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What Is a Maryland Residential Lease Agreement?

A Maryland residential lease agreement is a contract between a landlord and tenant for renting a dwelling. Maryland recently reformed its deposit rules—effective October 1, 2024, the general cap dropped to one month's rent. The state also requires interest on deposits, caps late fees at 5%, and gives tenants the right to attend the move-out inspection. Montgomery County and Prince George's County each maintain local rent-stabilization overlays.

When to Use a Residential Lease in Maryland

  • Renting a house, apartment, condo, or townhouse as a primary residence.
  • Establishing a fixed-term or month-to-month tenancy.
  • Documenting deposit handling, late-fee terms, and habitability obligations.
  • Complying with Md. Code, Real Prop. §§ 8-203 to 8-221 and any applicable local ordinances.

Key Maryland Residential Lease Provisions

  • Security Deposit Cap (2024 Reform): For leases signed on or after October 1, 2024, the general cap is one month's rent. A narrow exception allows up to two months' rent when the tenant qualifies for utility assistance and utilities are paid directly to the landlord. Md. Code, Real Prop. § 8-203(b).
  • Deposit Interest: Deposits of $50 or more held for at least six months must earn interest. The landlord must provide a receipt showing the amount, the institution, and the tenant's right to interest. § 8-203(c), (e).
  • Deposit Return: The landlord must return the deposit with an itemized list of deductions within 45 days after the tenancy ends. § 8-203(e).
  • Move-Out Inspection Right: The tenant has the right to be present at the move-out inspection upon timely request. § 8-203(f), § 8-203.1.
  • Late-Fee Cap: A late charge may not exceed 5% of the unpaid rent. For weekly tenancies, the cap is $3 per week, up to $12 per month. § 8-208(d).
  • Entry Notice: Maryland now requires landlords to give at least 24 hours' notice before entering, stating the date, approximate time, and purpose. Emergency exceptions apply. § 8-221.
  • Habitability: Landlords must keep premises in repair and fit for habitation. Tenants may use rent escrow for serious and dangerous defects. §§ 8-211, 8-212.
  • Local Rent Stabilization: Montgomery County and Prince George's County each maintain rent-stabilization programs that limit the amount and frequency of rent increases for covered units.

Frequently Asked Questions

What is the maximum security deposit in Maryland?

For leases signed on or after October 1, 2024, the general cap is one month's rent. A narrow exception allows up to two months when the tenant qualifies for utility assistance. Md. Code, Real Prop. § 8-203(b).

Does a Maryland landlord have to pay interest on security deposits?

Yes. Deposits of $50 or more held for at least six months must earn interest. § 8-203(e).

How long does a Maryland landlord have to return a deposit?

Within 45 days after the tenancy ends, with an itemized list of any deductions. § 8-203(e).

Can a Maryland tenant attend the move-out inspection?

Yes. The tenant has a statutory right to be present at the move-out inspection upon timely request. § 8-203(f), § 8-203.1.

Does Maryland have rent control?

No statewide rent cap, but Montgomery County and Prince George's County each maintain local rent-stabilization programs limiting increases for covered units.