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Gildo Santiago
Disputes between residential landlords and tenants are one of our office's most high-volume subjects. Our goal is to foster positive communications and understanding between both parties that leads to a smooth rental experience.
The Office of the Attorney General's Consumer Protection Division has created this page to help renters and residential property owners understand their respective rights and obligations, as well as the remedies that are available under Maryland law. It covers a broad range of issues, such as applications, leases, security deposits, rent escrow, lead-based paint hazards, eviction, and where to seek help if problems arise.
Q. Karen paid a $25 application fee to apply for an apartment. The next day, she found another apartment she liked better. She asked the first landlord if he would refund her application fee, but he said the fee was nonrefundable. Did the landlord have the right to keep the fee?
Landlords use application fees to cover the costs of processing an application, such as running a credit check. A landlord is entitled to keep an application fee of $25 or less. If the fee is more than $25, the landlord must refund any amount that was not used to process your application. The excess amount must be returned to you within 15 days after you've moved in or after you or the landlord has given written notification that the rental won't take place.
If the landlord withholds more than $25 of an application fee, you should ask the landlord to provide a written explanation of exactly what expenses were incurred, and what the cost of each item was. If you are not satisfied with the explanation, you may want to pursue the matter further.
If, when filling out an application, a landlord asks for money to hold an apartment, it may not be clear that you are being asked for a security deposit. It's not wise to pay a security deposit until your application has been accepted and you are signing a lease. Before you pay any money, you should confirm with the landlord whether it will be refunded if you decide not to rent or if the landlord decides not to rent to you. Ask the landlord to write that information on a receipt. This could save you from having to fight to get the money refunded later.
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Q. Steve made an oral agreement with a landlord that he would rent an apartment on a month-to-month basis for $600 a month, that he would pay the utilities, and move in on the 15th of the following month. Is this a legal contract?
A landlord is required to use a written lease if the tenancy is going to be for a year or longer, or if the landlord owns five or more rental units in the state. Otherwise, the landlord and tenant may orally agree on what the rent and other terms of the rental will be. If you enter into an oral contract, it's very important that you know your and your landlord's legal rights and responsibilities. You should also have a clear understanding with your landlord about all terms in the agreement. However, it would be to your advantage to clarify things by having a written lease. Many landlords use a standard lease for all their tenants. However, you may want to negotiate your own terms with the landlord. Additional terms can be written on the agreement, and terms that are unacceptable to you can be crossed out. Of course, the landlord has to agree to these terms as well. Be sure that all changes are dated and initialed by both you and the landlord.
State law requires that a landlord who offers five or more dwelling units for rent in Maryland must include in each lease a statement that the premises will be available in a reasonably safe, habitable condition; or, if that is not the agreement, a statement concerning the condition of the premises. The lease must also specify the landlord's and the tenant's obligations as to heat, gas, electricity, water, and repair of the premises.
If you request it in writing, a landlord must give you a copy of a lease before you decide whether to rent. It must include all agreed upon terms, but it does not have to state your name and address, the date you are moving in, or identification and rental rate of your unit.
It's a very good idea to get a copy of the lease to read in advance. Before you sign a lease, you should be aware of all the terms it includes, including when rent is due, late fees, procedures for giving notice at the end of the lease, automatic renewal provisions, and return of the security deposit. You should also read and make sure you can live with the rules regarding pets, parking, storage areas, noise, carpeting requirements, trash, maximum number of occupants, and move-out procedures.
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A landlord is required to give a tenant a receipt for a rent payment upon request or one that is paid in cash. (In Anne Arundel County, a landlord is required to give a receipt unless the payment is made by check or unless the tenant rents the property for commercial or business purposes.)
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A security deposit is any money a tenant pays to a landlord that protects the landlord against damage to the rented property, failure to pay rent, or expenses incurred due to a breach of the lease.
The receipt or lease should state your right to receive from the landlord a written list of all existing damages in the rental property, if you make a written request for it within 15 days of taking occupancy. If a list of the existing damages is not provided, the landlord may be liable for three times the security deposit, less any damages or unpaid rent.
The landlord must put the security deposit in an escrow account. When returning security deposits of $50 or more, the landlord must include simple interest of 3 percent per year, accrued at monthly intervals from the date the security deposit was paid for all tenancies that were initiated prior to January 1, 2015. For tenancies that began on or after January 1, 2015, the interest rate is payable at 1.5 percent a year OR the simple interest rate accrued at the daily U.S. Treasury yield curve rate for one year, as of the first business day of each year, whichever is greater. The Maryland Department of Housing and Community Development has a Rental Security Deposit Calculator on its website at to help you calculate this interest rate. A landlord must pay 4 percent on deposits held before October 1, 2004.
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Q. Daniel broke his lease when he bought a house. The landlord was able to rent to a new tenant three days after Daniel moved out. However, he said he was keeping Daniel's security deposit because he had broken the lease. Was the landlord entitled to keep the money?
A. Not the entire amount. A landlord may only withhold from the security deposit an amount equal to actual damages suffered. The landlord didn't incur any expenses in re-renting, and there was no damage to the apartment, so his only loss was the three days of lost rent.
Q. Tiffany lived in an apartment for five years. When she moved out, the landlord kept her security deposit to repaint the apartment and replace the living room carpet. Was the landlord entitled to keep the money?
A. Unless Tiffany damaged the carpet or the walls beyond ordinary wear, the landlord could not keep any money from the security deposit. A landlord may not keep a tenant's security deposit to pay for touch-ups and replacements needed due to normal wear and tear.
Security deposit disputes often involve misunderstandings about when the landlord is entitled to keep the security deposit, and disagreements about whether the tenant caused damage to the rental unit. The landlord must return a tenant's security deposit plus interest, less any damages rightfully withheld, within 45 days after the tenancy ends. If the landlord fails to do this without a good reason, you may sue for up to three times the withheld amount, plus reasonable attorney's fees.
If the landlord withholds any part of your security deposit, they must send you a written list of damages, with a statement of what it cost to repair the damages, by first-class mail to your last known address within 45 days after you move out. If the landlord fails to do this, they lose the right to withhold any part of the security deposit.
You have the right to be present when the landlord inspects your rental unit for damages at the end of your lease, if you notify the landlord by certified mail at least 15 days prior to moving of your intention to move, the date of moving, and your new address. The landlord must then notify you by certified mail of the time and date of the inspection. The inspection must be within five days before or five days after your move-out date. The landlord must disclose these rights to you in writing when you pay the security deposit. If not, the landlord forfeits the right to withhold any part of the security deposit for damages.
Your rights and duties are different if you have been evicted for breach of the lease, or have left the rented property before the lease expired. Under these circumstances, you should send a written notice to the landlord by first-class mail within 45 days of being evicted or leaving the property. This notice must advise the landlord of your new address and request the return of your deposit. Once the landlord receives the written request, they must take certain steps.
The landlord must send a list of damages to the rental unit and costs incurred to repair them to you by first-class mail within 45 days. If the landlord fails to send you a list of damages, they forfeit the right to withhold the security deposit.
Q. Richard paid a $200 premium for a surety bond when he moved into his apartment. After he moved out, the landlord performed an inspection of his unit and sent a letter stating that Richard owed $150 for damage done to the bathroom and requested payment for the damages. Is Richard still responsible for paying these damages even though he paid for a surety bond?
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