House Bill 273: Fairer Late Fees

Landlords can no longer charge late payment penalties based on the full rent amount.

Maryland already capped late rent penalties at 5%, but some landlords applied that percentage to the entire month’s rent, even if most had already been paid.

What’s new: Landlords must now calculate late fees only on the unpaid portion of rent. Weekly leases remain capped at $3/week, with a $12/month maximum.

Example: Rent is $1,000, a tenant pays $800 on time, $200 is late. Before: fee could be $50. Now: fee maxes at $10.

As a result of the new law, tenants who make partial payments will not be over-penalized. Landlords will need to revise lease forms, and unenforceable clauses could lead to tenant lawsuits for damages and attorney’s fees.

You can review the new legislation in full here.