By Adam Chubbuck, Team Leader, Team Alpha Charlie of Douglas Realty. Retired U.S. Navy Chief. Licensed in Maryland and Virginia.
Maryland changed two significant landlord rules in the last two years, and I still meet owners who are out of compliance with both.
If you own rental property in Maryland, particularly if you became a landlord accidentally by keeping a house you could not sell or inherited one you did not need, this is the article to read before your next lease renewal. The penalties here are real, tenants know these rules, and they are enforcing them.
I run Enclave Property Management out of Pasadena, so this is the operational side of my business rather than theory. Here is what actually applies.
Necessary caveat. I am a licensed Real Estate agent and a property manager, not an attorney. Landlord-tenant law changes frequently and application is fact specific. Use this to understand the landscape and retain a Maryland attorney for your situation. The Maryland Attorney General’s Consumer Protection Hotline is also a resource at 410-528-8662 or 1-888-743-0023.
Change One: The Security Deposit Cap Dropped to One Month
This is the change that catches the most owners.
For leases signed on or after October 1, 2024, Maryland’s security deposit cap is one month’s rent. Previously it was two months. The change came through HB 693, amending Maryland Code, Real Property Section 8-203.
Older leases are grandfathered, but any renewal must comply. That is the trap. An owner who collected two months in 2023 and renews that tenant in 2026 without addressing it has a problem.
The exception is genuinely narrow. A two month deposit is permitted only when all of these conditions are met: the tenant is eligible and has qualified for utility assistance through the Department of Human Services, the lease requires the tenant to make utility payments directly to the landlord, and the tenant and landlord agree in writing to the amount. All three, not any one.
The penalty is severe and tenants know it
If you charge more than the legal maximum, the tenant may recover up to three times the extra amount charged, plus reasonable attorney’s fees.
Work the math. A Severna Park townhome renting at $2,800 a month has a legal maximum deposit of $2,800. Collect $5,600 under the old rule and you have created $2,800 of overcharge, which becomes up to $8,400 of exposure plus legal costs.
Action item: audit every active lease. Confirm no deposit collected on a lease signed on or after October 1, 2024 exceeds one month’s rent. Fix any renewal that carries the old amount forward.
Change Two: Entry Notice Dropped to 24 Hours
As of October 1, 2025, Maryland landlords must give at least 24 hours’ notice before entering a rental unit, reduced from 48 hours by HB 1076. Entry must be at a reasonable time.
Emergencies such as fire or flooding permit entry without advance notice.
Action item: update your lease template and your actual practice. This one is easy to comply with and easy to forget.
The Security Deposit Rules You Need to Get Right
Beyond the cap, the mechanics matter and this is where owners create liability without realizing it.
Where the money sits. Deposits must be held in a Maryland financial institution, in a separate interest-bearing account, and not commingled with your own funds. Not your personal checking account. Not your operating account.
Interest is owed. Per the Maryland Department of Housing and Community Development, no interest is due unless the deposit has been held for at least six months, and no interest is due for any period less than a full month. For leases after January 1, 2015, the rate is 1.5 percent or the daily U.S. Treasury yield rate, whichever is greater, taken from the first business day of the calendar year.
Note: you will see 3 percent cited in various places online, which reflects an older rate structure. DHCD publishes a Rental Security Deposit Calculator, and that tool is what you should be using rather than a number you read somewhere. Interest rules apply statewide.
The 45 day return deadline. You must return the deposit with interest no later than 45 days after the tenant moves out. Within that window you must send a written list of all damages beyond normal wear and tear along with a statement of costs actually incurred.
If you do not send the list, you owe the full deposit back. This is the single most common way owners lose money they were legally entitled to keep. Deductions require written specification within the 45 day period. No list, no deductions.
The receipt has to explain rights. Your security deposit receipt must inform the tenant of their rights, including the right to request a move-in inspection, to be present at the move-out inspection, to receive itemized deductions, and to receive the remaining deposit within 45 days.
Move-in inspection. A tenant may request a move-in inspection within 15 days of move-in. Honor it, and document it thoroughly, because it protects you as much as them.
The Tenants’ Bill of Rights Attachment
Your lease template must include the current Maryland Tenants’ Bill of Rights as an attachment.
The operative word is current. Download the latest version from dhcd.maryland.gov before each lease signing rather than reusing a copy from two years ago.
Lead Paint: The Requirement With the Biggest Teeth
If your rental was built before 1978, this applies and it is not optional.
Maryland maintains registration, disclosure, and risk reduction requirements for pre-1978 rental properties, administered through the Maryland Department of the Environment. The core obligations:
- Registration of the affected property with MDE, with renewal
- Certification demonstrating compliance with risk reduction standards
- Disclosure to tenants, including the EPA-approved pamphlet “Protect Your Family from Lead in Your Home”
- Compliance with risk reduction standards at specified trigger events including tenant turnover
Why this matters more than the other items on this list. Lead paint non-compliance carries the most serious exposure in Maryland landlord law, including significant liability in the event of a child’s lead exposure. It also affects your ability to defend a rent escrow or eviction action.
A large share of the affordable rental housing stock in Baltimore City, Glen Burnie, Brooklyn Park, Essex, and older parts of Anne Arundel County predates 1978. If you own in those markets, verify your registration and certification status now rather than after a complaint.
Verify current requirements directly with MDE, since the program has specific technical requirements around inspection, certification, and timing that go beyond what any article should summarize.
Late Fees and Rent Increases
Late fees are capped at 5 percent of the monthly rent under Maryland Code, Real Property Section 8-208. Maryland does not require a grace period by statute, though your lease may provide one.
Rent increases. Anne Arundel County, Howard County, and Frederick County do not have rent control or rent stabilization policies. Takoma Park, Montgomery County, and Prince George’s County do. In non-stabilized jurisdictions, increases require proper written notice per the lease and applicable local rules, commonly 30 to 90 days.
Retaliation is prohibited. You may not raise rent, decrease services, or threaten eviction because a tenant filed a complaint, exercised a legal right, or joined a tenant organization.
Notice to Terminate
Most Maryland month-to-month tenancies require one month’s written notice from either party. Montgomery County and Baltimore County require 60 days for some tenancies. Check your county’s rules and your lease for the applicable period.
Rent Escrow, and Why Documentation Is Now Your Defense
Maryland does not permit repair-and-deduct. A tenant cannot lawfully withhold rent to fund their own repairs.
What they can do is petition the District Court to place rent in escrow under the rent escrow statute, based on conditions affecting habitability.
Here is why this section matters to you. Maryland has moved toward more tenant-friendly presumptions in rent escrow actions. That makes your documentation your primary defense. Every maintenance request received, every response time, every notice sent, every inspection performed, and every repair completed.
If you self-manage and your record keeping consists of text messages and memory, you are exposed. Build a real system or hire someone who has one.
Local Licensing: Check Your Jurisdiction
State law is the floor. Individual jurisdictions layer their own requirements on top, and these vary considerably.
Baltimore City, Montgomery County, and Prince George’s County each maintain their own licensing, inspection, and rent rules in addition to state law.
Requirements typically include registration or licensing of the rental unit, periodic inspection, and fees. Some jurisdictions will not permit you to file for possession in a rent case if you are not properly licensed, which turns a licensing oversight into an inability to enforce your own lease.
Verify what applies to your specific property with the jurisdiction it sits in. Do not assume that because Anne Arundel County has no rent control it also has no licensing requirement. Call and ask.
The Self-Management Audit
If you self-manage in Maryland, work through this list:
- Every active lease. Deposit at or below one month’s rent for anything signed on or after October 1, 2024, and any renewal brought into compliance.
- Deposit account. Separate, interest-bearing, at a Maryland financial institution, not commingled.
- Deposit interest. Calculated using the DHCD calculator, not a remembered rate.
- Security deposit receipt. Explains the tenant’s rights including move-in inspection, move-out presence, itemized deductions, and 45 day return.
- Lease template. Current Maryland Tenants’ Bill of Rights attached, downloaded fresh.
- Entry notice. 24 hours, reflected in both your lease and your practice.
- Late fee. No more than 5 percent of monthly rent.
- Lead paint. If built before 1978, MDE registration current, certification current, EPA pamphlet delivered and documented.
- Local licensing. Verified with the jurisdiction, current, inspections passed.
- Documentation system. Every request, response, notice, and repair recorded with dates.
Move-out procedure. Inspection scheduled with tenant notice, itemized written damage list with actual costs sent within 45 days, deposit plus interest returned in the same window.
When It Makes Sense to Hand This Off
I am obviously not neutral here, so take this for what it is worth and judge it on the reasoning.
Self-management works well when you own one nearby property, you have time during business hours, you have a system for documentation, and you keep up with statutory changes. Plenty of owners do this successfully.
It works poorly when you own several properties, live out of the area, travel for work, are deployed, or became a landlord accidentally and have never wanted the job. And it works poorly when the compliance layer moves faster than your attention does, which is exactly what happened to owners who missed the October 2024 deposit change and the October 2025 entry notice change.
The honest framing: management fees are a real cost. Non-compliance is a real cost too, and it is lumpier and less predictable. A single deposit overcharge claim at three times the excess plus attorney’s fees can exceed a year of management fees.
Enclave Property Management operates out of Pasadena and handles residential property across the Baltimore to Annapolis corridor. If you want to talk through whether handing it off makes sense for your situation, or you just want a second set of eyes on whether your current setup is compliant, reach out through Team Alpha Charlie. I will tell you honestly if you are fine self-managing.
If you are earlier in the process and evaluating whether to become a landlord at all, my guide to buying a first rental property in Anne Arundel County covers the investment math, and the free Maryland home valuation will tell you what selling instead would produce.
Maryland Landlord Compliance FAQ
How much can a Maryland landlord charge for a security deposit in 2026?
One month’s rent for leases signed on or after October 1, 2024, reduced from the previous two month cap by HB 693. A two month deposit is permitted only when all three of these apply: the tenant qualifies for utility assistance through the Department of Human Services, the lease requires the tenant to pay utilities directly to the landlord, and both parties agree in writing. Charging more exposes you to up to three times the excess plus the tenant’s attorney’s fees.
When must a Maryland landlord return a security deposit?
Within 45 days of the tenant moving out, with interest where applicable. Within that same window you must send a written itemized list of damages beyond normal wear and tear with a statement of costs actually incurred. If you do not send the list, you must return the full deposit plus interest regardless of actual damage.
How much interest do I owe on a Maryland security deposit?
Per DHCD, no interest is due unless the deposit has been held at least six months, and none accrues for periods less than a full month. For leases after January 1, 2015, the rate is 1.5 percent or the daily U.S. Treasury yield rate, whichever is greater, taken from the first business day of the calendar year. DHCD publishes a Rental Security Deposit Calculator, which is the tool to use rather than a rate you read online.
How much notice must a Maryland landlord give before entering?
At least 24 hours as of October 1, 2025, reduced from 48 hours by HB 1076, and entry must be at a reasonable time. Emergencies such as fire or flooding permit entry without advance notice.
What are Maryland’s lead paint requirements for rentals?
Rental properties built before 1978 are subject to registration, disclosure, and risk reduction requirements administered through the Maryland Department of the Environment, including MDE registration and renewal, certification of compliance with risk reduction standards, and delivery of the EPA pamphlet “Protect Your Family from Lead in Your Home” to tenants. This carries the most serious liability exposure in Maryland landlord law. Verify current requirements directly with MDE.
Does Anne Arundel County have rent control?
No. Anne Arundel County, Howard County, and Frederick County do not have rent stabilization policies. Takoma Park, Montgomery County, and Prince George’s County do. In non-stabilized jurisdictions, rent increases require proper written notice under the lease and applicable local rules, and retaliatory increases are prohibited.
Can a Maryland tenant withhold rent for repairs?
Not through repair-and-deduct, which Maryland does not permit. A tenant may petition the District Court to place rent in escrow under the rent escrow statute based on conditions affecting habitability. Because Maryland has moved toward more tenant-friendly presumptions in these actions, your documentation of every maintenance request, response, and repair is your primary defense.
Sources and Dates
Security deposit cap, exception conditions, penalty provisions, account requirements, and 45 day return and itemization requirements reflect Maryland Code, Real Property Section 8-203 as amended by HB 693 (Chapter 124, 2024), effective October 1, 2024, as summarized in published 2026 Maryland landlord-tenant guidance and the Maryland People’s Law Library. Security deposit interest rules and rates reflect the Maryland Department of Housing and Community Development Rental Security Deposit Calculator guidance. Entry notice requirements reflect HB 1076, effective October 1, 2025. Late fee cap reflects Maryland Code, Real Property Section 8-208(d)(3). Tenants’ Bill of Rights attachment requirement, move-in inspection timing, rent escrow provisions, notice to terminate periods, rent stabilization jurisdictions, and local licensing information reflect published 2026 Maryland landlord-tenant guidance. Lead paint requirements are administered by the Maryland Department of the Environment and must be verified directly with that agency. Laws change frequently and application is fact specific. This article is general information and not legal advice. Retain a Maryland attorney for your situation and verify all requirements with the relevant state agency and your local jurisdiction.
Let’s Talk About Your Move
If you own rental property in Maryland and you are not certain your leases, deposits, and lead certifications are current, that is worth an hour of attention before it becomes a claim. Reach out and I will walk through it with you, whether or not you end up handing off management.
I am Adam Chubbuck, Team Leader of Team Alpha Charlie of Douglas Realty. I am a retired U.S. Navy Chief, a licensed Real Estate agent in Maryland and Virginia, and I have closed more than 350 homes over the past five years across the Baltimore to Annapolis corridor. My team serves buyers and sellers throughout Anne Arundel County, Howard County, Baltimore County, Baltimore City, and the surrounding markets, with deep experience supporting military, veteran, and Department of Defense families. I also run Enclave Property Management out of Pasadena, Maryland, so I see this market from the ownership side as well as the sales side.
If you are weighing a move, start with a real conversation and real numbers. Reach me directly at 443-347-6692, email [email protected], or start at TACMD.com.
Adam Chubbuck
Team Leader, Team Alpha Charlie of Douglas Realty
Douglas Realty | Licensed in MD and VA
443-347-6692 | [email protected] | TACMD.com
Smile more,
Adam Chubbuck
