Maryland Residential Lease Agreement

Introduction

A Maryland residential lease agreement is a legally binding contract between a landlord and tenant that establishes the terms and conditions for renting residential property. This agreement specifies the rent amount, security deposit requirements, lease duration, and each party's responsibilities during the tenancy. Under Maryland law, landlords who offer five or more dwelling units must use a written lease.^[2]

Legal Definition

Under Maryland Real Property Code Title 8, a residential lease agreement is a contract that grants a tenant the right to occupy a dwelling unit in exchange for rent payments. The lease creates a landlord-tenant relationship governed by state statute and common law principles. All parties must sign the agreement for it to be legally binding.

Required Disclosures

Maryland law requires landlords to provide the following disclosures:

Habitability and Safety Statement

Every lease must include a statement that the premises will be made available in a condition permitting habitation with reasonable safety, or if different, a statement of the actual agreement regarding the property's condition.^[2]

Lead-Based Paint Disclosure

For properties built before 1978, federal law requires landlords to disclose known lead-based paint hazards and provide the EPA pamphlet 'Protect Your Family From Lead in Your Home.' Tenants must receive this disclosure before signing a lease.^[11]

Security Deposit Receipt

The landlord must provide a written receipt for the security deposit that includes information about the tenant's rights, including the right to a move-in inspection.^[8]

Move-In/move-Out Checklist

The deposit receipt must disclose the tenant's right to inspect the unit with the landlord at the beginning and end of tenancy. This inspection must be completed within the initial 15 days of occupancy to document existing damages.^[8]

Landlord/agent Identification

The landlord must disclose in the lease or post conspicuously: the name, address, and telephone number of the landlord or the person authorized to accept notice or service of process on behalf of the landlord.^[3]

Utilities and Repairs Responsibilities

The lease must specify the landlord's and tenant's obligations regarding heat, gas, electricity, water, and property repairs.^[2]

Ratio Utility Billing System (Rubs) Disclosure

If the landlord uses a ratio utility billing system, they must provide a written statement identifying the utilities and the average monthly bill for all units. This does not apply to condominium or co-op rentals.^[9]

Pet Policy Disclosure

Landlords must provide their pet policy, including: breed and weight restrictions, fees and deposits, pet limits, vaccination requirements, and liability insurance requirements.^[3]

Maryland Tenants' Bill of Rights (new - Effective July 1, 2025)

Starting July 1, 2025, landlords must provide tenants with the official Maryland Tenants' Bill of Rights, an 8-page document published by the Office of Tenant and Landlord Affairs summarizing tenant protections under state and federal law.^[14]

Security Deposits

Maximum Amount

Under the Renters' Rights and Stabilization Act of 2024, landlords may not charge more than one month's rent as a security deposit, regardless of the number of tenants. A two-month deposit is only permitted in limited circumstances where: (1) the tenant qualifies for utility assistance through the Department of Human Services, (2) the tenant pays utilities directly to the landlord, and (3) both parties agree in writing.^[1]

**Penalty: **If a landlord charges more than permitted, the tenant may recover up to three times the excess amount plus reasonable attorney's fees.^[1]

Interest Requirements

Security deposits must be held in a federally insured, interest-bearing account located in Maryland devoted exclusively to security deposits. Interest accrues at the daily U.S. Treasury yield curve rate for 1 year (as of the first business day of each year) or 1.5% annually, whichever is greater.^[1]

**Exemptions: **No interest is required if the deposit is less than $50 or held for less than six months.^[1]

Return Deadline

The landlord must return the security deposit with accrued interest within 45 days after the tenancy ends. If deductions are made, the landlord must provide an itemized list of damages and costs by first-class mail to the tenant's last known address within the same 45-day period.^[1]

**Penalty: **Failure to return the deposit without reasonable basis within 45 days allows the tenant to recover up to three times the withheld amount plus attorney's fees.^[1]

Rent Payment Rules

Grace Period

Maryland law does not provide a statutory grace period for rent payments. Rent is due on the date specified in the lease. However, landlords must provide a 10-day written notice before filing for possession if rent is unpaid.^[4]

Late Fees

NSF Check Fee

The maximum service charge for a dishonored (bounced) check is $35.^[10]

Rent Withholding / Escrow

If the landlord fails to repair defects that pose a serious threat to tenant health or safety, the tenant may file a rent escrow action with the District Court. Rent payments are held by the court until repairs are completed. The Tenant Safety Act of 2024 strengthened these protections.^[7]

Landlord's Right to Enter

Maryland has no statewide statute requiring landlords to provide advance notice before entering a rental unit. However, local jurisdictions may have their own requirements. Best practice is to provide 24-48 hours written notice and schedule entry during regular business hours except for emergencies.

Lease Termination

Month-To-Month Tenancy

**Landlord must provide: **60 days' written notice^[5]

**Tenant must provide: **30 days' notice (may be oral)^[5]

Year-To-Year Tenancy

90 days' notice required (180 days for farm tenancies).^[5]

Week-To-Week Tenancy

7 days' notice if written lease; 21 days if no written lease.^[5]

Eviction Process

Non-Payment of Rent

Before filing for possession, landlords must provide a 10-day written notice giving the tenant the opportunity to pay. If unpaid after 10 days, the landlord may file a complaint in District Court.^[4]

Lease Violation (non-Compliance)

For lease violations (other than non-payment), the landlord must provide 30 days' notice before initiating eviction proceedings.

Warrant of Restitution

Under the 2024 law changes, landlords must wait 7 days (increased from 4 days) after receiving a judgment before executing a warrant of restitution.^[12]

Tenant's Right to Redemption

Tenants may redeem the lease by paying all past due amounts, court costs, and fees at any time before actual execution of the eviction. This right is limited if three possession judgments have been entered against the tenant in the prior 12 months.^[4]

Prohibited Landlord Practices

Self-Help Evictions (Lockouts)

Landlords may NOT change locks, shut off utilities, or remove tenant belongings without a court order. A landlord may only take possession through a warrant of restitution issued by a court and executed by a sheriff or constable.^[6]

**Penalty: **Tenants may recover actual damages and reasonable attorney's fees.^[6]

Prohibited Lease Provisions

Maryland law prohibits lease provisions that:^[2]

• Authorize confession of judgment
• Waive tenant's rights under law

- Charge Late Fees Exceeding 5% of Unpaid Rent

• Waive right to jury trial
• Allow landlord to take possession without legal process
• Penalize tenant for calling law enforcement or emergency services
• Pass court filing surcharges to tenants (2024 change)

2024 Law Changes Summary

The Renters' Rights and Stabilization Act of 2024 (HB 693), effective October 1, 2024, made these key changes:^[12]

Security Deposit Maximum Reduced to One Month's Rent (with Limited Exceptions)

Court Filing Fees Increased ($43 Base, +$10 in Baltimore City) - Cannot Be Passed to Tenants

Wait Period for Warrant of Restitution Increased From 4 to 7 Days

Right of First Refusal Extended Statewide for Properties With Fewer Than 4 Units

Created Office of Tenant and Landlord Affairs

Late Fee Cap Clarified to Apply Only to Unpaid Portion of Rent

Eviction Record Shielding Protections Added

Tenant Resources

**Office of Tenant and Landlord Affairs: **Created in 2024 to provide educational materials, advise on rights violations, offer financial counseling, and address housing discrimination.^[13]

**Maryland Department of Housing and Community Development (DHCD): **Maintains the interest rate calculator for security deposits and publishes the Tenants' Bill of Rights.^[13]