Maryland Tenant Screening Laws: What Landlords Can and Cannot Do
Maryland caps the application fee at twenty-five dollars, limits deposits to two months, and protects source of income. Here is how to screen legally in 2026.
Tenant screening in Maryland is closely regulated. Real Property law caps the application fee, limits the deposit, and the state’s fair housing law protects source of income and marital status, all on top of the federal Fair Credit Reporting Act that governs every screening report.
This guide walks through the fee cap, the deposit limit, source-of-income protection, and adverse action. If you are new to the mechanics, our overview of how to screen tenants step by step pairs well with the Maryland-specific rules below.
Video: a plain-language walkthrough of Maryland tenant screening, application fees, deposits, and adverse action.
Key Takeaways: Maryland Tenant Screening Laws
- Application fees are capped. Under Real Property 8-213 a landlord may charge no more than twenty-five dollars, and must return any excess not used for actual costs within fifteen days.
- Deposits are limited to two months’ rent and must be returned within forty-five days with an itemized statement.
- Bad-faith retention is costly. A landlord who withholds without good cause can owe up to three times the wrongfully withheld amount plus attorney’s fees.
- Source of income is protected statewide, along with marital status, so a voucher generally cannot be the reason for rejection.
What Maryland Law Lets You Screen
Maryland landlords may screen credit, rental and payment history, income, and criminal background with written authorization, and may decline applicants who fail objective written standards. Maryland law sets the cost and deposit rules around that screening, not the right to do it.
Apply your standards identically to every applicant, since Maryland protects source of income and marital status. Our guide to the minimum credit score for renting explains how to set a threshold that screens for risk without screening out a protected class.
The Twenty-Five-Dollar Application-Fee Cap
Maryland caps what you can charge to apply. Under Real Property 8-213, a landlord may charge an application fee of no more than twenty-five dollars. If you charge more than that, you must return any portion not actually spent on legitimate screening expenses, such as a credit check, within fifteen days after the tenant moves in or decides not to rent.
The cap is statewide. Charging a flat, higher application fee and keeping the difference, common in permissive states, is not lawful in Maryland.
Refund the unused fee
If you collect more than twenty-five dollars, Maryland requires you to refund whatever you did not actually spend on screening within fifteen days. Keep the receipts that justify the charge.
Security Deposits: Two Months and a Bad-Faith Penalty
Maryland limits the security deposit to two months’ rent. After the tenancy ends, the landlord must return the deposit with an itemized statement of deductions within forty-five days.
The penalty for getting it wrong is significant: a landlord who withholds a deposit in bad faith can be liable for up to three times the wrongfully withheld amount plus reasonable attorney’s fees. Our deeper look at Maryland security deposit laws covers permitted deductions, required interest, and the itemization rules.
Source of Income Is a Protected Class
Maryland protects source of income statewide, along with marital status. A landlord generally cannot refuse to rent to, or refuse to consider, an applicant simply because their rent would be paid in whole or part with a Housing Choice Voucher or other lawful assistance.
You may still apply the same income, credit, and rental-history standards to a voucher holder that you apply to everyone else – the protected trait is the income source, not the screening criteria. For the full list of protections, see our Fair Housing Act guide for landlords.
Criminal History, Credit, and Eviction Records
A criminal record can be a lawful basis to decline in Maryland, but a blanket no-record policy is the most common fair housing trap. HUD’s 2016 guidance treats criminal-records screening under a disparate-impact lens, so a flat ban can violate the federal Fair Housing Act even without intent. Use an individualized assessment tied to the offense, how recent it is, and safety.
Credit history and prior evictions are cleaner when your standard is objective and consistently applied. You can read how eviction filings arise on our Maryland eviction notice laws page. Decide your criteria in advance and apply them the same way every time.
The FCRA: Consent and Adverse Action
On top of Maryland’s rules, the federal Fair Credit Reporting Act governs every screening report. You need a permissible purpose and written authorization before ordering the report, and you must send an adverse action notice if the report drives a denial, a higher deposit, or a co-signer demand.
The notice must name the reporting agency, state that it did not make the decision, and explain the applicant’s right to a free copy and to dispute it. Our FCRA compliance guide and the companion walkthrough of the adverse action notice spell out the requirements.
Fair Housing Compliance for Maryland Landlords
Maryland’s fair housing law adds source of income and marital status to the federal classes, raising the stakes: uniform criteria, uniform application, and documentation showing you treated every applicant by the same yardstick, voucher holders included.
Publish your criteria before you advertise, screen every applicant against the identical standard, and keep the file. A consistent record is your strongest answer to any complaint.
A Compliant Maryland Screening Process
Turn the rules into one repeatable sequence. First, publish objective criteria. Second, keep the application fee within the twenty-five-dollar cap and refund any unused excess. Third, get written consent and order the report. Fourth, evaluate every applicant against the identical standard, including voucher holders. Fifth, if you decline based on a report, send the adverse action notice promptly.
Income verification still matters; our guide to verifying tenant income shows how to confirm ability to pay without singling anyone out. Run the same steps for every applicant and your file will tell a clean, consistent story.
Common Mistakes That Create Liability
The recurring Maryland errors are charging an application fee above the cap or failing to refund the unused excess, over-collecting on the two-month deposit, missing the forty-five-day return, and rejecting voucher income. Withholding a deposit in bad faith can trigger the treble-damages penalty, and denying an applicant on a report without the FCRA notice rounds out the list.
One standard, every applicant. Maryland caps the fee, limits the deposit, and protects source of income. Build the twenty-five-dollar cap, the refund rule, the two-month limit, and source-of-income compliance into your standard workflow.
Screening Voucher Holders in Maryland
Because Maryland protects source of income, screening a voucher holder deserves its own routine. Count the voucher toward the applicant’s ability to pay, and apply any income-to-rent ratio to the portion of the rent the tenant actually pays rather than the full contract rent, since the subsidy covers the rest. Imposing a higher income multiple on a voucher holder than on a market-rate applicant is precisely the kind of rule that becomes a source-of-income violation.
You may still verify identity, run credit and criminal screening on the same terms as everyone else, and confirm rental history. The protection is narrow and specific: it bars treating the source of the money as a disqualifier, not the legitimate, evenly applied criteria you use for every applicant. Document that a voucher holder was screened against the identical standard, and the file defends itself if the decision is ever questioned.
Documentation and Recordkeeping in Maryland
Maryland’s specific caps mean your records either prove compliance or expose the gap. For every applicant, keep the signed authorization, a dated copy of the written criteria, the screening results, the receipts showing how any fee above twenty-five dollars was actually spent, the refund of any unused portion, and every adverse action notice.
On the deposit, retain the itemized statement delivered within forty-five days, the required interest calculation, the move-out inspection records, dated photographs, and repair invoices. Because bad-faith withholding carries treble damages, the file should document the basis for every deduction.
Set one retention policy and apply it to every applicant, approved or denied. A consistent multi-year record of authorizations, criteria, screening results, fee receipts and refunds, adverse action notices, and deposit accountings is what answers a fair housing inquiry or a deposit suit. The record of identical treatment is as important as any single decision in it.
Do
- ✓Publish your written screening criteria before you advertise, and apply them to every applicant.
- ✓Get written authorization before pulling any report, and keep the signed consent on file.
- ✓Send an FCRA adverse action notice on every denial that rests on a consumer report.
- ✓Assess any criminal record case by case, weighing the offense, how recent it is, and safety.
- ✓Handle the security deposit and its return exactly as the state statute requires, and document it.
Avoid
- ✕Charge uneven application fees, or collect a fee with no genuine screening behind it.
- ✕Treat a permissive state as a lawless one – the FCRA and federal fair housing law always apply.
- ✕Apply a blanket ban on any criminal record, which risks a disparate-impact violation.
- ✕Improvise your standards applicant by applicant instead of following one written rubric.
- ✕Skip the deposit paperwork the statute requires, from itemization to any required notices.
Maryland Tenant Screening Laws: FAQ
Can a Maryland landlord run a background check on an applicant?
Yes. With written authorization you may obtain a consumer report covering credit, rental history, income, and criminal convictions. The federal Fair Credit Reporting Act requires a permissible purpose and consent before any screening report is pulled.
How much can a Maryland landlord charge for an application fee?
No more than twenty-five dollars under Real Property 8-213. If you charge more, you must refund any portion not actually spent on legitimate screening expenses within fifteen days after the tenant moves in or decides not to rent.
What is the maximum security deposit in Maryland?
Two months’ rent. The landlord must return the deposit with an itemized statement of deductions within forty-five days, and bad-faith withholding can expose the landlord to up to three times the wrongfully withheld amount plus attorney’s fees.
Is source of income a protected class in Maryland?
Yes. Maryland protects source of income statewide, along with marital status, so a landlord generally cannot reject an applicant solely because rent would be paid with a voucher or other lawful assistance.
Can a Maryland landlord deny an applicant for a criminal record?
A conviction can be a lawful reason to decline, but blanket bans are risky. HUD’s 2016 guidance warns that a flat no-record policy can create a disparate-impact violation, so use an individualized assessment tied to the offense, how recent it is, and safety.
Does a Maryland landlord have to refund part of the application fee?
Yes, if the fee exceeded twenty-five dollars. The landlord must return any portion not actually used for legitimate screening expenses within fifteen days after the tenant moves in or decides not to rent.
Does a Maryland landlord have to send an adverse action notice?
Yes. If a denial, a higher deposit, or a co-signer requirement rests in any part on a consumer report, the FCRA requires an adverse action notice naming the reporting agency and explaining the right to a free report and to dispute it.
Does Maryland law cap tenant screening costs?
Yes. Maryland caps the application fee at twenty-five dollars with a refund rule, limits the deposit to two months, and requires the forty-five-day itemized return with a treble-damages penalty for bad-faith withholding.
How long should a Maryland landlord keep tenant screening records?
Keep applications, signed authorizations, screening results, adverse action notices, and deposit accountings for every applicant – approved or denied – for several years. In Maryland, a consistent retention policy is the evidence that you treated every applicant by the same standard if a fair housing or deposit dispute later arises.
When must a Maryland landlord send the adverse action notice?
Send it promptly whenever a consumer report contributes to an adverse decision – a denial, a higher deposit, or a co-signer requirement. The FCRA notice must name the reporting agency, state that it did not make the decision, and tell the Maryland applicant how to get a free copy of the report and dispute any error.
Related Maryland and Screening Guides
- Tenant screening laws by state – compare Maryland to the rest of the country.
- Maryland security deposit laws – deductions, itemization, and the return deadline.
- Maryland eviction notice laws – notice periods and the eviction timeline.
- Maryland rent increase laws – notice rules for raising the rent.
- Maryland late fee laws – what you can charge for late rent.
- How a tenant background check works – what a report includes.
- Maryland habitability laws – your maintenance obligations as a landlord.
Screen Maryland Applicants the Compliant Way
Order FCRA-ready credit, criminal, and eviction reports and keep your Maryland process consistent from application to decision.
Published by Tenant Screening Background Check · Editorial Team
Established 2004. Our editorial team has spent two decades helping landlords and property managers run lawful, FCRA-compliant tenant screening across all 50 states. We translate state landlord-tenant codes and federal screening rules into processes you can actually follow.
Legal Disclaimer
This article is for general informational purposes only and is not legal advice. Maryland and federal laws change, and how they apply depends on your specific facts. Before acting on any screening, fee, deposit, or fair housing question, consult a licensed attorney in Maryland. Reading this page does not create an attorney-client relationship.
