Maryland Security Deposit Law: Limits, Deadlines, and Penalties
What Maryland landlords can charge, when deposits must be returned, and what it costs to get it wrong. Last reviewed 2026-08-12.
How much can a landlord charge in Maryland?
For leases entered into on or after October 1, 2024, the deposit may not exceed one month's rent (reduced from two months by the Renters' Rights and Stabilization Act of 2024). Leases signed before that date remain under the old two-month cap. A narrow exception allows up to two months when the tenant qualifies for utility assistance, pays utilities to the landlord, and agrees to the amount in writing.
Maryland's definition of security deposit covers any payment held to protect the landlord, so a refundable pet deposit counts toward the one-month cap and follows the same interest and return rules.
When must the deposit be returned?
The landlord must return the deposit plus accrued interest, less rightful deductions, within 45 days after the end of the tenancy. A tenant who is evicted or abandons the lease early must send a written demand by first-class mail within 45 days of leaving to preserve the right to a refund.
If any amount is withheld, the landlord must mail the tenant a written list of the damages claimed and a statement of the costs actually incurred, by first-class mail, within 45 days after the tenancy ends. Failure to send the list forfeits the right to withhold any of the deposit.
What happens if a landlord misses the deadline?
Withholding without reasonable justification exposes the landlord to up to threefold the withheld amount plus reasonable attorney's fees. Charging more than the legal cap lets the tenant recover up to three times the excess charged, plus attorney's fees.
Interest and holding requirements
Deposits of $50 or more accrue simple interest once held six months, at the greater of 1.5% per year or the daily U.S. Treasury yield curve rate for one year as of the first business day of each year; interest accrues monthly and is paid when the deposit is returned. Maryland's Department of Housing publishes an official online calculator.
Within 30 days of receipt, the deposit must be placed in a federally insured financial institution with a branch in Maryland, in an interest-bearing account devoted exclusively to security deposits; insured certificates of deposit or certain government securities are an alternative. The landlord must also give a written receipt, which the lease itself can satisfy.
Recent changes to the law
The Renters' Rights and Stabilization Act of 2024 (HB 693/companion measures) cut the deposit cap from two months' rent to one month for leases entered into on or after October 1, 2024, with a limited two-month exception for utility-assistance tenants who agree in writing. Effective October 1, 2025, Maryland also requires attaching the Tenants' Bill of Rights to new leases and reduced landlord entry notice to 24 hours (HB 1076).
What Maryland landlords get wrong
Maryland is one of the more procedural deposit states. The cap dropped to one month's rent for leases signed on or after October 1, 2024 — collecting the old two months on a new lease invites a treble-damages claim on the excess. The deposit must sit in a Maryland-branch, deposits-only interest-bearing account within 30 days, and interest is owed at a floating rate (the Treasury one-year rate, minimum 1.5%) — use the state's official calculator rather than guessing. Tenants who request it by certified mail have a right to be present at the move-out inspection, and since October 2025 every new lease must attach the Maryland Tenants' Bill of Rights.
The law itself
Frequently asked questions
How much can a landlord charge for a security deposit in Maryland?
One month's rent for any lease entered into on or after October 1, 2024. Older leases remain under the previous two-month cap. If you charge more than the law allows, the tenant can recover up to three times the excess plus attorney's fees. A pet deposit is part of the security deposit, so it fits inside the same one-month limit.
How long does a Maryland landlord have to return a security deposit?
45 days after the tenancy ends. The refund must include accrued interest and, if anything is withheld, the landlord must mail an itemized list of damages with actual costs within the same 45 days. Skipping the itemized list forfeits the right to keep any of the deposit, and unjustified withholding risks a penalty of up to three times the amount withheld.
Does a Maryland landlord have to pay interest on a security deposit?
Yes, on deposits of $50 or more held at least six months. Interest is simple, accrues monthly, and is paid at the greater of 1.5% per year or the one-year U.S. Treasury yield curve rate set each January. You pay it out when you return the deposit. The Maryland Department of Housing and Community Development hosts a free official calculator that does the math for you.
Where does a Maryland landlord have to keep the security deposit?
Within 30 days of receiving it, the deposit must go into an interest-bearing account used only for security deposits at a federally insured financial institution with a Maryland branch. Insured certificates of deposit or certain government securities are permitted alternatives. The money cannot sit in your personal or operating account, and the tenant is entitled to a written receipt for the deposit.
Keep reading
Deposit deadlines are easy to miss — until they cost you triple.
Vantric tracks your leases, deposits, and move-out dates in one place, built for landlords with 1–10 units.
Start Free TrialThis page is general information, not legal advice. Statutes change — verify against the official text linked above or consult a local attorney before acting.