Maryland’s rent increase laws in 2025 are shaped by both state-level regulations and local ordinances, particularly in counties like Montgomery. Recent legislative changes, including the Renters’ Rights and Stabilization Act of 2024, have introduced new tenant protections and compliance requirements for landlords statewide.
Statewide Rules
- No Statewide Cap: Maryland does not impose a statewide cap on annual rent increases. The amount a landlord can raise rent is generally not limited by state law, except where local ordinances apply.
- Notice Requirements: For most leases, landlords must provide tenants with at least 90 days’ written notice before a rent increase takes effect. Shorter leases require less notice (60 days for leases between a week and a month; 21 days for oral leases of a week or less).
- Lease Agreement Compliance: Any rent increase must comply with the terms outlined in the lease agreement. All changes must be clearly communicated in writing.
Recent Legislative Changes: Renters’ Rights and Stabilization Act of 2024
Effective Date: Most provisions affecting landlords and tenants take effect October 1, 2024.
Key Provisions:
- Caps the maximum security deposit at one month’s rent (for most renters).
- Increases eviction filing fees and prohibits landlords from passing these fees to tenants in most cases.
- Requires the inclusion of a Maryland Tenants’ Bill of Rights as an addendum to every residential lease.
- Establishes a right of first refusal for tenants in small rental properties (1-3 units).
- Lengthens the time between an eviction judgment and execution, and prohibits evictions during extreme weather.
Local Ordinances: Montgomery County Example
Montgomery County has enacted some of the state’s strictest rent stabilization measures:
- Rent Stabilization Cap: For 2025, the maximum allowable rent increase for regulated units is 5.7%, effective July 1, 2025. This cap is calculated as the Consumer Price Index for Urban Consumers (CPI-U) plus 3%, or 6%, whichever is lower.
- Units Covered: Applies to all county-licensed residential rental units built in 2002 or earlier, unless exempt.
- Voluntary Rent Guideline: The county also publishes a Voluntary Rent Guideline (VRG), which is 3.3% for 2025. While voluntary for most rentals, it is mandatory for units under certain affordability programs.
- Notice Requirement: Landlords must give at least 90 days’ written notice before any rent or fee increase.
Other Key Points
- Capital Improvements: Landlords may be able to justify rent increases for major property upgrades, but these must comply with local regulations and often require documentation.
- Penalties: Violating rent increase laws-such as failing to give proper notice or exceeding local caps-can result in fines or legal action.
- Tenant Protections: Tenants have the right to challenge unlawful rent increases and seek legal counsel if needed.
Summary Table: Maryland Rent Increase Laws 2025
| Area/Rule | Statewide Maryland | Montgomery County (2025) |
|---|---|---|
| Annual Cap on Rent Increases | None | 5.7% for regulated units |
| Notice Requirement | 90 days (most leases) | 90 days (all rentals) |
| Security Deposit Cap | 1 month’s rent | 1 month’s rent |
| Voluntary Rent Guideline (VRG) | N/A | 3.3% (voluntary for most) |
| Effective Date for New Laws | Oct 1, 2024 | July 1, 2025 (rent cap update) |
What Tenants Should Do
- Review your lease and any notices from your landlord carefully.
- Be aware of your local jurisdiction’s specific rules, especially if you live in Montgomery County or other areas with rent stabilization ordinances.
- If you receive a rent increase notice, check that it meets the required notice period and does not exceed local limits.
- Contact local tenant advocacy groups or legal aid if you believe your rights have been violated.
Understanding these laws and recent changes can help tenants protect their rights and plan for any rent adjustments in 2025.
Sources:
- https://www.baymgmtgroup.com/blog/what-is-a-reasonable-rent-increase-in-2025/
- https://www.steadily.com/blog/mid-term-rental-laws-regulations-maryland
- https://www2.montgomerycountymd.gov/mcgportalapps/Press_Detail.aspx?Item_ID=46639
- https://www.steadily.com/blog/rent-increase-laws-regulations-maryland
- https://dhcd.maryland.gov/TurningTheKey/Documents/HB693-FAQ.pdf