Understanding HB 693(Maryland): The Renters’ Rights and Stabilization Act — Why Self-Managing Landlords Should Consider Hiring a Property Management Firm

As a self-managing landlord, staying informed about changing regulations is crucial to maintaining compliance and ensuring your rental business runs smoothly. One of the latest legislative changes that directly impacts landlords is HB 693, the Renters’ Rights and Stabilization Act, which introduces new tenant protections and rent control measures. Understanding this law—and others like it—can be complex and time-consuming, making a strong case for why hiring a property management firm may be beneficial.

What is HB 693: Renters’ Rights and Stabilization Act?

HB 693 aims to balance the power between landlords and tenants by enacting several measures to ensure fair treatment and rent stabilization. Key provisions of the bill include:

Under the new law, landlords are required to: 

1. Pay a filing fee of $50 ($60 in Baltimore City) to file a summary ejectment action against a tenant who is delinquent on rent (previously $15/$25). 

2. Include a copy of the Maryland Tenants’ Bill of Rights as an addendum to all residential leases.

3. Offer tenants of 1-, 2-, or 3-unit residential rental properties the opportunity to purchase the property before selling to a third party.

No longer allowed: 

1. Requiring a security deposit of more than one month’s rent, with limited exceptions. 

2. Requiring more than two month’s rent (security deposit + first month) to be paid at lease signing and before move-in. 

3. Requiring tenants to reimburse landlords for eviction filing fees, except by deduction from security deposit. 

4. Execution of evictions during extreme weather conditions, including below-freezing temperatures, winter storm/blizzard warnings, hurricane/tropical storm warnings, and excessive heat warnings.

5. Time between judgment in favor of a landlord in an eviction case and issuance of a warrant of restitution extended from 4 to 7 days.

Challenges for Self-Managing Landlords

For landlords managing their properties independently, HB 693 adds another layer of complexity. Here are some challenges that come with navigating these new regulations:

• Keeping Up with Legal Changes: The landscape of landlord-tenant law is constantly evolving, and HB 693 is just one example. As a landlord, you must stay updated on new laws and ensure your practices align with them. Failing to do so could result in legal penalties or tenant disputes.

• Administrative Burden: With new notice requirements, rent cap calculations, and documentation standards, the administrative workload increases significantly. Staying organized and compliant becomes more time-consuming, which can be difficult if you have multiple properties or other responsibilities.

• Tenant Relations: The Act’s enhanced tenant protections make it essential for landlords to handle tenant concerns with extra care. Missteps in communication or legal procedure could lead to disputes or even lawsuits.

Why Hiring a Property Management Firm Can Help

Given the complexities introduced by HB 693, here are some reasons why hiring a property management firm is a smart investment for self-managing landlords:

• Legal Expertise: Property managers are well-versed in local and state laws, including new regulations like HB 693. They can ensure that your property complies with all legal requirements, reducing the risk of costly fines or legal disputes.

• Administrative Efficiency: A property management firm can handle the administrative burdens associated with rent increases, notices, and eviction procedures. With systems in place to manage these processes, they ensure everything is done according to the law, saving you time and stress.

• Tenant Management: Property managers have experience dealing with tenant concerns and disputes. They can act as an intermediary, handling sensitive situations professionally and maintaining positive tenant relations, which helps reduce turnover and vacancies.

• Rent Control Compliance: Navigating rent cap calculations and annual increases within the limits set by HB 693 can be tricky. A property management firm will ensure rent increases are both legal and fair, while also handling negotiations with tenants, if necessary.

• Eviction Process: Evictions are already a challenging part of being a landlord, and HB 693 has made the process even more regulated. Property management firms understand the legal procedures and can handle evictions lawfully, minimizing the risk of tenant disputes or court involvement.

HB 693, the Renters’ Rights and Stabilization Act, is part of a growing trend of legislation aimed at providing tenants with greater protections and rent stability. While this law helps ensure fairness in the rental market, it also increases the regulatory burden on landlords, especially those who self-manage their properties.

To stay compliant with laws like HB 693 and avoid the pitfalls of legal missteps, hiring a property management firm may be one of the smartest moves you can make. With their expertise, systems, and ability to navigate complex regulations, property managers can take much of the burden off your shoulders, allowing you to focus on the financial success of your rental business.