Security Deposits: Maryland
Has Strict Laws, and Property Managers and Landlords Must Know Them!
The
last thing any property manager needs is to end up in a lawsuit over a security
deposit.
In Maryland, security deposits must be returned to tenants
within 45 days of vacating. Also, within 30 days, the landlord must send to the tenants at
their last known address a detailed statement itemizing anything that is being
charged to the tenants from their security deposit. The
more detail the better. A record of the condition of the property via a signed walkthrough
document at the beginning of the lease is very important to keep on record.
This can be compared to the condition of the property at lease end. Failure
of the landlord at lease end to actually inspect the property and to send a
notice to the tenants will forfeit the landlord’s right to withhold any portion
of the security deposit. This is true even if the tenants left the property
totally trashed.
It is also illegal for any landlord or property management
company to charge tenants more than twice the monthly rental rate for the
security deposit. If tenants are charged a security deposit that is more than
twice the rental rate, the landlord is liable to pay back to the tenants three times
the extra amount charged plus reasonable attorney's fees.
The property manager must deposit the funds in a designated
account reserved exclusively for security deposits and, according to Maryland
law, must pay the tenants interest at 4% per year regardless of the actual
interest earned.
Dan Stein is the president and founder of Silver River Real Estate, providing property management services in PG County, Anne Arundel and Montgomery counties since 2002.
Email:DStein@SilverRiverPM.com