An Overview of Rent Control in Maryland
The concept of rent control is that the rent a tenant pays for their unit cannot be raised by an unreasonable amount or too quickly. However, Maryland does not have any statewide rent control laws that would apply. Of course, what constitutes an unreasonable amount or what is too quickly to raise rent would depend on various issues such as local laws, the lease between the tenant and landlord, and market issues in the area where the property is located.
Several municipalities in Maryland do have rent control laws. For example , Baltimore City has laws regulating increases in rent. The rent control law in Baltimore City is administered by the Rent Stabilization Board, which is part of the Baltimore City Department of Housing and Community Development. The board’s responsibilities include setting the annual rent increase permissible for the next year, which is typically in April of each year.
The City of Takoma Park has similar rent increase limitations. Tenants living in Montgomery County also have additional rights under county law. Tenants living in Prince George’s County and Howard County do not have any rights beyond those provided by state law concerning rent increases.
Rent Hike Limits
Maryland law does not impose specific caps on how much a landlord may increase rent. This gives landlords a broad authority as long as they follow lease terms. Owners can raise the rent a set amount at the lease renewal time or with a certain amount of notice before a scheduled increase. Their right to raise the rent does not extend to increasing the rental costs without notice.
As a general rule, Maryland lease laws state that a landlord may increase rent for an active lease period only when the lease allows for such an increase. A lease is a contract that governs the terms of a rental between a landlord and a tenant. If the lease contains a rent increase provision, then the terms of the lease dictate when and how much it can be increased.
A landlord must provide a minimum of 60 days written notice of intent to increase rent if the lease does not contain a rent increase provision. The law requires that the tenant receive the notice before the increase takes effect. Tenants should keep this in mind so there are no surprises once the new rent is due.
For Month-to-Month Tenants — If a tenant pays rent on a month-to-month basis, a landlord can increase the price as long as they provide at least one month’s notice before the next rent is due.
Notice Requirements for Rent Increases
Maryland landlords have a statutory duty to provide tenants with proper notice of rent increases. The notice must be in writing and include the amount of the rent increase and the date it will go into effect. In most situations, no additional firm is required, but failure of proper notice can result in problems for landlords if the increase is challenged by a tenant. The official notice of a rent increase must be provided for all residential and commercial leases. The Maryland Department of Housing and Community Development suggests a simple rent increase template that landlords can fill out and give to tenants at least 60 days prior to the effective date of the increase. Common pitfalls include failing to provide information about new payment dates increases, address changes, and more. In addition, many counties in Maryland may have specific requirements that are required on a county level. These requirements can be very specific, along with regulations that dictate when a landlord can implement a rent increase. For example, while Maryland law requires a notice of a rent increase at least 30 days prior to the start of the next lease period (for month-to-month leases), some counties require 90 days prior for certain types of tenancies. Failure to follow the proper procedures can result in a tenant being able to challenge a rent increase and possibly negotiate terms or delay the increase. To determine what requirements are in place (both by the state and/or the county) and what can be done to challenge an increase (if the notice is not given at the proper time), a lawyer specializing in Maryland real estate matters should be consulted.
Local Jurisdictions and Rent Control
Local jurisdictions in Maryland vary widely concerning their rules on rent increases. For example, Baltimore City has advanced legislation that evens the playing field for renters. This includes the Tenant Baltimore website, a tenant specific resource that has frequently updated content on local regulations, upcoming events, and related tenant issues. The Montgomery County Rental Licensing and Registration program provides information on a range of landlord-tenant concerns. Washington DC has overseen the enactment of the Rental Housing Act of 1985, which established the Rental Housing Commission and the Office of the Tenant Advocate. As a result, Washington D.C.’s rent control laws are among the strongest in the country, with more tenants protected than in any other state.
The local jurisdictions vary widely in their rules on rent increases, although several provide advance notice for each increase. A notable example is the Howard County Landlord-Tenant Handbook that provides extensive detailed information on the law around rent increases, including the following:
Howard County also limits the amount of rent increases to twice every twelve months, and only for buildings older than seven years.
Baltimore County requires landlords to give tenants at least 30 days’ written notice of a rent increase, which must include the date, amount, and the date by which the increase must be paid. All rent increases are subject to limitations: for the first six months of a new one-year rental agreement, 5% of the rent charged; for the subsequent six months, 10% of the monthly rent.
Other localities are less liberal. In Howard County, the limit on rent increases is 5% or the increase in CPI, whichever is lower, while in Annapolis, the rent increase at the time of renewal cannot exceed 10% of the monthly rent charged in the last month of the preceding term. The Anne Arundel County Landlord Tenant Handbook also states that "a rent increase or decrease is not permitted during the term of a lease… unless the lease agreement includes a provision for the rent to be adjusted. To increase the rent,… the landlord must abide by the requirement that the increase be ‘reasonable’."
While many states have passed laws to slow down rent increases, there haven’t been any enforceable laws in Maryland. In 2020, MoCo introduced Bill 22-20 that would have included establishing limits on rent increases and prohibiting landlords from terminating a tenancy without cause. Many Washington, D.C. tenants are now facing eviction because their housing prices doubled due to the recession brought on by the COVID-19 pandemic. MoCo’s proposed Bill 22-20 was voted down 7-2 by the county council due to pushback from the landlord lobby, specifically the Apartment & Office Building Association (AOBA). However, the council members were clearly aware of this issue. "I think our community needs some sort of measure to address it," said council member Will Jawando.
During the COVID-19 pandemic, policies were implemented to stop border evictions and regulate border increase for existing tenants and low-income renters.
Rights as a Tenant and Actions to Consider
Under Maryland law, unless a lease specifically states otherwise, landlords have the right to raise the rent as they see fit at the end of a lease period. If there was no lease period, the tenant must be given 90 days’ notice to pay the increased rent (or vacate). Once paid, the new rent will be considered as the new rental amount and the time period for the tenant to pay rent will restart after 90 days.
However , while a landlord can raise the rent, they cannot purposefully raise the rent to get rid of a tenant. In instances where a landlord is violating the ordinance, tenants can recover damages. The Fair Housing Act protects tenants from housing discrimination and establishes the rules surrounding nondiscrimination.
Effects on the Lease and the Tenancy
When it comes to continuing the tenancy, a reasonable increase in rent will usually not impact the relationship between a tenant and landlord too much. However, lease agreements are not always written in stone. For example, if you are currently paying a below market rate and a large percentage increase is due, you should speak with the landlord or management in order to negotiate a lower raise in rent. If negotiations fail and you still can’t afford the increased rent, you will need to look into moving as an option for maintaining a tenancy while finding a suitable place to live at the same time.
If you are able to successfully negotiate a lower increase in rent, your lease agreement can just be updated with the new amount, or you can simply continue to pay the current rent rate. You may want to have future increases caped in the lease so you don’t have to negotiate each and every time.
Note that if you don’t pay your rental increase, you may be evicted for failure to pay rent under Maryland landlord-tenant law.
How to Combat Illegal Rent Hikes
The first step for a tenant who wishes to challenge a rent increase will usually be to file a complaint with that local jurisdiction’s Department of Housing and Community Development (or its equivalent). The complaint should detail the circumstances of the rent increase, including but not limited to, the date the rent increase was announced, the increase amount and name of the party responsible for paying the increased rent. The Department of Housing and Community Development will then review the complaint for possible violations of Maryland’s laws regulating rent increases and take any further action necessary, including issuing a determination regarding the validity of the rent increase . Another option to consider may be seeking legal advice. Depending on the jurisdiction, a tenant may also be able to contact a housing office or local bar association for tips or advice related to challenging a particular type of rent increase. At a minimum, whether they file an administrative complaint or seek legal advice, a tenant should be sure to keep copies of any documents provided by the court and organized for possible future use in the event a hearing or trial become necessary.