BALTIMORE — A renter wants her security deposit back, plus interest. She looked up the law and learned that she may be entitled to more money than she put down.
Security deposits accrue interest depending on the year you moved in. Dorene Mack lived in her apartment for 27 years.
According to Maryland regulations, her interest rate would've been 4 percent, but when she moved out, Mack said she received less than her initial deposit.
“I read up on a lot of things and I know the security deposit draws interest. They didn't give me any interest. They didn't even give me what I paid when I moved in,” said Mack.
Maryland law requires landlords to refund security deposits of $50 or more to the tenant, plus 1.5 percent simple interest, no more than 45 days after the move out date, unless the landlord is entitled to keep part or all of the deposit amount. Prior to January 1, 2015, security deposits accrue 3 percent simple interest per year. And deposits received before October 1, 2004, accrue simple interest at 4 percent annually.
Mack recalls putting down $350 back in 1995. A simple interest calculator shows her deposit would have grown to over $720 when she moved out.
“What a disappointment when I opened that check and I'm like, wow, $180. I believe $184,” said Mack.
Mack received a check for $188, and she says she left the apartment immaculate.
“The landlord is required to send you your money or to explain to you in writing within 45 days why you are either not getting money back, or why they're withholding apart,” said Tim Chance, a tangled title attorney with the Maryland Volunteer Lawyers Service (MVLS).
MVLS provides pro bono legal representation to Marylanders with limited income in civil legal matters.
“What you do is you can initiate a small claims action in District Court seeking up to treble damages. So treble damages is three times the amount,” said Chance.
Tenants can do this on their own or with the assistance of an attorney.
In addition to an itemized list of damages within 45 days, Chance said damages must go beyond normal wear and tear.
The security deposit may not be more than two months rent. If you are overcharged, you have the right to recover up to three times the extra amount charged, plus reasonable attorney’s fees. Security deposits also need to be kept in a separate FDIC-insured account.
The landlord must provide a receipt for the security deposit. The receipt can be included in the written lease. There is a $25 penalty if the landlord fails to provide a receipt. And 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, according to the Maryland Office of the Attorney General.
Chance believes there’s opportunity for renters to recover their money if more people are aware of the laws.
“It is is an imbalanced system. A lot of power’s in the landlord's court right now, but the system needs to do more to educate tenants,” added Chance.
Mack plans to keep fighting for her money. WMAR-2 News Mallory Sofastaii contacted the property management company numerous times but never received a response. The company has since contacted Mack, but she's waiting to find out whether she'll receive more of her deposit.
Chance also recommends scheduling a walkthrough with your landlord before the lease ends, so there are no surprises.
Notice must be sent to the landlord at least 15 days before the date of moving. If the landlord doesn’t agree or doesn’t notify the renter of inspection date, then they forfeit their right to keep any part of the security deposit.
To calculate the interest accruing on your security deposit, click here.
The Maryland Office of the Attorney General also has a booklet on tenants’ rights and how to avoid disputes with your landlord. Click here for more information.
