If Not Provided, Tenant Entitled to $25. If the landlord, without a reasonable basis, fails to return any part of the security deposit, plus accrued interest, within 45 days after the termination of the tenancy, the tenant has an action of up to threefold of the withheld amount, plus reasonable attorneys fees. [6] except on security deposits less than $50 or held for less than six months. (iv)Upon receipt of the notice, the landlord shall notify the tenant by certified mail of the time and date when the premises are to be inspected. Maryland.gov. The landlord must give the tenant a written receipt for the security deposit. While a surety/security bond is generally much less expensive than a security deposit, there are some basic things tenants and landlords should know: $(document).ready(function() { var hash = window.location.hash.substr(1); $('#'+hash).collapse('show'); }); County Web Accessibility information including Alternative Format Requests for Disabled Users are provided on this page. In the state of Maryland, a landlord has 45 days from the date of tenant move out to return all, or a portion of, the tenants security deposit plus any interest. (c)(1)The landlord shall give the tenant a receipt for the security deposit as specified in 8203.1 of this subtitle. This site is protected by reCAPTCHA and the Google, There is a newer version The excess must be returned within 30 days after the repairs are complete. Code, Real Property 8-203. If a landlord in the state of Maryland sells the investment propertyor the property otherwise changes ownership, the landlord must: If you are interested in viewing the original text of security deposit lawin the state of Maryland, please consult Maryland Real Property Code Annotated 8-203 and 8-203.1. You can get the forms you need to file a small claims lawsuit against the landlord at your local District Court or online through the Maryland Courts website. A surety/security bond is insurance for the landlord to protect against damage caused by tenants, guests, or invitees, pets, non-payment of rent, and/or damages incurred by the landlord if the tenant breaches the lease; The landlord cannot require a tenant to purchase a surety/security bond; The landlord is not required to consent to the purchase of a surety/security bond by the tenant; A surety/security bond cannot total more than two months rent; If a tenant purchases a surety/security bond and pays a security deposit, the collective total cannot exceed two months rent; A tenant purchasing a surety/security bond must be informed in writing that: The surety/security bond is not refundable; The surety/security bond is not insurance for the tenant; The surety/security bond is being purchased to protect the landlord against loss due to damage caused by tenants, guests, or invitees, pets, non-payment of rent, and/or damages incurred by the landlord if the tenant breaches the lease; The tenant may be required to reimburse the surety for amounts the surety paid to the landlord; Even after purchase of the surety/security bond, the tenant is responsible for payment of damage caused by tenants, guests, or invitees, pets, non-payment of rent, and/or damages incurred by the landlord if the tenant breaches the lease; and. (13)If a surety, in an action against the tenant, asserts a claim under the surety bond without having a reasonable basis to assert the claim, the court may grant the tenant damages of up to three times the amount claimed plus reasonable attorneys fees. The landlord must send any unused portion by first-class mail to the tenants last known address. [15] In Maryland, a landlord is allowed to charge a cleaning fee if the tenant agrees to it in the rental agreement or if the cleaning is required to return the unit to its initial condition past expected wear and tear. All security deposits received between July 1, 1972 and June 30, 1980 accrued interest at a rate of 3% per year. 8-203 (2021). How Can Tenants File a Dispute for a Security Deposit in Maryland? of Legislative Audits operates a toll-free The Commission ordered the Respondents to pay the Complainants $9,646.00 which sum represented the Complainants security deposit ($12,200.00) plus accrued interest ($183.00), less the rent owed for the month of April 2015 and late fee ($7,560.00); and, a penalty of $4,823.00. The average monthly cost for 1 bedroom no security deposit apartments for rent in Baltimore, MD is $1318. Effective January 1, 2015, the interest on security deposits was reduced from 3% simple interest per year to the daily U.S. Treasury yield curve rate for 1 year, as of the first business day of each year, or 1.5%, whichever is greater. If the landlord charges more than this, the tenant may get back up to three times the extra amount charged, plus reasonable attorneys fees. For example, the security deposit may not be more than two months rent. The landlord must give the tenant a written list of the charges and actual costs against the security deposit the landlord is claiming, within 45 days after the end of the rental period. JavaScript is required to use content on this page. Before a tenant buys a surety bond instead of paying a security deposit, the surety providing the bond must disclose to the tenant in writing that: Read the Law: Md, Code, Real Property 8-203, This site offers legal information, not legal advice. Can the Landlord Charge a Cleaning Fee in Maryland? Security Deposit interest is required to be paid to the tenant upon move out per MD state law if they resided in the home for longer than a 6 month period. January 19, 2023 A security deposit receipt is provided by a landlord to a tenant after receiving payment for the security deposit. Return of the Security Deposit This notice must include: A statement of the tenants intention to move. return any part of the security deposit, plus accrued interest, within 45 days after the termination of the tenancy, the landlord shall return the security deposit to the tenant together with simple interest. Normal wear and tear is damage that is expected when a rental unit is used in a normal way, such as gently worn carpets and faded walls. Maryland Legal Aid Bureau, Inc. (2)(i)Instead of paying all or part of a security deposit to a landlord under this section, a tenant may purchase a surety bond to protect the landlord against: 3. See Exceptions. 2. State the move-out date and include the tenant's new address. If a landlord wrongfully withholds all or a portion of the deposit, the tenant could be awarded up the three times the amount wrongfully withheld,plus reasonable attorneys fees. An itemized statement of costsshall include supporting documentation that identifies the materials or services provided. Your lawsuit must be filed no later than two years from the end of your tenancy. Landlords do not owe interest on any partial month. We're available on the following channels. Yes, in Maryland, landlordscan chargefor painting,exceptfor normal wear and tear. Cases are filed in the District Court where the defendant lives, works, or does business, or, if the defendant is a corporation, where they have a main office. (2) "Landlord" means a landlord or a prospective landlord. WebIf your landlord fails to provide a security deposit receipt, you may also sue your landlord for $25. Landlords in Maryland can collect a security deposit from their tenants but must follow certain rules in doing so. Brian Pendergraft is a Maryland landlord-tenant attorney that has successfully represented both landlords and tenants in [11] For example, if a landlord returns a security deposit after eight months and three weeks, the landlord only owes interest on eight months. (f)(1)(i)The security deposit, or any portion thereof, may be withheld for unpaid rent, damage due to breach of lease or for damage by the tenant or the tenants family, agents, employees, guests or invitees in excess of ordinary wear and tear to the leased premises, common areas, major appliances, and furnishings owned by the landlord. In the state of Maryland, landlords must provide the tenant with a receipt after collecting the security deposit from the tenant. Can the Landlord Charge for Replacing the Carpet in Maryland? If the cost of the damages exceeds the amount of the security deposit, landlords are entitled to seek additional damages from the former tenant. This inspection will help to document pre-existing damages and may prevent misunderstandings regarding who is responsible for damage at the time of move out. However we do not provide legal advice - the application of the law to your individual circumstances. WebThis question is about Maryland Security Deposit Law. Tenants' Security Deposit Rights in Michigan, 9 Basics of Indiana's Security Deposit Law, Utah Security Deposit Law for Tenants and Landlords, Arizona's Laws for Rental Security Deposits, Tenants' Security Deposit Rights in Georgia, 7 Basics of Tennessee's Security Deposit Act, Landlord Tenant Security Deposit Rights in California, Tenants' Security Deposit Rights in Florida, Tenants' Security Deposit Rights in Missouri, Tenants' Security Deposit Rights in New Hampshire, Learn About Tenants' Security Deposit Rights in Washington State. (3)Security deposit means any payment of money, including payment of the last months rent in advance of the time it is due, given to a landlord by a tenant in order to protect the landlord against nonpayment of rent, damage due to breach of lease, or damage to the leased premises, common areas, major appliances, and furnishings. Small Claims Lawsuits in Maryland. Includes deductions, returns, & regulations for rental properties. Chapters 488 and 489 (Senate Bill 345/House Bill 249) of the 2014 Laws of Maryland altered the amount of interest a landlord or mobile home park owner must pay on a security deposit from the previous 3% per annum that was mandated since 2004 to the new U.S. Treasury yield curve rate calculation. accessible and convenient, and In the state of Maryland, a landlord can keepall, or a portion of, a tenants security deposit for the following reasons: Yes. For example, if a rug is worn through proper usage, then this is ordinary wear and tear. The landlord must return any unused portion of the security deposit within 45 days after the end of the rental period. Read the Law: Md. 10/1/2016. This article briefly outlines several common concepts having to do with residential leases and the duties of landlords and renters. This itemized list must: Be sent by first class mail to the last known address of the tenant. You may be eligible for free legal services or advice from Maryland Legal Aid or a volunteer lawyer program. Within 15 days of move in, the tenant can request, by certified mail, that the landlord inspect his or her unit and make a written list of any existing damage.