A Maryland residential lease agreement (“rental agreement”) is a legal contract between a landlord overseeing a residential property and a tenant who wishes to rent it. A residential lease may, on or before move-in, additionally require a security deposit from the tenant as assurance against future property damage.
Maryland Lease Agreement Disclosures
The below disclosures are required for some or all residential lease agreements in Maryland.
| Disclosure | Applicable To |
|---|---|
| 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
Applicable to all Maryland rentals.
Creates a line of communication for important notices and demands between tenant and landlord. Landlords or any authorized individual to act on behalf of the property should provide contact information (including their address) within or alongside the lease.
Security Deposit Receipt
Applicable to Maryland rental units collecting a security deposit.
Maryland landlords collecting a security deposit must give a receipt to the tenant. The receipt must contain the following language:
- The right, within 15 days of the lease beginning, to have the rental unit inspected by the landlord with the tenant present and complete a move-in checklist.
- A landlord’s obligation to (with proper notice) conduct a move-out inspection within five days of the tenant’s move-out date.
- A landlord’s obligation to notify the tenant in writing of inspection dates.
- The right to receive an itemized list of deductions from the security deposit within 45 days of moving out (via first-class mail).
- The obligation for the landlord to return any unused portion of a security deposit within 45 days of moving out.
- A statement acknowledging the landlord is liable for three times the security deposit, plus reasonable attorney’s fees. if the security deposit laws are not followed.
This receipt should be kept by the landlord for a minimum of two years from the date of lease termination (including eviction or abandonment of the rental unit). The landlord may be subject to 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
Applicable 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 obligation to make utility payments to the landlord, as well as the tenant’s right to (without asking) receive a copy of any related utility bills.
This does not apply to tenants who pay the utility company directly.
Download: Maryland Water and Sewage Utility Obligation Disclosure Form (PDF)
Ratio Utility Billing System (RUBS) Disclosure
Applicable 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:
-
Disclosure that the tenant will be billed by the landlord for allocated utility services, identifying all such utilities -
Copy of the last two utility bills issued to the landlord -
Description of the method used to allocate the cost of the utility to the tenant, 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
It is important to note that this section does not apply to residential rental properties in a condominium organized under Title 11 of this article; or a cooperative project organized under Title 5, Subtitle 6B of the Corporations and Associations Article.
If the landlord fails to provide this information in writing under a ratio utility billing system, it will be unenforceable.
Download: Maryland Ratio Billing System (RUBS) Disclosure (PDF)
Statement of Habitation Disclosure
Applicable to all Maryland rentals.
Maryland law requires, in all leases, a statement concerning the property’s health and safety. The landlord must describe any habitability defects on the property, and agree with the tenant on who will remedy outstanding issues.
Download: Maryland Statement of Habitation Disclosure Form (PDF)
Lead-Based Paint Disclosure
Applicable to all Maryland rentals built before 1978.
For any property built before 1978, federal law requires that a Maryland residential lease must 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 (for multi-unit buildings with common areas, this includes information from building-wide evaluations)
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 assist with tenant management and help limit landlord liability.
| Optional Disclosure | Purpose |
|---|---|
| Asbestos | Informs tenants about any asbestos hazards related to the property. Tenants can take precautions to reduce asbestos hazards by avoiding any disturbance of 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% charge 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 takes possession of the rental property. This enables accurate deductions from the security deposit upon move-out. |
| Non-Refundable Fees | Charges not agreed by the tenant in the lease may be refundable upon lease termination. For Maryland landlords to charge a non-refundable fee, it must be disclosed and agreed as such in the lease. |
| Shared Utilities Arrangements | Discloses how charges are billed to individual tenants, when multiple rental units share a utility meter for the whole building or property. This ensures tenants receive fair charges and understand what uses contribute to their bill. |
| 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 both landlord and tenant safety. 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 Real Prop Code § 8-210 (2018)
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…(a) 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…
- 2 MD Real Prop Code § 8-203.1 (2018)
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…(a) Contents. — 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…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,… 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) Retention for 2 years. — 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) Landlord penalty. — 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…
- 3 MD Real Prop Code § 8-205.1 (2018)
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…(b) Applicability of section. —
(1) This section applies only to a landlord of a building that contains one or two residential dwelling units.
(2) This section does not apply to a landlord that requires a tenant, under an oral or written lease, to pay water or sewer bills directly to the utility service provider.
(c) Requirements. — A landlord that requires a tenant to make payments for water or sewer utility services to the landlord shall:
(1) Use a written lease that provides notice that the tenant is responsible for making payments for water or sewer utility services to the landlord; and
(2) Provide a copy of the water or sewer bill to the tenant…
- 4 MD Real Prop Code § 8-208 (2018)
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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…
- 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.
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