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Maryland Laws to Know Before Investing In Rental Real Estate

Landlord-Tenant Law Book on a Desk with a GavelWhen, typically, most beginning Calvert County investors take on buying a single-family rental property, what conventionally comes to mind are the operational aspects of the investment: finding tenants, managing property maintenance, and collecting rent. What you may not be aware of is that there are also an unbelievably large assortment of laws and legal matters that relate to buying and leasing rental homes.

While many federal laws will affect rental properties nationwide, most of the laws that you are required to follow are those on the books of your state, county, or even city. On that account, it is beneficial to do your research and certainly get a clear sense and comprehension of these laws before you acquire an investment property.

Real Estate Agency and Licensing Law

One of the crucial people on your investing team is your real estate agent. The laws that govern the relationship between an agent and their clients differ from state to state. As an investor, it’s pertinent to grasp what your real estate agent can and cannot legally do, from disclosures to acting in a dual agency capacity.

On top of that, reckon that real estate agents may or may not be proficient in property management laws. You should then especially do your best to have a solid knowledge of the procedures required by Maryland for getting and keeping a real estate license and ascertain that your agent’s license is current and in good standing.

Transfers of Ownership

Another state-specific set of laws you should be aware of are those drawn into voluntary and involuntary ownership transfers. Voluntary transfers of ownership are those that come into existence when a rental property is purchased. Although, there are certainly a few differences among state laws in terms of who will handle the transfer (your real estate agent or an attorney, for example), whether title insurance is required, who pays which closing costs, and who owns the property on the day of closing.

But despite that fact, you should as well learn your state laws about involuntary ownership transfers. These transfers normally happen when the heirs of a deceased property owner inherit the property. Considering these laws can help you think out and make the process worry-free whether you inherit property or leave your property to someone else.

Limitations on Use

In the majority of states, local regulations will direct how a property owner may use their property. Zoning ordinances, deed restrictions, historic preservation programs, and environmental review laws can all limit how a property owner may operate their land or structures.

As an investor, it’s salient to be aware of and hear as regards any local ordinances that may infringe on your opportunity to renovate or lease the property you choose to buy. You should especially find out if any occupancy laws impact your means to use the property as a rental.

Fair Housing and Others

There are federal, state, and even a handful of local laws intended to protect tenants’ rights and prevent discrimination. So while knowing your federal tenants’ rights laws is pertinent, you should, at the same time, take into account whether your state has supplemented those laws with stricter versions of their own. You should as well check very carefully for any rent control policies that may apply, both current and those most likely to be enacted without delay.

Taking in your local Landlord/Tenant laws and habitability standards will help always see to it you manage your investment property in the suitable and correct way. Tenants’ rights laws can cover an unexpected number of things, from security requirements to frequency and notification about rent increases.


Understanding all of the necessary laws in Maryland can be a whole lot of work, so it is entirely reasonable for countless rental property investors to hire Calvert County property management experts instead. At Real Property Management Gold, we take into consideration all the ins and outs of state and federal laws and can warrant that your investment properties are leased and managed following those laws. Call today at 301-392-2172.

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