Maryland Landlord-Tenant Law

Owning a rental property in Maryland can be a lucrative investment decision. Besides helping diversify your portfolio of leased property, you also set yourself up for earning a passive income for many years to come as long as you follow the Maryland landlord tenant laws in regard to your residential or commercial property.

However, maintaining a positive landlord tenant relationship is imperative to a good property ownership experience.

Laws in Maryland have their fair share of challenges, though, particularly Maryland housing law. This is especially true if you're just starting out managing residential rental properties.

When it comes to tenant and landlord affairs, both parties should both have a basic understanding of landlord tenant laws. A basic understanding of legislation will help all landlords get the most out of their investments, as non-adherence to laws will cost you.

What's more, knowing the law will also help your tenants get a better leasing experience and improve their landlord tenant relationship.

As you probably know, happy tenants mean happy landlords! Knowing these laws will help you avoid issues like dealing with rent escrow law, chasing them for payments if something goes wrong, or opening an escrow account.

In today's article, we'll take you through a basic overview of the landlord tenant laws for any of your rental properties, and what rights and responsibilities landlords and tenants have regarding their rental agreements.

Required Landlord Disclosures in Maryland

Maryland landlords are responsible for making three important disclosures before tenants sign the lease for residential rental properties in Maryland.

One, if their rental was built before 1978, landlords must disclose any lead-based hazards on the leased premises. Lead based paint hazards are typically disclosed by giving the tenant a copy of the Lead Poisoning Prevention Program.

Two, landlords must inform their tenant of their right to an in-person inspection before signing the lease agreement. There is one caveat, though: the tenant must request the inspection at least 5 days prior to their move-in date. Shared utilities must also be disclosed when applicable.

Three, landlords must disclose that they have a right to receive an itemized list of deductions after a move-out inspection. Four, landlords must provide identification of the landlord or agent. Landlords have to protect their rental premises and the landlord tenant relationship.

Maryland Tenant Rights & Responsibilities

Maryland tenants have certain basic rights. Maryland law adds five protections beyond the federal Fair Housing Act. A tenant's rights under federal and state legislation include:

• Remain in the residence until the owner has followed the proper eviction procedure to effectively end the tenancy.
• Live in a safe and habitable rental property, or else break the lease
• Be notified whenever the owner plans to make a change to the lease agreement.
• Get receipts for rent or a security deposit.
• End the tenancy early if the landlord breaks the agreements in the written rental agreement during occupancy.
• Enjoy the peace and quiet of their rental during their tenancy
• Refuse to make rent payments necessitated in the lease if the tenant's life or health is threatened in accordance with the Tenant Safety Act

By that same legislation, Maryland tenants have a duty to:

• Notify the property owner in writing when looking to break the lease.
• Adhere to all terms of the lease agreement, including making sure to pay rent on time.
• Maintain reasonable noise levels.
• Inform the owner or manager whenever there is a maintenance issue or repairs needed.
• If they need to break the rental agreement due to domestic violence, they have to give notice.
• Let the owner know when they will be away for an extended period of time.
• Take good care of the dwelling.

Maryland Landlord Rights & Responsibilities

Much in the same way tenants have rights, landlords do also have some rights according to state and federal housing legislation. Maryland landlords have a right to:

• Collect rent money and fees they're owed every payment period as per the rental agreement, while allowing a small grace period after the due date and making sure any late fee complies with Maryland law.
• Collect a rental application fee of no more than $25.
• Collect and hold a security deposit that costs no more than one month's rent.
• Be served a written notice by a tenant well before the tenant moves out.
• Be notified by a tenant seeking to make changes to the rental unit. For instance, repainting the unit.
• Get a notification from a tenant looking to go out of town for an extended period of time during the tenancy
• Be allowed to enter the premises to carry out important quality-of-life tasks such as maintenance.

Similarly, Maryland landlords are responsible for the following:

• Abide by all the terms of the agreement.
• Provide a rental unit in safe condition free of discrimination, that adheres to all local codes and other local laws.
• Maintain the covenant of quiet enjoyment if your leased premises are residential properties.
• Provide the tenant adequate notice when looking to enter their homes. While Maryland state law in doesn't define the exact written notice period, most landlords provide their tenants with 24 hours' notice.
• Make requested repairs within a reasonable time-frame once they have received the request as per the residential agreement terms.
• Follow the proper eviction proceedings when breaking a lease with an errant tenant, and keep any late fee to no more than 5%.

An Overview of Maryland Landlord-Tenant Law

1. Fair Housing Law

As a Maryland landlord, you have to treat all your tenants fairly and equally under the Fair Housing Act. According to the Fair Housing Act, housing discrimination is defined as refusing the rental application of a tenant based on any of the protected classes, including disability, national origin, familial status, color, religion, sex, and race.

2. Rent Increases & Related Fees

Local jurisdictions in Maryland are free to enact rent-control policies, even if you charge weekly. Currently, Takoma Park is the only locality that has created rent control legislation, though some local laws may also affect rules in certain jurisdictions.

Otherwise, you're free to list any amount you wish in the lease. Montgomery County also has additional rules on tenant applications, including limits on how criminal background checks are used. Not paying rent is a common basis for eviction because it breaks the rental agreement.

Unless prohibited by their rental agreement, landlords are free to make rent increases at any time for any reason if the contract allows for it. Maryland law requires you to notify tenants at least 90 days in advance. You can also charge late fees for late rent, but the fee cannot exceed 5% of the unpaid amount.

3. A Tenant's Security Deposit

The Maryland Department of Housing and Community Development has a pretty detailed security deposit law in place, with guidance from the relevant office.

It defines important things such as the maximum amount you can charge for security deposits (no more than one month's rent), when the security deposit should be returned, and allowable itemized deductions.

You must return security deposits within 45 days. If you fail to follow regulations when it comes to security deposits, you can face penalties, incur expenses like fines, or even go to small claims court.

You have to give proper notice of things like if you have a rent escrow account established, or provide tenants with details of where the deposit is kept. If required notice is not received through certified mail, tenants may have legal grounds to fight your deductions.

For a basic overview of the state's security deposit legislation, please read our guide. As the operator of a housing business, should know how to handle security deposits properly before interacting with tenants. A security deposit can also be used to cover unpaid rent at local district court.

4. Maryland Eviction Laws

When evicting a tenant, you must follow the proper eviction procedure hen going to district court. Renters can often find forms and guidance on the lease termination and eviction process through tenant and landlord affairs resources or a local office of landlord affairs.

Otherwise, you may risk getting the eviction delayed or even worse, get sued. These differ in the case of squatters, however, because adverse possession requires continuous, exclusive possession over a long period.

Common grounds for termination and eviction in Maryland include non-payment, agreement violations, and illegal activity:

• Unpaid rent.
• Actual damage to the residential property (including common areas) beyond wear and tear.
• Tenant fails to move out when the lease ends.
• Disturbing the peace of the neighborhood.
• Illegal use of the property.

5. Tenants Rights to Withhold Rent

For tenants to withhold payments or refuse to continue paying, the conditions must constitute a threat to their health or life, meaning far beyond normal wear and tear.

In practice, tenants should usually file a rent escrow action rather than simply stop paying when serious structural problems create those risks, and these remedies are key tenant protections under Maryland law; the Maryland Tenants Bill can also serve as a helpful renter resource when reviewing those options.

If you fail to provide a safe living space via necessary fixes, state legislation says that the tenant can withhold payment or break their lease. You must ensure that, even without paid rent, your rental unit has:

• Functioning locks.
• Properly maintained railings, stairways, and floors.
• Adequate garbage receptacles.
• Up-to-code heating, lighting, and electrical facilities.
• Up-to-code plumbing and water supply.
• Effectively weatherproofed windows, walls, and roof.

6. Landlord Entry

You may need to enter the premises for various reasons including:

• Responding to a Maryland court order or petition.
• Showing the rental to prospective tenants, buyers, or mortgagees.
• Making repairs that had been requested by a renter.
• Responding to an emergency.

While some other states do have entry laws, Maryland doesn't. That notwithstanding, most give their tenants 24 hours' notice prior to entering their homes.

7. Landlord Retaliation

Maryland state laws dictate that you cannot retaliate against your renter. Maryland law also includes anti-retaliation protections for tenants who assert legal rights.

For instance, you cannot end the lease without cause, arbitrarily decrease services, arbitrarily increase rent, or even threaten to break your tenant's lease, as per the lease agreement.

Some renters may also look to the Tenants' Bill of Rights or local stabilization act updates for current protections. Avoid even the most reasonable attorney's fees by following through with a lawful eviction.

Conclusion

Do you still have questions about the eviction process or the state laws in Maryland on rent collection and leases? If so, McKenna & Vane Property Management can help. We specialize in helping landlords in Maryland achieve peace of mind through quality management services. Our services are available in Howard, Carrol, Frederick & Montgomery Counties.