Maryland Security Deposit Return Deadline & Penalty Calculator
Friday, November 27, 2026
Computed as 45 calendar days under Md. Code, Real Prop. § 8-203.
Maryland Small Claims Court cap: $5,000 — exceeds small claims cap (may require waiving excess or filing in civil division).
Maryland Security Deposit Rules at a Glance (Md. Code, Real Prop. § 8-203)
45 calendar days after the end of the tenancy under Md. Code, Real Prop. § 8-203. The landlord must return the security deposit together with simple interest (or statutory bank rates), less any lawful damages, accompanied by a written list of itemized deductions.
| Deadline (No Deductions) | 45 calendar days |
|---|---|
| Deadline (With Itemized Deductions) | 45 calendar days |
| Maximum Deposit Cap | Strictly capped at 2 months' rent maximum under Md. Code, Real Prop. § 8-203(b)(1) (if landlord collects more, tenant can recover up to 3x the excess plus attorney fees). |
| Bad-Faith / Late Penalty | Under Md. Code, Real Prop. § 8-203(e)(4), if the landlord fails to return any part of the security deposit within 45 days without a reasonable basis, the tenant may bring an action for up to three times (3x) the withheld amount, plus reasonable attorney's fees. |
| Deposit Interest Rule | Mandatory under § 8-203(e)(1): deposits over $50 held for at least 6 months accrue simple annual interest based on the statutory formula (computed using the U.S. Federal Reserve 1-year Treasury constant maturity rate, minimum calculated through the Maryland DHCD Deposit Calculator). |
| Small Claims Court Limit | $5,000 |
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Key Maryland Statutory Nuances & Documentation Rules
- Move-Out Inspection Right by Certified Mail (§ 8-203(f)): The tenant has the right to be present at the inspection if they notify the landlord in writing by certified mail at least 15 days before vacating; the landlord must conduct the inspection within 5 days before or after move-out.
- Strict 45-Day Itemization by First-Class Mail: The itemized statement of damages must be sent by first-class mail to the tenant's last known address within 45 days. Failure to send it forfeits the right to withhold any part of the deposit.
- Treble Damages for Bad Faith: Withholding funds without a reasonable basis exposes the landlord to up to triple (3x) damages plus attorney's fees in Maryland District Court.
- Detailed Escrow Receipt Required: Landlords must give a written receipt for the deposit specifying the tenant's rights to an inspection, interest, and the 45-day return rule; failure to provide the receipt carries a $25 statutory penalty.
Silver Spring Rental Move-Out Past 45 Days
A tenant moves out of a Silver Spring apartment on June 30, 2026 after paying a $2,200 deposit. Under Md. Code, Real Prop. § 8-203(e), the 45-day window expires on Friday, August 14, 2026. If the landlord retains $1,100 for wall painting without sending the required itemized damage notice by August 14, the landlord forfeits the right to retain any portion. In Maryland District Court (Small Claims limit $5,000, regular civil jurisdiction up to $30,000), if the judge finds the withholding lacked a reasonable basis, the tenant can recover up to $3,300 (3x the $1,100 withheld) plus mandatory interest and reasonable attorney's fees.
Maryland Security Deposit Return FAQs
How long does a Maryland landlord have to return a security deposit?
Under Maryland Code, Real Property § 8-203(e), the landlord must return the security deposit, plus statutory accrued interest, less any lawful deductions, within 45 calendar days after the end of the tenancy.
What is the penalty if a Maryland landlord withholds a deposit without a reasonable basis?
Under Real Property § 8-203(e)(4), if the landlord fails to return the deposit or provide the itemized list within 45 days without a reasonable basis, the tenant may sue for up to three times (3x) the withheld amount, plus reasonable attorney's fees.
Are Maryland landlords required to pay interest on security deposits?
Yes. Under § 8-203(e)(1), for deposits of $50 or more held for 6 months or longer, the landlord must pay interest calculated based on the daily U.S. Treasury yield curve rate, published annually by the Maryland Department of Housing and Community Development (DHCD).
What is the maximum security deposit allowed in Maryland?
Under Real Property § 8-203(b)(1), a landlord cannot demand or receive a security deposit exceeding two months' rent per dwelling unit, regardless of the number of tenants or pets.