Introduction to the Maryland Lease Agreement
Maryland lease agreement is a legally binding contract that governs the rental of residential real estate. It legally enforces the rights and obligations of both the landlord and tenant. While a lease agreement does not have to be in writing to be valid, most states require all leases longer than 12 months to be in writing. Maryland is one of the states where leases must be in writing.
With a written lease, a landlord can enforce lease provisions. Both the landlord and tenant are required to behave just according to the rules and guidelines.
However, a lease agreement only entitles the tenant to exclusive possession of the property, meaning he or she has the right to exclude everyone from the premises, including the landlord . While some lease agreements permit the landlord to enter the premises at specified times, most do not. In such cases, and sometimes even if a lease agreement permits entry, the landlord must provide the tenant with reasonable notice before attempting to enter. The tenant is only required to accept the entry if it is for a legal purpose such as making a repair or showing the property to a prospective tenant.
Even if a lease agreement does not exist, the contractual relationship between the landlord and tenant is still governed by Maryland rental laws.
Essential Elements of a Maryland Lease Agreement
While the simpler rental contracts can be used in any state, those allowed under Maryland’s laws have a few additional terms that landlords have to include in their contracts. These are the following:
Names of the parties – This is standard to all rental contracts, including the names (and contact information) of the landlord or agents and the tenant or tenants.
Description of the premises – The full address and specific unit number of the rental property must be included in the rental contract.
Time period for occupancy – The exact dates of the lease period must be included so as to not leave the lease open-ended.
Rental payment terms – This section of the lease contract should include when and where the rent is to be paid each month. Types of payment acceptable, any late fees if not paid on time, plus when, if at all, allowable grace periods.
Additional charges and fees – Any additional fees that would be charged to the tenant if applicable. Any other costs of living in the property should also be included. Items such as water, power, and trash pickup. If the tenant is responsible for paying anything other than rent, it must be clearly known prior to moving into the residence.
Deposit required – Rental contracts in Maryland are required to include the deposit amount, what the deposit may be used for, and the procedure for the return of the deposit after the rental period has expired.
Common areas rules – Landlord’s may establish rules for common areas that may affect tenants. This is common in apartment complexes and must be included in the lease.
Specific Maryland clauses – Maryland has a few special clauses that must be in all lease agreements, including the following:
Termination rights – What rights do either party have if they want to end the lease agreement prior to the end date? Being able to force a tenant to move out can be very difficult if the right clauses are not included in the rental contract.
Smoke Free Housing – Maryland has strict smoking laws so recognizing smoke free housing is important.
Lead-Based Paint Disclosure – A statement is required if the rental property was built prior to 1978, there must be a statement regarding lead and where tenants can find more information.
Mold and Mold Remediation – Another clause along the same lines as Lead-Base Paint Disclosure
Tenant Right to Possession – Whether or not the tenant has the right to possession of the property.
Overview of Maryland Landlord-Tenant Law
Maryland landlord-tenant law is governed by the Maryland Real Property Code as well as local statutes and ordinances. The state laws set out the obligations between landlords and tenants, and apply to both lease agreements for residential and commercial properties. The local laws only apply to residential lease agreements, and are intended to be used as an addition to the state laws. The bulk of Maryland landlord-tenant law, however, is set out in the common law and case law as developed by Maryland courts. Some specific areas of Maryland landlord-tenant law include the issue of whether a tenancy is oral or written, whether a tenancy is at-will or for a term, whether a notice to terminate a tenancy is required, and whether a lease may be implied from conduct rather written terms. These issues and other are typically addressed in a good Maryland lease agreement template. Each of the 23 counties in the state may have different laws or requirements to address these concepts and others, and a Maryland lease agreement template may need to have a separate amendment or addendum that is specific to the relevant jurisdiction.
Benefits of Using a Lease Agreement Template
Using a standard lease agreement template for Maryland provides several advantages. With a lease agreement template, not only are you adopting a legally sound framework for renting space to tenants in Maryland, but you save time maintaining compliance with applicable laws and regulations. You also reduce the risk of disputes by including terms and conditions that govern the extrajudicial aspects of landlord-tenant relationship. Moreover, by using a boilerplate lease agreement template, you ensure compliance with certain tenant disclosure requirements under Maryland law. In Maryland, actual notice to tenants of certain disclosures is not necessarily required to comply with such requirements. Thus, by including those disclosures in your lease agreement template, you have a built-in mechanism to satisfy those disclosure requirements.
How to Personalize Your Maryland Lease Agreement Template
When dealing with the complexities of a lease agreement, customization is critical to ensure that it aligns with specific property and legal requirements. Below is a step-by-step breakdown of how to customize a Maryland lease agreement template effectively.
Step 1: Begin with the Basic Structure
Start with an existing Maryland lease agreement template. Basic sections typically include the names and addresses of both landlord and tenant, the property address, the lease term, rent amount, and security deposit. These should not be altered unless otherwise specified by Maryland law.
Step 2: Add Specific Terms
Once you’ve modified the basic structure, carefully review the template to identify any areas where additional specificity may be necessary. This can include but is not limited to pet policies, yard maintenance, garbage disposal, and rules around common areas if the property has multiple units. Ensure that all terms are clearly defined and address nuances unique to the property or situation.
Step 3: Review and Adapt for Maryland Laws
Maryland has its own set of laws and regulations that may impact lease agreements . For example, the Maryland Consumer Protection Act prohibits certain misleading statements in residential leases. Familiarize yourself with Maryland’s specific requirements for lease agreements and remove any clauses or language that may not be in compliance.
Step 4: Finalize Additional Clauses
Once you’re confident that your template complies with Maryland laws, finalize any additional clauses you may wish to include. If there are particular concerns or stipulations unique to your use of the property, such as an on-site business or an unusual living arrangement, you will need to tailor the lease to fit these circumstances.
Step 5: Have the Lease Reviewed by a Professional
It’s always a good idea to have a local lawyer review your final version before presenting it to either party for signature. Not all states have the same laws and it is important to ensure your lease agreement is compliant with both Maryland and any other state laws that may impact your agreement.
Following these steps should help you customize your Maryland lease agreement template to your needs, but always consult with an attorney if you have broader legal questions.
Common Pitfalls in Maryland Lease Agreements
While lease agreements are standardized legal documents, they can still be the source of numerous mistakes that could result in litigation. The following are common errors that landlords and tenants may make when agreeing to or entering into a new lease, and information on how to avoid them. Failing to update agreements from year to year/tenant to tenant. It’s easy to get stuck in a pattern of using the same lease agreement with all your tenants. However, when a new tenant occupies a rental property, changes to the lease terms should always be expected. In some cases, you may even have to alter the lease terms from one year to the next to ensure compliance with current laws that may not have existed during the previous lease term. It’s important to keep in mind that what may have worked for your past lease agreements may not work in the future. Not drafting a "holdover" clause to protect the landlord from a tenant who continues to occupy the home without entering into a new lease agreement. Allowing a tenant to hold over a lease could create new leases inadvertently. For example, allowing a tenant to stay on a month-to-month basis after a lease has expired could create a new month-to-month lease agreement even without additional documentation being signed. Because of this, it’s important to draft clauses in Maryland rental agreements that protect the landlord from a tenant who chooses to occupy the space for an extended period after the lease has expired. Failing to include a proper rent increase provision. Specifically addressing the subject of rent increases in the lease agreement is critical. In order to avoid potential legal issues, be sure to clearly state the date when the rent will increase and the amount of the increase. Additionally, if your lease agreement is a month-to-month rental agreement, you must follow state and local laws regarding the required amount of notice you must provide before increasing the rent.
Where to Obtain Quality Maryland Lease Agreement Templates
No matter what kind of lease you’re dealing with, you’re required by law to have a written lease. The problem lies in finding a credible one that can be used at no cost to you.
The first place you should always look for lease templates is online. The Maryland Judicial branch has a Residential Lease Agreement template available that can be downloaded and updated. You should verify that it meets your needs before using it.
You can also find lease templates that have already been updated at online legal source hubs. Buying legal forms is generally not recommended . You want to make sure your lease is legalized by the state so that it will hold up in court. Creating your own from scratch is also not a good idea.
Most realtor associations in Maryland also have a lease agreement template. However, you may have to pay a fee to download it. If you are working with a realtor, you should be able to get one from them for free.
Of course, you can always have a real estate attorney or a realtor create one for you, but that can be a very expensive option that may not be viable for many tenants and landlords.