Renters' Rights and Stabilization Act of 2024

On April 8, 2024 the house passed the Renters' Rights and Stabilization Act of 2024. The bill included some key changes to tenant law in Maryland. One of the main key changes is the Right of First Refusal Law.

The Right of First Refusal (ROFR) law applies to residential rental properties, granting tenants the opportunity to purchase the property before it's sold to a third party. If the owner intends to sell to a third party for at least 10% less than offered to the tenant or if they receive an offer without publicly listing the property, tenants have the right to match the offer. The owner must inform the tenant of this right and wait 30 days for them to respond. If the tenant matches the offer, the owner must accept it. If multiple tenants make offers, the owner can choose the best one. If the owner accepts the tenant's offer but the sale falls through, the ROFR is waived. Failure to comply with the law incurs a fine of up to $1,000 per violation. Tenants can seek court injunctions against violations before a sale closes. After closing, liability for non-compliance rests solely with the owner, and tenants can't file lis pendens notices for failure to provide required notices.

The bill also decreases, from two months’ rent to one month’s rent, the maximum security deposit that may be imposed by a landlord.

The bill extends, from four days to seven days, the minimum time period between the granting of a judgement of possession in favor of the landlord and the issuance of an execution of a warrant of restitution against the tenant.

Read the full text of the bill here.

When renting in Maryland, it is critical to stay up to date on all the latest property law or utilize a professional for your property management needs. To learn more about the services offered by Entrusted Property Management, click here.