What is a Montgomery County Lease Agreement?
As the name suggests, a Montgomery County lease agreement is mainly utilized in Montgomery County to outline the terms of a rental agreement between a landlord and a tenant, in hopes of having the separate parties abide by them. As is the case with many other written contract agreements, the Montgomery County lease agreement will show that it’s an agreement that is binding for everyone involved. Simply put, a lease agreement is a type of rental agreement that is written down on paper, with no additional clauses or special elements—other than the one set up by default by the laws governing the region in which the lease agreement is being presented.
Since it’s written down, the Montgomery County lease agreement will be beneficial for individuals who have been involved in business disputes over the terms of the lease agreement; because if they then go on to hire a lawyer or go to court, the presence of a written contract can only be perceived as a positive thing.
Montgomery County lease agreements are versatile , as they can be utilized for both commercial purposes and residential purposes. If a business required the renting of an office space or another structure, there is likely a detailed Montgomery County lease agreement that can be drafted up to outline the terms of the agreement between the lessor and lessee of the property. In turn, an individual looking to move into a new apartment could use a modified version of the lease agreement in order to get the apartment space rented to them by the landlord of their designated choice.
Montgomery County lease agreements are better than other types of written contracts because they lay out the expectations of both parties in detail. That extra detail that isn’t often found in a common lease agreement is exactly what is portrayed as being "special" about a Montgomery County lease agreement. Everything that should be taken into consideration with a Montgomery County lease agreement will be explained, from the fair market value of the property to the rules that the landlord has set into place.
Montgomery County Lease Agreement Provisions
A. Term of Lease
The standard term of a lease is one year. However, there is often flexibility. The lease may be for an indefinite term, meaning it is simply a month-to-month lease. The leases may even run for periods longer than one year, but usually the landlord must give the tenant advance written notice that the landlord intends to renew the lease for another term.
B. Rent
The lease will specify when rent is due, how rent is paid, rent increases, when late fees apply, and what happens if the rent is not collected.
C. Security Deposit
Most leases will require a security deposit.
Generally, within 65 days after the lease is terminated, provided the tenant does not owe any delinquent rent, and upon proper request from the tenant, the landlord shall mail or otherwise deliver a statement to the tenant showing the actual expenses incurred by the landlord for repairs or damages which have not been previously paid by the tenant and the balance, if any, of the security deposit. If a landlord fails to provide the required statement, the tenant may recover the security deposit, and the landlord may not withhold from the tenant any such security deposit not used for damages to the leased premises and shall be liable to the tenant for an amount equal to three times the amount of security deposit wrongfully withheld by the landlord.
D. Maintenance Responsibilities
Typically, the tenant must maintain the premises in good order and make necessary repairs. If the tenant maintains the premises and the landlord is responsible for repairs and maintenance, then the lease is generally called a gross lease. On the other hand, a net lease is where the tenant is responsible for all of the costs associated with maintaining the premises.
E. Termination
Most leases run their course and terminate at the end of the term. However, some leases contain early termination clauses, where the tenant has the right to terminate the lease prior to the expiration of its term. It is unlikely that the tenant has to provide a specific reason to terminate the lease early. Once the lease terminates, possession will revert back to the owner. If the tenant refuses to vacate the premises, the owner should initiate summary ejectment proceedings to remove the tenant from possession.
Landlord’s and Tenant’s Obligations
Tenant and landlord responsibilities are established in the lease agreements signed by both parties and through state laws. However, in Montgomery County approximately 20,000 rental properties are licensed by the Department of Housing and Community Affairs (DHCD) and must abide by additional laws. These regulations are designed to promote healthy and stable neighborhoods.
Because more than 50 percent of the rental housing units in Montgomery County are owned by companies or corporations—which was not the case when the laws were implemented—government oversight is designed to ensure that tenants enjoy basic rights and protections. Through its Office of Landlord-Tenant Affairs (OLTA), DHCD performs regular inspections of all licensed rental units to ensure compliance with the Montgomery County Code, Departmental Rules and Regulations, and the Maryland State Code. All properties must be registered with the OLTA prior to occupancy.
One important local law covers rental agreement disclosure and requires property owners to use a copy of the standard residential lease form provided by the DHCD Office of Consumer Protection. The lease outlines the terms of the tenancy and the tenant’s obligations as they relate to:
Landlords and tenants must share specific responsibilities to maintain a rental property. Local law prioritizes property owner liability, so the landlord is always responsible for:
On the other hand, the tenant must:
Local law stipulates that tenants are responsible for paying rent, as well as for damage to the rental property caused by the tenant or a guest. Rent is due according to Section 29-16(f) of the county code and must be paid on time, when do, and the tenant is required to keep the unit in good condition throughout the term of the lease. Tenants also share responsibility for pest control and for notifying their landlord of maintenance issues, such as plumbing leaks, heating malfunctions or electrical problems.
There are a few local laws that are unique to Montgomery County and may differ from other areas of Maryland. First, the county code requires that a landlord perform repairs and maintenance to a rental unit within five days of receiving notice from the tenant. As a result, you cannot insist that the tenant place any needed maintenance in writing, nor can you refuse a repair request if the tenant has failed to meet their obligations under the lease. The only exception is if it costs more than $50 to hire someone to make the repair and the tenant is responsible for that cost per the lease agreement; for example, if an expense is clearly distinguished in the lease (i.e. removal of a chandelier or specific landscaping service).
If you are not a property owner but instead rent a home or apartment in Montgomery County, be sure you understand your rights and obligations, as well as those of your landlord, in order to protect them.
Drafting a Montgomery County Lease Agreement
A Montgomery County lease agreement is a legally binding contract between a landlord or lessor and tenant. Leases will grant a tenant the exclusive use of real property for a certain period of time and in exchange, the lease requires the tenant to pay an agreed upon rent.
Montgomery County leases should carefully review relevant state and local statutes that might impact the content of a lease. For example, in Maryland a lease covering a property containing five or more residential units must include a copy of the standard form of written lease offered by the Real Property Commission. There are a number of laws at both the federal and state levels that impact Montgomery County leases.
After reviewing relevant laws, your first step in preparing a Montgomery County lease is to draft the important provisions of the lease to include the names of the parties, their contact information including email and telephone numbers, a description of the property including an address, the duration of the lease and the conditions under which the lease can be terminated, rent payment instructions, as well as a list of all annexed exhibits. This provides potential tenants with the essential information about the rental unit prior to executing the lease agreement . Other items to consider including in the first drafted version of the lease agreement includes whether pets will be allowed, whether there will be any restrictions on smoking, whether utilities are included, where should the tenant send complaints, any limits on parking, and whether maintenance is the responsibility of the landlord or resident.
Customizing Montgomery County leases for your particular property is an important part of the drafting process. A landlord should carefully think about what to include in the lease agreement, including special clauses to protect your investment from a poor tenancy. For example, do you want to include an option to renew or extend the lease, whether breaks will be apportioned to the real property or common area, and whether there are any late fees or attorney’s fees clauses. Leases should also consider whether maintenance will be the responsibility of the landlord or the tenant, whether tenants will be evicted for non-compliance with the lease, and whether lease terms can be altered at any time by the mutual decision of the parties.
In today’s fast paced real estate market, a well drafted Montgomery County lease and valid lease agreement are critical to the success of any landlord. Montgomery County landlords should consider working with an experienced Maryland real estate lawyer who can review your Montgomery County lease, provide insight on best drafting practices, and ensure your lease complies with all applicable local, state, and federal laws.
Montgomery County Lease Agreements: What Happens in Case of a Dispute
Disputes are an unfortunate part of many landlord-tenant relationships, and understanding the processes available to resolve such conflicts is essential for anyone entering into a lease agreement in Montgomery County.
Most Montgomery County lease agreements contain language mandating mediation as a condition precedent to any litigation. Commonly favored by parties seeking a less contentious resolution, mediation invokes a neutral third-party mediator who will attempt to facilitate an amicable agreement between the landlord and tenant. Mediators do not decide how to resolve the dispute; rather, they ask questions and work to find potential solutions that are agreeable to both parties. Under Maryland law, the mediator must be neutral, and nothing revealed during the mediation process can be used against either party in any future litigation.
Arbitration is another option that may be available in a Montgomery County lease. Much like mediation, an arbitrator is an expert or neutral party that hears the dispute. Unlike mediation, the decision of an arbitrator is binding on the parties to the lease. Arbitration decisions can be enforced by any court of competent jurisdiction. While arbitration is generally less costly and more expeditious than litigation, it also lacks some of the statutory protections available in court. For example, parties cannot conduct formal discovery in arbitration. Additionally, even if one party obtains a favorable ruling, that party may seek a jury trial from any contractual decision of an arbitrator. Under Maryland law (Md. Code Ann., Cts. & Jud. Proc. §3-8A-01 et seq.), a request for a jury trial must be made within 10 days after the arbitrator announces a decision. If a party files an application for JNOV or motion to alter or amend the judgment, the 10 day deadline is tolled until the court rules on those matters.
Parties to a lease are not required to mediate or arbitrate their dispute; it is advisable that a Montgomery County lease agreement contain a written provision that addresses which of the alternatives for dispute resolution will be used.
Montgomery County Lease Agreements FAQs
What rights do I have as a tenant under a lease agreement in Montgomery County?
As a tenant, you have a number of rights under Montgomery County laws and the laws of Pennsylvania. For example, your landlord cannot retaliate against you for exercising rights provided under the law. You also have the right to privacy in your residence, with certain exceptions. If possible, landlords are required to provide advance notice before they enter their units. Finally, depending on the terms in your lease, you may be entitled to request reasonable accommodations if you have a disability.
What happens if I want to renew my lease?
Most landlords will include a provision in your lease providing guidelines for renewal. If they are not included , be sure to request them. If you want to renew your lease, in most cases, you will need to provide formal written notice prior to the deadline specified in your lease. In some cases, you can simply ask your landlord for renewal as long as you are up to date on rent and other requirements of the lease.
What happens if I violate the terms of my lease?
Most lease documents will outline the events that constitute a "violation" of the lease and the typical penalties for violations. In many cases, it will be possible to "cure" the lease violation—as long as it is your first violation—for example, by rectifying unpaid balances or cleaning the property. If you have violated your lease multiple times, however, your landlord may be able to evict you without cause.