| Quick Facts | Answer |
| Maximum / Limit | 2 or 3 Months’ Rent |
| Receipt Requirement | Yes |
| Inventory Requirement | None |
| Interest Requirement | Only for Mobile Homes |
To learn about laws on security deposit returns in Maine, click here.
Maximum Security Deposit Allowed in Maine
Maine law limits the maximum security deposit to two months’ rent, except the maximum security deposit for a mobile home is three months’ rent. However, local governments may enact a different limit, like in Portland.
The state security deposit rules do not apply to buildings with five or fewer dwelling units if the landlord lives in one of the units.
In Portland, the maximum security deposit is one month’s rent.
Can Landlords Charge an Additional Pet Deposit in Maine?
In Maine, landlords can charge a pet deposit, except for service dogs and emotional support animals. However, the total security deposit cannot exceed the legal limit, unless the rental unit is exempt. Landlords cannot exceed the limit by giving them another name like “pet deposit” or “damage deposit.”
This law does not prevent landlords from adding a monthly pet premium.
How Much Rent Can a Landlord Collect Upfront in Maine?
Landlords in Maine can collect the first month’s rent in advance. However, landlords can only collect an additional advance payment up to the security deposit limit, whether called a “security deposit” or “last month’s rent.” “Last month’s rent” is considered a security deposit by the law.
Security Deposit Collections in Maine
While other states have additional requirements for landlords that collect a security deposit, such as providing certain documentation of the condition of the unit at move-in, Maine does not.
Do Landlords Have to Provide a Receipt for the Security Deposit in Maine?
Landlords are required to provide a receipt for any security deposit paid for in cash, unless the rental unit is exempt. If a tenant pays rent and a security deposit at the same time, the landlord must provide a separate receipt for each payment.
The receipt must include:
- The signature and legible name of the person accepting the payment
- The amount and purpose of the payment
- The date of the payment
- Who the payment is for
What Obligations Do Landlords Have to Establish the Condition at Move-in in Maine?
Maine law does not have specific obligations before a tenancy. While other states like Washington have pre-tenancy obligations like a written inventory of damages, Maine does not.
Security Deposit Holdings in Maine
Maine landlords are required to hold security deposits in a bank or other financial institution. The security deposits cannot be commingled with the landlord’s own funds. Upon the tenant’s request, the landlord must provide the account number and name of the financial institution.
Are Tenants Entitled to Interest on Their Security Deposit in Maine?
Maine law does not require landlords to provide interest on held security deposits unless the rental unit is a mobile home.
If the rental unit is a mobile home, the tenant is entitled to the actual interest earned on the account where the security deposit is held. If the account does not earn interest, the interest must not be less than the Federal Reserve Bank, secondary market, annual interest rate on a 6-month certificate of deposit.
How Are Security Deposits Accounted for in Maine?
Security deposits are not considered taxable income when they are collected.
What Happens to a Security Deposit When the Property is Sold in Maine?
When a property is sold in Maine, the seller can make any allowable deductions and then must either:
- Transfer the security deposit to the new owner with a full accounting
- Return the security deposit to the tenant
If the seller chooses to transfer the security deposit to the new owner, it must occur prior to closing. They must also notify each tenant by mail of the:
- Amount transferred and a copy of the accounting
- Successor’s name and address
Sources
- 1 14 ME Rev Stat § 6032
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A lease or tenancy at will agreement for a dwelling intended for human habitation may not require a security deposit equivalent to more than the rent for 2 months.
Source Link - 2 10 ME Rev Stat § 9098
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No lessor of a mobile home park lot may require a security deposit greater than 3 months’ rent.
Source Link - 3 14 ME Rev Stat § 6037
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This chapter shall not apply to any tenancy for a dwelling unit which is part of a structure containing no more than 5 dwelling units, one of which is occupied by the landlord.
Source Link - 4 Portland City Code § 6-223.2
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…a lease or tenancy at will agreement for a dwelling intended for human habitation may not require a security deposit equivalent to more than the
Source Link
rent for one (1) month. - 5 14 ME Rev Stat § 6031
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“Security deposit” means any advance or deposit, regardless of its denomination, of money, the primary function of which is to secure the performance of a lease or tenancy at will agreement for residential premises or any part thereof.
Source Link - 6 14 ME Rev Stat § 6022
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A landlord or his agent shall provide a written receipt…for each…security deposit payment received partially or fully in cash from any tenant.
Source Link - 7 14 ME Rev Stat § 6022
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If the payment for rent and security deposit is received at the same time, a separate receipt…shall be issued each for the rental payment and for the security deposit.
Source Link - 8 14 ME Rev Stat § 6038
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All security deposits…must be held in an account of a bank or other financial institution…
Source Link - 9 14 ME Rev Stat § 6038
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…a security deposit…may not be…commingled with the assets of the landlord or any other entity or person.
Source Link - 10 14 ME Rev Stat § 6038
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Upon request by a tenant, a landlord shall disclose the name of the institution and the account number where the security deposit is being held.
Source Link - 11 10 ME Rev Stat § 9098
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The amount of interest that must be returned to a tenant must be either the amount that the mobile home park operator has earned on the security deposit if deposited in an individual segregated bank savings account or a reasonable amount of annual interest…calculated at the Federal Reserve Bank, secondary market, annual interest rate on a 6-month certificate of deposit for each year in which the deposit has been held calculated as of the first business day of each year.
Source Link - 12 14 ME Rev Stat § 6035
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Upon termination of a landlord’s interest in the dwelling unit…the landlord’s agent or the landlord’s executor, shall…transfer the funds or any remainder after lawful deduction under this chapter to the landlord’s successor in interest…return the funds or any remainder after lawful deductions under this section to the tenant.
Source Link - 13 14 ME Rev Stat § 6035
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If the landlord’s interest is terminated by sale, then the accounting and transfer of funds must occur no later than at the real estate closing.
Source Link - 14 14 ME Rev Stat § 6035
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…transfer the funds or any remainder after lawful deduction…to the landlord’s successor in interest and provide to the tenant by mail: (1) Notice of that transfer; (2) Notice of the transferee’s name and address; and (3) A copy of the accounting of the amount of the security deposit transferred…
Source Link
