If you’re a Landlord in Maryland,
Here’s the Information You Need

In the current real estate market, homeowners are finding challenges with their homes and rental properties.  A few homes may be under water, but that was a big deal during the financial crisis in 2007 and 2008.  Over 75% of homeowners today have at least 50% equity in their home.  Now that the Covid-19 pandemic appears to be over, the government is taking actions to “fix” the economy.  Those actions are having some unfortunate results.  You can read about Our Bold Predictions for the Next Six Months in real estate.  It will give you an idea of what we believe is coming.  You can also read our newly updated blog posting about What a “Normal” Real Estate Market Might Look Like.

The rental market in Maryland still remains HOT!  Our market area is somewhat shielded from economic downturns in home rentals.  This is because of our close proximity to the Federal Government and many military installations.

Homeowners who need to relocate due to employment changes or military reassignments are often left with few choices.  They can either sell their home and possibly take a loss or go into foreclosure.  Another option that is available is for them is to rent the home and have it professionally managed so they don’t need to worry about it.

Rental Leasing and Property Management Services

DMS Properties, LLC Residential Real Estate Services handles residential properties in many Maryland Counties.  You can read about our Property Management Services so you will know how we can help you.  We have a property management presence in many Maryland counties, cities and towns.  You can look at our Current Listings of Homes that are available for rent.  You will see there is a shortage!  You can also see the homes we currently manage.

Because we are licensed Real Estate Agents, we can list your property for rent.  That will put it into the regional Multiple Listing Service (Bright MLS).  We do this at what we believe is a very economic rate for you.  We are able to provide information about rental properties currently available.  You can search the rental listings to see how your property compares.

Having the property listed by us, though, isn’t a requirement for us to manage your rental home.  We can manage your property even if you already have tenants in place.  We will even work with your Realtor (if you have one).  If they recommend you, we will pay them a referral fee.  Regardless of whether you list the property or find a tenant on your own, we process the rental applications to screen the tenants.  This is done at NO COST TO YOU (it costs the potential tenants $39 per adult to apply).  We usually can provide you with the report within 3 business days.

If you are a landlord now, or if you own a residential home that you want to (or need to) rent, Contact Us for information.  Also, if you wish to become a landlord by building generational wealth with real estate, we can help you find homes that have great investment potential.  We will also provide you with an investment analysis so that you will know it has a good Return on Investment (ROI).

It doesn’t matter whether you own and lease out a single family home or units in an apartment building.  There’s a lot of things that you need to know.  Many people who manage their own rental homes find it overwhelming.  There are many landlord responsibilities that come with the territory.  Some duties seem clear, like collecting rent or finding tenants for a vacant unit.  Other duties, though, may be less obvious.  The more you learn, the more success you will have with your real estate investments.  Here are 10 landlord responsibilities that many homeowners may overlook.

Knowing the Landlord-Tenant
Laws for Your Jurisdiction

Ignorance of the law is no excuse.  It is your responsibility as a landlord to know and understand all tenant-landlord regulations for your city, county and state.  Landlords can be (and often are) sued for not obeying the landlord-tenant laws, even if they weren’t aware that the laws existed.  That’s why the licensed real estate agents and property managers at DMS Properties, LLC Residential Real Estate Services can be a valuable asset to you.

Preparing a Legal Lease Document

The lease agreement and any other legal paperwork is all part of a landlord’s duties.  It’s your responsibility to ensure that the rental contract is legally written and abides by all laws in the city, county and state.  The lease period, monthly rental rate and tenant names must be clearly indicated in the lease.  In some jurisdictions, legal disclosures, such as security deposit details, must also be included.  The lease should also contain all appropriate clauses, such as advising tenants to purchase renters’ insurance.  Many states have required language that must be included, so it’s not a good idea to buy a “boilerplate lease” that is available on-line or in office supply stores.

The Duty to Deliver Possession

Once a lease contract is signed, it is the landlord’s responsibility to deliver possession of the property to the tenant on the agreed-upon date.  The unit must be in move-in condition and sufficiently documented.  Obviously, any previous tenants must have vacated the premises.  We have specific processes that are in place for the tenant move-in that include a pre-move inspection, documentation of keys and transfer of utilities.

Implied Warranty of Habitability

Another landlord obligation is to make sure that the rental property is in a safe, habitable condition.  The property must not have any serious deficiencies, and any supplied appliances, fixtures, plumbing and heating must be in good working order.  The property must be free of insects and pests.  Landlords are generally responsible for getting infestations under control, even if they occur after tenants have moved in.  In most states, landlords can avoid this by specifying in the lease document that pest control is the renter’s responsibility.

Respect the Tenant’s Right to Quiet Enjoyment

According to most landlord-tenant laws, tenants have the right to quiet enjoyment.  That means that the tenants must have the benefit of living in their home without being disturbed.  Once a tenant has possession of a property, the landlord may not interfere with this right.  It is the landlord’s responsibility, therefore, to ensure he or she does not enter the rental unit without proper notice.  In most cases, a landlord must provide a minimum of 24 or 48 hours advance notice.  This requirement would not apply in the case of an emergency.  When a landlord enters the rental property, it must be at a reasonable time of day and for a valid reason.  We discourage our landlords to avoid personal inspections of their rental properties and request that they leave that to us.  That is because we develop a relationship withe tenants and can easily work with them for inspections and repairs.

Completing Repairs Within a Reasonable Time Frame

Tenants have the responsibility of reporting any repairs that need to be done.  Landlords have the responsibilities of responding to these reports and having the repairs completed in a timely manner.  Urgent repairs should be done right away, while minor issues can be addressed more conveniently.  Landlords sometimes want to ignore damage reports from tenants, but don’t realize that damage that is not properly repaired tends to cause more damage.  Uncompleted repairs may also encourage tenants to vacate the rental property or attempt to open a rent escrow case in District Court.  There are some defects at a property that will trigger a rent escrow case.  There are others that will not.

Many homes have a garbage disposal attached to the kitchen sink as part of the plumbing system.  Everyone should know the proper procedures for using a garbage disposal to avoid damaging the unit and causing clogs in the kitchen sink.  Both landlords and tenants need to be aware that improper use of the garbage disposal could result in the need to replace the unit or hiring a plumber to unclog the drain.  These will both be tenant responsibilities in most cases.  Replacing a garbage disposal usually costs between $250 and $300.  Having a plumber come to the property to unclog a kitchen sink will cost upwards of $500.

Providing Safety Measures

It is the landlord’s duty to protect their tenants, up to a certain point.  In some jurisdictions, landlords must provide specific safety measures at their rental homes.  These may include smoke detectors and carbon monoxide detectors, fire extinguishers, front door peepholes, deadbolt locks on exterior doors and window locks.

Reporting Crimes at the Property

If a landlord becomes aware of any criminal activity taking place at their rental property, they must report it to the appropriate authorities.  For example, some landlord-tenant laws contain language that can find a landlord liable if their property is used for dealing or creating drugs.

On-Site Property Management

In some states, the law requires on-site property management of apartment buildings or complexes of a certain size.  Most of the time, the on-site property management would also handle leasing services and maintenance of the properties.  

Responsible for Property Manager’s Acts

An often-overlooked concern is that the landlord can be liable for the acts of a property manager.  This would include illegal acts.  If a property manager does not follow local landlord-tenant laws and a rental application is refused based on the applicant’s religion or race, for example, the landlord can also be held responsible.  In Maryland as of October 1, 2020, property managers do not need to be licensed by the State, so there is no oversight.  As licensed real estate agents and property managers, we are governed by the laws enacted by the General Assembly and administered by the Maryland Real Estate Commission (MREC).  We stay up-to-date on the rental laws in all of the jurisdictions where we work.  

Pets at Your Rental Home

We’re working on adding this information and should have it done soon.

Utilities at Your Rental Home

There are several different utilities associated with every home.  Obviously, not all homes and property types are the same.  All properties have some sort of water and sewage services.  Most homes are served by a municipal or corporate water authority that provides water and sewer services.  These are usually paid on a quarterly basis.  Keep in mind that the water and sewer service is the only utility in the State of Maryland that is a homeowner responsibility, even if there is a tenant paying the bill.  It is an expense that “stays with the house.”  If the home uses a well and septic system, then thing are completely different.

One of the things that landlords (and their tenants) need to know is the location of the main water shutoff valve.  It’s important to know this in case there is a problem with the plumbing inside the house.  You definitely want to prevent any flood damage in the home.

Almost all homes are connected to electric services provided by a wide range of companies.  Even homes that have solar panels likely have an electric bill.  While tenants are living in the home, they are responsible for the electric service.  If they don’t pay their bill, the electric company can find them for private collection.

The same is true for homes that have natural gas service, oil service or propane.  It is almost always a tenant responsibility as long as they live in the property.  Some landlords will maintain the heating oil or propane service, but then get reimbursed by the tenants.  If they don’t reimburse the utilities, the landlord can collect it as “additional rent” in a Failure to Pay Rent action.

Homes that are located in a condominium association may have some or all of the utilities included in the condominium fee.  In that case, the landlord is responsible for all of them.  Other utilities like phone, internet and cable TV are always purchased by the tenants.

Being a landlord involves a steep learning curve when starting out, and the laws aren’t always simple.  Taking the time to learn about your responsibilities as a landlord can mean the difference between earning a nice profit and losing money – or worse.  Protect yourself by learning the laws that apply to you and surrounding yourself with a team of professionals.  Better yet, hire licensed real estate agents and property managers to take care of your residential real estate investments.