Most states, such as Maryland, do not have a legal limit on how much a landlord can charge for damages except that the charges must be reasonable.
If the cost of the damages exceeds the amount of the security deposit, landlords are entitled to seek additional damages from the former tenant.
“Normal wear and tear” is deterioration that occurs naturally as a result of the tenant using the property as it was designed to be used.
“Damage” means destruction to the rental unit that occurs because of abuse or negligence by a tenant during the course of the tenancy.
Landlords can charge for replacing the carpet if it is damaged beyond normal wear and tear.
A carpet that is slightly discolored or gently worn will be considered normal wear and tear. A carpet with visible stains, major discoloration and rips will be considered excessively damaged.
Landlords in Maryland can charge a tenant for nail holes if they damage the walls in a way that is not a result of ordinary enjoyment of the rental unit.
Tenants have the right to use the walls within their unit in a reasonable way. This includes inserting small nails or thumbtacks to hang posters or pictures.
However, large holes from drilling, multiple nail holes, large nail holes, and holes made for hanging heavier things may be considered damage and thus, chargeable to the tenant.
Landlords in Maryland can make deductions from the security deposit for cleaning, but only if the tenant causes damage that requires cleaning such as wine stains on the carpet.
In Maryland, landlords can charge for painting, except for normal wear and tear. For example, if the tenant:
Normal wear includes:
Landlords can charge for repainting if the damage is not the result of normal use. This includes stains, large or deep scratches, and water damage.
In Takoma Park, landlords are required to repaint rental units every five years. [2] Thus, a tenant cannot be charged for repainting if they move out after five years, despite the level of damage to the paint.
Maryland law does not forbid the security deposit from being used for any outstanding rent.
Landlords can include a provision in the lease agreement that the security deposit cannot be used for the last month’s rent until the tenant vacates the rental unit.
Landlords must conduct a final inspection with a tenant if requested in writing by the tenant. Landlords must return any remaining portion of a security deposit plus interest (if due) by first-class mail to the tenant’s last known address within 45 days from the termination of the lease with an itemized list of damages (if any).
Landlords must honor a tenant’s request to attend a final inspection if the tenant makes a request in writing by certified mail at least 15 days [3] prior to the move-out date.
If requested by the tenant, the landlord must reply by certified mail with the date and time of the inspection, scheduled within 5 days [4] of the move-out date (before or after).
Maryland landlords have 45 days [5] after the lease term ends to return any remaining portion of a security deposit.
Landlords in Maryland do owe interest [6] except on security deposits less than $50 or held for less than six months. [7] The interest calculator provided by the Department of Housing and Community Development can be used to determine the minimum interest due. [8]
The minimum interest is the daily U.S. Treasury yield curve for one year or 1.5% per year, whichever is greater. [9] Interest accrues at monthly intervals but is not compounded. [10]
Landlords do not owe interest on any partial month. [11] For example, if a landlord returns a security deposit after eight months and three weeks, the landlord only owes interest on eight months.
If deductions are to be made from the security deposit, an itemized statement of deductions must be sent by first-class mail to the tenant’s last known address. The itemized statement must include supporting documentation that identifies the materials or services provided. [12]
If a landlord cannot identify actual costs within 45 days, they can provide an estimate instead. The landlord must notify the tenant in writing within 30 days after the repairs have been completed including invoices or receipts. [13]
If the actual cost of the repairs is less than what was deducted from the security deposit, the written notice must include a refund for the difference. [14]
Landlords are not required to provide an itemized statement of deductions if the tenant was evicted, abandoned the rental unit, or ejected due to a breach of the lease agreement. [15] However, they must return any remaining portion of the security deposit if requested in writing by the tenant. [16]
If landlords do not return the security deposit or provide a written statement of deductions, if any, within the required time period, tenants can file a lawsuit for return of the amount wrongfully withheld plus damages up to three times the amount of the deposit due to the tenant plus reasonable attorneys’ fees. [17]
Tenants can also take legal action against a landlord for:
If a landlord fails to perform their obligations regarding a security deposit, the tenant can file a dispute in the small claims division of District Court if the amount of damages is less than $5,000. [18] If the amount is greater, the tenant must file a civil case in the District Court.
A small claims case regarding the return of a security deposit must be filed within 2 years. [19]
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. An attorney is not required but permitted. The filing fee is $34 plus the cost of service.
The security deposit…may be withheld for unpaid rent, damage due to breach of lease or for damage…in excess of ordinary wear and tear…
All landlords shall…paint all rental units in their entirety at least once every five years.
The notice to be furnished by the tenant to the landlord shall be mailed at least 15 days prior to the date of moving.
The date of inspection shall occur within five days before or five days after the date of moving as designated in the tenant’s notice.
…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…
No interest is due or payable…unless the landlord has held the security deposit for at least 6 months…payable only on security deposits of $50 or more.
A landlord is entitled to rely on the…customized calculator maintained by the Department of Housing and Community Development…when calculating the interest on a security deposit.
…interest…at the daily U.S. Treasury yield curve rate for 1 year, as of the first business day of each year, or 1.5% a year, whichever is greater…
…interest shall accrue at monthly intervals from the day the tenant gives the landlord the security deposit. Interest is not compounded.
No interest is due or payable…For any period less than a full month.
An itemized statement of costs…shall include supporting documentation that identifies the materials or services provided.
The landlord shall notify the tenant in writing when the repairs have been completed…shall include a copy of the final invoice for any repairs…within 30 days…
…the landlord shall return to the tenant…the amount of the security deposit withheld by the landlord that is in excess of the actual costs incurred by the landlord.
The provisions…of this section are inapplicable to a tenant who has been evicted or ejected for breach of a condition or covenant of a lease prior to the termination of the tenancy or who has abandoned the premises prior to the termination of the tenancy…
A tenant…may demand return of the security deposit by giving written notice by first–class mail to the landlord within 45 days of being evicted or ejected or of abandoning the premises.
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 attorney’s fees.
The District Court has exclusive jurisdiction over a small claim action…or money in which the amount claimed does not exceed $5,000…
An action under this section may be brought at any time during the tenancy or within two years after its termination.
