Maine security deposit law

A lease or tenancy at will may not require a security deposit of more than two months' rent. A security deposit is any advance of money, whatever it is called, whose main purpose is to secure the tenant's performance of the rental agreement.

14 M.R.S. § 6032 14 M.R.S. § 6031(2)

• When a tenancy starts you may not require more than the first full month's rent, the security deposit and any mandatory recurring fee properly disclosed on a signed total price disclosure. 14 M.R.S. § 6022-A(1) See Required disclosures on the Maine page
• You may offer a tenant the option of buying a surety bond in place of some or all of the deposit, but you may not require one. The bond and any deposit together may not exceed two months' rent. 14 M.R.S. § 6039(1) 14 M.R.S. § 6039(3)
• If the tenant pays any part of the deposit in cash, give a receipt at the time showing the date, amount, the party it is paid for, the period, that it is for the security deposit, and the signature and printed name of the person receiving it; a rent card with that information also works. 14 M.R.S. § 6022(1), (2)
• The deposit chapter does not apply to a unit in a building of five or fewer units where you live in one of them, and the cash receipt rule has the same exemption. 14 M.R.S. § 6037(2) 14 M.R.S. § 6022(3)

Return the full deposit, or a written statement itemizing the reasons for keeping any part together with the balance, within the time the written lease states (never more than 30 days). For a tenancy at will, the deadline is 21 days after the tenancy ends or the home is surrendered and accepted, whichever is later. Mailing the statement and payment to the tenant's last known address complies.

14 M.R.S. § 6033(2)

• You may not keep any part of the deposit for normal wear and tear. You may keep amounts for actual causes such as unpaid rent, utility charges the tenant owed you directly, and the cost of storing and disposing of unclaimed property. 14 M.R.S. § 6033(1), (2) 14 M.R.S. § 6031(1)
• If you miss the deadline for the statement or the refund, you forfeit the right to keep any part of the deposit. 14 M.R.S. § 6033(3)
• Before suing, the tenant must give you at least 7 days' notice. If you still do not return the deposit, wrongful retention is presumed, you carry the burden of proof, and you can owe double the amount wrongfully kept plus reasonable attorney's fees and court costs. 14 M.R.S. § 6034
• When you sell or otherwise give up the property, either transfer each deposit to the new owner with an accounting and mail each tenant notice of the transfer, the new owner's name and address and a copy of the accounting, or return the deposits; on a sale this is done no later than the closing. 14 M.R.S. § 6035(1)
• A lease term that waives any of these deposit protections is void. 14 M.R.S. § 6036

Keep deposits in an account at a bank or other financial institution, never mixed with your own assets, under terms that put them beyond the reach of your creditors (including a foreclosing lender or bankruptcy trustee) and allow transfer to a new owner or the tenant. On request, tell the tenant the name of the institution and the account number. Maine's deposit chapter, read in full, does not require you to pay interest on a deposit.

14 M.R.S. § 6038(1)

• One escrow account may hold the deposits of all your tenants. 14 M.R.S. § 6038(1)
• If a court finds a violation, the tenant recovers actual damages, $500 or one month's rent, whichever is greatest, plus reasonable costs, and the court may award attorney's fees. 14 M.R.S. § 6038(2)
• After a transfer of the property, the new owner takes on the duty to hold and return the deposits it received. 14 M.R.S. § 6038(1) 14 M.R.S. § 6035(2)

Maine's landlord-tenant chapters, read in full, do not require a move-in checklist or condition report. A dated written record still helps you separate normal wear and tear from damage when you itemize deposit deductions.

14 M.R.S. ch. 709 14 M.R.S. ch. 710 14 M.R.S. ch. 710-A

• Normal wear and tear is deterioration from intended use without negligence, carelessness, accident or abuse. It does not include the cost of removing trash or other things the tenant abandoned. 14 M.R.S. § 6031(1)