Maryland Security Deposit Cap: A One-Month Lease Checklist

What is the most a Maryland landlord can charge for a security deposit?

One month’s rent per dwelling unit. The statute says a landlord “may not impose a security deposit in excess of the equivalent of 1 month’s rent per dwelling unit, regardless of the number of tenants.” That is Real Property Section 8-203(b)(1).

The cap came into the law through the Renters’ Rights and Stabilization Act of 2024, HB 693. The bill’s effective dates are October 1, 2024 and October 1, 2025. Read the statute on the General Assembly site for the current text.

Is there an exception for two months?

A narrow one. A landlord may take up to two months’ rent if all three of these are true.

1. The tenant is eligible for, and has qualified for, utility assistance through the Department of Human Services.
2. The lease requires the tenant to pay for utility services directly to the landlord.
3. The tenant and landlord agree in writing to the amount.

If you cannot check all three boxes, the cap is one month.

What is the penalty for charging too much?

The tenant may recover up to three times the extra amount charged, plus reasonable attorney’s fees. A tenant can bring the action at any time during the tenancy or within 2 years after it ends.

What should be in the lease?

Use this checklist when you write or renew a lease. See the security deposit glossary entry for the plain definition.

1. Set the deposit at no more than one month’s rent unless the two-month exception applies in full.
2. Include a receipt for the deposit in the written lease, as 8-203(c) requires.
3. Attach the current Tenants’ Bill of Rights. See our post on that requirement.
4. State the tenant’s rights about the move-out inspection in writing when the deposit is paid. The statute requires this.
5. Keep a move-in condition report with dated photos. The move-in inspection entry explains the form.
6. Put the 45-day return date on your calendar when the tenancy ends.

Where must I hold the deposit?

In a federally insured financial institution that does business in Maryland. The account must be in a branch located in the State, devoted only to security deposits, and bear interest. The landlord must put the deposit in the account within 30 days of receiving it. The statute allows insured certificates of deposit or federal or Maryland securities in place of an account. Your accounts in total must cover all deposits you owe.

When and how do I return the deposit?

Within 45 days after the tenancy ends. Return it with simple interest, less damages rightfully withheld.

See the security deposit interest entry. Our security deposit guide has more.

What can I deduct?

You may withhold for unpaid rent, damage due to breach of lease, or damage by the tenant, family, agents, guests or invitees in excess of ordinary wear and tear. Faded paint from ordinary use is a common example of normal wear and tear. Our wear and tear guide shows examples.

The tenant has the right to be present at the move-out inspection if the tenant sends the landlord a certified-mail notice of the move, the date and a new address, at least 15 days before moving. The landlord must then send a certified-mail notice of the inspection time, within five days before or after the move date. If the landlord does not comply, the landlord loses the right to withhold any part of the deposit for damages.

If you keep any part of the deposit without a reasonable basis after 45 days, the tenant may sue for up to three times the withheld amount plus attorney’s fees.

What does the cap look like in numbers?

These are illustrations of the statute, not legal advice.

The “up to three times the extra amount” comes straight from 8-203(b)(3). In the second row the extra amount is $500.

Interest works the same way. At the 1.5% floor, a $2,000 deposit held for a full year earns $30 in simple interest. If the 1-year Treasury rate for that year is higher than 1.5%, the interest is higher. Check the rate for the year your tenancy began.

What is a clean move-out timeline?

1. Day of notice: send the tenant your move-out instructions and ask for a forwarding address.
2. At least 15 days before the move: the tenant may send certified mail to claim the right to be present at the inspection.
3. Within five days before or after the move date: hold the inspection and send the certified-mail notice of its time.
4. Right after the inspection: list every deduction with photos and costs.
5. By day 45 after the tenancy ends: return the deposit and interest, less rightful deductions.

Next step

Want deposits, inspections and returns handled by a team? Request a free assessment at /contact-us or call (301) 392-2172.

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