Bill > SB589

This bill exempts property managers from needing a license to operate as a collection agency in Maryland when they collect rent, utility payments, or fees from residential tenants on behalf of a property owner, provided that these collections occur only during the lease term or a holdover period and that debt collection is not the primary business purpose of the property manager. A "property manager" is defined as someone responsible for managing and maintaining real property, which includes tasks like finding tenants, collecting payments, paying expenses, maintaining utilities, and taking necessary actions to operate the property. This exemption is being added to existing law that outlines who needs a collection agency license and lists other entities that are already exempt, such as banks, credit unions, and lawyers collecting debts for clients under specific conditions. The bill is set to take effect on October 1, 2026.

Budget and Finance

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/SB0589?ys=2026RS