Leases

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What is a lease?

A "lease" is any oral or written agreement, express or implied, that creates a landlord-tenant relationship, including any sublease and any further sublease.

Read the Law: Md. Code, Real Property § 1-101(h)

A lease for a term of 1 year or less is valid whether it is written or oral. However, any lease for more than 1 year must be in writing and signed by the person creating it if it is to be enforceable.

Read the Law: Md. Code, Real Property §§ 5-101; 5-102

A landlord who rents using a written lease must, upon written request by an applicant, provide a copy of the proposed lease, complete in all important details except the date, rental rate, designation of the premises, and tenant's name/address. A landlord must provide this copy without requiring a deposit or actual execution of the lease.

Local laws may supplement but may not diminish any right or remedy granted by Maryland state laws.

Read the Law: Md. Code, Real Property § 8-208

 

Required and Prohibited Lease Provisions

A residential lease must include:

  • a statement that the premises will be made available in a condition permitting habitation, with reasonable safety, if that is the agreement, or if that is not the agreement, a statement of the agreement concerning the condition of the premises;
  • the landlord's and tenant's specific obligations as to heat, gas, electricity, water, and repair of the premises; 
  • a receipt for the security deposit; and
  • a link to the Department of Agriculture fact sheet that provides information about caring for and protecting pets in the event of eviction
    • the law requires the landlord to provide a link to the fact sheet if "the landlord knows the tenant possesses a pet."

A lease may NOT include any provision that:

  • has the tenant authorize any other person to confess judgment on a claim arising from the lease;
  • asks the tenant to agree to waive any right or remedy provided by law;
  • asks the tenant to pay a late fee penalty which is greater than 5% of the amount of rent due for the period for which payment is late. (However, where rent is paid in weekly installments, a penalty of $3 may be charged for each late payment, up to a maximum of $12 per month even if this exceeds the 5% limit on late fee charges.) If the landlord includes such a provision, the landlord may be unable to collect any late fees;
  • asks the tenant to waive their right to jury trial;
  • asks the tenant to agree to accept a shorter period for notice to quit than that provided by law.  (However, both parties may agree to a longer period, so long as the tenant is not required to give more notice than the landlord must give.);
  • authorizes the landlord to take possession of the premises or tenant's property without legal process, unless the lease has been terminated by the parties or by action of law, and the tenant has abandoned their personal property there; 
  • is against public policy and void as an invalid exculpatory clause; 
  • allows the landlord to start an eviction case for participating in a tenant organization; or,
  • limits the tenant's ability to summon law enforcement or emergency services.

Exculpatory clauses - An exculpatory clause prevents the tenant from holding the landlord liable for damages related to the lease. A landlord cannot shield themselves from liability where the effect of a lease provision would shield a landlord from liability to a tenant or other person for any injury or damage caused by negligence, fault, omission, etc., of the landlord relating to any part of the leased premises not within the exclusive control of the tenant. This type of lease provision is against public policy and is void.

NOTE:  Such exculpatory clauses are still found in many leases, and while not enforceable in court, could lead the tenant to think that the landlord is not liable for injury or damage when in fact the landlord may be liable.

Read the Law: Md. Code, Real Property § 8-208; § 8-105

Penalties for Including a Prohibited Provision - Any lease provision which is prohibited by law cannot be enforced by the landlord. For certain prohibited lease provisions, if a landlord attempts to enforce or makes known to the tenant that the landlord intends to enforce a prohibited lease provision, the tenant may recover actual damages, including reasonable attorneys' fees.

Read the Law: Md. Code, Real Property § 8-208; § 8-105; § 8-203; §14–804.

 

Notice of Rent Increase

A landlord may only raise rent when a lease is renewed. If the landlord plans to raise the rent in the new lease, they must notify the tenant. The amount of notice depends on how long the lease is:

  • Tenancy longer than 1 month - 90 days
  • Tenancy more than 1 week, but less than 1 month - 60 days
  • Tenancy of less than 1 week
    • 7 days notice for written leases
    • 21 days notice for oral leases

Note that counties and municipalities may have laws that require more notice.

Read the Law: Md. Code, Real Property § 8-209

 

Automatic Renewal Provisions for Periods of More Than One Month

Where a lease provides for automatic renewal of the lease unless prior notice is given by the party seeking to terminate the lease, that renewal provision must be distinctly set apart from the other provisions of the lease, and space must be provided for tenant's written acknowledgment of that provision. Without tenant's signature, initials, or witnessed mark, the landlord may not enforce the automatic renewal clause. The validity of the rest of the lease is not affected by the absence of tenant's acknowledgment of the automatic renewal clause. This only applies to automatic renewal periods of more than one month. 

Read the Law: Md. Code, Real Property § 8-208

 

Late Payment of Rent: Penalties

The penalty for late payment of rent may be no more than 5% of the amount of rent due for the period for which payment is late. However, where rent is paid in weekly installments, landlord may charge $3 for each late payment up to a maximum of $12 per tenant per month even if it exceeds the 5% limit. A landlord cannot collect any late fee if the lease provision specifies a penalty that exceeds the amount allowed by law. Also, if a landlord includes a prohibited provision in the lease, or attempts to enforce or make known to tenant the landlord's intent to enforce such a provision, tenant may recover actual damages incurred, including attorneys' fees. 

Read the Law: Md. Code, Real Property § 8-208

 

Landlords with Five or More Units

Written Lease Required - Landlords who offer 5 or more rental units for rent in the State must use a written lease for residential dwellings. Failure of the landlord to use a written lease results in the presumption of a one-year tenancy from the date of the tenant's first occupancy unless the tenant elects to end the tenancy at an earlier date by giving one month written notice.

A landlord who offers 5 or more dwelling units for rent in the State, must include in each lease, a statement that the premises will be available in a reasonably safe, habitable condition; or, if that is not the agreement, the lease must include a statement concerning the condition of the premises; a statement specifying landlord's and tenant's obligations as to heat, gas, electricity, water, and repair of the premises.

Read the Law: Md. Code, Real Property § 8-208

Lease Application - Each lease application must include a statement which explains the liabilities tenant incurs upon signing the application. In addition, if a landlord requires a prospective tenant to pay any fees other than a security deposit, and those fees exceed $25, then the landlord must return the fees no later than 15 days after the date of occupancy, or no later than 15 days after written communication by either landlord or tenant to the other that no tenancy will occur. If landlord does not comply, the the landlord is liable for twice the amount of the fees. However, the landlord may retain the amount actually expended for a credit check or for other expenses arising out of the application. Note that this applies only to landlords who offer 5 or more rental units on one parcel of property or at one location. It does not apply to seasonal rentals or condominium rentals.

Read the Law: Md. Code, Real Property § 8-213

 

Source
Fair Housing Action Center of Maryland (formerly Baltimore Neighborhoods (BNI))
Source URL: https://www.peoples-law.com/leases

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