Maryland security deposit law

• Return the deposit plus interest, minus damages rightfully withheld, within 45 days after the tenancy ends.
• Mail a written list of damages and an itemized statement of costs by first-class mail to the tenant's last known address within 45 days after the tenancy ends.
• The tenant may demand the deposit by first-class mail, with a new address, within 45 days after eviction or abandonment; the landlord must send the damage list and return the balance with interest within 45 days after receiving the demand.

The landlord mails the list and refund to the tenant's last known address. To attend the move-out inspection, the tenant must give the move date and new address by certified mail at least 15 days before moving.

Required: Yes. Written list of damages and itemized statement of costs, with supporting documents; an estimate may be used, but the landlord must later send the final invoice and refund any overestimate within 30 days after repairs (§ 8-203(g), (j), (k)).

The landlord may withhold for damage beyond ordinary wear and tear caused by the tenant, family, agents, guests or invitees. The statute does not define ordinary wear and tear.

The statute does not mention nonrefundable deposits. Any money paid to protect against unpaid rent or damage is a security deposit, including prepaid last month's rent. Separately, landlords with 5 or more units on one parcel must refund application fees over $25 except actual credit-check and application costs within 15 days, or owe twice the fees (§ 8-213).

• Interest required: Yes. Simple interest at the greater of the 1-year U.S. Treasury yield curve rate (as of the first business day of each year) or 1.5% a year, accruing monthly. Applies only to deposits of $50 or more held at least 6 months (§ 8-203(e)).
• Separate account required: Yes. Within 30 days, deposits go into an account used only for security deposits at a federally insured institution doing business in Maryland, or into insured CDs or government securities (§ 8-203(d)).
• Move-in inspection required: No. On the tenant's certified-mail request within 15 days of occupancy, the landlord must inspect with the tenant and give a written list of existing damage. The receipt must tell the tenant of this right (§ 8-203.1).

Withholding without a reasonable basis: up to 3 times the withheld amount plus reasonable attorney's fees (§ 8-203(e)(4)). Charging over the cap: up to 3 times the excess plus fees. No written receipt: $25 (§ 8-203.1).

The triple penalty applies when the landlord fails to return any part of the deposit and interest within 45 days without a reasonable basis. Missing the 45-day damage list, or not following the move-out inspection rules, forfeits the right to withhold for damages.

District Court small claims cases are $5,000 or less, not counting interest, costs or attorney's fees (Cts. & Jud. Proc. § 4-405). Court information

Before filing, many tenants send a written demand first. Write a Maryland demand letter →

• Tenant may be present at a move-out inspection held within 5 days before or after the move date if they ask by certified mail 15 days ahead; the landlord must tell the tenant of this right in writing when the deposit is paid.
• A tenant may buy a surety bond instead of a deposit; the landlord cannot require one, and bond plus deposit cannot exceed 2 months' rent (§ 8-203(i)).
• A tenant may sue during the tenancy or within 2 years after it ends for a deposit over the cap.
• Lease terms cannot waive § 8-203.

• Md. Code, Real Prop. § 8-203 Retrieved October 11, 2026.
• Md. Code, Real Prop. § 8-203.1 Retrieved October 11, 2026.
• Md. Code, Real Prop. § 8-213 Retrieved October 11, 2026.
• Maryland Courts: Small Claims Retrieved October 11, 2026.
• Md. Code, Cts. & Jud. Proc. § 4-405 Retrieved October 11, 2026.

Laws change. This page was checked against the sources above on October 11, 2026. It is legal information, not legal advice; see our methodology.