A Maryland lease agreement is your roadmap to a successful rental experience. In a state with one of the most tenant-centered laws, the right lease agreement will go a long way toward ensuring compliance and keeping your property protected.
Disclosures (6)
Maryland landlords are required to disclose certain information to tenants before they move in. These disclosures help ensure transparency and maintain the legal and enforceable nature of your lease.
- Lead-based paint: Federal law requires landlords to disclose any known information about lead-based paint and its hazards for most homes built before 1978.
- Landlord identification: A Maryland lease agreement must include the contact information of the landlord or person responsible for managing the property (MD Code, Real Property § 8-210).
- Security deposit receipt: Landlords must provide tenants with a receipt for their security deposit that also includes Maryland’s rules for collecting and returning a security deposit and the landlord’s right to inspect the property with notice (MD Code, Real Property § 8-203(c)(1), 8-203.1).
- Shared utilities: Landlords must disclose how they will divide costs if any units share a meter (Tenant Protection Act of 2022).
- Habitability disclosure: A Maryland lease agreement must include a disclosure on habitability and safety, including any known defects with the property and who is responsible for their repair (MD Code, Real Prop. Sect. 8-212).
- Each lease agreement must also include the 2024 Renters’ Rights and Stabilization Act.
Optional Disclosures and Addenda
The law doesn’t require the following disclosures, but adding them gives your Maryland lease agreement more clarity and context.
Asbestos: Informs tenants of any asbestos that may be on the property, as well as tips to reduce related hazards.
Bed bugs: Informs tenants of any known or suspected bed bug infestations in the unit or in adjacent units.
Late/returned check fees: Outlines fees for late rent or returned checks concerning rent payments. In Maryland, late fees cannot exceed 5 percent of the rent amount (for monthly leases) or $3 per week or $12 per month (for weekly leases). Returned checks have a maximum fee of $35 if paid within 30 days (MD Code, Real Property §8–208).
Medical marijuana use: Explains the unit’s policy regarding the use of medical marijuana, including any restrictions or limitations.
Mold disclosure: Informs tenants of any known or suspected mold issues in the unit, as well as treatment options.
Move-in checklist: Details the current condition of the unit, including any damages. This checklist is also used at move-out to compare conditions and calculate deductions.
Non-refundable fees: Tenants must agree to any non-refundable fees, so it is a good idea to include them in your Maryland lease agreement.
Smoking: Outlines the smoking policy for the unit, including any designated smoking areas.
Consequences of Not Including Mandatory Disclosures
Landlords who fail to include mandatory disclosures can face serious consequences, ranging from financial penalties to legal issues. Including them up front can help avoid these issues down the road.
Security Deposit Regulations in Maryland
Maryland has rules in place regarding security deposits, from how much you can collect to where you store the funds. Follow these rules to stay compliant and avoid disputes.
Maximum amount: Maryland landlords are allowed to charge up to 1 month’s rent as a security deposit (MD Code, Real Property § 8-203(b)(1)).
Deposit receipt: Landlords must provide tenants with a detailed receipt for their security deposit (MD Code, Real Property § 8-203(c)(1), 8-203.1).
Interest payments: Maryland landlords are required to pay interest on security deposit funds and hold the deposit in an interest-bearing account (MD Code, Real Property § 8-203(e)(1)).
Security deposit return: Security deposit funds, minus any deductions, must be returned to the tenant within 45 days of lease termination (MD Code, Real Property § 8-203(g)(1)).
Deductions: Maryland landlords are allowed to deduct funds from the security deposit to cover any damages caused by the tenant. These deductions must be clearly outlined in a checklist and returned to the tenant along with the remainder of the deposit.
Rent Payment Regulations
Maryland also has specific rules regarding rent payment. From grace periods to late fees, understanding these rules helps keep you on the right track.
Rent control/stabilization: Maryland does not have any state-wide rent control laws. However, some local jurisdictions tie rent control to the inflation rate, so it’s always best to check local regulations when pricing your rent structure.
Late rent fees: The maximum late fee in Maryland is 5 percent of the monthly rent amount (MD Code, Real Property § 8-208(d)(3)).
Grace period: Maryland does not require a grace period for late rent payments.
Tenant’s right to withhold rent: Tenants may withhold rent if a landlord fails to repair an emergency condition in a reasonable amount of time (MD Code, Real Property § 8-211(i)).
Violations
Lease violations can occur, regardless of how careful you are. Knowing your rights as a landlord helps you and your tenant get back on track quickly.
Lease violation: If a tenant violates any part of their lease, landlords may issue a 30-day Notice to Quit (MD Code, Real Property § 8-402).
Missed rent payment: Once a tenant has missed a rent payment, landlords may issue a 10-day Notice to Pay or Quit (MD Code, Real Property § 8-401(c)).
Lease abandonment: A tenant who abandons their lease early and without justification may face legal penalties and be financially responsible for the remainder of the lease. A landlord, however, should always attempt to re-rent the unit to help avoid this (MD Code, Real Property § 8-207).
Self-help evictions: Self-help evictions are illegal in Maryland, and landlords should never attempt to remove tenants on their own.
Terminating a Lease
Whether the tenant or the landlord makes the decision, Maryland has specific rules governing the termination of a lease. Handling the termination correctly helps ensure a smooth and legal transition.
Standard lease: Tenants are allowed to end their lease early and without penalty if they meet specific criteria, such as active duty military service, domestic violence, or landlord harassment.
Month-to-month: Maryland landlords may terminate a month-to-month lease agreement with 60 days’ written notice. Tenants, however, are only required to give 30 days’ notice (MD Code, Real Property § 8-402(c)(2)).
Property abandonment: Maryland landlords are not required to store or attempt to return property left behind by tenants after move-out (MD Code, Real Property § 8-208(d)(6)).
Renewing a Lease
Renewing a lease allows you to retain your existing tenants, minimize turnover, and update your terms. But you don’t always have to renew your Maryland lease agreement. Here’s what you need to know.
Notice requirements: Landlords in Maryland are required to give 60 days’ notice when terminating a month-to-month lease agreement, and this notice increases to 90 days for a fixed-term lease. They are not, however, required to notify a tenant when their fixed-term lease ends and transitions to a month-to-month agreement (MD Code, Real Property § 8-402).
Renewals: Maryland landlords are not required to renew an existing lease at the end of its term.
Landlord’s Access to Property
Maryland law protects tenants’ privacy while also allowing landlords access to their property. Understanding when and how to enter a property helps maintain professionalism and compliance.
Immediate access: Landlords are allowed immediate access to a property under emergency conditions.
Notice requirements: Landlords may enter a rental property at any time for reasonable purposes, such as maintenance or repairs. The state does not provide specific guidelines, but best practice suggests giving tenants at least 24 hours’ notice and entering at reasonable hours.
Harassment: Failure to follow these rules can qualify as landlord harassment. In these cases, the tenant may petition the court to break their lease early and without penalty (MD Code, Real Property § 8-204).
