Understanding Pass-Through Costs and Rent Increases in Maryland

Living in Maryland means being aware of your rights when it comes to rent increases, especially when landlords try to pass through expenses like property taxes or utility upgrades. Understanding when these increases are legal can help you budget confidently and prevent unlawful hikes.

What Are Pass-Through Costs?

Pass-through costs are specific expenses a landlord can legally add to your rent. Unlike regular rent increases, these charges usually relate to improvements, utilities, or taxes that directly affect the property or your unit. Examples include costs for major repairs, new amenities (like laundry or security upgrades), or government-imposed fees.

Is Rent Control or Stabilization in Effect in Maryland?

Maryland does not have a statewide rent control or rent stabilization law. This means landlords generally have the right to set and increase rent as they see fit. However, a few local jurisdictions, such as Montgomery County, have implemented their own rent stabilization rules and limits. Always check your city or county regulations in addition to state law.

When Can Landlords Increase Rent for Pass-Through Costs?

Across most of Maryland, landlords may increase rent for pass-through costs if:

• The lease allows for such increases or specifically mentions these possible adjustments.
• The landlord provides proper advance notice of any rent hike (at least 60 days ahead for most leases).
• The increase is not discriminatory or a form of retaliation.

For example, if a local government raises property taxes, a landlord may add this new cost to your rent—if your lease permits it and you receive written notice.

What Notice Must My Landlord Give for a Rent Increase?

Under Maryland Code, Real Property § 8-208, most landlords must give at least 60 days’ written notice before increasing the rent.

• If you have a month-to-month lease: 60 days’ advance written notice.
• If you have a fixed-term lease: The rent can only increase at renewal, unless the lease states otherwise.

Example

Your landlord wants to add a utility fee to your rent due to a new municipal charge. If this is allowed in your lease, they must give you written notice at least 60 days before the new amount becomes due.

Relevant Forms for Maryland Renters

• Notice to Tenant of Rent Increase (No Standard Form Number)
  This written notice must be provided by the landlord at least 60 days before any rent hike goes into effect. It should clearly state the new rent amount and when it will begin.
  Example: If your rent is going up due to increased property taxes, your landlord should give you a letter or email specifying the new total and the reason for the adjustment.
  For reference, see the People's Law Library of Maryland explanation on lease changes.

The Tribunal Handling Residential Tenancies

In Maryland, rent disputes are generally handled by the local District Court of Maryland, Civil Division. This is where you can file complaints about unlawful rent increases or lease violations.

Maryland Tenancy Legislation

Maryland renters are protected by the Maryland Code, Real Property § 8-208. It details lease requirements, notice rules, and your right to dispute improper rent hikes.

What to Do If You Receive a Pass-Through Cost Increase

• Review your written lease to check if these increases are allowed.
• Verify you received the required advance written notice (usually 60 days).
• Request documentation from your landlord explaining the new charge.
• If you believe the increase is unfair or not permitted, contact the District Court or a local tenants’ rights agency.

It's helpful to communicate in writing and keep copies of any notices or correspondence for your records.

FAQ: Pass-Through Costs & Rent Increases in Maryland

1. Can my landlord raise my rent at any time for pass-through costs?
   No. The lease must allow it, and you must be given at least 60 days' written notice before the rent increases.
2. Is there a statewide cap on how much my rent can increase in Maryland?
   No, Maryland does not currently have limits on rent increases at the state level, but some localities have their own rules.
3. Do I have to pay a pass-through fee if it isn't mentioned in my lease?
   If your lease does not mention pass-through charges, the landlord cannot legally add them during your current lease term.
4. What should I do if I believe a rent increase is unlawful?
   Request a written explanation from your landlord and consider seeking help from the District Court or a local tenants’ resource.
5. Where can I file a complaint or ask for a hearing about rent increases?
   Contact your nearest District Court of Maryland, Civil Division.

Key Takeaways

• Pass-through costs can only be added if allowed by your lease and with proper written notice.
• Maryland does not have state rent control, but some local areas do.
• Keep copies of all notices and contact official resources if you believe a rent increase is not legal.

Need Help? Resources for Renters

• District Court of Maryland, Civil Division: Handles landlord-tenant disputes and complaints.
• Maryland Attorney General: Landlord-Tenant FAQs
• People's Law Library of Maryland—Renters' Rights
• Local Legal Aid or Tenant Advocacy Groups: Many counties have free renter support services.

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1. Maryland Code, Real Property § 8-208 (Lease provisions, notice requirements)
2. District Court of Maryland—Landlord-Tenant Information
3. Montgomery County Rent Stabilization and Tenant Resources
4. People's Law Library of Maryland: Lease Changes

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