Recent legislative developments in Maryland have introduced significant changes for property owners. Below are 8 changes effective October 1, 2024, that may impact how landlords manage their rentals and their risk.

  1. Security deposit capped to one month's rent

    • This impacts the landlord’s ability to collect any type of additional deposit including pet security deposits.
    • Landlords may be more selective in choosing tenants, potentially making it harder for some individuals with pets or a history of damage, to find housing.
    • Landlords may increase rent to compensate for the reduced security deposit and increased risk. Raising the rent may also hurt the landlord by prolonging the vacancy until a tenant is found who is willing to pay the higher rent.
    • Landlords may be less likely to allow pets or may charge additional fees to cover potential damages. Keep in mind that service animals are protected and a security deposit can not be collected or rental refused due to a service animal.

  2. Total move in charges can be no more than the equivalent of 2 months rent (i.e., first month’s rent and the security deposit).

    • Tenants with bad credit often rely on prepaid rent to demonstrate their good faith. Without this option, they may have a harder time finding a place to rent.
    • Landlords may face a higher risk of non-payment and property damage without the security of prepaid rent.

  3. Landlords can no longer require tenants to reimburse landlords for eviction filing fees, except by deduction from security deposit

    • Tenants cannot be required to pay eviction filing fees directly to the landlord outside of the security deposit.
    • If a landlord wins an eviction case, they can only deduct the filing fee from the tenant's security deposit if the lease explicitly allows it.

  4. Baltimore City: Tenant Right of First Refusal Process - Offer tenants of 1-, 2-, or 3-unit residential rental properties the opportunity to purchase the property before selling to a third party

    • Under the Renters’ Rights and Stabilization Act, tenants of certain residential rental properties have the right to make an offer to purchase the property from the owner before the owner may sell the property to a third party.
    • Exclusive negotiation period: If a property owner intends to sell non-exempt property, they must first offer it to their tenants. This provides tenants with a 30-day exclusive negotiation period to submit a good-faith purchase offer. The owner cannot sell the property to a third party until this period ends, either through the tenants declining to make an offer or failing to reach an agreement on sale terms with the landlord.
    • Right of first refusal: If a property owner receives an unsolicited offer to purchase non-exempt property or intends to accept a third-party offer that's at least 10% lower than a previous offer made to a tenant, the tenant(s) have a right to match that third-party offer. If the tenant(s) exercise this right within 30 days, the owner must sell the property to them. If no tenant matches the offer within this period, the owner can sell the property to the third party.
    • Tenant Response: A tenant has 30 days to submit a purchase offer after receiving a notice from the landlord. If the tenant's offer matches the landlord's proposed terms, the landlord must accept it. If the terms don't match, the landlord has 5 days to make a counteroffer. The tenant then has 5 days to accept or reject the counteroffer.

  5. Include a copy of the Maryland Tenants’ Bill of Rights as an addendum to all residential leases (not applicable until it is first published possibly in first quarter of 2025l). We will send an update out to our clients when this has been published.

  6. Execution of evictions during extreme weather conditions are no longer allowed. This includes below-freezing temperatures, winter storm/blizzard warnings, hurricane/tropical storm warnings, and excessive heat warnings

  7. Time between judgment in favor of a landlord in an eviction case and issuance of a warrant of restitution extended from 4 to 7 days

  8. Pay a filing fee of $50 ($60 in Baltimore City) to file a summary ejectment action against a tenant who is delinquent on rent (previously $15/$25)

This and more information can be found on the Maryland.gov site at https://dhcd.maryland.gov/TurningTheKey/Documents/HB693-Landlords-Property-Owners-Handout.pdf and at https://dhcd.maryland.gov/TurningTheKey/Documents/HB693-FAQ.pdf

**The information provided on this blog does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. Information on this website may not constitute the most up-to-date legal or other information.

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