Become a Landlord in Maryland: Rules, Costs, and What You Need to Know

When you become a landlord in Maryland, a property owner who rents out residential units to tenants under state and local laws. Also known as a rental property owner, it means you’re not just collecting rent—you’re running a small business with legal obligations, taxes, and tenant rights to manage. Unlike some states, Maryland doesn’t let you just buy a house and start renting. You need a license. And not just any license—the kind that varies by county, takes weeks to get, and can cost hundreds in fees and inspections.

One of the biggest surprises? Maryland rental license, a mandatory permit required for anyone renting out residential property in most Maryland counties. Also known as landlord registration, it’s not optional. Cities like Baltimore, Montgomery County, and Prince George’s County require inspections for electrical, plumbing, and safety standards before you can even show the unit. Skip this step, and you risk fines, eviction delays, or even losing your right to collect rent. Then there’s the landlord responsibilities, the legal duties owed to tenants under Maryland’s landlord-tenant laws. Also known as property maintenance obligations, they include fixing heat in winter, addressing mold, returning security deposits within 45 days, and giving 24-hour notice before entering the unit. If you think you can ignore these because you’re out of state, think again. non-resident landlord, someone who owns rental property in Maryland but lives elsewhere. Also known as out-of-state landlord, you still have to appoint a local agent, pay state income tax on rental profits, and file annual reports. Many assume owning property is passive income. It’s not. It’s work.

And then there’s the money side. How much does it really cost to start? Between the license fee, inspections, insurance, and repairs, most first-time landlords spend between $2,000 and $8,000 just to get a unit ready to rent. Then there’s vacancy risk—Maryland has strict rules on how long you can leave a unit empty before penalties kick in. You’ll also need to understand rent control in certain areas, like Montgomery County, where increases are capped and notice periods are longer than in other states.

But here’s the good news: if you do it right, rental income in Maryland can be steady. Demand is high in college towns, near transit hubs, and in areas with growing job markets. The key isn’t just owning property—it’s knowing the rules, staying compliant, and treating tenants like partners, not problems. Below, you’ll find real guides on the exact steps to get your license, how long it takes, what inspections you’ll face, and how to avoid the traps most new landlords don’t see coming.