus interest) minus any legitimate deductions must be provided within the statutory timeline.
The 45-Day Return Requirement
Maryland gives landlords 45 days after the tenancy ends to return the security deposit with an itemized list of any deductions. This is one of the longer return periods in the country but reflects the time needed for damage assessment and repair. The deadline begins when the tenant vacates and the landlord receives the forwarding address.
The itemized list must describe each deduction specifically, including the nature of the damage and the cost of repair. The landlord must include receipts or detailed estimates for each charge. Maryland courts require sufficient detail for the tenant to evaluate whether each deduction is legitimate.
If the landlord fails to return the deposit or provide the itemized list within 45 days, the tenant can sue for up to three times the withheld amount plus reasonable attorney fees. The treble damages penalty applies when the landlord acts in bad faith or fails to comply with the statutory procedures. Maryland courts have consistently enforced this penalty to protect tenant deposit rights.
Enforcing Your Deposit Rights
Maryland tenants can file deposit claims in District Court for amounts up to $30,000 or in the circuit court for larger amounts. District Court filing fees are modest, typically under $50. Cases are usually scheduled within 60 to 90 days. You can represent yourself in District Court without an attorney.
Bring documentation including the lease, deposit receipt, move-in and move-out photos, correspondence with the landlord, and the landlord's itemized statement (if provided). If the landlord failed to follow the statutory procedures, your case for treble damages is strengthened. Maryland judges are familiar with Section 8-203 and apply it strictly.
Before filing, send a demand letter to the landlord by certified mail. State the amount owed, the statutory basis for your claim, and a deadline for response (typically 14 days). Many landlords will return the deposit at this stage rather than face court. If the landlord does not respond, proceed to file your claim.
Legal References
Legal Disclaimer: Tellus provides this content for informational purposes only. This is not legal advice. Laws vary by state and locality, and regulations may have changed since this article was published. Consult a qualified attorney for guidance specific to your situation.