The Maryland Department of Housing and Community Development published “Turning the Key: Unlocking Maryland’s Potential” which provides important answers to frequently asked questions about the Renters’ Rights and Stabilization Act that took effect October 1, 2024, including:
• Tenant Exclusive Negotiation Period/Right of First Refusal.
• Evictions, and
• Security Deposits
This FAQ can be found at https://dhcd.maryland.gov/TurningTheKey/Documents/HB693-FAQ.pdf. Under the Renters’ Rights and Stabilization Act, tenants of certain residential rental properties have the right to make an offer to purchase the property from the owner before the owner may sell the property to a third party. In general, tenants are entitled to an exclusive negotiation period and/or right of first refusal if they have been living in a 1-, 2- or 3-unit residential rental property for at least six months and are named on the lease. A tenant has 30 days after delivery of the notice from the landlord to make an offer to purchase the property.
Two items that are important to note for landlords:
1. Landlords are now required to include a copy of the most current version of the Tenants’ Bill of Rights as an attachment to any residential lease. The latest version of the Tenants’ Bill of Rights is available on the Office of Tenant and Landlord Affairs’ website. The Tenants’ Bill of Rights is required to be updated and published by June 1 of each year.
2. Effective October 1, 2024, a lease may not require a tenant to pay a security deposit greater than the amount of one month’s rent. Previously, the maximum-security deposit was the equivalent of two months’ rent. Under RRSA, in order to commence the lease and occupy the premises, a tenant may not be required to pay more than the sum of the security deposit (no greater than the amount of one month’s rent) and the first month’s rent.
Lauren Bunting is a Broker with Keller Williams Realty of Delmarva in Ocean City, Maryland.
