Portland Security Deposit Rules: What the Tenant Housing Rights Ordinance Adds to Maine Law

A landlord in Portland has to satisfy two sets of rules at once: the Maine statute, 14 M.R.S. §§ 6033, 6034, and the city's own Tenant Housing Rights Ordinance (Portland Code § 6-223.2). The state law sets the 30-day return deadline after termination of the tenancy; the local ordinance adds rules on deposit cap, rent-increase notice, rent cap and relocation assistance. Where the two overlap, the landlord has to meet the stricter one.

What the Tenant Housing Rights Ordinance adds

• Deposit cap: Portland caps the security deposit at one month's rent for a lease or tenancy-at-will agreement for a dwelling intended for human habitation, expressly overriding 14 M.R.S. Section 6032, which otherwise allows up to two months' rent. The cap is not limited to rent-controlled housing: § 6-220 applies Article XI to any and all rental housing units in the city. (Sec. 6-223.2)
• Rent-increase notice: Landlords must give 90 days' written notice before any rent increase, expressly overriding 14 M.R.S. Sec. 6015, which requires only 45 days generally and 75 days for an increase of 10% or more. (Sec. 6-223 (paralleled for Covered Units by Sec. 6-234(d)))
• Rent cap: For non-exempt 'Covered Units,' rent may not be raised within 12 months of a prior increase and is then limited to the Allowable Increase Percentage (set annually at 70 percent of the change in the Greater Boston Metro CPI-U) plus limited add-ons for a new tenancy, banked increases and Rent Board fair-return approvals, subject to an absolute ceiling of ten percent in any one increase, administered by a City Rent Board. (Secs. 6-232 to 6-234 (ten-percent ceiling at Sec. 6-234(c)))
• Other local rule: All application fees for rental housing units are prohibited, including charges for criminal background checks, credit reports, rental history or reference checks, eviction records and employment verification. (Sec. 6-223.1(c))
• Relocation assistance: For units not exempted by Sec. 6-231, a landlord may shorten the standard 90-day termination notice only by paying the tenant a lump-sum reimbursement (one month's rent for 60-89 days' notice, two months' rent for 30-59 days' notice); this is a termination-notice buyout tied to notice length, not a freestanding relocation-assistance payment owed on every termination. (Sec. 6-236)

Who it covers: Any and all rental housing units inside the Portland city limits, under § 6-220. The deposit cap itself is written for a lease or tenancy-at-will agreement for a dwelling intended for human habitation.
Worth knowing: Voters adopted the deposit cap by referendum on November 8, 2022. The narrower defined term "Covered Unit" belongs to Article XII, the rent-control article, and does not limit the Article XI deposit cap. Portland amends this chapter often — the City regenerated the chapter file on July 7, 2026 with revisions through June 1, 2026 — so open portlandmaine.gov/city-code and check for a newer chapter before relying on a figure in court.

What Maine law already requires

• Return deadline: 30 days after termination of the tenancy.
• Detail: 21 days for a tenancy at will.
• Itemized deductions: required in writing.
• Forwarding address: not a statutory condition of getting the deposit back.
• Penalty for wrongful withholding: Willful retention exposes the landlord to double the amount wrongfully withheld plus attorney's fees.
• Deposit cap: Two months' rent.
• Small claims limit: $6,000.
• Statute: 14 M.R.S. §§ 6033, 6034.
• Does this statute apply to you? 14 M.R.S. § 6037 exempts owner-occupied small buildings from the whole security deposit chapter: “This chapter shall not apply to any tenancy for a dwelling unit which is part of a structure containing no more than 5 dwelling units, one of which is occupied by the landlord.” Section 6037(1) separately exempts a lessor who is a mortgagor under a federally insured or guaranteed mortgage, where the chapter conflicts with the mortgage terms. Where either exemption applies, neither the 30-day return of § 6033 nor the double-damages remedy of § 6034 is available.

Using both rules together

1. Read the lease for the deposit amount, the move-in date, and any clause that mentions the ordinance.
2. Check the local rule first: deposit cap under Portland Code § 6-223.2, then rent-increase notice, rent cap and relocation assistance.
3. Count the Maine deadline of 30 days from termination of the tenancy.
4. A written demand that cites both 14 M.R.S. §§ 6033, 6034 and Portland Code § 6-223.2 carries more weight than one that cites either alone. Willful retention exposes the landlord to double the amount wrongfully withheld plus attorney's fees.

Frequently Asked Questions

Q: Does Portland require interest on security deposits?
A: The Tenant Housing Rights Ordinance does not add an interest rule, so Maine law governs. 14 M.R.S. §§ 6033, 6034 does not require interest on deposits.

Q: Is the Portland deposit return deadline different from Maine law?
A: No. The Tenant Housing Rights Ordinance does not change the return deadline, so the Maine rule applies: 30 days after termination of the tenancy under 14 M.R.S. §§ 6033, 6034.

Q: Does the Tenant Housing Rights Ordinance apply to my unit?
A: Any and all rental housing units inside the Portland city limits, under § 6-220. The deposit cap itself is written for a lease or tenancy-at-will agreement for a dwelling intended for human habitation. Check the section cited below for the full list of exemptions before relying on it.

Q: Can I sue my landlord in small claims court for my Maine deposit?
A: Yes. Maine small claims court hears claims up to $6,000, which covers most deposits plus the statutory penalty. A dated written demand that cites 14 M.R.S. §§ 6033, 6034 is the usual first exhibit.

Q: Does 14 M.R.S. §§ 6033, 6034 apply to my landlord?
A: Not always. 14 M.R.S. § 6037 exempts owner-occupied small buildings from the whole security deposit chapter: “This chapter shall not apply to any tenancy for a dwelling unit which is part of a structure containing no more than 5 dwelling units, one of which is occupied by the landlord.” Section 6037(1) separately exempts a lessor who is a mortgagor under a federally insured or guaranteed mortgage, where the chapter conflicts with the mortgage terms. Where either exemption applies, neither the 30-day return of § 6033 nor the double-damages remedy of § 6034 is available.

Sources Checked

• Portland, Me., Code of Ordinances ch. 6, art. XI, § 6-223.2 (Maximum deposit) (By Referendum, Nov. 8, 2022), scope at § 6-220; art. XII, §§ 6-230 to 6-244 (Rent Control and Tenant Protections); chapter revised through June 1, 2026, Tenant Housing Rights Ordinance: code text, read 2026-09-20
• 14 M.R.S. §§ 6033, 6034 (the Maine statute cited above)
• LeaseLenses Maine deposit data set, last reviewed 2026-09-19; the same data powers the Maine demand letter tool
• Maine landlord-tenant overview and the Maine deposit rules page

This page is general legal information for Portland, Maine, not legal advice. Local ordinances are amended more often than state statutes; read the current code text before relying on a figure in court.