Buying a rental property in Maryland: tenant rules to know

Is there rent control in Maryland?

Not at the state level. The Tenants’ Bill of Rights says some local jurisdictions may limit rent increases, but no statewide law limits an increase when a lease is renewed. The Bill of Rights adds that, in most cases, a landlord must give written notice 90 days before a rent increase, and may raise rent only at renewal. The Baltimore City pages read for this article do not describe a rent cap; check with the city before you rely on that.

Late fees are capped: a lease may not provide a penalty above 5% of the unpaid rent for the period (§ 8-208).

How do security deposits work?

Source: Real Property § 8-203 (2026 text) and Maryland Tenants’ Bill of Rights, effective October 1, 2026.

The old cap was two months’ rent. For a unit rented at $1,500 a month, a deposit above $1,500 is now unlawful on a typical new lease (an example). If you buy a rental, the statute makes any successor in interest liable to the tenant for failing to return the deposit with interest, and the seller stays liable too unless the deposit is handed over with an accounting. Ask for the deposit records and the receipt before closing.

What notice does an eviction require?

Source: Real Property §§ 8-401, 8-402, 8-402.1; Tenants’ Bill of Rights.

A landlord cannot change the locks or cut utilities to force a tenant out. Only a court judgment and a warrant of restitution allow an eviction. In most unpaid-rent cases a tenant can stop the eviction by paying past-due rent and court costs, called redemption. It may be refused after three eviction judgments for unpaid rent in 12 months (four in Baltimore City).

What repair duties come with a rental?

The Tenant Safety Act of 2024 (House Bill 1117, Chapter 125, effective October 1, 2024) created § 8-212: a landlord who offers a dwelling for rent is deemed to warrant it fit for human habitation, from the start of the tenancy through its term. If a landlord does not fix serious defects after notice, a tenant may sue for damages and rent abatement, or refuse to pay rent and raise the defects as a defense. Relief cannot be conditioned on paying rent into court escrow, and a tenant who wins may recover attorney’s fees. A buyer inherits this exposure along with the building, so inspect rentals with it in mind; see our guide to home inspection costs.

Buying a home with a tenant in place

Right of first refusal (§ 8-119). It applies to tenant-occupied residential property with three or fewer units, for a tenant named on the written lease who has lived there at least 6 months. Before the property is listed or offered to a third party, the owner must send each tenant a written notice. The tenant then has 30 days to deliver an offer, and the owner has 5 days to accept or counter. If the owner gets a third-party offer without having marketed the property, the owner cannot accept it until the tenant has had the same 30 days. The section does not apply to transfers to family members, court-ordered sales, foreclosures and tax sales, among others, and it overrides local first-refusal laws. A violation carries a fine of up to $1,000. Ask the seller for proof of notice.

Ground rent. Some Maryland homes sit on leased land. Maryland has not allowed new residential ground rents since January 22, 2007 (§ 8-803). For ground leases longer than 15 years, the leaseholder may redeem (buy out) the ground rent after 30 days’ notice, for the annual rent times 8.33 if the lease was created after July 1, 1982, or times 16.66 in most other cases (§ 8-804). For example, a $120 annual ground rent would cost $1,999 to redeem at 16.66. A ground rent holder who has not registered the lease with the State Department of Assessments and Taxation may not collect rent or sue (§ 8-707). Confirm with your attorney whether your target home carries one; see real estate attorneys in Maryland.

Baltimore City. Owners must register every non-owner-occupied property each year, and within 10 days of any transfer. A rental also needs a license, which requires a passing inspection report, lead certification and no open code violations. The first license runs two years. See buying a home in Baltimore.

Before buying, read the closing costs in our Maryland closing costs guide and the steps in our home buying steps.