MD recently enacted legislation regarding landlord – tenant matters known as Renters’ Rights Stabilization Act of 2024. The legislation takes effect in stages, with part 1 effective October 1, 2024 and part 2 taking effect October 1, 2025. The Act requires revision of most residential leases.

Security Deposits

The Act limits the amount of a Security Deposit for leases signed on or after Oct 1, 2024 to 1 months’ rent. If the tenant meets the following exceptions, 2 months’ rent may be charged:

(i) The tenant is eligible and has qualified for utility assistance through the Department of Human Services;

(ii) The lease agreement requires that the tenant make payments for utility services directly to the landlord; and

(iii) The tenant and landlord agree in writing to the amount of the security deposit.

Additionally, the Act regulates how and where the Security Deposit is held, receipt requirements, specific manners in which a landlord may deduct expenses from the Security Deposit, and Specific procedures for returning the Security Deposit.

Tenant’s Right of First Refusal

Effective Oct. 1, 2025, the Act grants tenants of residential properties with 3 or less dwelling units the right of first refusal. Landlords are now required to give the tenants an opportunity to purchase the property before selling to a third party, subject to certain exceptions.

Evictions and Filing Fees

The Act increased prices for court filing fees and restricts the availability of recovery of the surcharge even if the landlord is successful. The landlord must include a specific provision in the tenant’s lease authorizing the surcharge to be deducted from the tenant’s Security Deposit. There is a stay of evictions during extreme weather events and the tenant now has 7 days to comply with a judgment in favor of the landlord prior to the execution of a warrant of restitution.

Establishment of the Office of Tenant and Landlord Affairs

This office is, among other things, to serve as the primary point of contact for tenants rights and protections. They are to publish an annual Maryland Tenant’s Bill of Rights, which must be attached as an addendum to all new residential leases.

https://mgaleg.maryland.gov/2024RS/Chapters_noln/CH_124_hb0693e.pdf

Azrael, Franz, Schwab, Lipowitz & Solter, LLC Can Help

Azrael, Franz, Schwab, Lipowitz & Solter, LLC, is here to assist with ensuring that landlords are in compliance with the ever-changing landscape of landlord-tenant issues. If you need legal help to ensure your lease compliant with the Act, give us a call.