Security deposit return law in Maryland

In Maryland, a landlord must return the security deposit within 45 days (Md. Code, Real Property 8-203 and 8-203.1).

Return deadline: 45 days after the tenancy ends
Deposit cap: One month's rent (conditions below)
Itemized list of deductions: Required
If you get it wrong: Withholding any part of the deposit or interest without a reasonable basis past 45 days: the tenant can sue for up to three times the withheld amount plus reasonable attorney's fees (8-203(e)(4)).; Md. Code, Real Property 8-203 and 8-203.1. Verified 2026-09-25.

When the clock starts, and what goes with the money

If any part is withheld, the landlord must mail by first-class mail to the tenant's last known address, within 45 days after the tenancy ends, a written list of damages with an itemized statement of the costs (8-203(g)(1)).
The statement must include supporting documentation identifying the materials or services.
An estimate is allowed, but the landlord must then send the final invoice when repairs are done and refund any overage within 30 days (8-203(j), (k)).
The refund must include simple interest at the greater of the 1-year Treasury yield curve rate or 1.5% a year, on deposits of $50 or more held at least 6 months (8-203(e)).
For a tenant who was evicted or abandoned, the 45 days run from the tenant's written demand, which must be sent within 45 days of leaving (8-203(h)).

How much you can collect

Maryland caps the security deposit at one month's rent (Md. Code, Real Property 8-203 and 8-203.1). The conditions attached to that cap matter as much as the number:

One month's rent per dwelling unit regardless of the number of tenants, effective October 1, 2024 under the Renters' Rights and Stabilization Act of 2024 (Ch. 124, HB 693).
Before that date the cap was two months.
The landlord may still charge up to two months if the tenant qualifies for utility assistance through the Department of Human Services, the lease requires the tenant to pay utilities directly to the landlord, and both sides agree to the amount in writing (8-203(b)(2)).
A tenant charged more can recover up to three times the extra amount plus attorney's fees (8-203(b)(3)).
A surety bond bought instead of or alongside a deposit is capped at two months' rent in total (8-203(i)(3)).

What it costs to get this wrong

Withholding any part of the deposit or interest without a reasonable basis past 45 days: the tenant can sue for up to three times the withheld amount plus reasonable attorney's fees (8-203(e)(4)).
No itemized list within 45 days: the landlord forfeits the right to withhold anything for damages (8-203(g)(2)).
Failing to honor a tenant's move-out inspection request also forfeits the right to withhold for damages (8-203(f)(1)(vii)).
No written receipt: $25 (8-203.1(c)).

Holding the deposit

The landlord must give a receipt, included in the written lease, that tells the tenant about move-in and move-out inspection rights, the 45-day deadlines, and the up-to-3x penalty; keep a copy for 2 years (8-203(c), 8-203.1).
Deposits must go within 30 days into an interest-bearing account used only for security deposits, at a Maryland branch of a federally insured institution (or insured CDs or federal or Maryland government securities) (8-203(d)).
The deposit cannot be attached by creditors, and a buyer of the property becomes liable for it (8-203(d)(3)-(4)).
None of these rules can be waived in a lease (8-203(l)).

Common questions

How long does a Maryland landlord have to return a security deposit?

45 days, under Md. Code, Real Property 8-203 and 8-203.1. If any part is withheld, the landlord must mail by first-class mail to the tenant's last known address, within 45 days after the tenancy ends, a written list of damages with an itemized statement of the costs (8-203(g)(1)). When the clock starts and what goes back with the money is covered above.

Does Maryland cap the security deposit?

Yes, one month's rent. One month's rent per dwelling unit regardless of the number of tenants, effective October 1, 2024 under the Renters' Rights and Stabilization Act of 2024 (Ch. 124, HB 693). Before that date the cap was two months. The landlord may still charge up to two months if the tenant qualifies for utility assistance through the Department of Human Services, the lease requires the tenant to pay utilities directly to the landlord, and both sides agree to the amount in writing (8-203(b)(2)). A tenant charged more can recover up to three times the extra amount plus attorney's fees (8-203(b)(3)). A surety bond bought instead of or alongside a deposit is capped at two months' rent in total (8-203(i)(3)).

What happens if a Maryland landlord misses the deadline or withholds wrongly?

Withholding any part of the deposit or interest without a reasonable basis past 45 days: the tenant can sue for up to three times the withheld amount plus reasonable attorney's fees (8-203(e)(4)). The full rule is under "What it costs to get this wrong" above.

Does a Maryland security deposit have to be held a particular way?

The landlord must give a receipt, included in the written lease, that tells the tenant about move-in and move-out inspection rights, the 45-day deadlines, and the up-to-3x penalty; keep a copy for 2 years (8-203(c), 8-203.1). The rest is under "Holding the deposit" above.

The deposit paperwork is the part that gets lost. PropManager keeps the deposit on the lease, the move-out itemization with the tenant's file, and the refund in the ledger, so the record exists before a dispute does.

Sources

Md. Code, Real Property 8-203 and 8-203.1. Source: https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=grp&section=8-203&enactments=false. Verified 2026-09-25.

General information, not legal advice. Check your own lease and any city or county ordinance before you rely on it.