| 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.
Some cities and counties may have regulations which are more restrictive than those presented here. Always check local laws.
Maximum Security Deposit Allowed in Maine
Maine law limits the maximum security deposit in most cases to two months’ rent. For a mobile home, the limit is three months’ rent.
The state security deposit law does not apply to buildings with five or fewer dwelling units, where 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 this limit by relabeling the deposit with 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 Me. Stat. tit. 14 § 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.
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- 2 Me. Stat. tit. 10 § 9098(1)
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No lessor of a mobile home park lot may require a security deposit greater than 3 months’ rent.
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- 3 Me. Stat. tit. 14 § 6037
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1.Federally guaranteed mortgages. Any of the provisions of this chapter relative to security deposits which may be in conflict with the terms of a mortgage guaranteed by the United States or any authority created under the laws thereof, shall not apply to security deposits held by a lessor who appears as the mortgagor in such a mortgage.
2.Owner-occupied buildings of 5 or fewer units. 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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Notwithstanding 14 M.R.S. Section 6032, 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 one (1) month.
Source Link - 5 Me. Stat. tit. 14 § 6031(2)
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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.
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- 6 Me. Stat. tit. 14 § 6022
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1. Rent receipts required. A landlord or his agent shall provide a written receipt, as required in subsection 2, for each rental payment and each security deposit payment received partially or fully in cash from any tenant. This receipt shall be delivered to the tenant at the time the cash payment is accepted. If either the rent or security deposit is accepted in more than one installment instead of a single payment, a separate receipt shall be provided for each payment. If the payment for rent and security deposit is received at the same time, a separate receipt, properly identified in accordance with subsection 2, shall be issued each for the rental payment and for the security deposit.
2. Minimum information. The information contained in each receipt shall include, but is not limited to, the following: The date of the payment; the amount paid; the name of the party for whom the payment is made; the period for which the payment is being made; a statement that the payment is either for rent or for security deposit; the signature of the person receiving the payment; and the name of that person printed in a legible manner. A rent card retained by the tenant and containing the aforementioned information shall satisfy the requirements of this section.
3. Exemption. This section 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 - 7 Me. Stat. tit. 14 § 6038(1)
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During the term of a tenancy, a security deposit given to a landlord as part of a residential rental agreement may not be treated as an asset to be commingled with the assets of the landlord or any other entity or person. All security deposits received after October 1, 1979 must be held in an account of a bank or other financial institution under terms that place the security deposit beyond the claim of creditors of the landlord or any other entity or person, including a foreclosing mortgagee or trustee in bankruptcy, and that provide for transfer of the security deposit to a subsequent owner of the dwelling unit or to the tenant in accordance with section 6035. Upon the transfer of the dwelling unit, the new owner shall assume all responsibility for maintaining and returning to tenants all security deposits accounted for and transferred pursuant to section 6035. 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. A landlord may use a single escrow account to hold security deposits from all of the tenants. A landlord may use a single escrow account to hold security deposits from tenants residing in separate buildings if the buildings are owned by different entities as long as the different entities are substantially controlled or owned by a single landlord.
Source Link - 8 Me. Stat. tit. 10 § 9098(2)(B)
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A mobile home park operator shall return to a tenant the full security deposit deposited with the landlord by the tenant, with interest in accordance with subparagraph (4) or, if there is actual cause for retaining the security deposit or any portion of it, the mobile home park operator shall provide the tenant with a written statement, itemizing the reasons for the retention of the security deposit or any portion of it, within 21 days after the termination of the tenancy or the surrender and acceptance of the premises, whichever occurs first.
(1) The written statement itemizing the reasons for the retention of any portion of the security deposit must be accompanied by a full payment of the difference between the security deposit and the amount retained.
(2) The mobile home park operator is deemed to have complied with this section if the operator mails the statement and any payment required to the tenant’s last known address.
(3) Nothing in this section precludes the mobile home park operator from retaining the security deposit for nonpayment of rent or nonpayment of utility charges which the tenant was required to pay directly to the mobile home park operator.
(4) 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. For purposes of this subsection, “a reasonable amount of annual interest” means 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 - 9 Me. Stat. tit. 14 § 6035
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1. Landlord’s termination of interests in dwelling unit. Upon termination of a landlord’s interest in the dwelling unit, whether by sale, assignment, death, appointment of a receiver or otherwise, the person in possession of a security deposit, including, but not limited to, the landlord, the landlord’s agent or the landlord’s executor, shall, upon the transfer of the interest in the dwelling unit:
A. Provide to the landlord’s successor in interest an accounting of the amount of each security deposit paid by each tenant and held by the person in possession of the security deposits, transfer the funds or any remainder after lawful deduction under this chapter 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; or
B. Return the funds or any remainder after lawful deductions under this section to the tenant.
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. A person in possession of a security deposit, including, but not limited to, the landlord, the landlord’s agent or the landlord’s executor, shall provide written proof of the accounting and transfer of funds to the landlord’s successor in interest at the real estate closing.
2. Release from liability following compliance. Upon compliance with this section, the person in possession of the security deposit shall be relieved of further liability, and the transferee, in relation to those funds, shall be deemed to have all of the rights and obligations of a landlord holding the funds as a security deposit.
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