A Maryland residential lease agreement (“rental agreement”) is a legal contract between a landlord overseeing a rental property and a tenant using the property. State and local laws set the rules for rental agreements, such as laws regulating the use of a tenant’s security deposit.
Maryland Lease Agreement Disclosures
The below disclosures are required for residential lease agreements in Maryland.
Disclosure | Applicable To |
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Landlord Name and Address | All Units |
Security Deposit Receipt | All Leases Collecting a Security Deposit |
Water/Sewage Utility | Leases Paying Utilities in a 1-2 Unit Building |
Ratio Utility Billing System | All Units Charging Under a Ratio Utility Billing System |
Habitation | All Units |
Lead Paint | All Units Built Before 1978 |
Landlord’s Name and Address
Applies to all Maryland rentals.
Maryland leases must contain the name and address of the landlord (or authorized agent). This allows required communication (for example, about repairs) to happen in a smooth way. For this reason, most leases also include phone numbers and email addresses.
Contact information most often is written in the lease agreement, for maximum convenience. The landlord must notify the tenant whenever there’s a change in contact information.
Security Deposit Receipt
Applies to Maryland rental units collecting a security deposit.
Maryland landlords collecting a security deposit must give a receipt to the tenant. The receipt must note the following rules:
- The right to have the rental unit inspected by the landlord with the tenant present and complete a move-in checklist, within 15 days of the lease beginning
- A landlord’s duty to do a move-out inspection within five days of the tenant’s move-out date
- A landlord’s duty to notify the tenant in writing of inspection dates
- The right to receive itemized deductions from the security deposit within 45 days of moving out (via first-class mail)
- A landlord’s duty to return any unused portion of a security deposit within 45 days of moving out
- A statement that if the landlord doesn’t follow security deposit laws, he is liable for three times the security deposit, plus reasonable attorney’s fees
This receipt should be kept by the landlord for a minimum of two years from the lease end date (including eviction or abandonment of the rental unit). The landlord may receive a $25 penalty if there’s no written receipt alongside the lease.
Download: Maryland Receipt of Security Deposit Disclosure Form (PDF)
Water and Sewage Utility Obligation Disclosure
Applies to Maryland leases in a one- or two-unit residential building, where the tenant pays utilities to the landlord.
Maryland landlords must provide a disclosure when charging tenants directly for water or sewage service. This disclosure must specify the tenant’s duty to make utility payments to the landlord. It also must note the tenant’s right to (without asking) receive a copy of any related utility bills.
This disclosure requirement does not apply for tenants who pay the utility company directly.
Download: Maryland Water and Sewage Utility Obligation Disclosure Form (PDF)
Ratio Utility Billing System (RUBS) Disclosure
Applies to Maryland rentals which use a ratio utility billing system.
Maryland rentals using a ratio utility billing system (RUBS) for utilities must provide the following information to all prospective tenants, in writing:
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Identifying all utilities for which the tenant will be billed -
Copy of the last two utility bills issued to the landlord -
Description of the method used to divide up utility costs, by utility -
Statement that any billing calculation disputes are between the tenant and the landlord -
Average monthly billed amount for all dwelling units in the residential rental property in the previous calendar year, by utility -
Statement that the tenant may inspect records retained by the landlord that document a bill for utilities upon written request -
Any additional service charges or administrative fees to be paid by the tenant for the operation of the ratio utility billing system -
A citation to Maryland Code, Real Property § 8-212.4
This section does not apply to residential rental properties in a Title 11 condominium or a Title 5 cooperative project.
A landlord cannot legally demand related utility payments from a tenant without providing this disclosure.
Download: Maryland Ratio Billing System (RUBS) Disclosure (PDF)
Statement of Habitation Disclosure
Applies to all Maryland rentals.
Maryland law requires, in all leases, a statement about the property’s health and safety. The landlord must describe any habitability issues on the property, and agree with the tenant on who will fix existing issues.
Download: Maryland Statement of Habitation Disclosure Form (PDF)
Lead-Based Paint Disclosure
Applies to all Maryland rentals built before 1978.
Maryland residential leases for property built before 1978 must, by federal law, contain a lead-based paint disclosure. This requires landlords to do the following:
- Fill out and attach this lead-based paint disclosure form to the lease agreement
- Provide the tenant with an Environmental Protection Agency (EPA) approved pamphlet about the dangers of lead-based paint
- Provide any additional records or reports about the presence or hazards of lead-based paint in the unit (including building-wide evaluations, for multi-unit buildings with common areas)
Download: Maryland Lead-Based Paint Disclosure Form (PDF)
Optional Disclosures and Addenda (Recommended)
The following lease agreement disclosures and addenda are not required by Maryland law in residential lease agreements, but help with tenant management and landlord liability.
Optional Disclosure | Purpose |
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Asbestos | Informs tenants about any asbestos hazards related to the property. Tenants can reduce asbestos risk by not disturbing asbestos fibers. |
Bed Bugs | Informs tenants whether the property or an adjacent unit has a history of suspected bed bug infestation, and reminds the tenant of the obligation to report suspected infestation immediately. |
Late/Returned Check Fees | Specifies late fees or returned check fees related to the lease. Maryland caps late fees at 5% of the rent (monthly leases) or $3 per week/$12 per month (weekly leases). Returned check fees have a $35 cap if paid within 30 days (otherwise, an additional fee of 2x the check value applies, up to a $1,000 limit). |
Medical Marijuana Use | Informs tenants about policy related to medical marijuana use on the rental property. Some state laws allow landlords to restrict marijuana usage to non-smoking methods only, or allow use only in designated smoking areas. |
Mold Disclosure | Informs tenants about actual or suspected mold contamination on the property, along with any remediation efforts, to help limit landlord liability. |
Move-In Checklist | Takes inventory of existing property damage, when the tenant moves into the rental property. This ensures accurate deductions from the security deposit upon move-out. |
Non-Refundable Fees | Charges not agreed by the tenant in the lease may be refundable when the lease ends. For Maryland landlords to charge a non-refundable fee, it must be disclosed and agreed as such in the lease. |
Shared Utilities Arrangements | Sets terms for how to divide utility costs up on properties which share a utility meter with other units. This ensures tenants receive fair charges and understand what uses contribute to their bill. (Note that Maryland requires a shared utility disclosure for any ratio billing system.) |
Smoking | Informs tenants of designated smoking areas that do not interfere with the quiet enjoyment of other tenants. |
Consequences of Not Including Mandatory Disclosures
Mandatory disclosures outline important health, safety, and property information for the benefit of both landlord and tenant. A landlord who fails to provide federally or state-mandated disclosures could face legal consequences or monetary penalties, either from a tenant lawsuit or from state officials. Many lease provisions may be unenforceable without legally required disclosures.
Failure to comply with the federal lead-based paint hazard disclosure risks fines of tens of thousands of dollars per violation.
Sources
- 1 Md. Code, Real Prop. § 8-210(a)
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Information to be posted. —
(1) The landlord of any residential rental property shall include in a written lease or post a sign in a conspicuous place on that property listing the name, address, and telephone number of:
(i) The landlord; or
(ii) The person, if any, authorized to accept notice or service of process on behalf of the landlord
Source Link - 2 Md. Code, Real Prop. § 8-203.1
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(a) A receipt for a security deposit shall notify the tenant of the following:
(1) The right to have the dwelling unit inspected by the landlord in the tenant’s presence for the purpose of making a written list of damages that exist at the commencement of the tenancy if the tenant so requests by certified mail within 15 days of the tenant’s occupancy;
(2) The right to be present when the landlord inspects the premises at the end of the tenancy in order to determine if any damage was done to the premises if the tenant notifies the landlord by certified mail at least 15 days prior to the date of the tenant’s intended move, of the tenant’s intention to move, the date of moving, and the tenant’s new address;
(3) The landlord’s obligation to conduct the inspection within 5 days before or after the tenant’s stated date of intended moving;
(4) The landlord’s obligation to notify the tenant in writing of the date of the inspection;
(5) The tenant’s right to receive, by first–class mail, delivered to the last known address of the tenant, a written list of the charges against the security deposit claimed by the landlord and the actual costs, within 45 days after the termination of the tenancy;
(6) The obligation of the landlord to return any unused portion of the security deposit, by first–class mail, addressed to the tenant’s last known address within 45 days after the termination of the tenancy; and
(7) A statement that failure of the landlord to comply with the security deposit law may result in the landlord being liable to the tenant for a penalty of up to 3 times the security deposit withheld, plus reasonable attorney’s fees.
(b) The landlord shall retain a copy of the receipt for a period of 2 years after the termination of the tenancy, abandonment of the premises, or eviction of the tenant, as the case may be.
(c) The landlord shall be liable to the tenant in the sum of $25 if the landlord fails to provide a written receipt for the security deposit.
Source Link - 3 MD Real Prop Code § 8-205.1
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(a) In this section, “utility service provider” means a public service company or a unit of State or local government that provides water, sewer, gas, or electric utility services.
(b) (1) This section applies only to a landlord of a building that contains six or more residential dwelling units.
(2) This section does not apply to:
(i) A landlord that requires a tenant, under an oral or written lease, to pay water, sewer, gas, or electric bills directly to the utility service provider; or
(ii) A utility that is allocated using a ratio utility billing system, as defined in § 8–212.4 of this subtitle.
(c) A landlord that requires a tenant to make payments for water, sewer, gas, or electric utility services to the landlord shall:
(1) Use a written lease that provides notice that the tenant is responsible for making payments for water, sewer, gas, or electric utility services to the landlord; and
(2) (i) Provide a copy of the water, sewer, gas, or electric bill to the tenant; or
(ii) Before the beginning of the initial lease and each term thereafter for the duration of the tenancy, notify the tenant in writing of the total utility costs billed to the landlord in the immediately preceding year for water, sewer, gas, or electric utility services, disaggregated by utility type.
Source Link - 4 Md. Code, Real Prop. § 8-208(d)
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A landlord may not use a lease or form of lease containing any provision that:
(1) Has the tenant authorize any person to confess judgment on a claim arising out of the lease;
(2) Has the tenant agree to waive or to forego any right or remedy provided by applicable law;
(3) (i) Provides for a penalty for the late payment of rent in excess of 5% of the amount of rent due for the rental period for which the payment was delinquent; or
(ii) In the case of leases under which the rent is paid in weekly rental installments, provides for a late penalty of more than $3 per week or a total of no more than $12 per month;
(4) Has the tenant waive the right to a jury trial;
(5) Has the tenant agree to a period required for landlord’s notice to quit which is less than that provided by applicable law, except that the parties may agree to a longer notice period than that required by applicable law;
(6) Authorizes the landlord to take possession of the leased premises, or the tenant’s personal property unless the lease has been terminated by action of the parties or by operation of law, and the personal property has been abandoned by the tenant without the benefit of formal legal process;
(7) Is against public policy and void under § 8–105 of this title;
(8) Permits a landlord to commence an eviction proceeding or issue a notice to quit solely as retaliation against any tenant for planning, organizing, or joining a tenant organization with the purpose of negotiating collectively with the landlord;
(9) Requires the tenant to accept notice of rent increases under § 8–209 of this subtitle or § 8–401 of this title by electronic delivery;
(10) (i) Limits the ability of a tenant to summon the assistance of law enforcement or emergency services or penalizes a tenant solely for summoning the assistance of law enforcement or emergency services; or
(ii) Penalizes a tenant for the actions of another individual solely because the individual summoned the assistance of law enforcement or emergency services;
(11) Requires a tenant to pay more than the sum of the security deposit under § 8–203(b) of this subtitle and the first month’s rent in order to commence the lease and occupy the premises;
(12) Waives or places conditions on a tenant’s right of first refusal under § 8–119 of this title; or
(13) Except as authorized under § 7–301(c)(5)(ii) of the Courts Article, provides that a tenant is responsible for, or requires a tenant to agree to be responsible for, payment of a filing surcharge assessed against the landlord by the District Court under § 7–301(c)(2)(i)1 of the Courts Article.
Source Link - 5 Md. Code, Com. § 15-802(b), (c)(1)(i), & (e)(1)
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(b) If a check or other instrument has not been paid within 30 days after the holder has sent a notice of dishonor to the maker or drawer, the maker or drawer of a check or other instrument that has been dishonored shall be liable for:
(1) The amount of the check or instrument;
(2) A collection fee of up to $35; and
(3) An amount up to 2 times the amount of the check, but not more than $1,000.
(c) (1) (i) The holder of a check or other instrument that has been dishonored may seek the damages provided under this section in the District Court of Maryland 30 days after a notice of dishonor has been sent by mail to the last known address of the maker or drawer.
…
(e) (1) It shall be a complete defense to any action brought under this section by any holder of a dishonored check or other instrument that, within 30 days from the mailing of the notice of dishonor, the maker or drawer has paid to the holder the full amount of the check or other instrument and collection costs of not more than $35.
Source Link