To become a landlord in Maryland, you’ll usually need a rental license from the county or city where the property sits, a lead paint registration with the Maryland Department of the Environment if the building predates 1978, and compliance with a set of statewide rules covering security deposits, leases, fair housing, and property entry. There’s no single state license that covers all of this. The requirements stack: local licensing on top of state environmental registration on top of statewide landlord-tenant law.
Here’s what to work through, in the order that makes sense for a new landlord.
Check Local Licensing First
Rental licensing in Maryland is handled by counties and municipalities, not the state. Most populated jurisdictions require a license before you can advertise a unit or collect rent, but the specifics vary. Montgomery County requires an annual rental housing license for all residential rental units. Baltimore County requires registration for buildings with six or fewer dwelling units, with licenses valid for three years. Charles and Frederick counties have no residential rental license requirement at all.1Maryland General Assembly. Fiscal and Policy Note for House Bill 1199
Call the housing or permitting office in your specific county or city. Ask whether a license is required, what the application involves, and how often it renews. Even where no license is required, the statewide rules described below still apply to you.
Register Pre-1978 Properties for Lead Paint
If the property was built before 1978, Maryland law requires you to register it with the Maryland Department of the Environment under the Lead Poisoning Prevention Program.2Maryland General Assembly. Maryland Code Environment Article 6-801 This applies whether or not your local jurisdiction requires a rental license. Registration costs $75 per unit and renews every two years at the same rate.3Maryland OneStop. Lead Paint Rental Unit Registration Details MDE assigns the property a tracking number you’ll need for local license applications and future certifications.
At every tenant turnover, you need a Lead Paint Risk Reduction Certificate from a state-accredited inspector, who submits results to MDE. Keep a copy and give every tenant the state-issued lead paint information brochure. If you acquire a pre-1978 rental, you have 30 days from acquisition to register it.4Maryland General Assembly. Maryland Code Environment 6-812 – Renewals
An alternative for owners who don’t want repeated inspections: pursue a lead-free certificate. If testing confirms the property is lead-free (or you abate it and then have it certified), MDE issues a certificate for a $10 per-unit processing fee, and the property is exempt from further risk reduction and registration requirements.5Maryland Department of the Environment. Lead Paint Certificates for Rental Housing For owners with multiple older units, full abatement can pay off over time.
Decide Whether to Form an LLC
You don’t have to form a business entity to rent out property in Maryland. Plenty of individual landlords operate under their own name. If you want liability protection, you can file Articles of Organization for an LLC through Maryland Business Express for a $150 filing fee.6Maryland Business Express. Register Your Business in Maryland The LLC needs a resident agent authorized to accept legal documents in Maryland.
Once formed, the LLC has to file an annual report and personal property tax return with the State Department of Assessments and Taxation, at a filing fee of $300.7Maryland Department of Assessments and Taxation. Form 1 Annual Report and Business Personal Property Return Miss it and the entity falls out of good standing, which creates problems from bank accounts to litigation. Even operating as a sole proprietor, you’ll want a SDAT identification number so the business is tracked in state records.6Maryland Business Express. Register Your Business in Maryland
Apply for the License and Pass Inspection
In jurisdictions that require a rental license, the application typically asks for your MDE lead paint tracking number (if applicable), proof of business registration or SDAT identification, verification that property taxes are current, the name and address of a resident agent, and details about the unit’s layout and safety features. Out-of-state owners need to know that the resident agent must live in Maryland and agree to accept legal documents. A tenant cannot serve as your agent.8Montgomery County Government. When to Assign an Agent, Legal Agent, or Management Company to Handle Rental Property
Fees vary widely. Montgomery County charges $130 per unit for a single-family home in FY 2026.9Montgomery County Government. Rental Housing License and Registration Fees New Carrollton charges $300 annually for a single-family dwelling license.10City of New Carrollton Government. Business License Rental License Permits Budget for a separate application fee on top of the license fee itself.
What Inspectors Check
Once paperwork clears, the local housing office schedules a physical inspection. Inspectors verify functional smoke alarms, carbon monoxide detectors (required on every floor of any dwelling with a fossil fuel appliance or attached garage), working plumbing and electrical, and egress windows in every bedroom.11City of Bowie. Rental License Application
Maryland’s smoke alarm law requires alarms to be replaced when they hit 10 years old from the manufacture date. Battery-operated alarms must be sealed, long-life units with a hush feature. Hard-wired alarms must be replaced with hard-wired alarms, not battery-only units. Some jurisdictions don’t permit battery-only alarms in registered rentals at all.12Baltimore County Government. About Maryland’s Smoke Alarm Law If the property fails, you’ll get a written report listing deficiencies, then fix the issues and schedule a re-inspection.
Follow the Security Deposit Rules
Maryland caps security deposits at two months’ rent, no matter the number of tenants or the size of the unit. Collecting more exposes you to a tenant lawsuit for up to three times the overcharge plus attorney’s fees.13New York Codes, Rules and Regulations. Maryland Code Real Property 8-203 – Security Deposits Give the tenant a written receipt at the time of payment and hold the deposit in a separate account at a Maryland financial institution.
The deposit accrues simple interest at the daily U.S. Treasury yield curve rate for one year (as of the first business day of each year) or 1.5% annually, whichever is greater. Interest accrues monthly, is not compounded, and only applies to deposits of $50 or more. No interest is owed unless you’ve held the deposit for at least six months. The Department of Housing and Community Development publishes a rate table and calculator.13New York Codes, Rules and Regulations. Maryland Code Real Property 8-203 – Security Deposits
After the tenancy ends, you have 45 days to return the deposit plus accrued interest. If you keep any portion for damages, mail an itemized list of damages and their actual costs to the tenant’s last known address within the same 45-day window. Skipping the banking or return requirements can cost you the right to withhold any of the deposit.13New York Codes, Rules and Regulations. Maryland Code Real Property 8-203 – Security Deposits
Write a Lease That Meets Maryland Requirements
A written lease in Maryland must include the full name and address of the landlord or management company, disclosures about the property’s habitability, and the tenant’s right to a move-in inspection. Every residential tenancy carries an implied warranty of habitability, meaning the property must stay free of serious defects that threaten health or safety for the entire lease term, not just move-in day.14Maryland General Assembly. Maryland Code Real Property 8-212
Late fees are capped at 5% of the unpaid rent for the delinquent period. If a tenant makes a partial payment before the due date, the fee can only apply to the outstanding balance, not the full month. For tenants who pay weekly, late fees max out at $3 per week and can’t exceed $12 per month. Any lease clause exceeding these limits is unenforceable, and a tenant can recover actual damages plus attorney’s fees if you try to enforce one.15Maryland General Assembly. Maryland Code Real Property 8-208 – Written Leases
Follow Fair Housing Law
Maryland’s fair housing law covers more protected classes than the federal Fair Housing Act. Beyond the federal categories of race, color, religion, sex, national origin, familial status, and disability, Maryland prohibits discrimination based on marital status, sexual orientation, gender identity, source of income, and military status.16Maryland General Assembly. Maryland Code State Government 20-705 These protections apply to advertising, screening, lease terms, and every part of the landlord-tenant relationship.
The source-of-income protection catches new landlords most often. You cannot refuse a tenant because they pay with a Housing Choice Voucher, rapid rehousing subsidy, or other rental assistance. You can’t refuse to complete the paperwork a housing authority requires, advertise “no Section 8,” or set a minimum income requirement based on the full rent when a voucher covers most of it. If a voucher covers $1,800 of a $2,000 monthly rent, your income requirement can only be based on the tenant’s $200 share.16Maryland General Assembly. Maryland Code State Government 20-705 Complaints go to the Maryland Commission on Civil Rights.17Maryland Commission on Civil Rights. Housing
Give Notice Before Entering
Maryland requires at least 24 hours’ written notice before you enter a leased property. Entries are limited to 7:00 a.m. through 7:00 p.m., Monday through Saturday, unless you and the tenant agree in writing to something else.18New York Codes, Rules and Regulations. Maryland Code Real Property 8-221 – Landlord’s Right of Entry Genuine emergencies (a burst pipe, a gas leak) are the exception. Routine maintenance, showings, and inspections all need the 24-hour written notice.
What Happens if You Skip the License
Renting without a required license exposes you to daily fines that add up fast. In Montgomery County, operating without a rental license is a Class A violation carrying $500 for the first citation and $750 for repeat offenses, with a separate citation possible for each day the property remains unlicensed.19Montgomery County Government. Penalties for Failing to Obtain a Rental License Other jurisdictions run their own penalty schedules, but the pattern is the same: fines stack daily until you get into compliance.
An unlicensed property also weakens your position in court. If a tenant stops paying rent and raises your missing license as a defense, you may be in a much worse spot than a landlord who kept the paperwork current. Get the license before the tenant moves in, not after the first dispute.