HIGH RISK

Maine

Security deposit laws

Maine security deposit laws are detailed under the Maine Revised Statutes, Title 14, Chapter 710-A, §6031-6038. These laws provide clear guidelines on how landlords must handle security deposits, ensuring both landlords and tenants are aware of their rights and responsibilities under Maine law. Please note that rules and regulations may vary by municipality.

Collecting & Holding

Security Deposit Amount

Landlords in Maine cannot charge a security deposit that exceeds the equivalent of two months' rent. This is the maximum amount regardless of the length of the lease or tenancy.

Options for Holding

Landlords are required to hold the security deposit in a separate, segregated account. The deposit must be kept in an account that is not commingled with the landlord’s personal funds. There are no specific requirements for the type of account, other than that it must be used solely for holding tenant deposits.

Notification Requirements

Upon request, a tenant has the right to be notified of the location where their deposit is being held. If the tenant requests this information in writing, the landlord must provide the details of the account and its location within 30 days of the tenant’s request.

Payment of Interest Earned

Maine law does not require landlords to pay interest on security deposits unless otherwise specified in the rental agreement. If an agreement specifies that interest is to be paid, the landlord must comply with the terms of that contract.

Returning

Timeline for Returning

Landlords in Maine are required to return the tenant’s security deposit, along with an itemized list of any deductions, within 30 days after the end of the tenancy.

In the case of tenancy at will, the landlord must return the deposit within 21 days after the termination of the tenancy.

Claims Process

Landlords must provide the tenant with an itemized list of deductions if they are retaining any portion of the security deposit. This list must be sent to the tenant within the same 30-day period for returning the deposit. If the landlord fails to provide this list, they forfeit their right to withhold any part of the deposit.

If the tenant disputes the deductions, they must give written notice to the landlord within 7 days of an intention to bring suit, after which time they may file an action in small claims court.

Permissible Deductions

Maine landlords may deduct from the security deposit only for:

  • Unpaid rent
  • Damage to the property beyond normal wear and tear
  • Unpaid utility charges (if the tenant was responsible for utilities)
  • Any other breaches of the rental agreement that result in financial loss

Normal wear and tear cannot be deducted from the security deposit.

Penalties

Returning the deposit: If a landlord wrongfully withholds any part of the security deposit or fails to return it within the required 30-day period, the tenant may be entitled to recover up to twice the amount of the wrongfully withheld deposit, as well as attorney’s fees if the matter goes to court.

Treatment of the Deposit: Upon a finding by a court that the landlord mishandled the treatment of the security deposit, the tenant is entitled to recover from the landlord actual damages, $500 or the equivalent of one month's rent, whichever is greatest, together with the aggregate amount of costs and expenses reasonably incurred in connection with the action. The court may also award to the tenant reasonable attorney's fees.

Special Circumstances

Owner-occupied buildings of 5 or fewer units: landlords are exempt from following the regulations outlined in Chapter 710-A if they occupy the building and it contains 5 or fewer units (see §6037. Exemptions)

DISCLAIMER: Security deposit laws may vary by county or municipality. The information provided by Build Whale, Inc. is for
general informational purposes only and should not be construed as legal advice. It is not a substitute for consultation with a
qualified attorney. While we strive to provide accurate and up-to-date information, Build Whale, Inc. makes no guarantees or
warranties regarding the accuracy, completeness, or reliability of the information presented.

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