In Maryland, both landlords and tenants must follow specific legal obligations when terminating a tenancy.
Landlord's notice to end a periodic tenancy
Maryland law requires landlords to give a minimum of 7 days' notice before terminating a week-to-week tenancy. This short notice period is common for weekly leases due to their inherently flexible nature.
Except in cases of emergency, Tenant's abandonment of the Premises, court order, or where it is impracticable to do so, Landlord shall give Tenant notice of at least 24 hours before entering the Premises and shall enter the Premises only during normal business hours, unless Landlord and Tenant agree otherwise.
For month-to-month tenancies, landlords are required to provide 60 days' notice before ending the tenancy. This period ensures tenants have enough time to secure alternative housing. For example, in Montgomery County, this 60-day notice requirement applies to all month-to-month leases regardless of property type.
Tenant's notice to end a tenancy
Per Md. Code, RP § 8-203(f), Tenant has the right to be present when Landlord inspects the Premises for any damage, if Tenant provides written notice including Tenant's intention to move, date of moving, and Tenant's forwarding address. Tenant's written notice must be sent by certified mail at least 15 days prior to moving.
Maryland law mandates that tenants provide a 60-day notice to terminate a month-to-month tenancy. At least 60 days prior to the expiration of the Agreement Term, Tenant shall provide the Landlord with written notice of Tenant's intention to move out by the end of the Agreement Term.
If Tenant fails to provide such written notice, the tenancy shall be month-to-month after the Agreement Term, and all other terms of this Agreement shall continue in full force and effect.
Valid Legal Grounds for Tenants to Break a Lease in Maryland
The tenant in Maryland is also afforded some opportunities to terminate the lease prior to its expiration. The reasons are specific and typically require written documentation to support the early termination, as noted below.
Early termination clause (if applicable in lease agreement)
Some lease agreements in Maryland include an early termination clause, which allows tenants to break the lease under pre-agreed conditions.
This clause often outlines specific reasons, such as relocation for employment or family emergencies, and details any penalties or fees for early termination. Tenants should review their lease to see if such a provision exists, as it may simplify the termination process.
Violations of health and safety codes
Under Maryland law, tenants have the right to live in a property that meets health and safety standards. If a landlord materially fails to comply with the warranty of habitability, health codes, ordinances, or safety regulations, a tenant can break the lease. This right is protected under MD Code, Real Property, § 8-215 (page 203-204), and includes:
- Situations where the premises become uninhabitable due to fire or an unavoidable accident.
- Instances where the landlord fails to make necessary repairs despite being notified, creating unsafe living conditions.
If these issues arise, the tenant must notify the landlord in writing and give them an opportunity to remedy the situation. If the landlord does not address the concerns in a reasonable timeframe, the tenant may have grounds to terminate the lease.
Active military duty
Tenant is on active duty with the United States military and receives permanent change of station orders or temporary duty orders for a period in excess of 3 months.
Federal law under the Servicemembers Civil Relief Act (SCRA) and Maryland state law provide protections for military personnel on active duty. Written notice and a copy of the military orders are required to terminate the lease legally.
Landlord harassment or privacy violations
Tenants have the right to privacy in their rented property. If a landlord frequently enters the premises without proper notice, or engages in harassment, a tenant may have legal grounds to terminate the lease early.
Maryland law generally requires landlords to provide 24 hours’ notice before entering, except in emergencies. Repeated privacy violations or harassment can be seen as a breach of the rental agreement, which may allow the tenant to end the lease.
For more details on a landlord’s right to entry in Maryland, visit this guide on lease agreements in Maryland.
Victims of domestic violence, stalking, sexual abuse, or elder abuse
Maryland provides protections for tenants who are victims of domestic violence, stalking, sexual abuse, or elder abuse. To exercise this right, tenants must provide their landlord with written notice of their intent to vacate, accompanied by one of the following:
- A copy of a protective order issued for their benefit under § 4-506 of the Family Law Article.
- A copy of a peace order issued for their benefit, where the underlying act was sexual assault, under § 3-1505 of the Courts Article.
- Documentation from a qualified third party, such as a licensed healthcare provider or law enforcement agency, verifying the tenant's status as a victim (People's Law).
Upon providing the required notice and documentation, the tenant is responsible for rent only for the 30 days following the notice. This provision allows vulnerable tenants to secure safer living arrangements without incurring financial penalties.
This provision is designed to ensure that vulnerable tenants can secure safer living arrangements without financial penalty.
Court-approved conditions for lease termination
Tenant has a written certification from a physician requiring termination of lease, per MD Code, Real Property, § 8-212.2 (page 198-199). The tenant experiences an involuntary change of employment from the Washington metropolitan area, death of a major wage earner, unemployment, or other reason beyond the control of the tenant.
In this case, the tenant will be liable for a reasonable termination charge not to exceed the lower of one month’s rent or actual damages sustained by the landlord. Please see § 29-27(s) of the Montgomery County Code for further detail.
Financial Consequences on Tenants of Breaking a Lease in Maryland
Breaking a lease can carry financial consequences for tenants in Maryland, including fees and penalties.
Penalties and fees for early lease termination
In Maryland, if a tenant breaks a lease without valid legal grounds, they may face several potential financial penalties, including:
- Remaining Rent Owed: The tenant may be responsible for rent payments for the remainder of the lease term until the landlord can re-rent the property.
- Early Termination Fees: Many leases include a clause specifying an early termination fee. This fee often equals one or two months’ rent but can vary depending on the agreement.
- Security Deposit Deductions: If the tenant breaks the lease, the landlord may deduct from the security deposit to cover unpaid rent or damages to the property. Maryland law requires landlords to provide an itemized list of deductions if any portion of the deposit is withheld.
These penalties can add up significantly, especially for leases with multiple months remaining. For example, a tenant breaking a lease with six months left and a $1,200 monthly rent could face up to $7,200 in rent payments if the landlord cannot find a new tenant promptly.
How tenants can minimize financial responsibility
Tenants can take steps to reduce their financial liability when breaking a lease:
- Negotiate with the Landlord: In some cases, landlords are open to negotiation. Tenants can discuss the possibility of a reduced termination fee or payment plan, especially if they’re facing financial hardships.
- Provide Notice Early: Even if breaking the lease early, giving the landlord as much notice as possible can help. Proper communication allows the landlord to begin searching for a new tenant immediately, potentially reducing the time the unit sits vacant.
- Find a Replacement Tenant: Maryland tenants can help find a qualified replacement tenant who meets the landlord’s screening criteria. While this does not guarantee full exemption from lease obligations, it can encourage the landlord to accept a new tenant sooner, reducing the original tenant’s financial responsibility.
- Request Documentation of Damages: If the landlord withholds any portion of the security deposit, tenants should request an itemized statement of deductions. This step ensures the landlord’s actions are transparent and gives the tenant a basis to dispute unreasonable charges.
Landlord’s Responsibilities When a Lease is Broken
Landlord’s duty to mitigate damages (re-renting the unit to reduce tenant liability)
Under Maryland law, landlords have a duty to mitigate damages when a tenant breaks a lease. This duty means landlords must make reasonable efforts to re-rent the property to a new tenant as quickly as possible, thus minimizing the financial burden on the original tenant. For instance:
- Advertising the Property: The landlord should begin advertising the property for rent through appropriate channels, whether online listings, local newspapers, or rental platforms.
- Showing the Property: Landlords must make reasonable attempts to show the property to prospective tenants and respond promptly to rental inquiries.
This duty to mitigate damages is essential because it prevents landlords from unfairly holding tenants liable for the full lease term if they can re-rent the property.
What happens if the landlord fails to mitigate damages?
If a landlord does not make a genuine effort to mitigate damages, they may lose the right to claim rent from the original tenant for the full remaining lease term. In such cases:
- Tenant’s Financial Liability Reduces: The tenant could be relieved of some or all financial responsibilities if they can demonstrate the landlord did not attempt to re-rent the unit.
- Legal Recourse: The tenant may have legal grounds to challenge excessive charges if the landlord fails to make reasonable efforts to fill the vacancy.
In practice, Maryland courts may side with tenants if evidence shows the landlord neglected their duty to re-rent. For example, if a landlord keeps the property vacant despite available prospective tenants, the tenant may argue they should not be liable for ongoing rent.
Tips For Landlords To Prevent Early Lease Termination
Early lease terminations can be challenging for landlords, leading to unexpected vacancies and financial strain. To minimize such occurrences, consider the following strategies:
1. Offer Incentives for Lease Completion
Consider providing benefits for tenants who honor the full lease term, such as:
- Rent Discounts: A reduction in rent for the final month.
- Upgrades: Offering property improvements like new appliances.
- Renewal Bonuses: Incentives for renewing the lease, such as a gift card or minor rent reduction.
2. Thorough Tenant Screening
Selecting reliable tenants is crucial. Conduct comprehensive background checks, verify employment, and contact previous landlords. This diligence helps identify tenants likely to fulfill their lease obligations.
3. Understand Tenant Needs
Stay attuned to your tenants' circumstances. If a tenant faces a significant life change, such as a job relocation, work with them to find a solution that minimizes disruption, like assisting in finding a subtenant.
4. Thorough Tenant Screening
Selecting reliable tenants is crucial. Implement comprehensive screening processes that include:
- Credit Checks: Assess financial responsibility.
- Background Checks: Identify any past legal issues.
- Employment Verification: Ensure stable income.
- References: Contact previous landlords for insights.
A landlord shared on a forum that after enhancing their screening process, they experienced fewer early terminations, attributing this to selecting tenants with stable employment and positive rental histories.
Bottom Line
Breaking a lease in Maryland comes with challenges, but knowing your rights and options can make all the difference. Whether you're a tenant facing an urgent need to relocate or a landlord trying to avoid unexpected vacancies, following Maryland's rules on lease termination ensures a smoother process for everyone.
For tenants, understanding your legal grounds can help you avoid penalties and keep your rental history clean. For landlords, staying informed about notice requirements and tenant rights can protect your income and reduce tenant turnover. Following the appropriate guidelines can make the transition smoother, fairer, and free from unnecessary disputes.
