Security deposits in Maine are regulated by Maine Revised Statutes, Title 14, Chapter 710-A, § 6031 - § 6039. However, Chapter 710-A does not apply to any dwelling units that are a part of a building containing 5 or fewer rental units, where one of the units is occupied by the landlord. Additionally, certain municipalities may have local laws that supplement state regulations. To ensure full compliance, verify the regulations applicable in your area.

Maximum Security Deposit

Security deposits (whether collected using cash, a surety bond, or a combination of the two) are limited to two months’ rent. 

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Holding & Interest Requirements

Holding Requirements: The security deposit must be held in a bank or other financial institution that places the security deposit beyond the claim of the landlord/property manager’s creditors. Security deposits cannot be commingled with the landlord/property manager’s other funds.

Interest on Deposits: Maine state law does not currently require landlords/property managers to pay tenants interest on security deposits.

Information Provided to Tenant: Upon the tenant’s request, the landlord/property manager must disclose the account number and the name of the financial institution where the security deposit is held.

Deposit Refunds

Timeline: Within 30 days of the tenant’s vacancy, the landlord/property manager must either (1) return the full security deposit to the tenant or (2) provide the tenant with a written statement of deductions to the security deposit, along with the portion of the security deposit remaining after lawful deductions. The landlord/property manager is deemed to have complied with Maine state law by mailing the security deposit and written statement of deductions, if any, to the tenant’s last known address. 

Permissible Deductions: Landlords/property managers may deduct the following from a security deposit:

• Costs of storing and disposing of unclaimed property
• Unpaid rent
• Unpaid utility charges that the tenant was required to pay under the lease
• Damages beyond normal wear and tear, including cleaning costs to restore the unit to its condition at the start of the tenancy.

Documentation of Deductions: The written statement of deductions delivered to the tenant must identify the specific reasons for retaining the security deposit.

Penalties for Violations: Failure to return the security deposit or provide a written statement of deductions as required may result in the landlord/property manager forfeiting the security deposit or, if the security deposit is wrongfully retained (i.e. failure to return after receiving notice of the tenant’s intention to file a lawsuit), being liable for up to 2x the amount withheld, plus reasonable attorney’s fees and court costs if the tenant wins in a lawsuit. In addition, if the landlord/property manager does not comply with the security deposit holding requirements, they could be liable to the tenant for the greater of $500 or one month’s rent, and reasonable attorney’s fees and court costs.

Sale of the Rental Property

If the property is sold, the landlord/property manager may provide the new owner with an accounting of the security deposit, transfer the deposit to the new owner less any lawful deductions, and provide the tenant with (1) notice of the transfer, (2) notice of the new owner’s name and address, and (3) a copy of the accounting of the deposit transferred. Alternatively, the landlord/property manager may return the deposit directly to the tenant after making any lawful deductions.

Security Deposit Alternative Requirements

Surety Bond: Landlords/property managers may, in their discretion, offer tenants the option to purchase a surety bond in lieu of providing some or all of the security deposit. However, landlords/property managers may not require tenants to purchase a surety bond, nor are they required to consent to their tenants purchasing a surety bond as an alternative to paying a security deposit.