Security Deposit in Maryland
State-specific overview · Property & Real Estate
Landlords must return deposits within 45 days and hold them in escrow; interest accrues if held over one year.
How Maryland treats Security Deposit
Maryland requires landlords to hold security deposits in escrow accounts separate from operating funds and return them within 45 days of lease termination with itemized deductions. Interest accrues on deposits held longer than one year at a rate set annually. Landlords may deduct only for actual damages, unpaid rent, and lease violations; normal wear and tear cannot be charged to the tenant.
The general definition of Security Deposit
Money a tenant pays upfront to a landlord as a guarantee against damage or unpaid rent.
A security deposit is cash that a tenant gives to a landlord at the start of a lease, held as insurance against property damage or unpaid rent. The landlord must keep this money in a separate account and return it to the tenant when the lease ends, minus any deductions for legitimate damages or unpaid bills. Most states have strict rules about how quickly landlords must return deposits (often 30–45 days) and require them to itemize any deductions. If a landlord wrongfully keeps the deposit, the tenant can sue for the full amount plus penalties.
Read the full Security Deposit entry →This page is a plain-English reference and is not legal advice. State laws change frequently. For specific situations consult a licensed attorney in Maryland.