In Maryland, a landlord can charge no more than one month’s rent as a security deposit (for deposits paid on or after October 1, 2024), must give a written receipt, and has 45 days after the tenancy ends to return it with interest, minus any damages listed on an itemized statement mailed to the tenant. Normal wear and tear can’t be deducted. A landlord who gets this wrong can owe up to three times the amount withheld plus attorney’s fees.
That’s the short version. This post is the deep dive for renters and owners. If you’re looking for a place now, see our homes for rent; if you’re renting from us, our renters page explains how move-in and move-out work. Our Maryland landlord-tenant rules guide has the one-page summary.
The cap: one month’s rent
Maryland Real Property § 8-203(b) limits the deposit to one month’s rent per unit, regardless of how many tenants sign. The Maryland Attorney General notes the one-month cap applies to deposits paid on or after October 1, 2024, when the Renters’ Rights and Stabilization Act of 2024 took effect.
There is one exception. A landlord may charge up to two months’ rent only if all three of these are true:
- The tenant qualified for utility assistance from the Maryland Department of Human Services.
- The lease requires the tenant to pay utilities directly to the landlord.
- Landlord and tenant agree to the amount in writing.
Overcharge and the tenant can recover up to three times the extra amount plus attorney’s fees, any time during the tenancy or within two years after it ends. Separately, under § 8-208, a lease can’t require more than the deposit plus the first month’s rent to move in.
Receipt and move-in inspection rights
The landlord must give a written receipt for the deposit, and it has to be in the lease. Under § 8-203.1, the receipt must tell the tenant:
- They can ask, by certified mail within 15 days of moving in, for an inspection with them present to list damage that already exists.
- They can be present at the move-out inspection by sending certified mail at least 15 days before moving, with the move date and new address.
- They’re entitled to an itemized list of charges, and to the refund, by first-class mail within 45 days after the tenancy ends.
- The landlord can be liable for up to three times the deposit withheld, plus attorney’s fees, for not following the law.
A landlord who doesn’t give a receipt owes the tenant $25, and must keep a copy of the receipt for two years after the tenancy ends.
Tip for renters: take dated photos and video of every room on move-in day, even if you also get the walk-through. Tip for owners: do the same. Photos settle most deposit disputes before they start.
Where the deposit must be held
Under § 8-203(d), the landlord has to put the deposit, within 30 days of receiving it, in an account at a federally insured financial institution doing business in Maryland. The account must be at a branch in the state, used only for security deposits, and interest-bearing. The law also allows insured certificates of deposit at in-state branches, or federal or Maryland government securities.
Normal wear vs damage
Maryland’s statute lets a landlord withhold for damage “beyond ordinary wear and tear” but doesn’t list examples, so it comes down to the facts of each case. Here’s how it usually breaks down in practice:
| Usually normal wear and tear | Usually damage |
|---|---|
| Faded paint, a few small nail holes from pictures | Large holes, unapproved paint colors, writing on walls |
| Carpet worn in traffic paths | Pet stains, burns, tears |
| Loose door handle from years of use | Door kicked in, broken hinges |
| Light scuffs on floors | Deep gouges, water damage from an overflowing tub |
| Minor grout discoloration | Cracked tile, missing fixtures |
| Dust in a move-out-clean house | Trash and belongings left behind, heavy grease on appliances |
Two more things owners forget. The itemized statement must include supporting documentation of the materials or services (§ 8-203(j)); an estimate can work. And the length of the tenancy matters. Carpet that’s eight years old and worn out after a four-year lease is mostly wear.
Interest: the current rule
Interest is owed under § 8-203(e) at the greater of 1.5% a year or the one-year U.S. Treasury yield set on the first business day of each year, as simple interest, as of October 2026. A few conditions:
- It accrues monthly from the day the deposit is paid, and it isn’t compounded.
- It’s owed only on deposits of $50 or more.
- No interest is due unless the landlord held the deposit for at least six months, and none for partial months.
- Leases that started before January 1, 2015 use a flat 3% a year.
The Maryland Department of Housing and Community Development runs a free security deposit interest calculator. You enter the deposit date, the end date and the amount, and the statute lets landlords rely on it.
The 45-day itemized return
Within 45 days after the tenancy ends, the landlord must:
- Return the deposit plus interest, less any damages rightfully withheld, by first-class mail to the tenant’s last known address.
- If anything is withheld, mail a written list of damages with an itemized statement of the cost of each, with supporting documentation.
Miss the list and the landlord forfeits the right to withhold for damages (§ 8-203(g)). If the tenant sent the certified-mail notice asking to be present at move-out, the landlord has to schedule that inspection within five days before or after the move date, or lose the right to withhold.
Tenants: give a forwarding address in writing. The 45-day clock runs to your last known address, and you want the check and the list to reach you.
Penalties: up to three times plus fees
If the landlord fails to return the deposit within 45 days without a reasonable basis, the tenant can sue for up to three times the amount withheld plus reasonable attorney’s fees (§ 8-203(e)(4)). The same threefold remedy applies when the tenant was evicted or abandoned the home and the landlord doesn’t return what’s owed. None of these rights can be waived in a lease (§ 8-203(l)).
Disputes and where to go
Start in writing. A tenant who disagrees with a deduction should send the landlord a short letter or email listing which charges they dispute and why, with photos.
If that doesn’t settle it:
- Montgomery County renters and landlords can file with the county’s Office of Landlord-Tenant Affairs, which helps resolve disputes free of charge without going through District Court.
- Everywhere in Maryland, the tenant can file a claim in the District Court for the county where the home is.
- The Maryland Attorney General’s landlord-tenant page summarizes deposit rights and other options.
This is general information, not legal advice. For a specific dispute, talk to a Maryland landlord-tenant attorney or a legal services office.
A move-out checklist for renters
Most deposit fights can be headed off in the last two weeks of a lease:
- Send the certified-mail notice at least 15 days before you move if you want to be at the inspection, with your move date and new address.
- Patch small nail holes and replace burned-out bulbs and missing smoke detector batteries.
- Clean the oven, fridge, bathrooms and floors, and take out every bag of trash.
- Return all keys, garage remotes and parking passes, and get it in writing that you did.
- Photograph every room after the last box is gone, with the date visible.
- Give your forwarding address in writing, again, on move-out day.
How we handle deposits at move-out
When a resident moves out of a home we manage, we do a photo walk-through, compare it to the move-in photos and send an itemized statement within Maryland’s 45-day deadline. If you’re an owner who wants that handled for you, see SW Property Management.
Bottom line
One month’s rent, max. Receipt in the lease. Account at a Maryland branch within 30 days. Interest at 1.5% or the Treasury rate, whichever is higher, on deposits of $50 or more held six months. Itemized list and refund by first-class mail within 45 days. And photos at both ends of the lease, for everyone’s sake.
Looking for your next place? Browse our current rentals.
Sources
All checked October 26, 2026.
- Maryland Code, Real Property § 8-203, § 8-203.1, § 8-208
- Maryland Attorney General, Landlord/Tenant Disputes
- Maryland DHCD, Rental Security Deposit Calculator
- Montgomery County DHCA, Office of Landlord-Tenant Affairs