Maryland security deposit account for landlords
Easily collect and manage deposits for every property with dedicated security deposit accounts.
Why use a security deposit account in {{ state }}
Security deposit funds are instantly separated, making move-in, move-out, and returns completely clear.
Benefits for property
owners
Repair and maintenance
Covers property damage such as paint, carpet, or floor damage, including costs caused by pets.
Fund separation
Meet state requirements for holding deposits in a dedicated tenant security deposit account.
Streamlined returns
Simplifies refunding tenants while accounting for deductions like cleaning or unpaid utilities.
Benefits for tenants
Fair protection
Funds are protected from misuse, covering only actual repair costs like cleaning, carpet replacement, or floor damage.
Transparency on deductions
Tenants can clearly see allowable charges, protecting against unfair claims on normal wear and tear.
Savings potential
Deposits may be held in a tenant security deposit account or rental deposit account that earns security deposit interest, helping tenants recover more than they put in.
Baselane accounts cannot hold security deposits in states requiring escrow or state-based accounts, but can be used to collect, track, and securely transfer deposits to compliant external accounts.
{{ state }} security deposit account
Deposit each tenant’s security deposit in Maryland into a separate interest-bearing account at a federally insured financial institution that does business within Maryland. You must deposit funds in a security deposit bank account in Maryland within 30 days of receiving them.
{{ state }} security deposit
limits
The maximum security deposit Maryland landlords can charge is set by law. For any lease signed on or after October 1, 2024, the limit is 1 month's rent; for leases signed before that date, the limit is 2 months' rent. There is no average security deposit defined by law.
{{ state }} security deposit interest
As per state law security deposit rules, interest on security deposit in Maryland is required if the amount is $50 or more and has been held for at least six months. The security deposit interest rate is determined annually and is either the daily U.S. Treasury yield curve rate for 1 year or 1.5% per year simple interest, whichever is greater.
Go beyond standard security deposit accounts
Collect, return, and track deposits by tenant and
property, even when funds are held in external accounts.
{{ state }} security deposit accounts
Keep every deposit organized and accounted for with secure transfers to [State] security deposit accounts.
Unlimited accounts for all entities
Manage deposits for all entities under one login — LLCs, corporations, partnerships, and individuals.
Free online payments
Collect rent and deposits online for free and easily return deposits via ACH, wire, or check.
Automated bookkeeping
Track and tag payments to the right tenant and property — automatically.
Essentials for every door
Everything you need for every part of the rental process.
Lease creation and e-sign
Upload or create and e-sign state-specific leases online.
Free tenant screening
Screen tenants online for free — instantly verify credit, background, evictions, ID, and income.
Property-specific accounts
Open unlimited checking and savings accounts to easily separate funds for all your properties with no monthly maintenance fees.
{{ state }} security deposit rules
1 month's rent for new leases signed after October 1, 2024 (and 2 months' rent for those signed before)
Separate interest-bearing account with a federally insured financial institution in Maryland used only to hold deposits.
Upaid rent or utilities, house repairs, lease violations, and cleaning costs
45 days
Additional resources
ARTICLE
How to collect security deposits
FAQs
How much security deposit can a landlord charge in Maryland?
The Maryland security deposit limit is generally 1 month's rent for new leases signed after October 1, 2024 (and 2 months' rent for those signed before). This limit includes all prepaid amounts, even if you are collecting the first and last month's rent plus a pet deposit.
Is interest required on tenant security deposits in Maryland?
Yes, you must pay interest (the greater of the US Treasury yield curve rate or 1.5% per year) on any deposit of $50 or more that you've held for at least six months. All deposits must be held in a separate landlord tenant security deposit bank account in Maryland that is federally insured.
How should I issue a security deposit receipt to tenants in Maryland?
You should provide the tenant with a written receipt that explains the tenant's inspection rights and warns them that failure to comply could make you liable for up to three times the amount withheld. You don't have to send a separate security deposit receipt or provide bank details, but it's good practice.
How many days to return a security deposit in Maryland?
You must return the full or partial tenant security deposit in Maryland (along with the itemized list of deductions) within 45 days after the tenancy ends. If you fail to do so without a reasonable basis, you could be liable for up to three times the withheld amount (double damages).
What can a landlord deduct from a security deposit in Maryland?
As the landlord rights security deposit rules allow, you can deduct for damages beyond ordinary wear and tear to the rented unit (like an apartment, house rental, or condo), unpaid rent, or costs due to a lease breach. Make sure to list these deductions along with the price and send them to the tenants within 45 days.
Can a security deposit be used for unpaid rent in Maryland?
Yes, you can use the funds from the security deposit escrow account to cover unpaid rent. If you subsequently re-rent the property before the original term was up, the amount of money you can claim is reduced by the amount you gained from the new tenant.
Can landlords keep a security deposit for breaking a lease in Maryland?
Yes, the landlord security deposit in Maryland law allows you to claim costs for breaking the lease or other breaches. However, you can only keep the actual amount of money lost due to the violation, which must be itemized and sent to the tenant.
