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Maryland Law

Security deposit

A security deposit is money a tenant pays up front to protect the landlord against unpaid rent or damage, capped at one month's rent in most Maryland leases.

Maryland law defines a security deposit as any payment a tenant gives a landlord to protect against nonpayment of rent, damage due to breach of lease, or damage to the home and its appliances. That includes the last month's rent paid early. As of October 2026, the cap is 1 month's rent per dwelling unit, no matter how many tenants live there. A narrow exception allows up to 2 months when a tenant qualifies for utility assistance and the lease has the tenant pay utilities to the landlord.

The landlord must keep deposits in a Maryland-based, federally insured account and return the money, plus interest, within 45 days after the tenancy ends, minus damage the landlord can justify. Charging above the cap can cost a landlord up to three times the extra amount plus attorney's fees.

Deposits cover damage beyond normal wear and tear, not ordinary aging. Read the Maryland deposit rules for the full process.

This page is general information, not legal advice. Laws change; check the linked official source or talk to a Maryland attorney.

Read nextMaryland Security Deposit Law: What Landlords Must Do in 2026

Related terms

Sources

  1. Maryland General Assembly: Real Property 8-203, Security deposits
  2. Maryland General Assembly: Real Property 8-203, Security deposits
  3. Maryland General Assembly: Real Property 8-203, Security deposits

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