A new law taking effect on Oct. 1, is the Renters’ Rights and Stabilization Act of 2024.
The law has some significant changes to tenant/landlord law and how leases are required to be drafted and followed. The legislation is significant, specifically notable is that it requires landlords to offer their renters first right of refusal to purchase the home they are renting and limits security deposits to one month’s rent.
The full summary of the HB 693 Renters' Rights and Stabilization Act of 2024 in bullet point form is:
• The bill establishes an exclusive negotiation period for tenants to develop an offer to purchase their rental property of one to three units when it is listed for sale. Tenants will have 30 days from the landlord notice to submit a contract offer, with subsequent five-day periods for counter offers. Exceptions to the process occur if a landlord subsequently contracts with a third party for a price 10% less than the tenant’s offer, or, if an unsolicited offer to purchase is received, the tenant is given the opportunity to match it.
• The bill increases court surcharges for eviction proceedings, which are recoverable from the tenant’s security deposit for judgements in favor of the landlord.
• Security deposits are limited to one month’s rent, and publication on tenant’s rights will be included with the lease. This applies to any new or renewing leases.
• Evictions of tenants will be stayed during the duration of an extreme weather event.
Two other tenant/landlord related laws taking effect on Oct 1 are:
• HB 93/SB 162 Termination of Residential Lease - Limitation of Liability for Rent: A tenant’s liability may not exceed two months’ rent if the tenant vacates the premises due to certain qualifying medical conditions certified in writing by a physician.
• HB 139/SB 171 Notice of Utility Bills in Residential Leases - Gas and Electric Services: The current notice requirements for tenant water and sewer charges paid to the landlord are expanded to also include gas and electric utilities unless the tenant directly pays the bill.
Lauren Bunting is a Broker with Keller Williams Realty of Delmarva in Ocean City, Maryland.
