Maryland recently changed its security deposit rules. If you rent a home or own rental property, these changes affect you. This guide explains the new limits, your rights, and what to do if things go wrong.
What Is a Security Deposit?
A security deposit is money a tenant pays before moving in. It protects the landlord if the tenant damages the property or doesn’t pay rent. The money should be returned when the tenant moves out — as long as the tenant followed the rules.
Maryland law controls how much landlords can charge, how they must hold the money, and when they must return it.
How Much Can a Landlord Charge?
The New One-Month Rule
Maryland changed its rules on October 1, 2024. Before that date, landlords could charge up to two months’ rent. Now, most landlords can only charge one month’s rent.
This change came from the Renters’ Rights and Stabilization Act of 2024. It applies to all leases signed on or after October 1, 2024.
The Exception: When Two Months Is Allowed
There is one narrow exception. A landlord can charge up to two months’ rent only if all three of these conditions are met:
The tenant must qualify for utility assistance through the Maryland Department of Human Services. The lease must require the tenant to pay utilities directly to the landlord. And both the tenant and landlord must agree in writing to the higher amount.
All three conditions must apply. If even one is missing, the one-month limit applies.
Pet Deposits Count Too
Landlords can charge a pet deposit. But the total of all deposits — including pet deposits — cannot exceed the legal limit. You cannot get around the cap by calling it a “damage deposit” or “pet fee.”
Service animals and emotional support animals are different. Under the Federal Fair Housing Act, they are not considered pets. Landlords cannot charge an extra deposit for them.
What If a Landlord Charges Too Much?
If a landlord charges more than the law allows, the tenant can fight back. The tenant may recover up to three times the excess amount, plus reasonable attorney’s fees. You have up to two years after the tenancy ends to bring a claim.
How Must the Deposit Be Held?
Where the Money Must Go
Landlords cannot just keep your deposit in a regular bank account. Maryland law requires them to hold it in a specific way.
The landlord must deposit the money within 30 days of receiving it. The money must be kept in a federally insured financial institution in Maryland. The account must be used only for security deposits. It must earn interest. The landlord cannot mix it with other funds.
As an alternative, landlords may hold the deposit in insured certificates of deposit or in federal or state government securities.
Interest on Your Deposit
If your deposit is $50 or more, it must earn interest. Interest starts to accrue after the deposit has been held for six months. The rate is the greater of the U.S. Treasury yield curve rate or 1.5% per year.
When you move out, you are entitled to that interest along with any refund.
The Receipt: What You Must Receive
After paying a security deposit, you must get a written receipt. The landlord can include this in the lease itself.
The receipt must include several important pieces of information. It must state your right to attend a move-in and move-out inspection. It must explain that you can get your deposit back within 45 days of moving out. It must also warn that landlords who break the rules may owe up to three times the withheld amount.
If the landlord does not give you a receipt, they must pay you a $25 fine. Landlords must keep a copy of the receipt for at least two years after the tenancy ends.
The Maryland Tenants’ Bill of Rights
As of 2025, landlords must attach the Maryland Tenants’ Bill of Rights to every new lease and every renewal. Failing to do so can affect their legal rights in a dispute.
Inspections: Your Right to Be There
Move-In Inspection
You have the right to attend an inspection when you first move in. To do this, you must request it in writing by certified mail within 15 days of the start of your lease. This documents the property’s condition before you lived there.
Take photos or video during this inspection. Keep a copy of any checklist the landlord gives you.
Move-Out Inspection
You also have the right to attend the final inspection. The landlord has five days before or after you move out to conduct it. Being present lets you see any damage claims and respond to them.
Getting Your Deposit Back
The 45-Day Rule
After you move out, the landlord has 45 days to return your deposit. This timeline starts the day the tenancy ends.
If the landlord keeps any portion of the deposit, they must send you an itemized list of deductions by first-class mail. This list must include receipts or cost estimates for each charge.
If they used an estimate, they must notify you in writing when the repairs are done. They must include final invoices. If the actual cost is less than the estimate, they must refund the difference within 30 days of finishing repairs.
What Landlords Can Deduct
Landlords can only deduct for specific things. These include unpaid rent, damage beyond normal wear and tear, unpaid utility bills the tenant owes, and other financial losses caused by a lease violation.
What Landlords Cannot Deduct
Landlords cannot charge for normal wear and tear. This means the natural aging and deterioration of a property from regular use. Minor scuffs on walls, small carpet wear, and faded paint are examples of normal wear and tear.
Large stains, holes in walls, broken fixtures, and missing appliances are examples of damage that exceeds normal wear and tear.
Penalties and Consequences
For Landlords Who Break the Rules
Maryland takes security deposit violations seriously. If a landlord wrongfully withholds any portion of your deposit, you may recover up to three times the withheld amount, plus reasonable attorney’s fees.
If the landlord misses the 45-day deadline or fails to provide an itemized list, they lose the right to make any deductions at all. The entire deposit must be returned.
For Tenants Who Cause Damage
If the damage you caused exceeds your deposit, the landlord can still seek more money. They can send a written demand or take you to small claims court to recover the difference.
Surety Bonds: An Alternative to Deposits
Some landlords offer the option to pay for a surety bond instead of a traditional deposit. This is optional — landlords cannot require it.
A surety bond is not refundable and does not work like insurance for you. If you damage the property, the bond company pays the landlord and then seeks repayment from you. The total cost of the bond plus any security deposit cannot exceed the legal limit.
When a Property Is Sold
If your landlord sells the property, the security deposit must be transferred to the new owner. The old landlord must notify you in writing of the transfer and provide the new owner’s name and contact information.
The original landlord remains responsible for the deposit until it is properly transferred.
How to Protect Yourself
For Tenants
Document everything when you move in. Take photos and videos of every room. Request a move-in inspection in writing within 15 days of starting your lease. Keep a copy of your lease and your deposit receipt.
When you move out, request to be present at the final inspection. Provide your forwarding address in writing so the landlord knows where to send your refund.
If your landlord doesn’t return your deposit in time, send a demand letter first. If that doesn’t work, file a complaint.
For Landlords
Provide a proper receipt at the start of every tenancy. Deposit the security deposit in a qualifying account within 30 days. Conduct thorough move-in and move-out inspections. Keep your records organized. Return deposits within 45 days — with an itemized list if deductions were made.
How to File a Complaint
If you believe your landlord violated security deposit law, you have options.
You can file a complaint with the Consumer Protection Division of the Maryland Attorney General’s Office. You can also file a claim in Maryland District Court for up to $5,000 in damages. Courts may award triple damages plus attorney’s fees if the landlord violated the law.
You may also contact Maryland Legal Aid if you need free or low-cost legal help.
Frequently Asked Questions
Can my landlord keep my deposit if I break my lease early?
The landlord can only keep the amount they were actually damaged by the breach. They cannot forfeit the entire deposit automatically.
Does my deposit earn interest?
Yes. Deposits of $50 or more must earn interest after being held for six months. The rate is at least 1.5% per year or the U.S. Treasury yield curve rate, whichever is higher.
What if my landlord doesn’t return my deposit in 45 days?
They forfeit the right to make any deductions. You are entitled to the full deposit back, and you may sue for up to three times the withheld amount plus attorney’s fees.
Can my landlord charge a separate pet deposit on top of the security deposit?
Yes, but the total of all deposits combined cannot exceed the legal limit — usually one month’s rent.
Can I use my security deposit as my last month’s rent?
You cannot do this without the landlord’s agreement. The deposit is not the same as prepaid rent unless the lease says otherwise.
What is “normal wear and tear”?
It means the natural aging of a home from regular, intended use. Small scuffs, minor carpet wear, and faded paint are examples. Large stains, holes, and broken fixtures are not.
Where can I get help with a deposit dispute?
Contact Maryland Legal Aid at mdlab.org, the Maryland Attorney General’s Consumer Protection Division at marylandattorneygeneral.gov, or your local Maryland District Court.
Final Thoughts
Maryland’s security deposit rules strongly protect tenants — especially after the 2024 changes. Most landlords can now only charge one month’s rent. They must hold your money properly, provide a receipt, and return it within 45 days.
As a tenant, document your rental unit from day one. Know your rights, attend your inspections, and act quickly if something goes wrong. As a landlord, follow the rules carefully — the penalties for getting it wrong are steep.
When both sides understand the law, disputes are less likely and move-outs go smoothly.
References
- Maryland Real Property Code § 8-203 — Official security deposit statute: mgaleg.maryland.gov
- Maryland People’s Law Library — Security Deposits: peoples-law.org/security-deposits
- Montgomery County DHCA — Security Deposits: montgomerycountymd.gov
- Maryland State Bar Association — Landlord Tenant Updates: msba.org
- Renters’ Rights and Stabilization Act of 2024 Summary: marylandbusinesslitigationlawyerblog.com
- Maryland Department of Housing — Rental Security Deposit Calculator: dhcd.maryland.gov
