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Maryland Laws to Know Before Investing In Rental Real Estate

Landlord-Tenant Law Book on a Desk with a GavelUsually when many beginning Michigan Park investors think about buying a single-family rental property, what mostly comes to mind are the operational aspects of the investment: finding tenants, managing property maintenance, and collecting rent. What you may not look into is that there is likewise an incredible heap of laws and legal matters that relate to buying and leasing rental homes.

Notwithstanding that quite a few federal laws can be relevant to rental properties nationwide, almost every one of the laws that you will be required to comprehend are those on the books of your state, county, or even city. As you can see, it is really important to do your research and obtain a clear comprehension of these laws before you shell out for an investment property.

Real Estate Agency and Licensing Law

One of the pivotal 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 very important to distinguish what your real estate agent can and cannot legally do, from disclosures to acting in a dual agency capacity.

Yet it’s also possible that real estate agents may or may not be well-versed in property management laws. You should then have a clear understanding of the procedures required by Maryland for gaining and keeping a real estate license and make it a point to follow up closely that your agent’s license is current and in good standing.

Transfers of Ownership

Another state-specific set of laws you should take into serious consideration are those having to do with voluntary and involuntary ownership transfers. Voluntary transfers of ownership are those that actually transpire when a rental property is bought off. But, really, there are a lot of differences among state laws in regard to 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.

Despite that, you should definitely still learn your state laws about involuntary ownership transfers. These transfers frequently arise when the heirs of a deceased property owner inherit the property. Finding out these laws can help you correctly plan and make the process so much simpler whether you inherit property or leave your property to someone else.

Limitations on Use

In certain states, local regulations will determine 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 take advantage of their land or structures.

As an investor, it’s vital to grasp well with regards to any local ordinances that may prevent your capability to renovate or lease the property you endeavor to buy. You should, in like manner, look if any occupancy laws have impacted your proposal to manage the property as a rental.

Fair Housing and Others

There are federal, state, and even a few local laws intended to protect tenants’ rights and prevent discrimination. So while grasping your federal tenants’ rights laws is very important, you also ought to find out whether your state has supplemented those laws with stricter versions of their own. You should especially check fully for any rent control policies that may apply, both current and those possibly to be enacted any time soon.

Perceiving your local Landlord/Tenant laws and habitability standards will help you manage your investment property the correct way. Tenants’ rights laws can cover a vast range of things, from security requirements to frequency and notification about rent increases.


Considering all of the weighty laws in Maryland can be a lot of work, because of this it is plausible for numerous rental property investors to hire Michigan Park property management experts instead. At Real Property Management DC Metro, we know all the ins and outs of state and federal laws and can surely make certain that your investment properties are leased and managed in accordance with those laws. Call today at 202-269-0303.

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