Maryland’s Renters’ Rights and Stabilization Act of 2024 (the “RRSA”) took effect on October 1, 2024. The RRSA enacted several notable changes to Maryland’s landlord/tenant laws and could have a significant impact on owners of residential rental properties. As a courtesy to clients who own, or routinely deal with, residential rental property in Maryland, PK Law has put together a brief summary of the major changes to Maryland’s landlord/tenant laws that were made under the RRSA.
- Surcharges for ejectments and other civil actions available to landlords have increased for District Court and Circuit Court lawsuits. Further, all surcharges must be paid by landlords and cannot be passed on to tenants, subject to certain special exceptions. The provisions of a lease may not shift this obligation to the tenant.
- Tenants of certain residential properties now have a right of first refusal to purchase their units. Prior to the RRSA, this right of first refusal applied only to properties in Baltimore City, but the right of first refusal now applies to all rental properties in Maryland with less than four units. This change will have a significant impact on landlords with single family rental units, and title companies will need to ensure that the notices required by the right of first refusal have been complied with prior to closing on the sale of a rental property. The provisions of a lease may not include a waiver of the tenant’s right of first refusal. Notably, the tenant right of first refusal does not apply to multifamily properties with more than three units or transfers to family members.
- A copy of Maryland’s Tenant Bill of Rights is now required to be provided to all residential tenants at the time the lease is executed. Prior to the RRSA, this requirement applied only to properties in Baltimore City but it has now been expanded to all Maryland residential rental properties. The Tenant Bill of Rights will be published by the Maryland Office of Tenant and Landlord Affairs.
- Landlords may not require security deposits of more than one month’s rent (previously two month’s rent), subject to certain exceptions. Further, security deposits may not be retained by landlords as liquidated damages and may only be used to compensate landlords for damages actually incurred.
PK Law’s Corporate and Real Estate Group can assist with issues related the RRSA and Maryland landlord/tenant laws in general.
