Short answer: In Maryland, your landlord's policy doesn't cover your belongings or liability. Under Real Property §8-203, a landlord generally can't charge a security deposit of more than one month's rent per unit. They must give you a receipt and hold the deposit in a federally insured Maryland bank account. Within 45 days after the tenancy ends, the landlord must return the deposit with interest, less damages rightfully withheld. Withholding without a reasonable basis can mean up to three times the withheld amount plus attorney's fees.
This guide is general information for Maryland renters. It isn't legal advice, and local ordinances can add rules. Your lease and policy wording control.
Your landlord's policy covers the building, not your belongings or liability. A renters policy (HO-4) covers personal property, personal liability and loss of use; flood is generally excluded (see FloodSmart). Coverage basics: renters insurance. Roommates: whether renters insurance covers roommates. Liability: how much renters liability coverage you need.
Step 1: Deposit cap and receipt
Under Md. Code, Real Property §8-203:
- A landlord generally may not impose a security deposit greater than one month's rent per dwelling unit, regardless of how many tenants there are. A narrow exception allows up to two months' rent in specific utility-assistance situations.
- You must receive a written receipt for the deposit, included in the written lease.
- Deposits must be kept in federally insured financial institutions doing business in Maryland.
Step 2: The 45-day return with interest
- Within 45 days after the tenancy ends, the landlord must return the deposit with simple interest, at the greater of the 1-year U.S. Treasury yield curve rate or 1.5% a year, less damages rightfully withheld.
- Interest is due only on deposits of $50 or more held for at least six months, and accrues monthly.
- Deductions may cover unpaid rent, damage from breach of the lease, and damage beyond ordinary wear and tear.
Step 3: Threefold damages
If the landlord, without a reasonable basis, fails to return any part of the deposit, plus accrued interest, within 45 days, you may recover up to threefold the withheld amount, plus reasonable attorney's fees.
Step 4: Storms and flooding
Maryland renters near the Chesapeake and in flash-flood areas should know that flood is generally excluded from renters policies. NFIP contents coverage is available through FloodSmart.
Questions? Contact Alishahi Insurance or call (877) 711-4545. See insurance in Maryland.
Frequently asked questions
What's the maximum security deposit in Maryland?
Generally one month's rent per dwelling unit, under Real Property §8-203.
How long does a Maryland landlord have to return my deposit?
Within 45 days after the tenancy ends, with interest, less damages rightfully withheld.
Do Maryland security deposits earn interest?
Yes, on deposits of $50 or more held at least six months, at the greater of the 1-year Treasury rate or 1.5% a year.
What if my Maryland landlord keeps my deposit without a reasonable basis?
You may recover up to three times the withheld amount, plus reasonable attorney's fees.
Alishahi Insurance · 439 N Canon Dr, Penthouse, Beverly Hills, CA 90210 · (877) 711-4545 · CA License #4348151. General information only. This isn't legal, tax or financial advice or a coverage determination. Coverage depends on policy language and underwriting, and rules vary by state.