cbeauchamp

The Renters’ Rights and Stabilization Act of 2024 went into effect October 1, 2024. This Maryland law is the first of its kind nationwide, established to provide tenants the opportunity to purchase their rental unit in the event the owner decides to sell. It also established the maximum security deposit an owner may charge and increased the cost to file for an eviction.

This year, I’ve had three owners of tenant occupied properties contact me to tell me they are ready to sell their rental property. We discussed things like – Is it more difficult to sell a tenant-occupied unit? Should the landlord terminate the lease before marketing? Normal, smart questions. In these cases, I have always first asked – because it’s the easiest, least expensive solution for the owner: Have you asked your tenant if they’d like to purchase? The answer is almost always “no” because owners are afraid of tenants leaving before the owner wants them to leave, or they worry that the tenants will get mad at the owner because the owner intends to sell, so they might take it out on the property or worse, stop paying their rent. But now – now there is a law that says an owner of (most) residential rental property intending to sell, MUST ask the tenant first. It is called The Right of First Refusal.

You may think this sounds easy – a quick call to the tenant, they say no, off you go. Or they say yes, you agree to a price, and the deal is done. Not so fast. Not so easy. Part of the law created a new Office of Tenant and Landlord Affairs to act as its caretaker, so now what might have been a simple process is complicated by the involvement of a government department to make sure landlords are following the rules and tenants are protected and yes, there is a lot of paperwork and a mandated timeline involved!

Check out APPENDIX A NOTICE OF INTENT TO SELL AND TENANT’S EXCLUSIVE NEGOTIATION PERIOD.

I’m all for the protection of tenants, for abiding by the terms of the lease, for putting all notices in writing, including any offer to a tenant to purchase a unit I own and want to sell. But I don’t need the State of Maryland telling me how it must be done, like they already know it’s my intent to harm the tenant in some way, shape or form. It’s over reach and the time line and caveats are, in my opinion, unreasonable.

Tenants already had a solid Bill of Rights! Every June 1, the Tenant’s Bill of Rights in Maryland must be updated. And guess what – in research for this article ( I’m a landlord!) I just learned something new: “Landlords must attach the latest version of this document to every residential lease.”

Do any other REALTORS® in Maryland know this? Do any other landlords in Maryland know this? Do the property managers in Maryland know this and do this and tell their owners about this?

So far, I’ve not found any owners of residential rental property who are aware of the new laws.

Resources for the Renters’ Rights and Stabilization Act of 2024

• https://dhcd.maryland.gov/Tenant-Landlord-Affairs/pages/default.aspx
• https://dhcd.maryland.gov/Tenant-Landlord-Affairs/Documents/Tenant-Bill-of-Rights-V1.pdf

By all indicators, 2025 should be a great year for sellers to sell and buyers to buy! Whether you are a first time buyer, a repeat buyer, a seller looking to downsize or upsize or an investor needing a good investment, there will be opportunities. The economists predict an increase in transactions, which equates to more opportunities for all!

For most of us, buying a home is the most expensive investment we will make. Selling a home is selling our largest, most critical asset. In most fields, and real estate especially, if you are not an expert yourself, you need a guide – a REALTOR® – who meets basic common sense criteria.

Criteria #1:

Choose a REALTOR® local to the area you’re looking to buy in or the area you are selling in. Someone who helps buyers buy and sellers sell homes like the one you want to buy or sell.

Many REALTORS® will tell you they don’t need to be “local” to assist you due to the data available in our Multiple Listing Service and the information they and their clients can find online. Since our licenses are issued by the state, we can (legally) help buyers and sellers throughout the entire state. As long as we don’t cross an ethical line, this is true. However, I am a licensed Maryland REALTOR®, but if I were to buy a house in Ocean City – I’m going to hire an Ocean City agent to help me!

Criteria #2:

Find a REALTOR® with experience. For buyers and sellers, true experience means the agent has earned a reputation for professionalism. Experience is enhanced by education: Agents have an abundance of educational opportunities at their fingertips.

For buyers, experience means the agent has sold homes to the type of buyer you are, and can tell you what issues may arise during a tour of the home and how to navigate from offer to closing.

For sellers, experience means instinctively knowing market values and how to illustrate how that market value is determined. Experience means the agent has the pulse of the market, and a strategy specialized for the type of market you’re selling in. Experience means knowing how to manage issues.

Criteria #3:

Check out the REALTOR®’s Marketing!

Sellers want to know what the agent will do to market their home. An absolute must have, in my opinion: Professional photos!! Quickly becoming “must-haves” are the add ons like floor plans, video tours, aerial photos and glossy brochures. Look at a copy of some of their published MLS listings and make sure those listings are complete, and the remarks descriptive and easy to read.

For both sellers and buyers – check out the agent’s website. Can you easily find contact information for the agent? Is it professional and informative?

Criteria #4:

Trust your instincts! Find an agent you click with, someone you know you will be able to rely on throughout the transaction.

Criteria #5:

Ask about terms and commission.This is a key “ask” at any buyer or seller consultation. Terms and costs are important for both buyers and sellers to know and understand.

Agents should not only discuss commission and normal buyer and seller costs, they should provide an example of a Seller closing cost “Net Sheet” or a Buyer closing cost “Worksheet” so there is a broader understanding of all costs associated with buying and selling. In addition, the agent should review and explain the Buyer Agency Agreement and the Listing Agreement.

If you are looking to buy or sell real estate in our Four-County Mount Airy market, you will have a wide variety of local REALTORS® to choose from! If you’re buying, we hope for the lowest possible price with the strictest of terms and if you’re selling, we hope for the highest possible price with no contingencies!