Maryland Security Deposit Laws FAQ

In order to collect a security deposit from a tenant in Maryland, a landlord must follow specific rules and regulations. Maryland’s landlord-tenant law is designed to protect both sides of a living situation, so it is important whether you are a landlord or tenant to properly research and understand the law. Let’s take a look at the most frequently asked questions that we have received about Maryland security deposit laws. 

Maryland Security Deposit Laws: Frequently Asked Questions

Is There A Deposit Limit?

In the state of Maryland, a landlord can only charge a tenant a maximum of two month’s rent. Collecting more than two month’s rent as a security deposit leaves the tenant able to collect up to three times the excess amount, as well as any attorney’s fees.

Where Should The Security Deposit Go?

A Maryland landlord is required to place a security deposit in a separate account that is explicitly for security deposits within 30 days of receiving the deposit. If the security deposit is more than or equal to $50, it must be placed in an account with a 3 percent interest rate that accrues every six months. However, a landlord may choose to not place the security deposit in an account, opting to instead place it in an insured certificate of deposit.

Is Written Notice of Receipt Required?

In Maryland, written notice of receipt is required after a landlord collects a security deposit from a tenant. This receipt is typically included as part of the lease or rental agreement. This written notice must contain the following information:

• The tenant may request, within 15 days of move in, that the landlord inspect the property and provide a written list of damages.
• A tenant has the right to be present during the final inspection at the end of their tenancy, but must contact the landlord in a written notice 15 days prior to move-out. This notice must state the tenant’s intention to vacate, the intended move-out date, as well as the tenant’s new address.

The landlord is required to keep a copy of this receipt for two years after the end of the tenancy. If the landlord does not provide the tenant with a receipt, the tenant is entitled to a sum of $25.

Is A Walk-Through Inspection Required?

In the state of Maryland, walk-through inspections are required by law. This inspection is to be done within five days before or after the tenant moves out of the property. The landlord is required to inform the tenant of the tenant’s right to be present at the inspection, as well as inform the tenant of the date and time of the inspection. 

When Do I Get My Security Deposit Back?

A landlord is required by Maryland state law to give their tenant their security deposit (plus any interest) back within 45 days after the tenant moves out. The security deposit must be sent by first class mail to the most currently known address of the tenant. Along with the deposit, the landlord must include an itemized statement of any and all deductions that have been taken from the deposit.

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