Being a Landlord

The business of owning and managing residential rental property is much like any business. It takes research, planning and knowledge. As a Maryland landlord, it is important that you know the federal, state and local laws governing the landlord tenant relationship.

The business of owning and managing residential rental property is much like any business. It takes research, planning, and knowledge. As a Maryland landlord, it is important that you know the federal, state, and local laws governing the landlord tenant relationship. This article presents some things to keep in mind, should the opportunity and inclination arise to be a landlord.

Before Renting

Check the Condition of the Property

The property should be in general good condition. Major systems, such as plumbing, electrical, heating and cooling (HVAC), and the roof, should be safe, functional, and up to code. Maryland law requires landlords to maintain rental properties in a habitable condition, which includes ensuring that these core systems work properly. If the property is not already up to code or in compliance with local housing or rental licensing requirements, you may need to invest in renovations or upgrades before you can legally rent it. Hiring a licensed home inspector is highly recommended. An inspection can help identify any necessary updates or code violations that could delay or prevent you from renting the property legally.

Know Local Licensing Requirements

Many Maryland jurisdictions require landlords to register or license rental properties. Check to see if your city or county requires you to have a license or to register the rental property.

Understand Your Legal Rights Responsibilities

Familiarize yourself with Maryland’s landlord-tenant laws, including;

The Lease

A lease is a legally binding contract between the landlord and the tenant, whether it is oral or written. Oral leases are legal in Maryland for the landlord who owns fewer than 5 rental units in the state. However, written leases are strongly recommended and required for rental terms longer than one year. Choosing a lease type:
Month-to-month leases offer flexibility, especially for new landlords.
Yearly leases provide more stability and predictability.

Regardless of the term of the lease, make sure to include clear terms in the lease, such as:

Rent amount and due date
Late fees
Rules about pets, subletting, and occupancy
Responsibilities for utilities and maintenance

If your lease contains an automatic renewal clause, make sure the tenant reads the clause and signs it.

Learn more about required and prohibited lease provisions.

Credit Check and Security Deposit

Screening Applicants

Check the Applicant’s Credit: You can request that an applicant obtain a copy of their credit report to give to you. Or, you run your own credit check. If you run your own, you may charge the applicant a fee for your actual costs.
Confirm the Applicant's Employment: As a rule of thumb, yearly rent should not exceed 30% of a tenant's gross income. If, for example, yearly rent is $3,000, the tenant's gross income should be at least $10,000.
Contact Previous Landlords: Require the tenant to provide contact information for previous rentals. Ask the previous landlord specific questions as to rent record, conduct, and care of property. If there are problems, discuss the specifics with the tenant before entering into the lease.

Collecting Deposits

You should require a security deposit and the first month's rent before allowing the tenant to move in. It is risky to give possession of the property to a tenant who is not able to pay this money up front. Be aware that the security deposit law limits a security deposit to no more than the equivalent of 1 months’ rent. It also requires the landlord to inform the tenant in writing, at the time the tenant pays the security deposit, of the right to be present at an inspection of the property at the end of the tenancy. Landlords must include a receipt for the security deposit in the written lease.

In some situations, landlords can require 2 months’ rent for the security deposit. Learn more about security deposits.

Records and Communication

Keep accurate records - especially for rent. Give rent receipts. The law requires you to give receipts to tenants who pay by cash and to any tenant who requests them. Failure to provide receipts as required makes a landlord liable to the tenant for $25.

Read the law: Md. Code, Real Property § 8-205

Establish good communication with your tenant, respect their privacy and treat them with dignity.

Ending a Lease

Provide Notice

If you want to terminate a lease, even if the lease has a termination date, you must provide written notice to the tenant. Maryland law requires minimum notice requirements based on the type of lease. For more information on termination of a lease see Termination and Modification of Tenancy.

Never Self-Evict

Never take the law into your own hands. You may not:

lock a tenant out
deny the tenant access to the property
shut off utilities or other essential services

Even if the tenant has not paid rent, or has not moved after the expiration of the lease, you must go though the legal eviction process. Taking matters into your own hands is illegal and can expose you to serious legal consequences.

Learn more about evictions for failure to pay rent and tenants holding over.

Source

Fair Housing Action Center of Maryland (Formerly Baltimore Neighborhoods, Inc.); Updated by Web Services Librarian.