What Is the Penalty for Not Returning a Security Deposit in Maryland?

Withholding without a reasonable basis exposes the landlord to up to three times the amount withheld plus attorney's fees. That is the remedy Md. Code, Real Prop. § 8-203 gives a Maryland tenant whose landlord misses the 45 days return deadline or never sends the itemized list of deductions.

The deadline the penalty depends on

• Return deadline: 45 days after termination of the tenancy.
• Itemized deductions: required in writing. A written list of damages with the actual cost of each, sent by first-class mail within 45 days.
• Forwarding address: not a statutory condition of getting the deposit back.
• Penalty for wrongful withholding: Withholding without a reasonable basis exposes the landlord to up to three times the amount withheld plus attorney's fees.
• Deposit cap: One month's rent (effective October 1, 2024).
• Interest: Simple interest at 1.5% per year or the U.S. Treasury yield curve rate, whichever is greater, on deposits over $50 held six months or longer.
• Small claims limit: $5,000.
• Statute: Md. Code, Real Prop. § 8-203.

What you have to be able to prove

• The tenancy ended and you gave back possession, with the date.
• Where the landlord could have sent the money. A forwarding address in writing removes the argument.
• No refund and no itemized statement arrived within the deadline, or the statement listed deductions the landlord cannot support.
• The amount of the deposit and any part that was returned.

How to claim it

A penalty is not automatic; the tenant has to ask for it, usually in small claims court (limit $5,000 in Maryland). The first step is a dated written demand that cites Md. Code, Real Prop. § 8-203, counts the days from termination of the tenancy, and names the penalty. Landlords who understand what a court can award often pay at that point.

Frequently Asked Questions

Q: Does the Maryland penalty apply if the landlord is only a few days late?
A: Md. Code, Real Prop. § 8-203 sets a deadline of 45 days; the statute does not carve out a grace period. Whether a court awards the full penalty for a short delay depends on the facts, which is why the dated demand letter matters: it fixes the day the landlord knew.

Q: Do I have to give my landlord a forwarding address in Maryland?
A: Md. Code, Real Prop. § 8-203 does not make a forwarding address a condition of getting the deposit back, but the landlord still has to know where to send it. Give one in writing anyway so a late return cannot be blamed on you.

Q: Can I sue my landlord in small claims court for my Maryland deposit?
A: Yes. Maryland small claims court hears claims up to $5,000, which covers most deposits plus the statutory penalty. A dated written demand that cites Md. Code, Real Prop. § 8-203 is the usual first exhibit.

Sources Checked

• Md. Code, Real Prop. § 8-203 (the Maryland statute cited above)
• LeaseLenses Maryland deposit and notice data set, last reviewed 2026-09-19; the same data powers the Maryland document tools
• Maryland landlord-tenant overview and the Maryland deposit rules page

This page is general legal information for Maryland, not legal advice. Statutes change; read the current text before relying on a deadline in court.