The one-month cap
A Maryland landlord may not charge more than the equivalent of one month's rent per unit (§ 8-203(b)). Section 8-203 allows up to two months only in a limited case: the tenant receives utility assistance from the Department of Human Services, the landlord pays utilities directly, and both agree in writing. If the landlord collects more than allowed, you can recover up to three times the excess plus reasonable attorney's fees. You must sue within two years after the tenancy ends.
Receipt, account and interest
The written lease must include a receipt for the deposit. If the landlord fails to give one, it owes you $25 (§ 8-203.1). Within 30 days of receiving the deposit, the landlord must place it in an account at a Maryland branch of a federally insured institution that is used only for deposits and bears interest. Interest is due on deposits of at least $50 held for six months or more. It accrues monthly as simple interest at the greater of the daily U.S. Treasury yield curve rate for one year (as of the first business day of the year) or 1.5% a year. The Maryland Department of Housing and Community Development publishes an interest calculator.
Inspections you can request
If you send a certified-mail request within 15 days after you move in, you are entitled to an inspection within 5 days, with a written list of existing damage. If you notify the landlord by certified mail at least 15 days before you move out, giving your moving date and new address, the landlord must inspect within 5 days before or after that date, and you may be present.
45 days, with documentation
Within 45 days after the tenancy ends, the landlord must return the deposit with interest, minus damages withheld. The deductions must be itemized in a written list sent by first-class mail to your last known address, together with a statement of the costs actually incurred. If the landlord estimates a repair, it must send the estimate and then, within 30 days of the final invoice, provide the invoice and refund any difference. If you were evicted or abandoned the unit, these duties apply only if you send a written demand with your new address within 45 days.
Penalties
A landlord that withholds any part of the deposit without a reasonable basis can be liable for up to three times the amount withheld plus reasonable attorney's fees. You cannot waive these rights in the lease. Interest is not included in our calculator total; use the state calculator for that.
Steps to recover a Maryland deposit
- Check the receipt in your lease and confirm the deposit was no more than one month's rent.
- Request both inspections by certified mail.
- Leave a forwarding address in writing.
- After 45 days, send a demand that cites § 8-203 and the three-times penalty.
- If that fails, file a claim in small claims court.
Neighboring states
Virginia allows two months and sets 45 days. Pennsylvania also requires interest, but only from year three. New Jersey pairs a 1.5-month cap with its own interest rules.
Frequently asked questions
What is the maximum security deposit in Maryland?
One month's rent, with a narrow two-month exception for some tenants receiving utility assistance (Real Prop. § 8-203).
Do Maryland landlords pay interest on deposits?
Yes, on deposits of at least $50 held six months or more: simple interest at the greater of the 1-year Treasury rate or 1.5% a year.
How long does a Maryland landlord have to return a deposit?
45 days after the tenancy ends, with an itemized list and documentation of costs.
What is the penalty for wrongful withholding in Maryland?
Up to three times the amount withheld without a reasonable basis, plus reasonable attorney's fees.
Sources
- Md. Code, Real Prop. § 8-203 (Maryland General Assembly)
- Md. Code, Real Prop. § 8-203.1 — receipt requirements (Maryland General Assembly)
- Maryland DHCD — Rental security deposit interest calculator
Last reviewed Oct 17, 2026. Read how we verify. Found an error? Tell us.