Security Deposit Return Deadlines & Deductions in Maryland

At a glance

Requirements one by one

Return and itemization

Md. Code, Real Prop. § 8-203(e)(1) gives the landlord 45 days after the tenancy ends to return the deposit with accrued interest, less damages rightfully withheld. If any money is withheld, § 8-203(g)(1)-(2) requires a written damage list and itemized costs sent by first-class mail to the tenant's last known address within the same 45 days. Under § 8-203(j)-(k), the itemization must identify supporting materials or services; an initial estimate is allowed, but the landlord must later send the final repair invoice and refund any excess within 30 days after repairs finish.

The ordinary clock differs when the tenant was evicted or ejected for a lease breach, or abandoned before the tenancy ended. Under § 8-203(h)(1)-(2), that tenant must demand the deposit in writing by first-class mail within 45 days after the event and give a new address; the landlord then has 45 days after receiving the demand to send the list and return the balance with interest due.

Cap, interest and holding

Md. Code, Real Prop. § 8-203(b)(1) caps the deposit at one month's rent per dwelling, regardless of tenant count. Md. Code, Real Prop. § 8-203(b)(2)-(3) allows up to two months only if the tenant qualifies for Department of Human Services utility assistance, pays utilities directly to the landlord under the lease, and agrees in writing to the higher amount. The 2024 amendment took effect October 1, 2024; before that, the general cap was two months. Subsection (b)(3) allows recovery of up to three times an overcharge plus reasonable attorney's fees.

The landlord owes simple interest at the greater of the one-year Treasury yield specified in § 8-203(e)(1) or 1.5% annually. Under § 8-203(e)(2)-(3), no interest is due unless the deposit was held at least six months, and none accrues for a partial month or on deposits below $50. Md. Code, Real Prop. § 8-203(d)(1) requires an insured Maryland account devoted to deposits within 30 days after receipt; § 8-203(d)(2) permits certain insured certificates or government securities instead.

Deductions and remedies

Md. Code, Real Prop. § 8-203(f)(1) permits withholding for unpaid rent, lease-breach loss, and damage caused by the tenant or listed guests and agents beyond ordinary wear. A deposit is not liquidated damages; § 8-203(f)(2)-(3) limits lease-breach retention to actual loss and offsets rent received from a replacement tenant. Md. Code, Real Prop. § 8-203(e)(1)-(4) allows up to three times the wrongfully withheld amount plus reasonable attorney's fees if the landlord lacks a reasonable basis for failing to return it on time. Missing the itemized list forfeits damage deductions under § 8-203(g)(2); failure to give required inspection notice does the same under § 8-203(f)(1).

What trips people up

Under § 8-203(f)(1)(ii)-(vi), a tenant who wants to attend the move-out inspection must send certified-mail notice at least 15 days before moving, with the move date and new address. Section 8-203(f)(1) then requires the landlord to give the inspection time and date by certified mail and inspect within five days before or after the move date. The right to inspect and the landlord's notice duty have their own conditions; they do not replace the 45-day accounting clock.

Common questions

Can a landlord charge extra because several tenants share one unit? No. Section 8-203(b)(1) measures the ordinary cap per dwelling unit, regardless of the number of tenants.

Can the lease waive these rules? Md. Code, Real Prop. § 8-203(l) says no provision of that section may be waived in a lease.

Statutes and sources

• Md. Code, Real Prop. § 8-203 — cap, return, interest, deductions, itemization, and remedies. https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=grp&section=8-203 (accessed 2026-10-07)
• 2024 Md. Laws ch. 124 (HB 693) — cap amendment and effective date. https://mgaleg.maryland.gov/2024rs/Chapters_noln/CH_124_hb0693e.pdf (accessed 2026-10-07)