MD Landlord Law 2026: 5% Late Cap, Deposit Escrow, MoCo Rules

Tenby is an AI-powered property management platform for independent landlords managing 1-50 rental units. Tenby's compliance engine includes Maryland-specific rules — deposit escrow with 3% interest, lead paint registration and renewal tracking, 45-day return deadlines, and county-specific rent stabilization — all tracked automatically.

Maryland landlord-tenant law is governed by the Maryland Code, Real Property Title 8. But here's what makes Maryland tricky: counties like Montgomery, Prince George's, and Baltimore City layer additional regulations on top of state law. You need to know both. Here's the complete guide.

Security deposits in Maryland

Maryland has some of the strictest deposit rules in the country. Getting this wrong can cost you 3x the deposit in damages.

Key details:

• Within 45 days of move-out, you must return the deposit with a written itemized list of deductions and receipts for any repairs
• Interest accrues from the date of deposit at 3% simple interest or the actual interest earned, whichever is greater
• Interest must be paid or credited to rent at least every 6 months — you cannot wait until move-out
• You must provide a written receipt when you collect the deposit
• Failure to comply can result in forfeiting the entire deposit AND paying up to 3x the deposit in damages plus attorney's fees
• The deposit must be held in a separate account (not commingled with your personal funds)
• If you sell the property, the deposit must be transferred to the new owner with written notice to the tenant

Eviction process in Maryland

Maryland eviction varies by the type of case. The fastest path is the Failure to Pay Rent (FTPR) action.

Grounds and notice requirements

Nonpayment of rent — fastest eviction path

Maryland is unusual: you can file a Failure to Pay Rent (FTPR) action the day after rent is late — no notice period required. However, the tenant can stop the eviction by paying all rent and court costs up until the moment of trial.

Eviction timeline (nonpayment)

Total timeline: 15-75 days for uncontested nonpayment cases. Breach of lease cases take 60-120 days due to the 30-day notice requirement.

Tenant protections during eviction

• Right to redeem — tenant can pay all rent, late fees, and court costs to stop a FTPR eviction up until trial
• Right to jury trial — tenant can request a jury trial in breach of lease cases
• No self-help eviction — changing locks, removing belongings, or shutting off utilities is illegal
• Retaliatory eviction protection — cannot evict within 6 months of a tenant complaint to a government agency

Late fees in Maryland

For $1,800/mo rent: Maximum late fee = $90.

> Calculate your late fee: Use our free late fee calculator to check if your proposed fee is compliant with Maryland law. Also try our prorated rent calculator for move-in/move-out calculations and rent estimate tool to see if your rent is at market rate.

Montgomery County exception: Landlords must accept partial rent payments. Late fees apply only to the unpaid portion. If a tenant pays $1,500 of $1,800 rent on time, the late fee applies only to the $300 balance.

Lead paint requirements

Maryland has some of the strictest lead paint laws in the nation. This is not optional and enforcement is aggressive.

Registration and certification

What happens if you don't comply

• Fines of $1,000 per day for unregistered properties
• Personal liability for lead poisoning — if a child is poisoned in your property, you can be held liable for medical costs, pain and suffering, and punitive damages
• Criminal penalties in extreme cases
• Insurance may not cover you if you weren't properly registered and certified

What you must do

1. Register every pre-1978 rental with MDE
2. Get a lead inspection (XRF testing)
3. Obtain a lead-free or lead-safe certificate
4. Renew lead-safe certificates every 2 years
5. Provide all documentation to tenants at lease signing
6. Track renewal dates — Tenby can automate this

Required disclosures in Maryland

1. Lead paint — MDE registration number, certification status, EPA pamphlet ("Protect Your Family from Lead in Your Home")
2. Move-in inspection report — tenant can request within 15 days of move-in
3. Habitability defects — known conditions affecting habitability
4. Mold — known mold conditions
5. Owner/agent information — name and address for receiving legal notices
6. Security deposit receipt — written receipt at collection
7. Deposit account info — name of the financial institution holding the deposit
8. Smoke/CO detector compliance — working detectors on every level and near sleeping areas

Maintenance obligations

Landlord must:

• Maintain the property in habitable condition per MD Code RP § 8-211
• Comply with all applicable building, housing, and health codes
• Maintain all systems provided by the landlord (heating, plumbing, electrical, AC, appliances)
• Provide working smoke detectors on every level
• Provide carbon monoxide detectors near sleeping areas
• Maintain pest-free conditions in multi-unit properties
• Make repairs within a reasonable time after written notice from tenant

Tenant remedies for maintenance failures:

• Rent escrow — tenant can pay rent into a District Court escrow account if the landlord fails to make repairs (must give written notice first and allow reasonable time to repair)
• Repair and deduct — for conditions that are a serious and immediate threat to health or safety
• File complaints with the local housing inspection office
• Constructive eviction — terminate the lease if the unit is uninhabitable

Important: The rent escrow process requires the tenant to file with the court and prove the condition exists. Landlords should respond promptly to all repair requests to avoid this.

Rent increase rules

Rule	Maryland Law
Statewide rent control	No
Notice required	No specific state statute (30 days is standard practice for month-to-month)
During fixed-term lease	Cannot increase unless lease allows it
Retaliatory increases	Illegal — cannot raise rent within 6 months of a tenant complaint
Local restrictions	Montgomery County, some others

Montgomery County rent stabilization

While not mandatory rent control, Montgomery County has voluntary rent stabilization guidelines that strongly influence the market:

• Recommended maximum increase: CPI-based (typically 3-5%)
• The guidelines are not legally binding for most units, but tenants can cite them in disputes
• Some affordable housing units have mandatory caps
• The county's Office of Landlord-Tenant Affairs mediates disputes

Prince George's County

• Landlord licensing required — must obtain a rental license before renting
• Inspection required — county inspection before issuing the license
• Penalties for unlicensed rentals — tenant can withhold rent or terminate the lease

Baltimore City

• Rental license required — must be renewed annually
• Lead paint enforcement is aggressive — Baltimore City has its own lead paint registry
• Tenant protection orders available for habitability issues
• Good Cause eviction proposed/enacted — check current status

Maryland tenant rights summary

Maryland tenants have the following protections:

• Habitable housing — landlord must maintain the property to code
• Rent escrow — can pay rent to the court if landlord refuses to make repairs
• Right to redeem — can pay all owed rent to stop a nonpayment eviction before trial
• Retaliatory eviction protection — 6-month protection after complaints
• Security deposit protections — 3% interest, 45-day return, 3x damages for violations
• Lead paint protections — mandatory registration, testing, and certification
• Privacy — landlord must give reasonable notice before entering (24 hours recommended)
• Domestic violence — can terminate lease early with protective order documentation
• Source of income protection — in some counties (Montgomery, others)
• Right to move-in inspection — can request within 15 days of move-in

How Tenby helps Maryland landlords

Maryland compliance is complex, especially with county-level variations. Tenby handles it:

• 45-day deposit return with automatic 3% interest calculation and countdown alerts
• Deposit receipt generation — compliant written receipt at collection
• Lead paint registration tracking — monitors 2-year renewal deadlines with 90/60/30-day alerts
• 5% late fee cap enforced automatically
• County-specific rules — loads additional requirements for Montgomery, Prince George's, and Baltimore
• Move-in inspection workflow — photo documentation ready for tenant's 15-day request window
• Rent escrow defense — maintains repair request timeline documentation
• Eviction notice generation — proper FTPR, breach, and holdover notices

The bottom line

Maryland is a moderately tenant-friendly state with some uniquely strict requirements. The three things that trip up Maryland landlords most:

1. Lead paint — $1,000/day fines and personal liability for poisoning. Register, certify, renew.
2. Security deposit interest — 3% simple interest paid every 6 months. Miss this and you can owe 3x the deposit.
3. County rules — Montgomery County, Prince George's County, and Baltimore City each have their own licensing, inspection, and rent rules on top of state law.

Know your county, maintain your lead certifications, calculate your deposit interest, and document every repair request. The penalties for non-compliance in Maryland are among the harshest in the mid-Atlantic.