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Bill > HB1076


MD HB1076

MD HB1076
Real Property - Residential Leases - Fee in Lieu of Security Deposit


summary

Introduced
02/10/2023
In Committee
02/10/2023
Crossed Over
Passed
Dead
04/10/2023

Introduced Session

2023 Regular Session

Bill Summary

AN ACT concerning Real Property - Residential Leases - Fee in Lieu of Security Deposit FOR the purpose of authorizing a landlord to offer the payment of a fee in lieu of a security deposit in a residential lease subject to certain requirements; requiring a landlord to purchase certain insurance coverage using a fee in lieu of a security deposit and establishing certain procedures if the landlord does not purchase insurance coverage or the insurance coverage is terminated by an insurer; establishing certain procedural requirements for a landlord and an insurer relating to certain insurance claims; authorizing a tenant to dispute certain claims by a landlord and providing that claims by a landlord or an insurer are void under certain circumstances; providing that a tenant is entitled to certain damages and attorney’s fees under certain circumstances; and generally relating to fees in lieu of security deposits for residential leases. BY repealing and reenacting, without amendments, Article - Real Property Section 8-203(a)(1) Annotated Code of Maryland (2015 Replacement Volume and 2022 Supplement) BY repealing and reenacting, with amendments, Article - Real Property Section 8-203(a)(3) Annotated Code of Maryland (2015 Replacement Volume and 2022 Supplement) BY adding to Article - Real Property Section 8-203.2 Annotated Code of Maryland (2015 Replacement Volume and 2022 Supplement) HOUSE BILL 1076

AI Summary

This bill authorizes landlords to offer tenants the option to pay a "fee in lieu of a security deposit" for residential leases, with certain requirements. The landlord must use the fee to purchase insurance coverage for any unpaid rent, fees, or damages beyond normal wear and tear. The tenant has the right to inspect the unit before and after the tenancy, and the landlord must provide an itemized list of any unpaid sums before submitting a claim to the insurer. The bill also establishes procedures for the landlord, tenant, and insurer to follow, and allows tenants to dispute claims. The bill applies only to leases entered into on or after October 1, 2023.

Committee Categories

Transportation and Infrastructure

Sponsors (1)

Last Action

House Environment and Transportation Hearing (13:00:00 3/7/2023 ) (on 03/07/2023)

bill text


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