3 common questions, each with a short answer first, then the details and the official sources.
Nick Jungmarker, REALTOR® · Long & Foster · Last reviewed
Short answer
Pre-1978 rentals must be registered with MDE every year and pass an accredited lead inspection before each new tenant moves in.
Rental units built before 1978 must be registered with the Maryland Department of the Environment and renewed every year by December 31, unless the unit is certified lead-free, and a new owner must register within 30 days of buying. Before each new tenant moves in, the unit must pass a lead inspection by an MDE-accredited inspector, and the owner must give the tenant the certificate and required lead education materials. Local rental licenses, such as in Baltimore City and Montgomery County, also require proof of lead compliance. Budget for inspections and paint repairs before you buy an older rental. General information, not legal advice; confirm with a Maryland attorney.
Related: Real Estate Investing in Maryland & DC · Baltimore City Neighborhoods and Homes · Baltimore City Landlord Rules (2026): Property Registration, Rental License, Lead Certificates, Vacant Building Notices and Property Taxes
Short answer
Often yes. Baltimore City and Montgomery County require rental licenses, and Baltimore licenses stopped transferring to buyers on January 1, 2026.
There is no single statewide rental license, but many Maryland jurisdictions require one. Baltimore City requires every non-owner-occupied rental to be registered and licensed, with a passing inspection by a state-licensed home inspector registered with the city and current lead certification, and since January 1, 2026, licenses no longer transfer to a buyer, who must apply for a new one within 60 days. Montgomery County requires a rental license from DHCA before a home can be rented or advertised, and Prince George's County and other jurisdictions have their own licensing. Unlicensed landlords can face fines and limits on going to court for unpaid rent. General information, not legal advice; confirm with a Maryland attorney.
Related: Real Estate Investing in Maryland & DC · Baltimore City Neighborhoods and Homes · Montgomery County Neighborhoods and Homes · Baltimore City Landlord Rules (2026): Property Registration, Rental License, Lead Certificates, Vacant Building Notices and Property Taxes · Renting in Maryland and DC (2026): Security Deposits, Rent Limits, Licenses, Lease Red Flags and a Plan to Buy
Short answer
Ground rent means you own the house but lease the land, mostly in Baltimore. Holders must register with SDAT, and many ground rents can be redeemed.
Ground rent is an old arrangement, found mostly in Baltimore City and Baltimore County, where you own the house but lease the land under it and pay a small fixed rent to a ground lease holder, usually twice a year. Ground lease holders must register the ground lease with SDAT, and a homeowner can redeem (buy out) a redeemable ground rent. Your title company should identify any ground rent before settlement so you know the amount, who collects it and how to redeem it. Unpaid ground rent can create legal problems, so do not ignore it. General information, not legal advice; confirm with a Maryland attorney.
Related: Real Estate Investing in Maryland & DC · Baltimore City Neighborhoods and Homes
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General information, not legal, tax, or lending advice. Laws, rates, and program rules change; confirm with the official source or a Maryland professional. Facts checked October 27, 2026.