The Lowdown on Maryland Room Rental Agreements
Room rental agreements are a common contract in Maryland. In any room rental agreement, you need to have two parties: the landlord and the tenant. The landlord is basically the person that rent out the room, and the tenant is the person that’s actually living in the room. Room rental agreements include all conditions of renting the room.
Besides rent, room rental agreements dictate utility payments, common area maintenance fees, and special assessments. It also dictates the deposit. Rent and utility costs are usually split between roommates. Tenants may sublet to avoid penalties for breaking the lease. Room rental agreements protect both the landlord and the tenant, and if there is a breach, remedies are specific .
A room rental agreement is needed because it’s written down on a piece of paper. Because room rental agreements are legally binding, there’s no room for miscommunication. Most of the time, if you’re going into a room rental, someone will say "we just agreed." Sometimes people just want it in writing anyway, even though the rental agreement is verbal.
So, payment deadlines, termination, background checks, pets, smoking, any special requirements, and the fact that both have to sign if they want to break the contract are all outlined on a rental agreement. The room rental agreement is designed to create a relationship between the two parties, the tenant and landlord, and a legal foundation for room rentals in Maryland.
Elements of a Room Rental Agreement in Maryland
To form a legally enforceable agreement, a room rental agreement in Maryland needs to include the following elements:
Description of Property. Of course, you need to clearly and unambiguously describe the property you are renting in your room rental agreement. If there are any furnished items you are providing with the property, such as appliances or furniture, describe them in your agreement as well.
Amount of Rent. Your room rental agreement should specify the rent that is owed on the room. For example, is it $500 per month, or some other amount? It also should state how the rent is to be paid, whether via cash, check, etc.
Amount of Deposit. Clearly, specify the amount of any security deposit that is required and outline the conditions in which it will be returned to the tenant.
Duration. Your room rental agreement should specify the length of the arrangement, whether it’s for a specific term—such as one year—or for an indefinite period of time. Specify the beginning and end dates if there is a termination date.
Maintenance. Both parties have responsibilities when it comes to the maintenance of the property. For instance, provide details of how often maintenance will be performed and whether the landlord or tenant is responsible for this. Specify details of any cleaning that is required in which, if any, party is responsible for the maintenance of common areas.
Termination. Clearly outline the conditions for early termination of the agreement.
Maryland law allows a landlord to terminate the agreement with seven days written notice if the lease is for less than 18 months and 30 days notice for leases of 18 months or longer. Tenant’s have a few exceptions for terminating the room rental agreement, including being a victim of domestic violence or your health is dangerous to others.
These are the basic provisions of your Maryland room rental agreement. Of course, as with all legal matters, it is in your best interest to consult with an attorney to ensure you are complying with all applicable laws.
Statutory Requirements for Room Rental Agreements
Maryland laws impose specific legal requirements on room rental agreements, and both tenants and landlords should be aware of these standards when entering the agreement and throughout the term of the lease. Generally, the statute of limitations on any claim in Maryland is three years. If a room rental agreement extends for six months or longer, the landlord must follow the strictures of the Maryland state law for residential leases.
Landlords are required to give tenants a statement of the apartment in the same condition at the beginning of the tenancy as at the end of the tenancy. If the apartment showed signs of mold or structural damage at the time of the entry into the contract, be sure to point that out in writing so you do not lose your security deposit upon vacating the premises.
The law requires maintenance of the apartment, and if you do not perform basic maintenance as required by your agreement, your landlord may take action against you. These repairs include:
Landlords must not enter a tenant’s room except in an emergency or when it has given the tenant advance notice of entry provided in the state code. The law protects the landlord as well by allowing entry into the space for several reasons, including but not limited to:
Landlords must provide at least 24 hours notice before entering the premises unless there is an emergency. Notice for entry should be no longer than 7 days.
If you fail to pay rent or violate any other provision of the room rental agreement, the landlord can bring an action to reclaim possession of the room. If the landlord prevails, you must vacate the space.
Like other landlords, those who rent rooms must deposit security deposits with a financial institution.
The landlord must give you two forms that explain your rights concerning the room rental agreement – these forms are called Fair Practices in Residential Tenancy and Escrow Act. Be sure to review these forms and your apartment contract before you sign.
Depending upon how long your tenant occupies your property, whether it has a separate entrance, and whether it is furnished or not, you may be subject to different legislation. A furnished room or board may subject you to the Maryland energy conservation law and other laws. However, if your tenant has a separate entrance, a landlord-tenant relationship may not exist, in which case, the person living at your property is merely an invitee and not a tenant. In this case, the contractual arrangement is primarily governed by the general contract law.
Tenant and Landlord Rights and Duties for Room Rental Agreements
Tenants and landlords who are party to a room rental agreement in Maryland have a number of rights and obligations to respect. These responsibilities help avoid problems that could lead to legal disputes. While some of these enumerated roles can be found in general statutory requirements, they can also be adapted to meet the particular purposes of individual agreements.
For example, tenants of room rental agreements must pay their rent on time, typically as agreed to in the contract. Failure to do so is grounds by which a landlord can choose to terminate the agreement, though there are exceptions. If a repair is needed, the tenant must let the landlord know as soon as possible.
Landlords must respect the rights of privacy of their tenants, making sure not to enter their rooms without notice or good reason. Room rental agreements can explicitly list the instances when the owner can enter a room without notice, such as in an emergency. Lack of proper give and notice can lead to legal complications.
If any problems arise between the landlord and tenant, or if the tenant decides they want to leave the rental situation, it is important for both to look out for what the terms of the agreement state. They should be careful to avoid actions that violate their legal obligations, as this could result in significant repercussions as laid out in the terms of the contract.
Room Rental Agreement Gotchas:
When it comes to room rental agreements, there are common mistakes made by first-time landlords. The first is creating an oral agreement. You need a written lease to protect both parties. Even if you are renting to a friend, you should have a written room rental agreement.
Secondly, you should create a room rental agreement that complies with Maryland law. Not all states have the same laws regarding requirements for room rental agreements. Having a room rental agreement that does not comply with the law can leave you and your tenant vulnerable. The law is very specific about requirement of room rental agreements including terms, deposits, late fees, passing along utilities to your tenants, and security deposits.
The next common mistake is failing to plan for a vacancy between tenants. Have a plan in place before you rent to your first tenant to ensure no gap in income. Yes, your plan may not be accurate, and the turnover time will likely be shorter than planned , but have a plan in place when you first start renting the room.
The next mistake to avoid is to not have insurance. Having insurance is crucial when renting out a room. A lot of landlords don’t have insurance and many think that if there is a house fire, the home owner’s insurance will pay to fix it. The problem is that it’s the tenant’s property that is being lost in the fire. Having insurance to protect both you and your tenant from the other’s property loss is important. Also, having insurance can protect you from damage done by your tenant. And, without proper insurance, you will have to cover the damage out of pocket.
Finally, never hand over a key before receiving a deposit and first month’s rent. This is a good way to get burned. You might discover that your potential tenant lied on the rental application. If you have no deposit or rent in hand, you have no recourse. Have the money in hand before signing the lease.
Drafting Room Rental Agreements
In the State of Maryland, there is a statutory form lease that families can use to displace potential ambiguity between them with regard to their room rental agreement. In addition, the statewide rent control law also requires that the agreement be in writing.
One of the things that sets Maryland room rental agreements apart from traditional leases is that the statutory form contains certain mandatory provisions that must be included in the lease. There are also additional optional provisions that can further enhance the enforceability of your agreement.
This step-by-step guide will provide you with an overview of the various applicable terms that Maryland law requires to be put into a room rental agreement. The easiest way to draft a room rental agreement is probably to follow the form’s structure and simply adapt your own lease to fit. Being sure that you’ve covered each of the basic sections is always suggested.
The first step is to include the date and the names of the renters and the landlords. Then, you should provide a definition section and a list of terms that will be used within the agreement. After that, it’s important to set forth what the landlords and the renters can expect in terms of payment. This section should also include whether or not utilities are covered in the rent, a description of any fees associated with late rent, and any additional pertinent payment details.
As a next step, outline the obligation of the renters to maintain the property. This section should also include a clause that gives the landlord the right to inspect the unit as well as a clause that limits subletters.
A section on what happens if the rent becomes overdue is also necessary in order to avoid potential misunderstandings later on. It’s also a good idea to include a final section that notes the landlord’s right to enter the unit for any reasonable purpose. This section should also include a clause with regard to termination of the agreement as well as mediation or arbitration in the event of a dispute. A separate checklist should also be provided that details any applicable house rules.
Creating a Maryland room rental agreement may seem like it’s a lot of work, but once you finish it, you’ll be glad you did. Not only does the agreement make sure that all parties are on the same page, but it’s also an effective way to protect your investment.
Room Rental Agreement Enforcement and Disputes
Enforcement of the terms of a room rental agreement and how disputes can be handled in Maryland
Before the question of enforcement is addressed, it is important to note that what is enforced is not the contract between the parties but the relationship created by that contract. From a legal standpoint, if a landlord seeks to enforce a lease against a tenant, the Court will enforce the terms against "the parties" – a party (not merely the landlord) cannot obtain possession of rented premises without obeying the law as any remedy it might obtain against a party is only an award for damages .
A landlord can obtain possession during the term of a lease by eviction. At common law, and in most states today, the landlord must sue in a court of competent jurisdiction to obtain a judgment of possession before the Sheriff can remove a tenant.
In Maryland, a landlord must file a complaint and serve process upon the tenant by the Sheriff. Once that has occurred, then the tenant may file a written answer to the complaint and, if a counterclaim is filed, then the matter is consolidated with the lawsuit. If no counterclaim is filed, then the case is resolved without a trial on stipulated documentation in a summary proceeding.