The Lease

In general, leases for residential rental properties must:

• Offer the tenant an initial term of two years and a two-year term at each renewal, unless the landlord has reasonable cause for offering a shorter term. (This requirement does not apply to mobile homes and accessory dwelling units). Examples of reasonable cause for offering a lease of less than two years include: the sale of the property if settlement is likely to occur within a two-year period; a bona fide contract to sell the property within two years, or a planned conversion to a condominium within a two-year period. If the landlord claims reasonable cause for not offering a two-year lease or a two-year lease renewal, the landlord MUST attach a statement to the lease explaining the reasonable cause that also advises the tenant of their right to challenge the cause by filing a complaint with the Office of Landlord-Tenant Affairs. Any such complaint must be filed with the Office of Landlord-Tenant Affairs (OLTA) within 180 days from the beginning of the tenancy;
• Allow the parties to negotiate a lease of longer or shorter duration - after the tenant has been offered and rejected a two-year lease;
• Require all agreements not in the initial lease be put in writing and attached as addenda to the lease;
• Require the landlord give a tenant 90-days’ notice for any proposed rent increase or lease renewal;
• Require a plain language summary be attached to the lease that contains: the term of the lease; the amount of the rent; the date rent is due; tenant’s responsibility for utilities, if any; list of any additional tenant rights and responsibilities under the lease; and information about services available to tenants from OLTA and the Commission on Landlord-Tenant Affairs; and,
• Attach a Window Guard addendum to the lease advising tenants of their right to have a window guard at each openable window if the tenant lives above the ground floor and has children under 11 years of age, or upon request.

Note: A landlord may require a tenant to obtain renter’s insurance as part of the lease and may require that a tenant provide proof of such insurance. 

Regarding tenant rights, leases for residential rental properties must:

• Inform the tenant (in a multi-family dwelling) of the location of the rental license so it can be inspected by the tenant. The Rental Facility License for a multi-family facility must be displayed in the lobby, rental office, or other prominent public place on the property during its entire effective period;
• Notify all new tenants that they are entitled to a copy of the Landlord-Tenant Handbook and that the Landlord-Tenant Handbook is available on DHCA’s website. The landlord must provide a copy of the Landlord-Tenant Handbook unless the tenant signs a statement declining a hard copy and accepting referral to the Landlord-Tenant Handbook maintained on the DHCA website; and,
• Provide a notice to the tenant that general information and assistance regarding evictions and any addenda to the lease is available at DHCA when issuing a notice to vacate, notice of past due rent or beginning any judicial proceeding to regain the leased premises.

Regarding maintenance and access, leases for residential rental properties must:

• Acknowledge that the landlord has liability for damage caused by their negligence or violation of applicable law and, provide for reimbursement to the tenant for any damage caused by the landlord’s negligence;
• Acknowledge that the landlord has responsibility for the maintenance of the rental property. This provision must specifically reference: Chapter 8, “Buildings”; Chapter 22, “Fire Safety Code”; Chapter 26, “Housing and Building Maintenance Standards”; and Chapter 59, “Zoning,” of the Montgomery County Code. These sections of law create an express warranty of habitability and require that the landlord make necessary repairs;
• Require that the landlord deliver the property in a clean, safe, and sanitary condition, free of rodents and vermin, and in compliance with all applicable laws;
• Permit the landlord to enter the property, during normal business hours, after providing the tenant with at least 24 hours' notice, to make repairs, supply services, or show the apartment to prospective buyers or tenants;
• Acknowledge that a tenant may not unreasonably deny the landlord access to the rental property as this may be construed as a breach of the lease agreement;
• Acknowledge that, in cases of emergency or when the landlord has good cause to believe the tenant may have damaged the property, no notice is necessary prior to Landlord’s entry;
• Allow the landlord to enter the property after due notice (72 hours) when the landlord is required by DHCA to provide access for an inspection required under County law;

Regarding notices and termination, leases for residential rental properties must:

• Require that the landlord give the tenant 10 days’ written notice of their intention to file a Failure to Pay Rent action ( form is available through the District Court)
• Require that the landlord give the tenant a written notice to vacate;
• Require the landlord to give the tenant sixty days’ written notice of their intention to terminate the tenancy at the expiration of the lease if the landlord does not intend to offer a renewal of the lease;
• Allow the tenant to terminate the lease with 30 days’ written notice to the landlord due to: an involuntary change of employment from the Washington Metropolitan area; death of a major wage earner; unemployment; tenant or tenant’s child being a victim of domestic violence; a landlord harassing the tenant or violating the tenant’s privacy rights; the tenant or tenant’s spouse being 62 or older, no longer able to live independently, and needing to move to a nursing home or other senior housing; tenant being incarcerated or declared mentally incompetent; or for any other reasonable cause beyond the tenant’s control. Any charge to the tenant in such cases must not exceed one month’s rent or actual costs incurred by the landlord, whichever is less;
• Allow the tenant to terminate the lease if after 30 days’ notice from Housing Code Enforcement, the landlord has failed to make repairs which are deemed by DHCA to be a threat to the health and safety of the tenant. Tenants who terminate using this provision must first obtain permission from DHCA and may not be charged a termination fee;
• Acknowledge that if the landlord does not give the tenant a notice to vacate, the tenant becomes a month-to-month tenant at the expiration of the lease (See page 26, Landlord-Tenant Handbook, Month-to-Month Tenancy).

Regarding payments, leases for residential rental properties must:

• Limit penalties for late rent payments to no more than 5% of the monthly rental amount and not allow late charges to be added until the rent is more than 10 days late;
• Require the landlord to provide written receipts for all payments made by the tenant in cash or by money order, including rent and security deposit payments, or upon request;
• State the specific obligations of landlords and tenants for payment of heat, gas, electricity, water, and sewer charges;
• Require that all security deposits be handled per the Real Property Article of the Annotated Code of Maryland (See Security Deposits).
• Require all charges for repair of damage to the property be itemized, whether requested by landlord or tenant, and that these charges be substantiated upon written request;

Leases for rental properties located in Montgomery County must NOT:

• Require a tenant to agree to a confessed judgment. A confessed judgment is a written agreement whereby the tenant admits liability and accepts the amount of agreed-upon damages that must be paid to the landlord prior to any court action which forfeits any of the tenant’s rights to dispute a claim in the future.
• Require a tenant to waive any rights provided by Chapter 29, Landlord-Tenant Relations, of the County Code;
• Authorize the landlord to take possession of the tenant’s personal property or the rental property without a court order;
• Deny a tenant the right to a jury trial;
• Require a tenant to pay legal costs or attorney’s fees other than those awarded by a court. In addition, any lease that requires a tenant to pay legal fees must: (1) specify that the attorney’s fees are not part of the tenant’s rent and need not be paid to redeem the property in a failure to pay rent action; and (2) obligate the landlord to pay the tenant’s attorney’s fees if the tenant is the prevailing party in a legal action and the court awards legal fees; and
• Increase rent more than once in a twelve-month period.

Effective January 1, 2004, the Montgomery County Commission on Landlord-Tenant Affairs issued a regulation entitled Ratio Utility Billing Systems (RUBS). This regulation sets forth the requirements to be followed if a landlord requires that a tenant pay separately for water/sewer usage in a unit that is not individually metered.  

RUBS formulas can also be used for gas and electric billing in units that were built prior to 1978. After 1978, the Maryland Public Service Commission requires that each unit be individually metered if a tenant is to be billed for gas or electricity.

Landlords of buildings constructed prior to 1978 that are not individually metered must provide tenants a written explanation of the formula and calculation of the allocation of the cost for gas and electric billing, along with all information required under the Public Utilities Article of the Maryland Code and applicable COMAR provisions. A landlord using RUBS for water billing can only charge a $1.00 processing fee each month if the unit is not sub-metered.