Maryland Rent Increase Laws 2025: What Tenants Should Know

Published On:
Maryland Rent Increase Laws 2025: What Tenants Should Know

Navigating the world of rent increases in Maryland can be a bit tricky, but understanding the rules will help tenants and landlords avoid conflicts and stay on the right side of the law.

Maryland has a set of regulations in place to ensure that both tenants and landlords are treated fairly when it comes to rent adjustments. Here’s an overview of what tenants need to know about rent increases in 2025 in Maryland.

Specific Regulations Governing Rent Increases in Maryland

Annual Rent Increase Limitations

While Maryland does not have a statewide cap on annual rent increases, certain counties and cities in Maryland, like Montgomery County, have rent stabilization measures in place.

These local regulations aim to control excessive rent increases and maintain affordable housing by linking rent adjustments to inflation rates, typically measured through the Consumer Price Index (CPI-U).

For example, Montgomery County has been known to limit rent increases based on the CPI-U, with additional caps to prevent large hikes that could make housing unaffordable.

Landlords in these areas should stay updated on the local rent stabilization rules to ensure they remain compliant. Tenants in these regions benefit from more predictable rent increases, which helps them manage their budgets.

Rent Stabilization Ordinances

Maryland’s rent stabilization is most commonly seen in Montgomery County, where laws are designed to ensure that rents remain affordable for residents. The county’s policies limit the percentage of rent increases each year, ensuring that these increases reflect inflation rather than drastic market changes.

For instance, rent hikes may be linked to CPI-U increases, but they are capped at a maximum percentage (often around 6%) to prevent rapid rent escalation.

Landlords in regions with rent stabilization must closely follow these local ordinances to avoid penalties. These laws help keep housing accessible for renters while allowing property owners to maintain fair returns on their investments.

Rent Increase Notice Requirements

In Maryland, the notice period for rent increases depends on the type of lease agreement:

Annual Leases: Landlords must give at least 90 days’ notice before raising the rent.

Shorter Leases (less than a year): A 60-day notice is required.

Weekly Leases: 21 days’ notice is required.

Oral Leases (week or less): Landlords must provide a 7-day notice.

It’s essential that landlords provide clear and timely notice of any rent increases in writing to avoid disputes. Tenants should make sure they understand their rights to challenge increases that seem unfair or unreasonable.

Fair Return on Rental Properties

While tenant protections are in place, landlords are entitled to receive a fair return on their rental properties. Maryland’s laws aim to ensure that landlords can maintain their property and make necessary improvements without charging excessive rent. However, these increases must adhere to the state and local laws regarding notice periods and rent caps.

If a landlord raises rent to cover capital improvements or property upgrades (e.g., a new roof or energy-efficient upgrades), they must follow the guidelines for rent increases and provide documentation of the costs involved.

Montgomery County Rent Stabilization

Montgomery County has been at the forefront of implementing rent stabilization efforts. These measures help control how much landlords can raise rents for tenants in specific rental units.

In 2024, the Montgomery County Council passed Bill 15-23 and Executive Regulation 2-24, which set guidelines for rent increases. The key features include:

A cap on rent increases based on the CPI-U (Consumer Price Index) or 6%, whichever is lower.

Rent adjustments must reflect economic conditions, helping prevent unaffordable hikes in rent for tenants.

Bill 15-23 plays a significant role in improving housing affordability by limiting rent increases to ensure residents are not burdened by sudden spikes in rent.

Tenant Protections and Rights in Maryland

Maryland offers strong tenant protections, ensuring their rights are respected and maintained. This includes regulations on security deposits, rent payments, and addressing tenant-landlord disputes. The Renters’ Rights and Stabilization Act of 2024 further strengthens these protections, prohibiting retaliation against tenants who assert their rights.

Security Deposits: Landlords may charge up to two months’ rent as a security deposit. The deposit must be returned, with interest, within 45 days of the lease ending.

Legal Routes for Disputes: If a tenant believes their rights are violated (e.g., unlawful rent increases or unfair treatment), they can seek assistance through mediation or small claims court.

Tenants can also seek legal counsel if they believe their rent increases are not compliant with local laws.

Penalties for Violating Rent Increase Laws

Landlords in Maryland who violate rent increase laws could face legal consequences, including fines. Tenants who feel that rent increases are unfair or unlawful have the right to challenge these increases through the legal system, which may lead to litigation.

For landlords, adhering to the Renters’ Rights and Stabilization Act of 2024 is critical to avoiding penalties and ensuring compliance with all applicable regulations. This includes understanding the limits on rent increases and adhering to required notice periods.

Impact of Legislation on Maryland’s Housing Market

The Renters’ Rights Stabilization Act of 2024 has a profound impact on rental housing markets in Maryland. While the act provides much-needed protection for tenants, it also poses challenges for landlords who may face limitations on rent increases.

For developers, the law may slow the construction of new rental units, as profit margins could be reduced due to the caps on rent increases. However, the law also supports affordable housing initiatives, which help keep housing within reach for low-income families.

The impact on supply of rental units could be mixed, as landlords might be reluctant to increase rents at rates they feel are justified, leading to fewer units on the market. At the same time, the law could encourage new affordable housing projects if developers are able to manage costs within the new guidelines.

In 2025, Maryland’s rent increase laws remain a vital part of the housing landscape. Local regulations, especially in areas like Montgomery County, ensure that tenants have predictable rent increases while landlords can still earn a fair return on their properties.

Tenants should be aware of their rights, including the required notice periods for rent increases, and understand the legal limits on rent hikes in their specific areas. Both tenants and landlords are encouraged to maintain open communication and comply with all laws to ensure fair and equitable rental practices.

SOURCE

Leave a Comment