news & events

Landlords Be Alert for Changes in Maryland Real Estate Law

Posted October 1, 2024 at 6:57 AM

Litigation, News & Events, Real Estate

The Renters’ Rights Stabilization Act of 2024 (the “Act”) goes into effect on October 1, 2024. For landlords and residential property owners, there are several important provisions in the new law.

Tenant’s Right of First Refusal
The Act grants a right of first refusal to tenants of residential rental properties that contain three or fewer individual dwelling units. Owners are now required to give tenants the opportunity to purchase the rental property before selling to the general public. This restriction will slow down the selling process as the owner will only be able to negotiate with other buyers after the tenant declines to exercise the right to purchase. There are a few exclusions: properties with four or more individual dwelling units; transfers of title to a business entity wholly owned by the owner; transfers by a fiduciary; transfers of title in lieu of foreclosure of a mortgage/deed of trust; and family transfers.

Security Deposits Limited
The Act limits the maximum security deposit a residential landlord may charge to one month’s rent, except under special circumstances. Previously, the law allowed a landlord to charge a security deposit of up to two months’ rent.

Warrants of Restitution Time Period Extended
The Act increases the time period a landlord is required to wait between receiving a judgment of possession and seeking a warrant of restitution from 4 to 7 days. The Act also requires administrative judges to stay evictions during extreme weather conditions, including below-freezing temperatures, storm/blizzard warning, hurricane/tropical storm warnings, and excessive heat warnings.

State-Wide Office of Tenant and Landlord Affairs
Some counties, such as Montgomery County, have their own residential landlord-tenant agencies. Now there will be a state-wide agency. The Act creates an Office of Tenant and Landlord Affairs within the Maryland Department of Housing and Community Development, which will develop a Tenants’ Bill of Rights. A copy of the Bill of Rights will now be required to be included as part of all residential leases.

How MM&C Attorneys Can Help
Please contact Miller, Miller & Canby should you have any question dealing with residential lease agreements or lease disputes. Lisa Blitstein is an Associate in the Litigation department at Miller, Miller & Canby, focusing her practice on Real Estate, Landlord-Tenant, Eminent Domain, and Trusts and Estates. Michael Campbell is the firm’s Managing Partner, and focuses his practice on disputes involving real estate, construction projects and commercial leases in state and federal courts in Maryland, Virginia, and the District of Columbia and before arbitrators.

Learn more about MM&C’s Litigation Practice and Real Estate Practice.

RELATED NEWS & RESOURCES