Maryland Landlord License Requirements: Do You Need One to Rent Out Property?

Evan Willoughby

Nobody likes hidden surprises—especially when you've got a tenant lined up, and the question smacks you in the face: Do you need a license to be a landlord in Maryland? Spoiler alert: It's not the same everywhere in the state. So, if you think you can DIY your way into being a landlord without any paperwork, best grab a cup of coffee and keep reading. Maryland doesn't have a one-size-fits-all rule, and local laws throw in some real plot twists. Let's iron out the details so you can rent out your place legally, skip the headaches, and actually start cashing those rent checks.

State-Level Rules: What Maryland Says About Landlord Licensing

At the state level, Maryland doesn’t hand out a blanket “landlord license” you can slap on your wall. So if you’re picturing yourself heading to some Annapolis office and getting an official certificate just for being a landlord, you can put those dreams aside. But before you celebrate, here’s the thing: Maryland law takes a hands-off approach, letting each city and county set its own rules. That means your experience as a landlord in Baltimore may be wildly different than if you own property out in Frederick or Bethesda.

The most eye-opening spot is Baltimore City. If you own any rental property in Baltimore City—even just a single-family rowhome—you have to register and get your place licensed with the city’s Department of Housing. And this isn’t just jumping through easy hoops. You’ll need to pass an inspection that covers everything from working carbon monoxide detectors to a roof that doesn’t leak. Out of 10,000+ landlords in 2023 alone, over 80% had to do repairs to meet these standards. Let that sink in for a second.

Prince George’s County is another heavyweight. If you want to rent out a single-family home or multifamily complex, you must secure a county license. Landlords have to not only register with the county but also go through regular inspections—yes, whether you live there or not. Communities like Montgomery County, Howard County, and Anne Arundel all have their own twists. Some areas only require registration if it’s a multifamily property, while others throw in rules even for renting out a basement apartment. And if you’re renting out short-term, like via Airbnb, things can get weirdly complicated fast. For instance, in 2024, Montgomery County fined over 200 landlords for skipping short-term rental licensing.

The legal maze can get even trickier. During 2021, a study found that out of 500 rental disputes in Maryland, almost 30% involved unlicensed landlords—most of whom didn’t even realize they needed a local permit. Ignorance isn’t bliss here. Local governments can fine you heavily, give you a stop-work order, or even halt rent collection altogether until you comply. In Baltimore City, fines can hit $1000 per offense, and your tenants may not be required to pay rent if your property isn't licensed. That’s money burned just because of paperwork.

The reality? It pays to know your local jurisdiction’s policy because state law lets every city and county play by their own rule book. Always check with your local housing office—or you may be the next landlord getting an unwelcome letter.

The Nitty Gritty: Local Licensing Requirements by Area

Let’s get specific about some of the largest and most landlord-heavy counties in Maryland. You really do need to zoom into your zip code to know what rules you’re playing under.

• Baltimore City: Registration and rental licensing are mandatory for all rental homes. As of 2019, ALL properties—single-unit or multi-family—require a valid rental license, with an inspection every three years. Even just one overdue smoke alarm can flunk your inspection. No license? You’re not allowed to collect rent. That’s a rule with real teeth.
• Montgomery County: For all rental housing, you must obtain a rental housing license, even for renting your basement. If it’s a short-term rental, you’ll need a separate “short-term rental license.” The county updates regulations every January, so it’s easy to slip up if you rely on old information. Fines for operating without a license started at $500 per day in 2024.
• Prince George’s County: If you rent out a room or a house, you need a rental license. There’s a special process for multi-unit buildings, and inspections happen every few years—sometimes more often after complaints. The revenue department reported collecting over $700,000 in fines from unlicensed landlords over the last three years.
• Anne Arundel County: Most areas require rental housing units to be registered, especially in Glen Burnie and Annapolis. The requirements aren’t as strict for single-family homes, but failure to register can still result in penalties and orders to vacate tenants.
• Howard County & Frederick County: These are a bit laxer for single-family landlords, but you still need to meet health and safety codes, and HOAs may have their own sets of hoops to jump through.
• Other Locales: Some towns like Rockville and Takoma Park apply licensing to everything, including sublets. It’s not rare for small towns to have a “rental housing permit” you’ll need even for leasing a single room—a detail that trips up new landlords all the time.

If you thought owning a condo in two spots would be double the headache, you're not wrong. A landlord with properties in both Baltimore and Montgomery counties will juggle two separate inspections, two different sets of paperwork, and two renewal timelines each year. It’s easy to see why some landlords hire property managers just to keep the bureaucrats happy.

Now, here’s a wild stat: According to state housing data, over 12% of landlords in the Baltimore region failed at least one inspection cycle in 2023. The top violations? Missing GFCI outlets in kitchens, no smoke detectors, and pesky peeling paint (yes, that’s really a big deal).

The takeaway? Never assume you’re in the clear just because Maryland’s statehouse isn’t breathing down your neck. Always check with your county or city’s housing department, or you may wake up to a fine that’s more than your rental income for the month.

What Happens If You Skip the License?

Skipping the landlord license isn’t just a slap on the wrist—it opens up a whole Pandora’s box of problems. For starters, unlicensed landlords can’t use Maryland’s courts to evict tenants. Yes, that means if a tenant trashes your apartment or stops paying rent, you might be stuck. In Baltimore City, courts will actually dismiss your eviction lawsuit if you’re not licensed—no exceptions, and no appeals until you fix it. The Maryland Attorney General even warns that renting without a license could void your whole lease and potentially require you to refund rent.

Tenants are getting savvier. Some know to check if your property is licensed and use it as a card to negotiate if anything goes south. One 2022 case in Prince George’s County involved a landlord caught collecting rent for two years without the proper license. The result? The court ordered him to refund every cent of rent paid—almost $40,000. That’s the kind of story that keeps you up at night. Some insurance policies in Maryland won’t cover property damage claims for unlicensed rentals, meaning a busted water pipe or fire could cost you tens of thousands with zero coverage.

There’s a snowball effect. Fines stack up every day you operate unlicensed. Tenants can file complaints, and local housing authorities can slap liens on your property. In the rare worst-case, the county could condemn the property for repeat violations or safety hazards—forcing tenants out and destroying your investment. Cities have recently started publishing lists of non-compliant landlords online, which can tank your reputation and make it tough to find new tenants. No one wants to see their name on Baltimore’s “Bad Landlord” public database.

If you’re renting on platforms like Airbnb, skipping the rules can be even riskier. Montgomery County fined several hosts over $5,000 each for not having a short-term rental license. All big rental platforms now require you to upload proof of local registration. They’ve gotten stricter after being hit with their own lawsuits for letting illegal rentals slide.

The scariest part? Some neighborhoods and HOAs tack on their own restrictions—even banning rentals without HOA approval, which can override local laws. Before you list that room or sign a lease, always check your HOA covenants, because getting sideways with them can mean expensive legal wars, forced sales, or both. A Kensington, MD landlord got hit with a $10,000 HOA penalty for secretly renting out a basement without the right paperwork in 2023—it made local headlines.

Tips and Extra Steps for Maryland Landlords

Still fired up to become a landlord in Maryland? Good, because when you plan right, owning rental property can be worth its weight in gold—or at least cover your vacation every year. Let’s talk practical tips so you can skip the painful rookie mistakes.

• Check your county/city’s website every year. Local rules change frequently. For example, Baltimore added carbon monoxide detector checks in 2022, and Prince George’s County updated fire code regulations in 2024. Set yourself a calendar reminder.
• Document your inspection details. Keep a digital folder with inspection reports, licenses, and repair receipts. If a tenant complains, you need paperwork to prove you’re in the clear. Courts love documentation—it’s your legal lifeline.
• Schedule recurring maintenance. Passing the first inspection isn’t enough—you need to stay on top of repairs. Many failed second-year inspections in Montgomery County involved simple things like loose railings and worn-out smoke detectors. Schedule quarterly walkthroughs.
• Communicate with tenants. Letting them know you’re licensed and what that means can actually boost trust. Licensed landlords attract better tenants and cut down on “surprise” disputes.
• Know your insurance policy. Call your agent and read your property insurance closely. Some policies say straight out: If you rent without the proper license, you’re not covered for rental income loss or damages caused by tenants.
• Consider hiring a property manager if you have multiple rentals. Rules differ by city, so property managers can help juggle licenses, inspections, and paperwork. This has become increasingly popular—about 60% of multi-property landlords in Montgomery County hired managers to handle local compliance in 2024.
• File licenses early—processing can take weeks. Baltimore gets overloaded each summer, with some wait times stretching to six weeks or more. Don’t wait until the tenant is ready to move in.
• Stay organized if you work in multiple counties. Maryland’s patchwork licensing means you’ll juggle multiple renewal deadlines. Set up recurring reminders and spreadsheets so you never miss an annual renewal.
• Look out for special programs for small landlords. Montgomery County, for instance, launched a help desk and grant program for first-time landlords to navigate the process. There may even be reduced inspection fees or streamlined applications if you rent to low-income tenants or offer affordable housing.

The bottom line? Getting your Maryland landlord license is not just a hoop to jump through—it protects you, your rental income, and your tenants. Don’t play the odds. A mistake in licensing can turn what should be a steady-flowing rental income stream into an expensive, frustrating mess. If in doubt, call your local housing authority the moment you consider renting out your place—their advice can save you more than just money; it can save your peace of mind.