What Is the Maximum Security Deposit in Maryland?
Maryland caps a security deposit at one month’s rent per dwelling unit and counts the last month’s rent paid in advance. Here are the two-month exception, the penalty for an overcharge, surety bonds and where the money must be held.
What is the maximum security deposit in Maryland?
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 (Md. Code, Real Property 8-203(b)(1)). With rent of $1,500 the cap is $1,500, even if three roommates share the unit. The Maryland security deposit limit calculator does the arithmetic.
What is the two-month exception?
A landlord may impose up to 2 months’ rent only if the tenant is eligible and has qualified for utility assistance through the Department of Human Services, the lease requires the tenant to make payments for utility services directly to the landlord, and the tenant and landlord agree in writing to the amount (8-203(b)(2)). If any of the three is missing, the one-month cap applies.
What counts as a security deposit?
Any payment of money, including payment of the last month’s rent in advance, given to a landlord by a tenant to protect the landlord against nonpayment of rent, damage due to breach of lease, or damage to the premises, common areas, major appliances and furnishings (8-203(a)(3)). A prospective landlord and a prospective tenant are covered too.
What can a tenant recover for an overcharge?
If a landlord imposes more than the cap, the tenant may recover up to three times the extra amount charged, plus reasonable attorney’s fees (8-203(b)(3)), and may sue during the tenancy or within 2 years after it ends (8-203(b)(4)). A lease cannot waive the section (8-203(l)).
Can a landlord require a surety bond?
No. A tenant may buy a surety bond instead of paying all or part of a deposit, but a landlord may not require one and need not consent. A bond bought instead of a deposit may not exceed two months’ rent, and a bond and a deposit together may not exceed two months’ rent; a landlord that requires more owes up to three times the extra amount charged for the bond, plus fees (8-203(i)).
Where must the landlord keep the deposit?
In a federally insured financial institution that does business in Maryland, in a branch located in the State, in an account devoted exclusively to security deposits that bears interest, within 30 days after receiving it, in an aggregate amount sufficient to cover every deposit it owes; it may use insured certificates of deposit or federal or Maryland securities instead (8-203(d)). Creditors of the landlord or tenant may not attach the deposit (8-203(d)(3)).
Worked examples
| Monthly rent | Deposit | Result |
|---|---|---|
| $1,500 | $1,500 | One month; within the cap |
| $1,500 | $2,000 | $500 over the cap |
| $1,500 | $1,000 plus last month’s rent $1,500 | $1,000 over the cap |
| $1,500 | $3,000 with the written utility exception | Two months; within the exception |
These illustrate the rule and are not statements about any lease.
A checklist for landlords
Add every payment held as security, including the last month’s rent in advance; keep the total at or below one month’s rent unless every part of the exception is met in writing; put it in an insured, interest-bearing Maryland account within 30 days; and give the tenant a receipt that states the tenant’s rights.
A checklist for tenants
Ask for the total move-in cost in writing; ask what each line is for and where the deposit is held; add the payments held as security and compare the total with one month’s rent; get a receipt for each payment; and photograph the unit at move-in.
Where to get help
The District Court Help Center and legal aid can explain how a deposit claim is brought. Bring the lease, every receipt and the date you left.
Frequently asked questions
How much can a Maryland landlord charge for a security deposit?
No more than one month’s rent per unit.
Does the cap depend on the number of tenants?
No. It is per dwelling unit.
When can a landlord charge two months?
When the tenant qualifies for utility assistance, pays utilities to the landlord and both agree in writing.
What can a tenant recover for an overcharge?
Up to three times the extra amount, plus attorney’s fees.
Can a landlord require a surety bond?
No.
Official sources
A local landlord-tenant attorney can review your situation — many offer a free consultation.
This is general information, not legal advice. It is based on the cited Maryland statutes, rules and court opinions, and every case turns on its own facts. Confirm how the law applies to your situation with a licensed Maryland attorney.