Maryland Rent Increase Laws

Is there a rent increase limit in Maryland? 

Maryland doesn’t cap rent adjustments, but it does permit local governments to limit rate increases. Here’s what you need to know:

Statewide caps: In Maryland, you can raise rent by any amount. However, we recommend referring to the market rate as a guide. When you consider your property’s size, features, and renter demand, you can determine a fair, competitive price without spinning your wheels.

Local rent control ordinances: State law permits each city and county to enforce its own rent control policy. Here are a few examples:

• Montgomery County caps rent increases at the lower of 6% or CPI plus 3% (Montgomery County, MD, Code § 29-57).
• Prince George’s County limits rate adjustments to 2.6% of the existing rent. Landlords also can’t increase rent for tenants with substantial loss of income (Prince George’s County Code, MD, Code § 13-139).
• Takoma Park sets a specific allowance each year for multi-family properties and condos (Takoma Park, MD, Code § 6.20.010).

No other local governments currently enforce rent control laws outside of these three jurisdictions.

Exceptions: Local rent control laws typically exempt units that participate in federal housing programs, such as Section 8. If your jurisdiction imposes rent control, review the guidelines on exceptions or speak with a trusted real estate lawyer for more information.

Rent Increase Notice Periods

Most states set notice requirements based on the type of lease agreement you have. However, Maryland rent increase laws take into account the length of the tenancy. Here’s how it works:

• Leases longer than 1 month: 90 days’ written notice
• Leases from 1 week to 1 month: 60 days’ written notice
• Leases shorter than 1 week: 7–21 days’ written notice (Md. Code, Real Prop. § 8-209)

In other words, if you’re using a month-to-month agreement, give tenants 60 days’ notice in writing. But if you have a 6-month or 1-year fixed-term lease, provide 90 days’ notice. Follow the same legal requirements if you’re using a room rental agreement.

Next, we’ll explain how to give proper notice by covering delivery methods and rent increase letters.

How to Deliver a Rent Increase Notice in Maryland

Don’t make the mistake of sending your tenants a casual text. Instead, follow your lease agreement’s protocols (Md. Code, Real Prop. § 8-208). Maryland law doesn’t list specific delivery methods, but top landlords use the following:

• Delivering the notice to the tenant
• Posting the letter in a conspicuous place on the property (such as the front door)
• Sending the notice via Certified Mail
• Using landlord software to send the letter digitally

Whichever method you choose, make sure you outline your notice policy in your lease and have the tenant agree in writing. Once both parties align on the delivery method, courts treat it as legally binding.

Pro Tip: Begin the notice period once the tenant receives the letter. If you deliver the document to the property or send it digitally, start the clock immediately. But if you mail it, wait at least 3 days to account for delivery times.

Understanding Illegal Rent Increase and Retaliation

Maryland law protects tenants from retaliation, while federal regulations prohibit discrimination. Avoid legal issues by following these guidelines:

Landlord retaliation: You can’t raise rent to punish tenants for exercising their legal rights. Maryland rent increase laws strictly prohibit landlords from retaliating against tenants within 6 months of the following:

• Filing an official complaint with a local government agency about housing code violations
• Participating in a tenant organization or union
• Filing a lawsuit against the landlord
• Testifying or participating in a housing case (Md. Code, Real Prop. § 8-208)

Discrimination: Additionally, you must comply with the Fair Housing Act (FHA). The federal law prohibits landlords from discriminating against tenants or offering unfair rental terms based on the following traits:

• Race
• Color
• National origin
• Religion
• Sex
• Familial status
• Disability (Fair Housing Act)

Always keep your rent increase process fair and consistent across all of your tenants. And remember, you can’t raise your tenant’s rent in the middle of a fixed-term tenancy unless your lease permits it. Otherwise, you will violate your rental contract and may face penalties.

How to Write a Maryland-Compliant Rent Increase Letter

When it comes time to draft your rent increase letter, don’t forget to include the following information:

• Full property address (including unit number, if applicable)
• Tenant names
• Exact dollar amount of the increase
• New total rent amount
• Effective date based on the legal notice requirement 
• Instructions for tenants to accept or move out

Top landlords don’t write leases line by line. Instead, they leverage standardized PDFs. Not only does it save time, but it also adds legal protection. Try TurboTenant’s rent increase letter template. It’s fast, easy, and free.

Managing the Rent Increase Process with Tenants

After you create and deliver your letter, here are a few quick tips to finalize the process.

• Accept: Once tenants agree to your new price, prepare the updated agreement and proceed with the renewal. Once tenants sign the lease, begin charging the new rate on the effective date. You don’t have to offer a grace period, even when you raise your rate.
• Reject: Tenants who refuse to pay must move out of the unit upon lease termination. In these cases, discuss the termination process and prepare to relist your property. Finding your next tenant quickly helps you keep your cash flow on track.
• Negotiate: When a trustworthy tenant asks to work out an agreement, consider meeting them halfway. Perhaps you offer them a longer lease agreement or delay the new rate’s start date.

Maryland rent increase laws offer landlords a good amount of flexibility, but you still need to follow proper protocols. Use this guide to make the adjustment as smooth as possible.