1 | 1 | | |
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2 | 2 | | |
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3 | 3 | | EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. |
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4 | 4 | | [Brackets] indicate matter deleted from existing law. |
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5 | 5 | | *hb0564* |
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6 | 6 | | |
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7 | 7 | | HOUSE BILL 564 |
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8 | 8 | | N1 4lr1470 |
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9 | 9 | | CF 4lr3023 |
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10 | 10 | | By: Delegates Taveras, Alston, Martinez, Simmons, Vogel, and Woods |
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11 | 11 | | Introduced and read first time: January 24, 2024 |
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12 | 12 | | Assigned to: Environment and Transportation |
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13 | 13 | | |
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14 | 14 | | A BILL ENTITLED |
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15 | 15 | | |
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16 | 16 | | AN ACT concerning 1 |
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17 | 17 | | |
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18 | 18 | | Real Property – Residential Leases – Renter’s Insurance Requirement 2 |
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19 | 19 | | |
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20 | 20 | | FOR the purpose of requiring a residential lease to include a requirement that a tenant 3 |
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21 | 21 | | hold a renter’s insurance policy; prohibiting a lease from containing certain 4 |
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22 | 22 | | requirements regarding a renter’s insurance policy; requiring a landlord to acquire 5 |
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23 | 23 | | a renter’s insurance policy on behalf of a tenant under certain circumstances; and 6 |
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24 | 24 | | generally relating to a renter’s insurance requirement for residential leases. 7 |
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25 | 25 | | |
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26 | 26 | | BY repealing and reenacting, without amendments, 8 |
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27 | 27 | | Article – Real Property 9 |
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28 | 28 | | Section 8–201 10 |
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29 | 29 | | Annotated Code of Maryland 11 |
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30 | 30 | | (2023 Replacement Volume) 12 |
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31 | 31 | | |
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32 | 32 | | BY repealing and reenacting, with amendments, 13 |
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33 | 33 | | Article – Real Property 14 |
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34 | 34 | | Section 8–208 15 |
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35 | 35 | | Annotated Code of Maryland 16 |
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36 | 36 | | (2023 Replacement Volume) 17 |
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37 | 37 | | |
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38 | 38 | | SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 18 |
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39 | 39 | | That the Laws of Maryland read as follows: 19 |
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40 | 40 | | |
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41 | 41 | | Article – Real Property 20 |
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42 | 42 | | |
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43 | 43 | | 8–201. 21 |
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44 | 44 | | |
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45 | 45 | | (a) This subtitle is applicable only to residential leases unless otherwise provided. 22 |
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46 | 46 | | |
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47 | 47 | | (b) This subtitle does not apply to a tenancy arising after the sale of 23 |
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48 | 48 | | owner–occupied residential property where the seller and purchaser agree that the seller 24 2 HOUSE BILL 564 |
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49 | 49 | | |
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50 | 50 | | |
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51 | 51 | | may remain in possession of the property for a period of not more than 60 days after the 1 |
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52 | 52 | | settlement. 2 |
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53 | 53 | | |
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54 | 54 | | 8–208. 3 |
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55 | 55 | | |
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56 | 56 | | (a) (1) On or after October 1, 1999, any landlord who offers 5 or more dwelling 4 |
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57 | 57 | | units for rent in the State may not rent a residential dwelling unit without using a written 5 |
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58 | 58 | | lease. 6 |
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59 | 59 | | |
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60 | 60 | | (2) If a landlord fails to comply with paragraph (1) of this subsection, the 7 |
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61 | 61 | | term of the tenancy is presumed to be 1 year from the date of the tenant’s first occupancy 8 |
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62 | 62 | | unless the tenant elects to end the tenancy at an earlier date by giving 1 month’s written 9 |
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63 | 63 | | notice. 10 |
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64 | 64 | | |
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65 | 65 | | (b) A landlord who rents using a written lease shall provide, upon written request 11 |
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66 | 66 | | from any prospective applicant for a lease, a copy of the proposed form of lease in writing, 12 |
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67 | 67 | | complete in every material detail, except for the date, the name and address of the tenant, 13 |
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68 | 68 | | the designation of the premises, and the rental rate without requiring execution of the lease 14 |
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69 | 69 | | or any prior deposit. 15 |
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70 | 70 | | |
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71 | 71 | | (c) A lease shall include: 16 |
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72 | 72 | | |
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73 | 73 | | (1) A statement that the premises will be made available in a condition 17 |
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74 | 74 | | permitting habitation, with reasonable safety, if that is the agreement, or if that is not the 18 |
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75 | 75 | | agreement, a statement of the agreement concerning the condition of the premises; 19 |
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76 | 76 | | |
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77 | 77 | | (2) The landlord’s and the tenant’s specific obligations as to heat, gas, 20 |
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78 | 78 | | electricity, water, and repair of the premises; [and] 21 |
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79 | 79 | | |
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80 | 80 | | (3) A receipt for the security deposit as specified in § 8–203.1 of this 22 |
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81 | 81 | | subtitle; AND 23 |
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82 | 82 | | |
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83 | 83 | | (4) A REQUIREMENT THAT A T ENANT MAINTAIN A RENTER ’S 24 |
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84 | 84 | | INSURANCE POLICY COVERING THE TENANT’S PERSONAL PROPERTY THAT WILL BE 25 |
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85 | 85 | | KEPT AT THE RENTAL P ROPERTY. 26 |
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86 | 86 | | |
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87 | 87 | | (d) A landlord may not use a lease or form of lease containing any provision that: 27 |
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88 | 88 | | |
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89 | 89 | | (1) Has the tenant authorize any person to confess judgment on a claim 28 |
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90 | 90 | | arising out of the lease; 29 |
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91 | 91 | | |
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92 | 92 | | (2) Has the tenant agree to waive or to forego any right or remedy provided 30 |
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93 | 93 | | by applicable law; 31 |
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94 | 94 | | HOUSE BILL 564 3 |
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95 | 95 | | |
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96 | 96 | | |
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97 | 97 | | (3) (i) Provides for a penalty for the late payment of rent in excess of 1 |
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98 | 98 | | 5% of the amount of rent due for the rental period for which the payment was delinquent; 2 |
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99 | 99 | | or 3 |
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100 | 100 | | |
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101 | 101 | | (ii) In the case of leases under which the rent is paid in weekly rental 4 |
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102 | 102 | | installments, provides for a late penalty of more than $3 per week or a total of no more than 5 |
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103 | 103 | | $12 per month; 6 |
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104 | 104 | | |
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105 | 105 | | (4) Has the tenant waive the right to a jury trial; 7 |
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106 | 106 | | |
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107 | 107 | | (5) Has the tenant agree to a period required for landlord’s notice to quit 8 |
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108 | 108 | | which is less than that provided by applicable law; provided, however, that neither party is 9 |
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109 | 109 | | prohibited from agreeing to a longer notice period than that required by applicable law; 10 |
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110 | 110 | | |
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111 | 111 | | (6) Authorizes the landlord to take possession of the leased premises, or 11 |
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112 | 112 | | the tenant’s personal property unless the lease has been terminated by action of the parties 12 |
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113 | 113 | | or by operation of law, and the personal property has been abandoned by the tenant without 13 |
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114 | 114 | | the benefit of formal legal process; 14 |
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115 | 115 | | |
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116 | 116 | | (7) Is against public policy and void pursuant to § 8–105 of this title; 15 |
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117 | 117 | | |
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118 | 118 | | (8) Permits a landlord to commence an eviction proceeding or issue a notice 16 |
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119 | 119 | | to quit solely as retaliation against any tenant for planning, organizing, or joining a tenant 17 |
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120 | 120 | | organization with the purpose of negotiating collectively with the landlord; 18 |
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121 | 121 | | |
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122 | 122 | | (9) Requires the tenant to accept notice of rent increases under § 8–209 by 19 |
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123 | 123 | | electronic delivery; [or] 20 |
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124 | 124 | | |
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125 | 125 | | (10) (i) Limits the ability of a tenant to summon the assistance of law 21 |
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126 | 126 | | enforcement or emergency services or penalizes a tenant solely for summoning the 22 |
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127 | 127 | | assistance of law enforcement or emergency services; or 23 |
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128 | 128 | | |
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129 | 129 | | (ii) Penalizes a tenant for the actions of another individual solely 24 |
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130 | 130 | | because the individual summoned the assistance of law enforcement or emergency services; 25 |
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131 | 131 | | OR 26 |
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132 | 132 | | |
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133 | 133 | | (11) REQUIRES THE TENANT T O MAINTAIN A RENTER’S INSURANCE 27 |
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134 | 134 | | POLICY: 28 |
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135 | 135 | | |
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136 | 136 | | (I) FROM A PARTICULAR INS URER OR LIST OF INSURERS ; 29 |
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137 | 137 | | |
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138 | 138 | | (II) THAT INCLUDES THE LAN DLORD AS A BENEFICIA RY, AN 30 |
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139 | 139 | | INSURED PARTY , OR AN ADDITIONAL INS URED; OR 31 |
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140 | 140 | | |
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141 | 141 | | (III) THAT MEETS ANY OTHER REQUIREMENTS SET BY THE 32 |
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142 | 142 | | LANDLORD . 33 4 HOUSE BILL 564 |
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143 | 143 | | |
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144 | 144 | | |
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145 | 145 | | |
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146 | 146 | | (e) (1) Except for a lease containing an automatic renewal period of 1 month 1 |
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147 | 147 | | or less, a lease that contains a provision calling for an automatic renewal of the lease term 2 |
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148 | 148 | | unless prior notice is given by the party or parties seeking to terminate the lease, shall 3 |
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149 | 149 | | have the provision distinctly set apart from any other provision of the lease and provide a 4 |
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150 | 150 | | space for the written acknowledgment of the tenant’s agreement to the automatic renewal 5 |
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151 | 151 | | provision. 6 |
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152 | 152 | | |
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153 | 153 | | (2) An automatic renewal provision that is not specifically accompanied by 7 |
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154 | 154 | | either the tenant’s initials, signature, or witnessed mark is unenforceable by the landlord. 8 |
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155 | 155 | | |
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156 | 156 | | (f) No provision of this section shall be deemed to be a bar to the applicability of 9 |
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157 | 157 | | supplementary rights afforded by any public local law enacted by the General Assembly or 10 |
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158 | 158 | | any ordinance or local law enacted by any municipality or political subdivision of this State; 11 |
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159 | 159 | | provided, however, that no such law can diminish or limit any right or remedy granted 12 |
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160 | 160 | | under the provisions of this section. 13 |
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161 | 161 | | |
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162 | 162 | | (g) (1) Any lease provision which is prohibited by terms of this section shall be 14 |
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163 | 163 | | unenforceable by the landlord. 15 |
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164 | 164 | | |
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165 | 165 | | (2) If the landlord includes in any lease a provision prohibited by this 16 |
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166 | 166 | | section or made unenforceable by § 8–105 of this title or § 8–203 of this subtitle, at any time 17 |
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167 | 167 | | subsequent to July 1, 1975, and tenders a lease containing such a provision or attempts to 18 |
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168 | 168 | | enforce or makes known to the tenant an intent to enforce any such provision, the tenant 19 |
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169 | 169 | | may recover any actual damages incurred as a reason thereof, including reasonable 20 |
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170 | 170 | | attorney’s fees. 21 |
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171 | 171 | | |
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172 | 172 | | (h) If any word, phrase, clause, sentence, or any part or parts of this section shall 22 |
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173 | 173 | | be held unconstitutional by any court of competent jurisdiction such unconstitutionality 23 |
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174 | 174 | | shall not affect the validity of the remaining parts of this section. 24 |
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175 | 175 | | |
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176 | 176 | | (I) (1) IF A TENANT FAILS TO COMPLY WITH THE LEASE REQUIREMEN T 25 |
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177 | 177 | | DESCRIBED UNDER PARAGRAPH (C)(4) OF THIS SECTION , THE LANDLORD SHALL 26 |
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178 | 178 | | ACQUIRE A RENTER ’S INSURANCE POLICY O N BEHALF OF THE TENA NT. 27 |
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179 | 179 | | |
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180 | 180 | | (2) A LANDLORD WHO ACQUIRES A RENTE R’S INSURANCE POLICY O N 28 |
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181 | 181 | | BEHALF OF A TENANT U NDER PARAGRAPH (1) OF THIS SUBSECTION M AY CHARGE 29 |
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182 | 182 | | THE INSURANCE PREMIU M TO THE TENANT UNTI L THE TENANT ACQUIRES A 30 |
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183 | 183 | | RENTER’S INSURANCE POLICY . 31 |
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184 | 184 | | |
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185 | 185 | | (3) A LANDLORD MAY NOT BE THE BENEFICIARY , AN INSURED PARTY , 32 |
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186 | 186 | | OR AN ADDITIONAL INS URED OF A RENTER’S INSURANCE POLICY A CQUIRED UNDER 33 |
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187 | 187 | | PARAGRAPH (1) OF THIS SUBSECTION . 34 |
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188 | 188 | | |
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189 | 189 | | SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 35 |
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190 | 190 | | October 1, 2024. 36 |
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