Maryland Lease Requirements: Written Terms & Banned Clauses

A Maryland lease agreement forms the legal foundation of the landlord-tenant relationship, governed primarily by the Maryland Real Property Article (enacted July 1, 1974). While oral leases are technically legal under certain conditions, written agreements are strongly recommended and are mandatory for any residential tenancy if the landlord owns five or more residential rental units in the state, or for tenancies with a term exceeding one year. While a written receipt for a security deposit is mandatory, charging a deposit does not independently require a written lease agreement.

When Must a Lease Be in Writing?

Under Maryland law (Real Property § 8-208), a written lease is mandatory for any residential tenancy if the landlord owns five or more residential rental units in the state. Additionally, while § 8-203 requires a written receipt for any security deposit, this requirement does not mandate that the entire lease be in writing. The Maryland Statute of Frauds (Real Property §§ 5-101, 5-102) independently requires any lease with a term exceeding one year to be in writing; leases for exactly one year or less may be oral.

Effective July 1, 2025, landlords must also provide a copy of the Maryland Tenants' Bill of Rights with any new lease or renewal (§ 8-208(c)(4)).

If a landlord offers a written lease, it must:

• Provide a copy to the tenant at the time of signing.
• State the name and address of the landlord or their authorized agent.
• Include a receipt for any security deposit paid (incorporating specific statutory language).
• Include a copy of the most current Maryland Tenants' Bill of Rights (Effective July 1, 2025).

Furthermore, landlords must provide a written receipt for rent if the tenant pays in cash or if the tenant requests a receipt (§ 8-208.3).

Prohibited Lease Clauses

Maryland law explicitly bans certain terms from being included in a residential lease. Any clause attempting to enforce these is automatically void and unenforceable. A landlord cannot include a clause that:

1. Authorizes confession of judgment on a claim arising from the lease.
2. Waives any right or remedy provided to the tenant by applicable law (§ 8-208(d)(2)).
3. Imposes a late fee exceeding 5% of the amount of rent due for the rental period for which the payment is delinquent (§ 8-208(d)(3)).
4. Waives the tenant's right to a trial by jury.
5. Waives the requirement for a notice to quit.
6. Requires a tenant notice period to terminate that is longer than the period required of the landlord (§ 8-208(d)(6)).
7. Authorizes "self-help" eviction or possession of the tenant's property without formal legal process.
8. Waives the landlord's liability for damages or injuries caused by the landlord's own negligence (exculpatory clauses).
9. Authorizes entry into the unit without at least 24 hours' written notice, except in emergencies (Effective October 1, 2025).

If a landlord attempts to enforce a lease containing a prohibited provision, the tenant can sue in the District Court of Maryland for actual damages incurred, plus attorney's fees.

Automatic Renewal Clauses

Many written leases contain an automatic renewal provision, which states that the lease will automatically renew for another term (e.g., another year) unless either party gives notice.

In Maryland, an automatic renewal clause is only enforceable if it is distinctly set apart from the other terms of the lease and the tenant separately acknowledges it by initialing or signing next to that specific clause (§ 8-208(e)).

Standardization Protects Portfolios

Drafting a lease from scratch in Maryland invites trouble with prohibited clauses. Landager provides attorney-reviewed, state-specific lease templates that strictly adhere to Maryland's Real Property Article, ensuring every automatic renewal is properly initialed and every late fee clause respects the 5% cap.

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How Landager Helps

Landager tracks lease terms, payments, and compliance document dates - making it easy to stay compliant with Maryland regulations.

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