Maryland Residential Lease Agreement

Important Information for Maryland Landlords

Maryland Rental Law Highlights

Security Deposits (Md. Code, Real Prop. § 8-203)

• Maximum Amount: Two months’ rent (Md. Code, Real Prop. § 8-203)
• Return Timeline: 45 days after tenant vacates (Md. Code, Real Prop. § 8-203(e))
• Itemized Statement: Required if any deductions are made with specific reasons
• Interest Required: Yes, 3% simple interest annually for deposits held 6+ months (Md. Code, Real Prop. § 8-203(d))
• Move-In Inspection: Required within 15 days of occupancy (Md. Code, Real Prop. § 8-203.1)
• Normal Wear and Tear: Cannot deduct for ordinary deterioration
• Penalties: Up to three times the withheld amount plus attorney fees (Md. Code, Real Prop. § 8-203(h))

Rent and Rent Increases (Md. Code, Real Prop. § 8-208)

• Grace Period: No statutory grace period required (but common practice)
• Late Fees: Maximum 5% of rent after 5-day grace period (Md. Code, Real Prop. § 8-208(d)(3))
• Rent Increase Notice: 30 days for month-to-month; 90 days in Montgomery County
• Fixed Term: Cannot increase rent during lease term unless specified
• Rent Control: Montgomery County has moderate rent control

Required Disclosures (Md. Code, Real Prop. § 8-208.1, 8-208.2)

• Lead paint disclosure (pre-1978 properties) – Federal requirement
• Landlord’s name and address (Md. Code, Real Prop. § 8-208.1)
• Owner’s name and address if different from landlord
• Move-in inspection report within 15 days (Md. Code, Real Prop. § 8-203.1)
• Summary of tenant rights (Md. Code, Real Prop. § 8-208.2)
• Smoke detector information
• Notice of intent to file for eviction (if applicable)

Eviction and Termination (Md. Code, Real Prop. § 8-402, 8-402.1)

• 14-Day Notice: For nonpayment of rent with right to cure (Md. Code, Real Prop. § 8-402.1)
• 30-Day Notice: For lease violations without right to cure (Md. Code, Real Prop. § 8-402.1)
• 30-Day Notice: To terminate month-to-month tenancy (customary)
• Court Process Required: Must file Failure to Pay Rent or Tenant Holding Over action
• No Self-Help: Lockouts and utility shutoffs are illegal (Md. Code, Real Prop. § 8-216)

Landlord Obligations (Md. Code, Real Prop. § 8-211, 8-212)

• Habitability: Must maintain premises in fit and habitable condition (Md. Code, Real Prop. § 8-211)
• Essential Services: Heat, water, hot water, electricity must be functional
• Compliance: Must comply with applicable building and housing codes
• Structural Integrity: Maintain in safe condition
• Smoke Detectors: Required in all dwelling units (Md. Code, Real Prop. § 8-211)
• Common Areas: Keep clean and in good repair
• Repairs: Must make necessary repairs within 30 days of notice

Entry Requirements (Md. Code, Real Prop. § 8-208)

• Notice Required: Reasonable notice required (customary 24 hours)
• Reasonable Times: Entry during reasonable hours only
• Emergency Exception: May enter without notice in emergency
• Permitted Purposes: Inspection, repairs, showing to buyers/tenants
• Court Order: May enter pursuant to court order

Tenant Rights and Protections

• Quiet Enjoyment: Right to peaceful possession without interference
• Privacy Rights: Right to reasonable notice before entry
• Security Deposit Protection: Up to 3x withheld amount plus attorney fees
• Retaliation Protection: Landlord cannot retaliate (Md. Code, Real Prop. § 8-208.1)
• Repair and Deduct: Tenant may repair and deduct under certain conditions
• Military Service: SCRA protections for active duty members

Maryland-Specific Considerations

Security Deposit Interest Requirement (Md. Code, Real Prop. § 8-203(d))

• 3% simple interest annually for deposits held 6+ months
• Interest must be paid to tenant or credited to rent
• One of few states requiring interest on deposits
• Failure to pay interest can result in penalties

Required Move-In Inspection (Md. Code, Real Prop. § 8-203.1)

• Must be conducted within 15 days of occupancy
• Tenant must be given opportunity to participate
• Written inspection report required
• Protects both landlord and tenant regarding damages
• Failure to provide can affect security deposit claims

Late Fee Limitations (Md. Code, Real Prop. § 8-208(d)(3))

• Maximum 5% of rent after 5-day grace period
• Late fees cannot be assessed until after grace period
• One late fee per late payment
• Lease provisions imposing higher fees are void

45-Day Security Deposit Return (Md. Code, Real Prop. § 8-203(e))

• 45 days to return deposit with itemized statement
• Longer than many states (21-30 days typical)
• Must include specific reasons for deductions
• Up to three times withheld amount plus attorney fees as penalty

14-Day Notice with Right to Cure (Md. Code, Real Prop. § 8-402.1)

• 14 days notice for nonpayment of rent
• Tenant has right to cure by paying rent
• More tenant-friendly than many states (3-5 days typical)
• Must follow specific notice requirements

Summary of Tenant Rights Disclosure (Md. Code, Real Prop. § 8-208.2)

• Landlord must provide summary of tenant rights
• Summary must be provided at lease signing
• Outlines key tenant rights under Maryland law
• Available from Maryland Department of Housing and Community Development

Smoke Detector Requirements (Md. Code, Real Prop. § 8-211)

• Smoke detectors required in all dwelling units
• Landlord responsible for installation and ensuring functionality at move-in
• Tenant responsible for battery replacement
• Tenant must notify landlord immediately of defects
• Carbon monoxide detectors required in certain circumstances

Fair Housing Requirements

Best Practices for Maryland Landlords

• Use comprehensive written leases for all tenancies
• Conduct move-in inspection within 15 days (required by law)
• Provide written inspection report to tenant
• Document property condition at move-in and move-out with photos
• Limit security deposits to two months’ rent (required by law)
• Pay 3% annual interest on deposits held 6+ months (required by law)
• Return deposits within 45 days with itemization (required by law)
• Limit late fees to 5% after 5-day grace (required by law)
• Provide summary of tenant rights (required by law)
• Disclose landlord’s and owner’s name and address (required by law)
• Provide reasonable notice (24 hours) before entering property
• Keep detailed records of all transactions and communications
• Respond to repair requests within 30 days
• Maintain property to comply with housing codes
• Install and maintain working smoke detectors
• Never use self-help eviction methods
• Follow proper court procedures for evictions
• Do not retaliate against tenants for exercising legal rights
• Consider landlord insurance with loss of rent coverage

Maryland Climate Considerations

• Four Seasons: Cold winters, hot humid summers require working HVAC
• Winter Weather: Snow and ice; heating system critical
• Humidity: Mold and moisture issues common; proper ventilation essential
• Coastal Areas: Hurricane and flooding risks
• Temperature Extremes: Can range from below 0°F to over 100°F

Baltimore and Urban Area Considerations

• Local Ordinances: Baltimore City has additional requirements
• Rental Registration: Required in Baltimore and some other cities
• Certificate of Occupancy: Required in many jurisdictions
• Lead Paint: Major concern in older housing; strict disclosure requirements
• Rental Inspections: Required in Baltimore and other cities
• Rent Control: Montgomery County has moderate rent control

Montgomery County Considerations

• Rent Control: Moderate rent control laws in effect
• 90-Day Notice: Required for rent increases
• Additional Regulations: More tenant protections than state law
• Just Cause Eviction: Some properties require just cause

Resources

• Maryland Code – Real Property Title 8 (Landlord and Tenant)
• Maryland Department of Housing and Community Development
• Maryland State Bar Association – Real Estate Section
• Maryland Legal Aid
• District Court of Maryland (for eviction proceedings)
• Baltimore City Department of Housing
• Maryland Apartment Association