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Posted on

October 25, 1998

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Dear Mr. Azrael:

You declared [in a antecedent column] that the aegis drop [for an apartment] charge be kept in a abstracted coffer annual for the addressee and alternate aural 30 canicule with a 4 percent absorption per year.

Are you commendation Maryland law?

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Most banks, including abundance (Columbia Bank), accede an annual abeyant if no new affairs action during the year, and alone accept an absorption bulk of 2.47 percent, acquiescent 2.50 percent.

Do you advance the aegis drop be placed into a 12-month affidavit of deposit? This would be the alone advance that would crop 4 percent. On whose tax acknowledgment would this affidavit of drop be appear on?

My addressee is affective from my abode [this month], afterwards a five-year stay. If the rental is in A-1 shape, how abundant absorption do I owe him on his drop of $650?

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Angela Walterhoefer

Ellicott City

Dear Ms. Walterhoefer:

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I accept accustomed absolutely a few questions afresh about aegis deposits. Here is a arbitrary of Maryland law, which applies to every charter for an accommodation or single-family home.

The buyer charge bear to the addressee a cancellation for a aegis deposit. The cancellation (which can be allotment of a accounting lease) charge state:

* The bulk of the aegis deposit. The bulk cannot beat the agnate of two months’ hire or $50, whichever is greater, per abode assemblage covered by the lease.

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* The buyer charge abode the aegis drop in a Maryland cyberbanking or accumulation academy aural 30 canicule of cancellation in an interest-bearing annual adherent alone to aegis deposits. The funds cannot be commingled with the owner’s added funds.

* Aural 45 canicule afterwards the end of the tenancy, the buyer charge acknowledgment the aegis drop to the addressee with simple absorption at the bulk of 4 percent per year. Absorption accrues alone on a aegis drop of $50 or more, and is accustomed at six-month intervals from the day the addressee gives the buyer the aegis deposit.

* The buyer can abstain from the drop and absorption the bulk of any contributed hire or added damages, including the tenant’s abortion to leave the bounds chargeless of bits and furniture, abortion to acknowledgment all keys to the premises, or for accident to the bounds acquired by tenant, his ancestors or guests in balance of accustomed abrasion and tear.

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* If the buyer is denial money from the aegis deposit, the owner, aural 30 canicule afterwards the abortion of the tenancy, charge accelerate the addressee a accounting account of amercement claimed, calm with a account of costs absolutely incurred. The account charge be beatific by capital mail directed to tenant’s aftermost accepted address.

Landlords generally assure themselves by sending this apprehension by certified mail, acknowledgment cancellation requested. In case the letter is alternate “unclaimed” or nondeliverable, the freeholder keeps the closed letter as affidavit it was sent.

If the addressee has been evicted by cloister order, or has alone the bounds afore the charter is up, the freeholder is not appropriate to accelerate a apprehension unless the addressee demands acknowledgment of the drop by sending the buyer a capital letter aural 45 canicule of actuality evicted or abandoning the premises. The buyer again has 30 canicule to mail the addressee a account of damages.

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* The addressee has a appropriate to be present back the bounds are inspected by the owner. The addressee charge acquaint the buyer in autograph at atomic 15 canicule above-mentioned to the date of moving. Upon cancellation of such notice, the buyer charge acquaint the addressee by certified mail of the date and time back the bounds will be inspected. The ysis date shall action aural bristles canicule afore or bristles canicule afterwards the date of affective as appointed in the apprehension from addressee to owner.

All these procedures are complicated for the “casual” landlord. But abortion to accede can be cher to the acreage owner. The law allows a addressee to balance up to three times the withheld amount, additional cloister costs and attorney’s fees, if the freeholder fails to acknowledgment a aegis drop as required. If the freeholder fails to accelerate the addressee a account of amercement aural 30 days, any appropriate to absorb the aegis drop is forfeited.

Pub Date: 10/25/98

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