Maryland Month-to-Month Rental Agreement
Lease agreements are not one-size-fits-all. In Maryland, for example, a fixed-term lease offers landlords and tenants security for a defined rental period, whereas an indefinite month-to-month agreement provides both parties more flexibility.
Month-to-month rental agreements renew each month upon payment of rent until either landlords or tenants take action to end them through proper procedures. Because of their indefinite nature, month-to-month renters are often called “tenants-at-will.”
This guide explains Maryland’s month-to-month lease agreements and discusses relevant landlord-tenant laws, security deposit procedures, property access regulations, lease violations, and more.
Maryland Month-to-Month Lease Laws
As a Maryland landlord, understanding the state’s landlord-tenant laws is a crucial piece of the property management puzzle. These laws govern key aspects of rental properties, including:
- Disclosures
- Termination notices
- Rent increases
- Evictions
- Security deposit laws
- Pet deposits and rent limitations
- Late fees
Maryland Month-to-Month Lease Agreement
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Required Landlord Disclosures (6)
- Lead-based paint: Landlords of units built before 1978 must inform tenants about lead-based paint hazards at lease signing. This is the only federally-required disclosure.
- Landlord identification: Maryland landlords must provide their name, address, and phone number, or the same information for the authorized property manager, to the tenant (MD Code, Real Prop. § 8-210).
- Security deposit receipt: When accepting a security deposit, landlords must give the tenant a written receipt, which outlines Maryland rules for handling and returning the deposit and the landlord’s right to inspect the property (MD Code, Real Prop. § 8-203(c)(1), 8-203.1).
- Shared utilities: If tenants share utilities, the landlord must disclose how they divide these charges in the lease agreement (Tenant Protection Act of 2022).
- Habitability disclosure: Lease agreements must include a statement on habitability standards and safety, listing any known defects and explaining who is responsible for repairs (MD Code, Real Prop. § 8-212).
- 2024 Renters Rights and Stabilization Act: Landlords must attach this Act to every lease agreement.
Required Notice to Terminate Month-to-Month Agreement
Because month-to-month rental agreements lack a defined end date, Maryland law governs the procedures for terminating them.
Required notice for the landlord: Maryland landlords must give tenants a written 60-day notice to terminate a month-to-month lease (MD Code, Real Prop. § 8-402(c)(1)).
Landlords who own five or more rental units are exempt from the 60-day notice requirement. They can generally terminate a month-to-month agreement with 30 days’ notice (MD Code, Real Prop. § 8-402(c)(2)).
Baltimore City (BCC, Article 13, § 9-2) and Montgomery County (MCC, Chapter 29) are also exempt from the 60-day month-to-month termination rule; landlords in these jurisdictions only need to give tenants 30 days’ notice.
If a rental property is in foreclosure, Maryland landlords only need to give tenants 30 days’ notice to terminate a month-to-month lease (MD Code, Real Prop. § 8-402(c)(3)).
Required notice for the tenant: Tenants must provide landlords with a written 30-day notice if they wish to end their month-to-month tenancy (MD Code, Real Prop. § 8-402(b)).
Rent Increase Laws
Maryland does not have statewide rent control laws. However, certain jurisdictions link rent control structures to the inflation rate, so landlords should familiarize themselves with local Maryland rent control guidelines before raising a tenant’s rent.
Rent Payment Laws
Grace period: Maryland law doesn’t require landlords to provide a grace period for late rent payments. Montgomery County doesn’t have a grace period, but landlords can’t charge late fees until the rent is 10 days late. The same goes for Baltimore.
Late fees: Maryland landlords can charge a maximum late fee of 5% of the total rent due for a rental period (MD Code, Real Prop. § 8-208(d)(3)).
Tenant’s right to withhold rent: If a landlord fails to repair a condition that compromises a property’s habitability within a reasonable timeframe after a written tenant request, tenants can withhold rent by filing a rent escrow action in court (MD Code, Real Prop. § 8-211(i)).
Pet rent laws: Maryland does not restrict how much landlords can charge for pet rent.
Security Deposit Rules
Maximum security deposit amount: As of October 1, 2024, Maryland landlords can charge up to 1 month’s rent for a security deposit (MD Code, Real Prop. § 8-203(b)(1)).
Receipt of deposit: Maryland landlords must give tenants a detailed receipt for the security deposit once they accept it (MD Code, Real Prop. § 8-203(c)(1), 8-203.1).
Interest: Maryland landlords must keep security deposits in interest-bearing accounts with a rate of at least 1.5% per year or the amount based on the US Treasury yield curve, whichever is greater. Because no law states how the interest should be divided, landlords generally decide (MD Code, Real Prop. § 8-203(e)(1)).
Deduction tracking: Landlords can withhold funds from a security deposit for unpaid rent or damage exceeding normal wear and tear (MD Code, Real Prop. § 8-203(f)(1)(i)).
Returning a tenant’s security deposit: Landlords must return security deposits and an itemized list of any deductions for repairs within 45 days of the lease’s end date (MD Code, Real Prop. § 8-203(g)(1)).
Pet deposit rules: While Maryland doesn’t set a specific limit on pet deposits, the total security deposit, including any pet deposit, cannot exceed 1 month’s rent (MD Code, Real Prop. § 8-203(b)(1)).
Property Access Regulations
Advance notice: While Maryland law doesn’t provide specific guidelines for landlord access to rental units, best practice typically means landlords can enter a tenant’s property for reasonable purposes, such as maintenance and repairs, with advance notice when possible.
Immediate access: Maryland law doesn’t specify how or when landlords can enter a property, but it is generally understood they are allowed to do so in emergencies.
Landlord harassment: Although Maryland law doesn’t dictate how landlords can enter a rental unit, excessive entry without prior notice could be considered landlord harassment. In such cases, tenants often have legal grounds to break their lease agreement prematurely without consequence (MD Code, Real Prop. § 8-204).
Rental Agreement Violations
Missed rent payment: Landlords can deliver tenants a 10-day Notice to Pay or Quit when rent is overdue. If the tenant fails to pay rent by the end of the notice’s stated date, they could face further eviction proceedings from the landlord (MD Code, Real Prop. § 8-401(c)).
Lease violation: Maryland landlords can deliver a 30-day Notice to Quit when they discover a lease violation, such as illegal activity on the premises or causing damage to the property. They do not have to allow the tenant to cure the violation (MD Code, Real Prop. § 8-402).
Self-help evictions: Landlords should never attempt self-help evictions. They are illegal and punishable by Maryland law.
Lease abandonment: A tenant who breaks a lease early without providing proper notice may face legal penalties and owe their landlord rent costs while the unit is vacant. Maryland landlords must try to re-rent the unit at fair market value, which could reduce the tenant’s financial liability (MD Code, Real Prop. § 8-207).
Maryland Month-to-Month Lease Agreement FAQs
What is a Maryland month-to-month lease agreement?
A Maryland month-to-month lease agreement is a flexible rental contract that automatically renews every month until properly terminated. These rental contracts allow tenants to move on short notice and landlords to adjust terms or find new tenants more quickly.
What’s the difference between a fixed-term lease and a month-to-month agreement?
Fixed-term leases have a set duration and offer stability with predetermined rent and terms. In contrast, month-to-month agreements renew automatically each month until either party gives notice to terminate the rental contract.
Fixed-term leases provide more security and less flexibility, whereas month-to-month agreements allow for easier termination and typically result in more unpredictable rental periods.
How do you end a Maryland month-to-month lease agreement?
In Maryland, landlords must generally give tenants 60 days’ written notice to end a month-to-month lease, whereas tenants only need to give 30 days’ notice.
Baltimore City and Montgomery County landlords typically only need to give month-to-month tenants a 30-day written notice.
Landlords who own five or more rental units can terminate a month-to-month tenancy with a 30-day written notice.
If a rental property is in foreclosure, Maryland landlords can issue tenants a 30-day written notice to terminate the month-to-month rental contract.