Maryland caps most security deposits at one month's rent for leases entered on or after October 1, 2024, down from the old two-month limit. Landlords must return the deposit with interest within 45 days after the tenancy ends and provide an itemized list of any damages claimed within the same window.
Under Md. Code, Real Property § 8-203(b)(1), "a landlord may not impose a security deposit in excess of the equivalent of 1 month's rent"; § 8-203(b)(2) allows up to two months' rent only where the tenant qualifies for utility assistance, pays utilities to the landlord, and the parties agree in writing. The deposit accrues interest at the greater of the one-year U.S. Treasury yield or 1.5% per year, payable on deposits of $50 or more held at least six months (§ 8-203(e)). Within 45 days after the tenancy ends, the landlord must return the deposit with interest, less lawful deductions, and § 8-203(g) requires a written itemized list of damages claimed and the cost incurred within that same 45-day period.
Under Md. Real Prop. § 8-203(e)(4), a landlord who withholds a security deposit in violation of the statute is liable to the tenant for up to three times the amount wrongfully withheld, plus reasonable attorney's fees. Charging a deposit above the cap exposes the landlord to treble the excess amount under § 8-203(b)(3).
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