Many counties and municipalities across the State of Maryland require residential rental properties to be licensed before they can be leased to a tenant. Maryland law prohibits a landlord both from: (1) collecting rent from a tenant while the property is unlicensed, and (2) seeking eviction action against the tenant while the property is unlicensed.
The first step for landlords operating a residential rental property is to confirm whether the jurisdiction where the property is located requires a license. The following are counties/municipalities that require a residential rental license:
- Anne Arundel County (for properties with two or more dwelling units)
- Baltimore City
- Baltimore County
- The City of Frederick
- Howard County
- Montgomery County
- Prince George’s County
Some municipalities, however, have their own licensing regimes, such as Bowie, Greenbelt, and Hyattsville. Applications for rental licenses in these municipalities are not received or administered by the County.
While these jurisdictions require rental licenses for rental properties, there are various exceptions to these requirements. Landlords should first determine whether a property is exempt from licensing requirements. If not exempt, the property must be licensed. Fines for violation of the residential license requirements can range from $500 (Montgomery County) to $1,000 (Baltimore City), for each offense.
Leasing a residential property to a tenant without a valid rental license may subject the landlord to liability under a theory of fraud. Similarly, seeking rent for the periods in which the property was unlicensed may subject a landlord, their agent, or their attorney to liability under the Maryland Consumer Protection Act and the Maryland Consumer Debt Collection Act. It is imperative that before a residential landlord rents to a tenant, attempts to collect rental payment from a tenant, or proceeds with eviction action against a tenant, the property is licensed in the county in which the property is located.
Rosenberg Martin Greenberg has a robust landlord/tenant practice. Contact us for assistance or if you have questions related to landlord/tenant issues.