We would like to inform all residents that, effective October 1, 2024, the State of Maryland has implemented the new Renters’ Rights Stabilization Act of 2024 (RRSA). This significant legislation introduces key changes to rental agreements within the state, including the following provisions:
1. Lower Security Deposit Maximums: New limits have been established for security deposits, making renting more accessible for tenants.
2. Creation of the Office of Tenant and Landlord Affairs: A new office will be dedicated to addressing tenant and landlord issues, providing support and resources for both parties.
3. Increased Costs for Eviction Filings: The cost to file for an eviction has been raised, which aims to promote fairer practices in rental agreements.
4. Right of First Refusal for Tenants: Current tenants now have the right of first refusal if an owner intends to sell a property while there is an active tenancy.
The Act specifically grants the right of first refusal to tenants residing in residential rental properties with three or fewer individual dwelling units. Owners are now required to give qualifying tenants—those who have lived in the property for at least six months and are on the lease—the opportunity to purchase the rental property before it is offered to third parties.
Please note that the Act does not apply to residential rental properties with four or more units, transfers to a wholly owned business entity, fiduciary transfers, transfers in lieu of foreclosure, and family transfers, among other exceptions.
Under the Act, qualifying tenants can make an offer to purchase the property before it is listed for sale. The owner cannot list the property during a 30-day exclusive negotiation period, which begins when tenants express their intent to make an offer. If the landlord agrees to sell to a third party for a price at least 10% lower than the tenant’s last offer, the tenant has the right to match that offer. If no tenant matches the price within 30 days, the right of first refusal expires, allowing the landlord to sell to the third party. If multiple tenants express interest in purchasing, the landlord may select the best offer.
We encourage all tenants and landlords to review these new regulations thoroughly to ensure compliance and understanding of their rights and responsibilities. Thank you for your attention to this important update!
Please take a moment to review the Frequently Asked Questions document available at this link: FAQ Document
