Essential Guide: Maryland Renters Rights and Stabilization Act 2024 – What You Need to Know

Table of Contents

The Maryland Renters Rights and Stabilization Act represents a pivotal shift in addressing the state’s housing crisis, where rising costs and limited availability have created significant challenges for both tenants and property owners. This landmark legislation establishes new protections against displacement while creating a more balanced rental market.

The Act directly addresses growing concerns about affordability and tenant protections that have become increasingly prevalent throughout the state. For landlords and tenants alike, these new regulations affect everything from rent increases to lease terminations and evictions. 

Nomadic Real Estate’s property management services can help navigate these complex changes, ensuring compliance while fostering healthier landlord-tenant relationships. Our team of experts specializes in translating legal requirements into practical, transparent rental practices that protect both property owners and residents.

Key Takeaways:

  1. Comprehensive Protection: The Maryland Renters Rights and Stabilization Act creates a framework for affordable housing by limiting annual rent increases and enhancing tenant protections against unjustified evictions.
  2. Lease Transparency: Landlords must provide clearer lease terms with plain language about rent increases, maintenance responsibilities, and tenant resources.
  3. Security Deposit Reforms: The Act implements caps on security deposits (typically one month’s rent) and requires interest accrual and timely returns.
  4. Local Enforcement: County governments are empowered to create enforcement offices to ensure compliance with the new regulations.
  5. Compliance Requirements: Landlords face new documentation obligations for rent increases, lease transparency, and eviction protocols, with penalties for non-compliance.

Understanding the Maryland Renters Rights and Stabilization Act

The Maryland Renters Rights and Stabilization Act represents a comprehensive approach to addressing the state’s housing challenges. Introduced in the 2024 Regular Session with strong backing from tenant advocacy groups, this legislation aims to combat unaffordable housing and provide renters with enhanced legal protections.

The Act applies to most residential landlords and tenants throughout Maryland, creating a standardized framework for rental practices across the state. By establishing clearer guidelines for rent increases, eviction procedures, and lease agreements, the legislation seeks to create a more balanced and transparent rental market.

For property owners and managers, understanding the scope and requirements of the Maryland Renters Rights legislation is essential for maintaining compliance and avoiding potential penalties. For tenants, the Act provides important protections and resources that can significantly impact their housing stability and financial planning.

5 Essential Provisions of the Maryland Renters Rights Act

1. Maryland Renters Rights Regarding Rent Increase Caps

One of the most significant aspects of the Maryland Renters Rights and Stabilization Act is the implementation of rent increase limitations. Under the new regulations, landlords must adhere to annual increase caps based on the Consumer Price Index (CPI), typically between 3% and 5% in most cases.

Key rent stabilization measures include:

  • Annual increases capped at 3-5% based on the Consumer Price Index
  • Mandatory 90-day written notice before any rent increase takes effect
  • This applies to both lease renewals and rolling month-to-month leases
  • Documentation requirements for justifying any increase
  • Special provisions for properties in designated affordable housing zones

These provisions provide tenants with greater predictability in their housing costs while giving them sufficient time to plan for changes. For property managers and owners, this means developing more strategic approaches to property valuation and rental pricing. 

While the legislation does place limitations on increases, it still allows for reasonable adjustments that reflect market conditions within the established parameters.

2. Maryland Renters Rights Eviction Reform Provisions

The Maryland Renters Rights and Stabilization Act also introduces significant reforms to eviction procedures, establishing stricter protections for tenants facing potential displacement. Under these new regulations, landlords can only pursue eviction for just cause, such as nonpayment of rent, lease violations, or property sale circumstances.

Furthermore, the legislation extends notice periods for eviction proceedings and requires more comprehensive documentation throughout the process. These changes aim to ensure that tenants have adequate time and information to respond to eviction notices and potentially resolve issues before legal proceedings advance.

Tenants now have an enhanced ability to challenge potentially unlawful evictions, with greater access to legal resources and procedural protections. 

For landlords, this underscores the importance of maintaining detailed records and following proper protocols when addressing lease violations or other issues that might necessitate eviction.

3. Lease Transparency Requirements Under the Maryland Renters Rights Act

Transparency in lease agreements represents another cornerstone of the Maryland Renters Rights and Stabilization Act. The Act requires landlords to provide clearer, more comprehensive lease terms written in plain language that tenants can easily understand.

Specifically, leases must now include explicit information about:

  • Potential rent increase schedules and limitations
  • Detailed maintenance responsibilities for both parties
  • Available legal resources and tenant rights information

This increased transparency helps prevent misunderstandings and disputes between landlords and tenants, ultimately fostering more positive rental relationships. 

Property managers who proactively adopt these transparency measures often find that clear communication leads to better tenant retention and fewer conflicts.

4. Maryland Renters Rights Security Deposit Regulations

The Maryland Renters Rights and Stabilization Act includes important reforms to security deposit practices, establishing more uniform standards across the state. Security deposits are now typically capped at one month’s rent, providing more predictable move-in costs for tenants.

Additionally, the legislation mandates interest accrual on security deposits and requires their return within a specific timeframe after move-out (typically 21-30 days). Landlords must provide itemized deductions and clear documentation when withholding any portion of the deposit.

These security deposit provisions help protect tenants from excessive move-in costs while still providing landlords with reasonable financial security against potential damages or unpaid rent.

5. Local Enforcement of Maryland Renters Rights Provisions

To ensure effective implementation, the Act empowers county governments to establish dedicated enforcement offices that oversee compliance with the new regulations. These local authorities can investigate complaints, mediate disputes, and issue penalties for violations when necessary.

The legislation also directs funding toward legal aid and tenant support services, creating a more robust infrastructure for addressing housing issues. 

This localized approach to enforcement recognizes the varying housing conditions across different Maryland communities while maintaining consistent statewide standards.

What Maryland Renter’s Rights Mean for Tenants

The Maryland Renters Rights and Stabilization Act provides tenants with significantly enhanced protections and greater housing stability. 

By limiting arbitrary rent increases and strengthening eviction protections, the legislation addresses key concerns about displacement and affordability that many Maryland renters face.

Key benefits for tenants under the new legislation include:

  • Predictable housing costs with rent increases capped at 3-5% annually
  • Protection from eviction without documented just cause
  • Mandatory 90-day notice before any rent increases take effect
  • Access to clear, plain-language lease terms and transparent fee structures
  • Enhanced security deposit protections with interest accrual requirements
  • Legal recourse options if landlords violate the established regulations
  • Access to tenant assistance resources and educational materials

The expanded eviction protections ensure that tenants cannot be removed from their homes without just cause and proper procedure. This represents a crucial safety net, particularly for vulnerable populations who might previously have faced arbitrary or retaliatory eviction threats.

Additionally, the increased transparency requirements mean that tenants have clearer information about their rights and responsibilities, helping them make more informed housing decisions and effectively advocate for themselves when issues arise.

What Maryland Renter’s Rights Mean for Landlords

For landlords and property managers, the Maryland Renters Rights and Stabilization Act introduces new compliance obligations that require careful attention. 

While these changes present challenges, they also create opportunities for more transparent, stable rental relationships.

Key impacts and requirements for landlords include:

  • Implementing CPI-based rent increase caps (3-5%) with 90-day notice requirements
  • Developing structured documentation systems for all tenant communications
  • Revising lease agreements to meet new transparency standards
  • Following stricter “just cause” protocols for any eviction proceedings
  • Adhering to security deposit limitations and interest requirements
  • Facing potential penalties for non-compliance, including fines and litigation

Working with experienced property management professionals like Nomadic Real Estate can help landlords navigate these changes effectively. 

Our team provides compliant lease templates, documentation systems, and strategic guidance to protect landlord interests while meeting all regulatory requirements.

Landlords who proactively adapt to these changes often find that the resulting clarity and consistency actually improve tenant relations and reduce disputes in the long term, creating more stable and profitable rental operations.

Why Understanding Maryland Renters Rights Is Crucial

The rental landscape in Maryland is undergoing significant transformation, and both tenants and landlords must navigate a complex web of new regulations and practices. Unfortunately, much of the information circulating about the Maryland Renters Rights and Stabilization Act contains inaccuracies or outdated details.

This confusion can lead to anxiety, mistrust, and potentially serious legal risks for all parties involved. Having access to clear, accurate information about the legislation is essential for making informed decisions and maintaining productive rental relationships.

Centralized, reliable communication about these changes helps create a shared understanding between landlords and tenants, reducing the likelihood of misunderstandings or disputes arising from misconceptions about the new rules.

Actionable Steps Under the Maryland Renters Rights and Stabilization Act

For Tenants Navigating Maryland Renters Rights

Tenants seeking to understand and exercise their rights under the new legislation should:

  • Familiarize themselves with the specific protections provided by the Act
  • Review their lease agreements to ensure compliance with the new transparency requirements
  • Document all communications regarding rent increases or potential lease violations
  • Know how to access legal aid and tenant support services if issues arise
  • Understand the proper channels for reporting potential violations to local enforcement offices

For Landlords Implementing Maryland Renters Rights Compliance

Landlords and property managers should take the following steps to ensure compliance:

  • Review and update all lease agreements to meet the new transparency requirements
  • Develop clear policies for calculating and implementing rent increases within the established caps
  • Create comprehensive documentation systems for all tenant communications
  • Establish protocols for addressing lease violations that comply with the strengthened eviction protections
  • Consider working with experienced property management services like Nomadic Real Estate to navigate these changes effectively

How Nomadic Real Estate Supports Maryland Renters Rights Compliance

Navigating the complexities of the Maryland Renters Rights and Stabilization Act doesn’t have to be overwhelming. Nomadic Real Estate offers comprehensive property management services specifically designed to help landlords adapt to these new regulations seamlessly.

Our team stays continuously updated on the latest housing legislation, ensuring that our clients receive accurate, timely guidance on compliance requirements. We provide customized lease templates that incorporate all the transparency provisions mandated by the Act while still protecting landlord interests.

Our property management services include structured documentation systems that maintain proper records of all tenant communications, rent increase notifications, and potential lease violations. This comprehensive approach helps prevent compliance issues before they arise and provides valuable evidence if disputes occur.

For tenants, our clear communication and transparent practices create a more positive rental experience, with predictable costs and well-defined processes for addressing concerns. This mutually beneficial approach helps foster stronger landlord-tenant relationships based on trust and shared understanding.

FAQs about the Maryland Renters Rights and Stabilization Act

How does the Maryland Renters Rights Act calculate the maximum allowable rent increase?

The Maryland Renters Rights and Stabilization Act bases maximum allowable rent increases on the Consumer Price Index (CPI), typically capping them between 3% and 5% annually. Landlords must provide written notice of any increase at least 90 days before implementation. The specific calculation may vary slightly depending on local factors but generally follows the CPI for the region with the established upper limit. Property managers like Nomadic Real Estate can help landlords determine the exact allowable increase for their specific properties to ensure compliance.

Under the Maryland Renters Rights Act, what constitutes “just cause” for eviction?

Just cause evictions under the Maryland Renters Rights legislation include nonpayment of rent despite proper notice, significant lease violations that remain uncorrected, property sale or conversion to personal use, and illegal activities on the premises. The Act requires specific documentation demonstrating just cause and extended notice periods before eviction. Each category has different documentation requirements, making detailed record-keeping essential for landlords.

How do the Maryland Renters Rights security deposit provisions differ from previous regulations?

The Maryland Renters Rights Act caps security deposits at one month’s rent, whereas previous regulations sometimes allow higher amounts. The Act requires interest accrual on deposits and mandates their return within 21-30 days after move-out, with itemized documentation for any deductions. These changes provide greater financial predictability for tenants while maintaining reasonable landlord protection against potential damages.

Can landlords get assistance with implementing Maryland Renters Rights compliance measures?

Yes, landlords can receive professional assistance with implementing compliance measures for the Maryland Renters Rights and Stabilization Act. Property management companies specialize in helping landlords navigate these regulatory changes through services like lease agreement updates, compliant rent increase procedures, documentation systems, and protocols for addressing lease violations. Professional managers stay current on legislative developments and provide ongoing guidance as implementation evolves.

Embracing the Future of Maryland Rental Housing Rights

The Maryland Renters Rights and Stabilization Act represents a significant shift toward prioritizing housing affordability and stability throughout the state. While adapting to these changes requires effort from both landlords and tenants, the resulting clarity and consistency ultimately benefit the entire rental market.

By fostering more transparent, predictable rental relationships, the legislation helps create a healthier housing ecosystem where both property owners and residents can thrive. Understanding and embracing these changes now positions all parties for success in this evolving landscape.Don’t navigate these complex changes alone. Contact Nomadic Real Estate today to discover how our comprehensive property management services can help you adapt confidently to the Maryland Renters Rights and Stabilization Act while maintaining a profitable, compliant rental operation!

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Enhanced Reporting

Your portal includes a selection of extremely useful reports. Reports are available in the “Reports” section, and are distinct from the financial statements. Unlike financial statements which are static records, Reports are dynamic real-time records that will update with current data every time you view them. 

Scroll down to learn more about Reports:

Navigate to the "Reports" module in your portal:

Owner Portal Reports
  • Keep in mind, these reports are dynamic records. They will refresh to display current information every time you view them. 

Enhanced Rent Roll Report:

Enhanced Rent Roll Report
  • The Enhanced Rent Roll Report will show the rent amount, last payment date, move-in date, lease expiration date, and security deposit amount for each of your tenants. 
  • It will also show a portfolio summary with occupancy percentage, vacancy loss, and more!

Unit Comparison Report:

Unit Comparison Report
  • If you own multiple units (or buildings) with Nomadic, you’ll get access to the Unit Comparison Report. 
  • This report enables you to quickly compare financial performance between your units at a glance without toggling between individual reports. 

Income Statement Month-Over-Month:

Income Statement by Month Report
  • The Income Statement Detail – Monthly Report serves as a month-over-month record of portfolio performance. You’ll see itemized income and expense categories and can track monthly. This report will update with fresh data every time you view it. 

Financial Statements

Financial statements will be published to your portal on a monthly basis. The statements are found in your Documents library, and provide a historical record of all financial performance. The statements serve as a snapshot of financial performance over a given period, and are static documents (unlike Reports, the statements do not update/change in real-time). 

Scroll down for more info about the Financial Statements in your Documents library:

The Documents area contains monthly financial statements:

Owner Portal Documents
  • The statements in the Documents are are static documents. They are posted to the portal once a month to serve as a historical record of financial performance. 

Download a statement to see month and YTD financials:

Owner Portal Property Statement

You'll also find a month-over-month operating statement:

Month over Month Statement

Portal Communication Tool

You can use your owner portal to communicate with our team. Any messages you send through the portal will go straight to your Account Manager. When we reply, you’ll get an email notification and you’ll also see the message in your portal next time you log in. 

Here’s an overview of using the communication platform:

Click "Communications" and navigate to "Conversations":

Commincation Dashboard Screenshot
  • The communications module will contain a record of all messages that you create through the portal. 

Click the "New Message" button and send your message:

Owner Portal New Message Screenshot

Responses will show up in the conversation ticket:

Portal Conversation Response Screenshot
  • You’ll get an email notification whenever you get a response, and you’ll also see the message in your portal next time you log in. 

You can reply in-line using the comment box:

Owner Portal Comment

Each conversation will be logged in its entirety:

Portal Conversation Snapshot

Understanding the Ledger

Your portal includes a ledger with all transactions. The ledger is populated with data in real-time as transactions flow through our accounting software. Much of this information is also available in the Reports area, as well as the Statements in your Documents library, but the ledger is the most comprehensive resource for diving into the details. 

Please scroll through the sections below to get a better understanding of how to interpret the ledger. 

By default, transactions are sorted chronologically:

Owner Ledger Dates
  • The date reflected in the lefthand column is the actual transaction date, not the “bill date”. This is the date the transaction was actually processed. 

If you have multiple properties with Nomadic, you'll see the address for each transaction in the "Location" column:

Ledger Property Column
  • You can filter the ledger to look at just one property, all properties, or specific sets of properties. 
  • If you only have one property with us, you’ll just see the ledger for that property. 

The Description column displays the transaction type:

Owner Ledger Description Column
  • BILL: this is an expense transaction, such as for repair costs or management fees.
  • CHARGE: this is a transaction  billed to the tenant, most typically a rent payment. 
  • NACHA EXPORT: this is a credit we processed to your distribution account. This type of transaction is how you get paid! 

The Amount column shows the dollar value of each transaction:

Owner Ledger Amount Column
  • Positive Amounts: if an amount is positive, it reflects a transaction that is payable to you. Typically, this will be a rent payment that we collected from your tenants. On occasion, a positive number could also signify a journal entry or credit adjustment. 
  • Negative Amounts:  if an amount is negative, this is a transaction that is either payable to Nomadic or is an amount that has already been paid to you. Typically this will be for repair costs or management/leasing fees. Owner draws (net distributions into your checking/savings account) also reflect as negative amounts, since they have already been paid to you. 

The Account Balance column shows a sum of positive/negative transactions at a given point in time:

Owner Ledger Account Balance Column
  • Account Balance should always equal zero after a net distribution has been processed. When the balance is zero, this means that all expenses have been paid and you’ve received the remainder as net operating income, leaving a balance of zero (meaning: no one is due any money, as all funds have been distributed appropriately). 

Navigating the Propertyware Owner Portal

Your portal includes some extremely useful features that help you understand your property’s financial performance at a new level, with real-time transparency into every transaction.

Scroll through the snapshots below for an overview of portal navigation! If you need more help or have specific questions about using the portal, you can reach out to your Account Manager any time for a screen share. 

You can filter all info by date range or property:

PW Portal Filters

View a snapshot of income and expenses on your dashboard:

PW Owner Dashboard View

See every transaction in real-time on your ledger:

Owner Portal Ledger View

Statements and forms will be posted to your documents library:

Owner Portal Document Library

View a suite of real-time financial reports:

Portal Reports View

See a running list of all bills, and drill down for more detail:

Owner Portal Bills View

Under Bill Details, you'll find dates/descriptions/amounts and more:

Portal Bill Details

You can also communicate with your Account Manager through the portal:

Owner Portal Communication Tools

How do net distributions work?

Net distributions keep your accounting clean and simple. Each month we’ll collect rent from the tenants, deduct any repair expenses for the previous month and any management/leasing fees for the current month, and credit the remaining net operating income to your account. 

Net Distribution

You’ll receive a statement via email each time a net distribution is processed, and can view all transaction details in your Propertyware owner portal.