| Quick Facts | Answer |
| Acceptable Deductions | Unpaid rent
Costs of damage Damages due to breach of lease |
| Return Deadline | 45 Days |
| Itemized Deductions | Required |
| Penalty for Late Return | 4x Amount Due + Attorneys’ Fees |
For laws on security deposit collections and holdings in Maryland, click here.
Some cities and counties may have regulations which are different from those presented here. Always check local laws.
Security Deposit Deductions in Maryland
In Maryland, the following things can be deducted from security deposits:
- Unpaid rent
- Costs of damage excluding normal wear and tear
- Monetary damage as a result of a breach of the lease
Most states, including Maryland, do not have a legal limit on how much a landlord can charge for damages except that the charges must be reasonable.
If the cost of the damages exceeds the amount of the security deposit, landlords are entitled to seek additional damages from the former tenant.
What is Considered Normal Wear and Tear in Maryland?
“Normal wear and tear” is damage and deterioration to a property that happens over time using an ordinary and reasonable level of care. Normal wear and tear includes things like:
- Gently worn carpets
- Lightly scratched glass
- Faded paint and flooring
- Lightly dirtied grout
- Loose door handles
- Stained bath fixtures
“Excessive damage” means any careless, reckless, or intentional damage that occurs because of someone on the property with the tenant’s permission. Examples include:
- Heavily stained, burned, or torn carpets
- Broken tiles or windows
- Holes in the wall
- Missing fixtures
Can the Landlord Charge for Replacing the Carpet in Maryland?
Landlords can charge for replacing the carpet if it is damaged beyond normal wear and tear.
A carpet that is slightly discolored or gently worn will be considered normal wear and tear. A carpet with visible stains, major discoloration and rips will be considered excessively damaged.
Can the Landlord Charge for Nail Holes in Maryland?
Maryland landlords can charge a tenant for nail holes if they damage the walls in a way that doesn’t demonstrate an ordinary and reasonable level of care.
Tenants have the right to use the walls within their unit in a reasonable way. This includes inserting small nails or thumbtacks to hang posters or pictures.
However, large holes from drilling, multiple nail holes, large nail holes, and holes made for hanging heavier things may be considered damage, and thus chargeable to the tenant.
Can the Landlord Charge a Cleaning Fee in Maryland?
Landlords in Maryland can make deductions from the security deposit for cleaning, but only if the tenant causes damage that requires cleaning such as wine stains on the carpet.
Can the Landlord Charge for Painting in Maryland?
Maryland landlords can charge for painting, except for normal wear and tear. For example, a landlord might be able to charge for:
- Damage to the paint beyond normal wear and tear
- Tenant repainting without the landlord’s consent
- Tenant repainting with consent, but not doing the work to a professional standard
Normal paint wear includes:
- Minor scrapes from daily use
- Fading due to sunlight
- Minor cracks in the original paint.
Landlords can charge for repainting if the damage is not the result of ordinary care. This includes stains, large or deep scratches, and water damage.
In Takoma Park, landlords are required to repaint rental units every five years. Thus, a tenant cannot be charged for repainting if they move out after five years, regardless of paint condition.
Can a Security Deposit Be Used for Last Month’s Rent in Maryland?
Maryland law does not forbid the security deposit from being used for any outstanding rent.
Landlords can include a provision in the lease agreement that the security deposit cannot be used for the last month’s rent until the tenant vacates the rental unit.
Security Deposit Returns in Maryland
Landlords must conduct a final inspection with a tenant if requested in writing by the tenant. Landlords must return any remaining portion of a security deposit plus interest (if due) by first-class mail to the tenant’s last known address within 45 days from the termination of the lease with an itemized list of damages (if any).
Landlords must honor a tenant’s request to attend a final inspection if the tenant makes a request in writing by certified mail at least 15 days prior to the move-out date.
If requested by the tenant, the landlord must reply by certified mail with the date and time of the inspection, scheduled within 5 days of the move-out date (before or after).
How Long Do Landlords Have to Return Security Deposits in Maryland?
Maryland landlords have 45 days after the lease term ends to return any remaining portion of a security deposit.
Do Landlords Owe Interest on Security Deposits in Maryland?
Landlords in Maryland do owe interest except on security deposits less than $50 or held for less than six months. The interest calculator provided by the Department of Housing and Community Development can be used to determine the minimum interest due.
The minimum interest is the daily U.S. Treasury yield curve for one year or 1.5% per year, whichever is greater. Interest accrues at monthly intervals but is not compounded.
Landlords do not owe interest on any partial month. For example, if a landlord returns a security deposit after eight months and three weeks, the landlord only owes interest on eight months.
How Do Landlords Give Notice?
If deductions are to be made from the security deposit, an itemized statement of deductions must be sent by first-class mail to the tenant’s last known address. The itemized statement must include supporting documentation that identifies the materials or services provided.
If a landlord cannot identify actual costs within 45 days, they can provide an estimate instead. The landlord must notify the tenant in writing within 30 days after the repairs have been completed including invoices or receipts.
If the actual cost of the repairs is less than what was deducted from the security deposit, the written notice must include a refund for the difference.
Landlords are not required to provide an itemized statement of deductions if the tenant was evicted, abandoned the rental unit, or ejected due to a breach of the lease agreement. However, they must return any remaining portion of the security deposit if requested in writing by the tenant.
Security Deposit Disputes in Maryland
If landlords do not return the security deposit or provide a written statement of deductions, if any, within the required time period, tenants can file a lawsuit for return of the amount wrongfully withheld plus damages up to three times the amount of the deposit due to the tenant plus reasonable attorneys’ fees.
Tenants can also take legal action against a landlord for:
- Failing to hold the security deposit in a financial account
- Failing to provide interest on the security deposit
- Failing to provide a receipt including the required disclosures
- Requiring more than two months’ rent as a security deposit
- Making unreasonable deductions
How Can Tenants File a Dispute for a Security Deposit in Maryland?
If a landlord fails to perform their obligations regarding a security deposit, the tenant can file a dispute in the small claims division of District Court if the amount of damages is less than $5,000. If the amount is greater, the tenant must file a civil case in the District Court.
A small claims case regarding an unlawful security deposit amount must be filed within 2 years.
Cases are filed in the District Court where the defendant lives, works, or does business, or, if the defendant is a corporation, where they have a main office. An attorney is not required but permitted. The filing fee is $34 plus the cost of service.
Sources
- 1 Md. Code, Real. Prop. § 8-203(f)(1)
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(i) The security deposit, or any portion thereof, may be withheld for unpaid rent, damage due to breach of lease or for damage by the tenant or the tenant’s family, agents, employees, guests or invitees in excess of ordinary wear and tear to the leased premises, common areas, major appliances, and furnishings owned by the landlord.
(ii) The tenant has the right to be present when the landlord or the landlord’s agent inspects the premises in order to determine if any damage was done to the premises, if the tenant notifies the landlord by certified mail of the tenant’s intention to move, the date of moving, and the tenant’s new address.
(iii) The notice to be furnished by the tenant to the landlord shall be mailed at least 15 days prior to the date of moving.
(iv) Upon receipt of the notice, the landlord shall notify the tenant by certified mail of the time and date when the premises are to be inspected.
(v) The date of inspection shall occur within five days before or five days after the date of moving as designated in the tenant’s notice.
(vi) The tenant shall be advised of the tenant’s rights under this subsection in writing at the time of the tenant’s payment of the security deposit.
(vii) Failure by the landlord to comply with this requirement forfeits the right of the landlord to withhold any part of the security deposit for damages.
Source Link - 2 Takoma Park Mun. Code § 6.16.050
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All landlords shall:
…
H. Paint all rental units in their entirety at least once every five years. All painted surfaces must be in clean condition and free of any peeling or chipping paint at the beginning of a new tenancy. Repainting is not required between tenancies.
Source Link - 3 Md. Code, Real. Prop. § 8-203(e)
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(1) Within 45 days after the end of the tenancy, the landlord shall return the security deposit to the tenant together with simple interest which has accrued at the daily U.S. Treasury yield curve rate for 1 year, as of the first business day of each year, or 1.5% a year, whichever is greater, less any damages rightfully withheld.
(2)(i) Except as provided in subparagraph (ii) of this paragraph, interest shall accrue at monthly intervals from the day the tenant gives the landlord the security deposit. Interest is not compounded.
(ii) No interest is due or payable:
1. Unless the landlord has held the security deposit for at least 6 months; or
2. For any period less than a full month.
(3) Interest shall be payable only on security deposits of $50 or more.
(4) If the landlord, without a reasonable basis, fails to return any part of the security deposit, plus accrued interest, within 45 days after the termination of the tenancy, the tenant has an action of up to threefold of the withheld amount, plus reasonable attorney’s fees.
Source Link - 4 Md. Code, Real. Prop. § 8-203(n)
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A landlord is entitled to rely on the list of yield curve rates or the customized calculator maintained by the Department of Housing and Community Development under subsection (m) of this section when calculating the interest on a security deposit.
Source Link
- 5 Md. Code, Real. Prop. § 8-203(g)
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(1) Subject to subsection (j) of this section, if any portion of the security deposit is withheld, the landlord shall present by first-class mail directed to the last known address of the tenant, within 45 days after the termination of the tenancy, a written list of the damages claimed under subsection (f)(1) of this section together with an itemized statement of the cost incurred.
(2) If the landlord fails to comply with this requirement, the landlord forfeits the right to withhold any part of the security deposit for damages.
Source Link - 6 Md. Code, Real. Prop. § 8-203(k)
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(1) This subsection applies only if a landlord provides an estimate as documentation to support an itemized statement of costs provided under subsection (g)(1), (h)(2)(iii), or (i)(7) of this section.
(2)(i) The landlord shall notify the tenant in writing when the repairs have been completed.
(ii) The notice required under subparagraph (i) of this paragraph shall include a copy of the final invoice for any repairs made by the landlord.
(3) If the actual costs incurred by the landlord are less than the estimate provided to the tenant under subsection (j)(2) of this section, the landlord shall return to the tenant within 30 days after completing the repairs the amount of the security deposit withheld by the landlord that is in excess of the actual costs incurred by the landlord.
Source Link - 7 Md. Code, Real. Prop. § 8-203(h)
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(1) The provisions of subsections (e)(1) and (4) and (g)(1) and (2) of this section are inapplicable to a tenant who has been evicted or ejected for breach of a condition or covenant of a lease prior to the termination of the tenancy or who has abandoned the premises prior to the termination of the tenancy.
(2)(i) A tenant specified in paragraph (1) of this subsection may demand return of the security deposit by giving written notice by first-class mail to the landlord within 45 days of being evicted or ejected or of abandoning the premises.
(ii) The notice shall specify the tenant’s new address.
(iii) Subject to subsection (j) of this section, the landlord, within 45 days of receipt of such notice, shall present, by first-class mail to the tenant, a written list of the damages claimed under subsection (f)(1) of this section together with an itemized statement of the costs incurred and shall return to the tenant the security deposit together with simple interest which has accrued at the daily U.S. Treasury yield curve rate for 1 year, as of the first business day of each year, or 1.5% a year, whichever is greater, less any damages rightfully withheld.
(3)(i) If a landlord fails to send the list of damages required by paragraph (2) of this subsection, the right to withhold any part of the security deposit for damages is forfeited.
(ii) If a landlord fails to return the security deposit as required by paragraph (2) of this subsection, the tenant has an action of up to threefold of the withheld amount, plus reasonable attorney’s fees.
(4) Except to the extent specified, this subsection may not be interpreted to alter the landlord’s duties under subsections (e) and (g) of this section.
Source Link - 8 Md. Code, Cts. & Jud. Proc. § 4-405
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The District Court has exclusive jurisdiction over a small claim action, which, for purposes of this section, means a civil action for money in which the amount claimed does not exceed $5,000 exclusive of interest, costs, and attorney’s fees, if attorney’s fees are recoverable by law or contract; and landlord tenant action under §§ 8-401 and 8-402 of the Real Property Article, in which the amount of rent claimed does not exceed $5,000 exclusive of interest and costs.
Source Link - 9 Md. Code, Real. Prop. § 8-203(b)
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(1) Except as provided in paragraph (2) of this subsection, 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.
(2) A landlord may impose a security deposit in an amount equivalent to up to 2 months’ rent if:
(i) The tenant is eligible and has qualified for utility assistance through the Department of Human Services;
(ii) The lease agreement requires that the tenant make payments for utility services directly to the landlord; and
(iii) The tenant and landlord agree in writing to the amount of the security deposit.
(3) If a landlord violates paragraph (1) of this subsection, the tenant may recover up to three times the extra amount charged, plus reasonable attorney’s fees.
(4) An action under this section may be brought at any time during the tenancy or within 2 years after its termination.
Source Link
