The 2024 Maryland General Assembly convened on Jan. 10 and adjourned on April 8. Maryland Realtors issues a recap of all of the pertinent legislation affecting the real estate industry. This week’s summary is covering the “Property Management” related legislation that passed.
The first piece of legislation is significant in 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.
HB 693 Renters’ Rights and Stabilization Act of 2024 — This 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 this 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.
In addition, this 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. Evictions of tenants will be stayed during the duration of an extreme weather event.
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.
HB 428/SB 370 Rental Assistance for Community School Families Program and Fund (Effective July 1) — This program will provide rental assistance to eligible student households within community schools that have designated concentrations of poverty and where residents are at risk of homelessness.
HB 498/SB 147 Access to Counsel in Evictions Program - Mandated Reports — The program must annually report on the number and types of cases handled, the number of individuals served, the case outcomes, and the cost and location of each case.
HB 1117 Landlord and Tenant - Failure to Repair Serious and Dangerous Defects — Landlords are deemed to warrant that a rental dwelling unit is fit for human habitation. A court may order certain relief in a civil action or actions relating to the breach of warranty of habitability, including actual damages, abatement of rent, and lease termination. Tenant complaints made in bad faith can result in payment of costs and fees to the landlord.
SB 19/HB 181 Failure to Pay Rent Proceedings - Shielding of Court Records — Within 60 days after the final resolution of a failure to pay rent proceeding that did not result in a judgment of possession, the district county is required to shield from public inspection all related court records. The judiciary will develop implementation procedures by Aug. 1.
Lauren Bunting is a Broker with Keller Williams Realty of Delmarva in Ocean City, Maryland.
