Maryland Month-to-Month Lease Agreement

Utilizing this template allows landlords and tenants in Maryland to establish a comprehensive and legally compliant lease agreement, promoting a transparent and cooperative renting experience.

Month-to-Month Leases in Maryland

Under a Maryland month-to-month lease agreement, the tenant and landlord aren’t bound long-term. The lease auto-renews each month after the tenant pays their rent. Due to the flexible nature of these agreements, they can easily terminate this agreement.   

Lease Termination & Renewal

• In Maryland, landlords must provide tenants with a 60-day written notice to terminate month-to-month leases. In contrast, tenants must only give a 30-day notice to vacate. 
• However, landlords who own five (5) or more residential rental units are exempted from this regulation timeline when ending month-to-month agreements. 
• Additionally, rental properties located in Baltimore City and Montgomery County are fully exempt from the 60-day notice rule obligating landlords of smaller portfolios. 
• For landlords whose properties fall under foreclosure, just 30 days’ notice is required for month-to-month tenants, reflecting the situation’s urgency. 

Rent Increases

• Maryland requires landlords to provide 60 days’ notice to raise rents for month-to-month tenants. 
• Notification must be in writing via mail with a mailing certificate or electronically if the tenant opts in, with the landlord retaining proof. 
• The tenant must have 60 days between receiving notice and the new higher rental rate becoming effective.

Security Deposit

• In Maryland, security deposits are capped at two (2) months’ rent. Tenants overcharged can recover triple damages plus reasonable attorney’s fees. 
• Landlords must provide a receipt for deposits paid separately or within the written lease. Not providing a receipt risks a $25 penalty. The receipt should note the tenant’s right to request in writing a list of pre-existing property damages within 15 days of move-in. 
• If the receipt isn’t included, the landlord forfeits proper claims to the deposit, barring unpaid rent. Deposits must go into Maryland-based escrow accounts earning at least 3% annual interest for rentals initiated pre-2015 or 1.5% yearly interest for later leases. 
• The security deposit must be refunded within 45 days after the tenant vacates, less lawful deductions. 

Tenant Rights

• Right to complain about housing conditions without retaliation, like eviction threats or rent hikes. 
• Right to recover security deposits plus interest within 45 days after moving out, less only documented damages beyond normal wear and tear. 
• Right to legally withhold rent and pay it into court escrow to compel landlords to make repairs threatening health/safety.
• Right to pay overdue rent before eviction to redeem tenancy unless the landlord has more than three judgments in 12 months.  
• Right to formal court-overseen eviction process instead of extralegal lockouts or displacement.
• Late fee caps at 5% of monthly rent; no other fees can be collected in Rent Court.  
• Lease protections often survive foreclosures for tenants. 
• 30-60 days advance notice is required from landlords to terminate month-to-month leases.
• Right to negotiate written leases freely when offered, alongside rent receipts.

Required Disclosures

Maryland law mandates landlords make tenants aware of certain property aspects before signing, especially regarding deposits and paint hazards. Required notifications include:

• Security deposit rules – Receipt with an amount limited to 2x rent must be provided, detailing the separate interest-bearing account and inspection rights
• Lead paint disclosure – Properties built before 1978 must warn about potential lead exposure risks
• Inspection rights – Tenants must receive notice on processes to review and agree to pre-existing damages assessments
• Reasons for withholding deposits – Landlords must explain the basis for retaining deposit funds after moving out.