In today’s housing market, finding and keeping an affordable apartment can be a challenge. Rents across the United States have been steadily rising, and Maryland is no exception. Baltimore, for instance, saw an average rent increase of 8.5% in 2023, surpassing inflation [5]. This can put a significant strain on tenants’ budgets, forcing them to make tough choices about their living situation.
Understanding your rights as a tenant is crucial, especially when it comes to rent increases. Maryland has a statewide Rent Stabilization Law (RSL) that offers some protections for tenants. This blog post will break down the key points of Maryland’s RSL, explain tenant rights regarding rent increases, and provide tips for navigating potential rent hikes in 2024.
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- 1 Maryland’s Statewide Rent Stabilization Law (RSL)
- 2 Coverage and Exemptions
- 3 Limits on Rent Increases
- 4 How the Cap Works in Practice (Examples)
- 5 Notice Requirements for Rent Increases
- 6 Tenant Protections Beyond Rent Stabilization
- 7 Tips for Tenants Facing Rent Increases
- 8 Resources for Maryland Tenants
Maryland’s Statewide Rent Stabilization Law (RSL)
Maryland’s Rent Stabilization Law, enacted in 2020, is a significant step forward in protecting tenants from excessive rent increases. The law applies to most residential rental properties in the state, with some exceptions.
Coverage and Exemptions
The RSL generally covers rental units in buildings with four or more units that were built at least 15 years ago. However, there are some exemptions, including:
- Single-family homes (including those attached to a duplex or triplex)
- Owner-occupied buildings with four or fewer units
- Public housing and subsidized housing
- Condominiums and cooperatives
- Short-term rentals (less than 30 days)
It’s important to check if your rental unit falls under the RSL’s coverage. You can consult your lease agreement or contact your landlord for clarification.
Limits on Rent Increases
One of the most crucial aspects of the RSL is the cap it places on annual rent increases. Landlords cannot raise rent by more than the lesser of two options:
- The Consumer Price Index for Urban Consumers (CPI-U) + 3%
- 6%
The CPI-U is a measure of inflation, so this formula essentially ties rent increases to the rising cost of living. This helps ensure that rent increases are somewhat predictable and don’t significantly outpace a tenant’s ability to pay.
How the Cap Works in Practice (Examples)
Let’s look at some examples to understand how the RSL’s cap on rent increases works:
- Scenario 1: If the CPI-U for Urban Consumers in a particular year is 2% and the landlord chooses to implement the maximum allowable increase, the rent can only go up by 5% (2% + 3%).
- Scenario 2: If the CPI-U is 4%, the maximum allowable increase would still be 6% because 6% is lower than 7% (4% + 3%).
Notice Requirements for Rent Increases
Even with limitations on the amount a landlord can raise rent, proper notice is essential. According to Maryland law, landlords must provide tenants with written notice of a rent increase. This notice must include:
- The amount of the rent increase
- The effective date of the new rent
- The method used to calculate the increase (e.g., CPI-U + 3%)
The required notice period depends on the type of lease:
- Fixed-Term Leases: Landlords cannot raise rent during a fixed-term lease unless the lease agreement explicitly allows for such an increase.
- Month-to-Month Leases: Landlords must provide tenants with at least one month’s written notice before increasing rent.
Tenant Protections Beyond Rent Stabilization
The Maryland Rent Stabilization Law (RSL) is a valuable tool for tenants, but it’s not the only protection available. Here are some additional tenant rights to be aware of:
- Limitations on Move-In Fees: Landlords can only charge a security deposit equal to one month’s rent and a non-refundable pet deposit (with limitations based on pet type). Additionally, landlords cannot charge application fees that exceed the actual cost of processing the application.
- Restrictions on Rent Increases Between Leases: Even if a rental unit isn’t covered by the RSL, Maryland law prohibits landlords from raising rent excessively between leases. This means the increase cannot be substantially higher than what’s typical for comparable rentals in the area.
- Anti-Discrimination Protections: It’s illegal for landlords to raise rent or otherwise discriminate against tenants based on protected characteristics such as race, religion, disability, familial status, color, or sex. Federal Fair Housing Act and local anti-discrimination laws in some Maryland counties (e.g., Montgomery and Frederick) offer further protections.
Tips for Tenants Facing Rent Increases
If your landlord proposes a rent increase, here are some steps you can take:
- Review Your Lease Agreement: Carefully examine your lease agreement to understand if it allows for mid-lease rent increases and what the notification requirements are.
- Understand Your Rights Under the RSL: If your rental unit falls under the RSL, determine the maximum allowable increase based on the current CPI-U and apply the formula (CPI-U + 3% or 6%).
- Negotiate with Your Landlord (if applicable): Depending on the vacancy rate in your area and your relationship with your landlord, there might be room for negotiation. Research comparable rental prices and be prepared to present evidence that the proposed increase is above market rate.
- Research Comparable Rentals in the Area: Knowing the average rent for similar units in your area can strengthen your bargaining position if you choose to negotiate or help you decide if finding a new place is necessary. Online rental listings and rental surveys can be helpful resources.
- Prepare for Finding a New Place (if necessary): If negotiation fails and the rent increase is too high for your budget, start researching alternative housing options. Consider contacting local housing authorities or non-profit organizations that may offer rental assistance programs.
Resources for Maryland Tenants
Here are some resources that can be helpful for Maryland tenants:
- Maryland Department of Housing and Community Development (DHCD): The DHCD website https://dhcd.maryland.gov/ provides information on tenant rights, including the Rent Stabilization Law. They also offer resources for finding affordable housing and resolving landlord-tenant disputes.
- Legal Aid Organizations: Several legal aid organizations in Maryland offer free or low-cost legal assistance to tenants facing housing issues. You can find a legal aid organization near you by searching online or contacting your local bar association.
By understanding your rights and utilizing available resources, Maryland tenants can navigate rent increases more effectively and ensure they have access to safe and affordable housing. Remember, staying informed and proactive can be crucial in protecting your interests as a tenant.
