City of Takoma Park: Department of Housing and Community Development SECURITY DEPOSITS AND MOVING OUT Most landlords require security deposits. A security deposit is paid at the beginning of a tenancy and is a sort of "insurance" to the landlord covering possible damage to an apartment, unpaid rent and/or utilities. By law, a security deposit can be no greater than two months rent. It can not be used for the last month's rent payment unless the landlord agrees to this arrangement. The following is a summary of Section 8-203 of the Real Property Article of the Annotated Code of Maryland which governs how security deposits should be handled by landlords in the state of Maryland. How to Protect Your Security Deposit When a tenant first moves into an apartment, he/she has a right to obtain from the landlord within 15 days of occupancy, a list of current existing damages to the apartment, if this request is put in writing. This measure can often prevent problems at the end of a tenancy because the damages have been documented right from the start. If there are damages omitted from the list that the landlord provides, the tenant should immediately write to the landlord, indicating any additional items not on the list. Failure of the landlord to provide a written list of damages to the tenant may render the landlord liable to the tenant for threefold the amount of the security deposit. A tenant should immediately report in writing any malfunctioning or disrepair to the landlord so that it is corrected as soon as possible. If a disrepair occurs because of negligence, then the tenant might be held responsible for the damage. Only damage beyond normal wear and tear can be assessed against a security deposit. Reporting a problem early can often prevent problems at the end of a tenancy. Steps to Follow When Vacating Takoma Park requires that a tenant give a one-month written notice to the landlord prior to the rent due date, when vacating an apartment. If the rent is due on the 1st of each month, then the notice must be in the landlord's possession by the last day of the previous month. (example: If vacating April 31st, notice has to be received by landlord no later than March 31st) If a tenant gives notice to vacate a rental unit by the end of the month, the last day of occupancy should be prior to the first of the subsequent month. A tenant who stays in an apartment or even retains the key to an apartment after the last day of the month risks being a "holdover tenant" and being responsible for the full rent for the following month. It a tenant needs to stay past the end of the month, permission must be granted by the landlord and it is recommended that this permission be obtained in writing. An agreement (in writing) should be reached regarding the rent that will be owed for any addition days stayed after the end of the month. If the landlord has not given the tenants a list of the items that need to be addressed upon moving out, the tenant association may request that he draw up such a document. This notice should make clear what the landlord will charge for particular items, when a tenant vacates an apartment. For instance, some landlords will charge a tenant for disposal of large items that are left by the dumpster when the move out occurs. This can add up to a substantial amount of money. Additionally, any rooms left unclean or any items left in an apartment may result in an additional charge against the security deposit. Make sure that when moving furniture out, is not dragged across the floor causing scratches. ALWAYS, ALWAYS take pictures of the apartment after the items are taken out and the rooms are clean. (Inside of refrigerator and stove included) These pictures will support a claim of the condition of the unit. A tenant has the right to be present at an inspection of the premises at the end of the tenancy if the tenant makes this request by certified mail at least 15 days prior to the date of moving and gives a forwarding address, if known. It is usually best just to include this request in the notice to vacate given at the end of the previous month as long as this notice is sent certified mail. The landlord is required to notify you of the inspection date and time, which may take place within five days before or five days after the date of moving. A security deposit must be kept in an interest bearing account. The tenant is entitled to the return of the deposit plus interest at the end of the tenancy, less any damages beyond normal wear and tear. The current interest rate as determined by the State of Maryland is currently 4%. In order to claim damages from the security deposit, a landlord must write to the tenant within 30 days after the tenant has vacated, itemizing the damages and the cost actually incurred. This letter should be sent to the forwarding address left by the tenant or to the last known address. The deposit and interest, minus any damages, should be returned to the tenant within 45 days from the date the tenant vacated. If the landlord fails to notify the tenant within 30 days of any damages, then the landlord loses the right to withhold any part of the security deposit. A tenant may file an action of up to threefold the withheld part of the security deposit if the landlord, without reasonable cause, fails to return that part of the deposit. An action may be filed with the Commission on Landlord Tenant Affairs in Takoma Park or in the small claims court in the county where the rental property is located. Please contact the Office on Landlord-Tenant Affairs at 270-5900 if you have questions regarding this law.