Renting Out Your Property in Maryland: A Guide for Landlords

Familiarize yourself with Maryland's landlord-tenant laws, particularly the Maryland Real Property Code §§ 8-101 through 8-604. Pay special attention to security deposit limits (maximum of two months' rent), interest requirements, and return timelines (within 45 days). Also review local county and city ordinances as they may have additional requirements beyond state law.

Most Maryland counties and municipalities require landlords to obtain a rental license before renting property. Requirements vary by location - for example, Baltimore City, Montgomery County, and Prince George's County all have different licensing processes. Contact your local housing department to determine specific requirements for your area. Typically involves property inspection, fee payment, and renewal every 1-2 years.

Draft a comprehensive lease agreement that complies with Maryland law. Include required disclosures about security deposits, rent collection, maintenance responsibilities, and tenant rights. Maryland requires specific language regarding security deposits and certain disclosures. Consider consulting with a real estate attorney to ensure your lease is legally compliant with both state and local laws.

Develop an application form to screen potential tenants. Include sections for personal information, rental history, employment details, income verification, and authorization for background and credit checks. Ensure compliance with Fair Housing laws which prohibit discrimination based on protected classes. In Maryland, you cannot discriminate based on source of income in many counties.

For properties built before 1978, Maryland law requires landlords to provide tenants with a lead-based paint disclosure form and the EPA pamphlet 'Protect Your Family from Lead in Your Home.' Maryland has stricter lead paint regulations than federal law, including mandatory registration with the Maryland Department of the Environment and risk reduction certifications.

Develop a detailed checklist documenting the condition of the property before move-in and after move-out. This helps prevent disputes over security deposit deductions. Include photographs dated with timestamps as additional documentation. Both landlord and tenant should sign this form at move-in and move-out.

Create a document outlining house rules that aren't included in the lease but are binding when referenced in the lease. This may include quiet hours, guest policies, maintenance expectations, trash disposal instructions, and other community standards. Ensure these rules don't contradict tenant rights under Maryland law.

Maryland law requires landlords to provide tenants with a receipt for security deposits that includes specific information about the tenant's rights. The receipt must inform tenants that they have the right to be present for the move-out inspection and that deposits must be returned within 45 days with an itemized list of any deductions.

Prepare a form to notify tenants when you need to enter the property. Maryland requires landlords to give reasonable notice before entering (typically 24 hours except in emergencies). This form should document the date, time, and purpose of entry to maintain proper records of property access.

If you're renting property as a business entity (LLC, corporation, etc.), register with the Maryland Department of Assessments and Taxation. Individual landlords may need to file a business tax return depending on rental income. Consider consulting with a tax professional about potential deductions and tax obligations.

Maryland law requires security deposits to be held in a separate account in a Maryland financial institution. The account must be designated as an escrow account. For deposits over $50, landlords must pay interest on the deposit (currently 1.5% per year or the U.S. Treasury yield, whichever is higher).

Secure landlord insurance (also called rental property insurance) which typically includes property damage, liability coverage, and loss of rental income. Standard homeowner's insurance doesn't cover rental activities. Consider requiring tenants to obtain renter's insurance as part of your lease terms.

Arrange for any required inspections based on local regulations. Many Maryland jurisdictions require rental properties to pass health and safety inspections before a license is issued. These may include checks for working smoke detectors, carbon monoxide detectors (required in Maryland for properties with fuel-burning equipment), proper egress, and other safety features.

Check if your property is subject to any rent control or stabilization ordinances. While Maryland doesn't have statewide rent control, some localities like Takoma Park have their own rent stabilization laws that limit rent increases. Violating these ordinances can result in significant penalties.

Set up a system for collecting and documenting rent payments. Consider online payment options, which provide automatic records. Maryland law doesn't specify payment methods, so landlords can determine acceptable forms of payment, but these must be clearly stated in the lease agreement.