Maryland just made its deposit rules friendlier to renters: as of October 2024 the cap dropped from two months to one. Add a 45-day return, mandatory interest, and a triple-damages penalty, and a Maryland tenant who knows the rules is in a strong position. This guide walks through every part with the section numbers so you can check the law yourself.

TL;DR: For leases signed on or after October 1, 2024, a Maryland landlord can hold no more than one month’s rent. The deposit earns interest, and the landlord has 45 days after the tenancy ends to return it with interest and a written itemized list of any deductions. Wrongful withholding exposes the landlord to up to three times the amount plus attorney fees.

Maryland security deposit at a glance: return deadline, cap, interest, and the penalty for wrongful withholding

Renting outside Maryland? Deposit deadlines, caps, and penalties change from state to state. Look up any US state with the free tool in Security deposit laws by state →

How much can a landlord charge in Maryland

The cap changed recently. For a lease signed on or after October 1, 2024, a landlord can require no more than one month’s rent as a security deposit, under Md. Real Property, section 8-203. Before that date the cap was two months, so older leases may still reflect the higher figure.

There is one narrow exception where two months is allowed: the tenant qualifies for utility assistance through the Department of Human Services, the lease requires the tenant to pay utilities directly to the landlord, and both sides agree in writing to the larger deposit. Outside that case, a deposit over one month’s rent on a new lease is unlawful, and the excess is refundable.

When you must get your deposit back

The clock is 45 days. Under section 8-203, within 45 days after the tenancy ends, the landlord must return the deposit with the interest it earned, minus any lawful deductions. If the landlord keeps any part for damage, they must send you, by first-class mail to your last known address, a written list itemizing the damages and the cost claimed.

Give the landlord a forwarding address in writing when you leave, so the return and the list reach you. You also have the right to be present at the move-out inspection if you request it by certified mail before you leave, which is a good way to head off surprise deductions.

Security deposit timeline in Maryland: move out and give a forwarding address, the 45-day clock, your demand letter, then District Court small claims

A worked example

Say your rent is $1,500, so on a new lease the most the landlord can hold is one month, or $1,500, and that is your deposit. You move out, give a forwarding address, and 45 days pass with no return and no itemized list.

Under section 8-203 you can recover up to three times the amount wrongfully withheld, plus reasonable attorney fees. Three times $1,500 is $4,500, plus fees and any interest you were owed. The treble amount is a ceiling the court can award for a clear violation, so document the timeline carefully.

Interest and how your deposit is held

Interest is mandatory in Maryland on a deposit of $50 or more. Under section 8-203, the landlord must pay simple interest at the greater of the US Treasury yield curve rate for one year, as of the first business day of the year, or 1.5 percent a year. The interest accrues monthly from the day you paid the deposit and is paid to you when the deposit is returned.

The landlord must hold the deposit in a Maryland banking institution or an insured account, or post a surety bond, and keep it separate from their own money. So your deposit is both protected and quietly earning for you the whole time it is held.

What a landlord can and cannot keep

A landlord can deduct for unpaid rent, and for the reasonable cost of repairing damage beyond ordinary wear and tear that is listed in the itemized statement. A landlord cannot charge you for normal wear and tear, the ordinary aging that comes from simply living in a place.

Normal wear and tear vs damage
This distinction settles most deposit disputes. Normal wear and tear is the gradual, expected aging of a home from ordinary living, and it is the landlord’s cost: faded or lightly marked paint, small nail holes, worn carpet, loosened fittings. Damage is harm beyond ordinary use, caused by you or your guests, and it can be deducted: a cracked window, a burnt or deeply stained countertop, a hole in a door, a broken appliance. The rough test is whether it would have happened anyway from normal living. Dated move-in and move-out photos are what prove which side of the line a mark falls on.

Common landlord tactics, and how to beat them

A few moves come up again and again. A landlord asks for two months on a new lease; unless the narrow utility-assistance exception applies, the cap is one month, so the excess is refundable. A landlord skips the interest you are owed; interest is mandatory on any deposit of $50 or more. A landlord sends a vague deduction with no breakdown; the law requires an itemized list mailed to your last known address, so a lump sum does not meet the standard.

Your strongest cards are the move-in list and the move-out inspection. Request the list of existing damages within 15 days of moving in, and ask to attend the move-out inspection by certified mail; together they fix the condition of the unit on the record.

If your landlord wrongfully keeps it

The remedy sits in Md. Real Property, section 8-203. A landlord who fails to return the deposit, or the interest, as the law requires is liable to you for up to three times the amount wrongfully withheld, together with reasonable attorney fees. The treble figure is a maximum the court can award, and the clearer the violation and the timeline, the stronger your claim to it.

Keep the paper trail: the lease showing the deposit and its date, proof of your forwarding address, the landlord’s late or missing itemized list, and your dated photos.

How to write a demand letter

Before you file, send a written demand. It costs a stamp, creates a paper trail, and often produces a check within days. Fill in the tool below and it builds the letter for you.

Free generator Maryland security deposit demand-letter generator

Fill in your details and the letter below updates live. Copy it, then paste into an email or print and post it.

Your letter 
[Date]

To: [Landlord name and address]

Re: Return of security deposit, [rental address]

To whom it may concern,

I rented [rental address] and moved out on [move-out date], returning possession and giving my forwarding address at [your forwarding address]. Under Maryland's security deposit law (Md. Real Prop. 8-203), you had 45 days to return my [$ amount] security deposit, with any interest owed and a written itemized list of any deductions. That deadline has passed.

Please return the [$ amount] you owe me within 10 days of this letter. If you do not, I will file in District Court small claims for up to three times the amount wrongfully withheld, plus attorney fees, as allowed by Md. Real Prop. 8-203.

Sincerely,
[Your name]

This is a template to adapt, not legal advice. Keep a copy and send it so you can prove delivery (email, or post with tracking).

Taking it to small claims court in Maryland

If the demand letter does not work, deposit cases go to the small claims division of the District Court of Maryland. The small claims limit is $5,000, which comfortably covers a deposit plus triple damages, and you do not need a lawyer. The filing fee is modest.

When you go, bring your lease, proof you paid the deposit, a copy of your written forwarding address and your inspection request, dated move-in and move-out photos, the landlord’s itemized list or proof that none came, and a copy of your demand letter.

Local rules: state law, with some county add-ons

Maryland’s deposit rules are set statewide by Real Property section 8-203, and the cap, interest, and 45-day return hold everywhere. Some counties, such as Montgomery County, layer on their own landlord-tenant protections through a local office of landlord-tenant affairs, so if you rent there it is worth checking the county rules too. But the core deposit rules in this guide apply across Maryland.

How to get your deposit back

  1. Request a written list of existing damages within 15 days of move-in, and take dated photos.
  2. Give the landlord a written forwarding address when you leave, and ask to attend the move-out inspection by certified mail.
  3. Know the 45-day deadline for the return, the interest, and the itemized list.
  4. If the deadline passes, send a demand letter citing Real Property section 8-203.
  5. If that fails, file in the District Court small claims division for up to three times the amount withheld.

Key takeaways

  • For leases signed on or after October 1, 2024, the cap is one month’s rent, down from two.
  • Your deposit earns interest at the greater of the Treasury rate or 1.5 percent a year on any amount of $50 or more.
  • The landlord has 45 days after the tenancy ends to return the deposit with interest and a written itemized list of any deductions.
  • Wrongful withholding exposes the landlord to up to three times the amount plus attorney fees.
  • Deposit claims go to District Court small claims, where the $5,000 limit covers them.
Know your state, know your rights. Maryland is one of many, and every state runs on its own deadline, cap, and penalty. Compare them all, and use the free lookup tool, in Security deposit laws by state →

This guide is general information, not legal advice; landlord-tenant rules change and can vary by city, so confirm against the sources below or a local attorney. Last reviewed July 2026.

Related: Security deposit laws by state · How much rent can you afford? · Apartment viewing checklist

Free tools: Deposit interest calculator · Notice to vacate generator

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References and resources

  1. Md. Real Property section 8-203, Maryland security deposit statute: https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=grp&section=8-203
  2. Maryland People’s Law Library, Security deposits: https://www.peoples-law.org/security-deposits
  3. Maryland People’s Law Library, Landlord responsibilities: https://www.peoples-law.org/node/250/printable/print
  4. Maryland Courts, Small claims and District Court: https://www.mdcourts.gov/legalhelp/smallclaims
  5. Md. Real Property section 8-203 (Justia mirror): https://law.justia.com/codes/maryland/real-property/title-8/subtitle-2/section-8-203/
  6. HUD Maryland tenant resources: https://www.hud.gov/states/maryland/renting