Operative Text
(a) (1) In this section the following words have the meanings indicated. (2) “Dwelling unit” means that portion of a building that is designated, intended, or arranged for use or occupancy as a residence by one or more persons, including a rented room in a single–family house. (3) “Landlord” means: (i) An owner of residential rental property that offers two or more dwelling units for rent on one parcel; or (ii) A person acting on behalf of a landlord. (4) “Master meter” means a meter used to measure, for billing purposes, all usage of a particular utility for a landlord’s residential rental property, including usage for common elements of the residential rental property and dwelling units. (5) “Ratio utility billing system” means allocation of one or more of a landlord’s utility charges, collected via a master meter, among the tenants by any method that does not measure actual per–tenant usage for the utility. (6) “Utility” means: (i) Electricity usage; (ii) Gas usage; (iii) Wastewater and sewage disposal service usage; or (iv) Water consumption or usage. (b) This section does not apply to residential rental property in: (1) A condominium organized under Title 11 of this article; or (2) A cooperative project organized under Title 5, Subtitle 6B of the Corporations and Associations Article. (c) (1) If a landlord uses a ratio utility billing system to bill tenants for one or more utilities, the landlord shall provide the following information to all prospective tenants in writing: (i) A statement that the tenant will be billed by the landlord for allocated utility services and that identifies all utilities at issue; (ii) A copy of the last two utility bills issued to the landlord; (iii) A description of the method that will be used to allocate the cost of the utility to the tenant, by utility; (iv) A statement that any disputes relating to the computation of the tenant’s bill are between the tenant and the landlord; (v) The average monthly bill for all dwelling units in the residential rental property in the previous calendar year, by utility; (vi) A statement that the tenant has the right to inspect records retained by the landlord that document a bill for utilities on written request; (vii) Information regarding any additional service charges or administrative fees to be paid by the tenant for the operation of the ratio utility billing system; and (viii) A citation to this section. (2) A lease provision that requires a tenant to pay the utility charges billed to the tenant under a ratio utility billing system shall be unenforceable if the landlord fails to provide the information required under paragraph (1) of this subsection to the tenant in writing. (d) A landlord who uses a ratio utility billing system shall, on written request by a tenant, allow a tenant to inspect records retained by the landlord that document a bill for utilities. (e) (1) A county or municipal corporation may enact local laws consistent with this section governing: (i) The information a landlord is required to provide to a tenant; (ii) Disclosure requirements; and (iii) Document retention policies. (2) Any local law or ordinance that is comparable in subject matter to this section shall supersede the provisions of this section to the extent that the local law or ordinance is more stringent or provides stronger protection or broader applicability than this section.
Maryland Real Property § 8-212.4 governs how landlords who use a "ratio utility billing system" — one that allocates shared utility costs among tenants without measuring each tenant's actual usage — must disclose that arrangement. Before a tenancy begins, the landlord must provide prospective tenants with specific written information, including the billing method, recent utility bills, average monthly costs, and any administrative fees tied to the system. Critically, if a landlord fails to deliver these required disclosures in writing, any lease clause requiring the tenant to pay those allocated utility charges becomes unenforceable.
Plain English — not legal advice.
Operators of residential rental properties covered by § 8-212.4 who use a ratio utility billing system are generally expected to prepare a comprehensive written disclosure packet for every prospective tenant before the lease is signed, covering all eight items enumerated in the statute — including copies of the last two utility bills, the allocation methodology for each utility, average monthly costs from the prior calendar year, and a citation to § 8-212.4 itself. Landlords should also maintain records that document utility bills, since tenants have a statutory right to inspect those records upon written request under § 8-212.4(d). Note that local county or municipal laws may impose additional or more stringent requirements that supersede this section, so operators should verify whether local ordinances apply to their property.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Under § 8-212.4, tenants in covered Maryland rental properties have the right to receive detailed written disclosures before signing a lease if their landlord uses a ratio utility billing system to charge for utilities such as electricity, gas, water, or wastewater. If those disclosures were never provided in writing, the lease provision requiring payment of those allocated utility charges may be unenforceable — a protection tenants can raise if a billing dispute arises. Tenants also have the right under § 8-212.4(d) to submit a written request to inspect the landlord's utility billing records, and may wish to consult a tenant-rights organization or legal aid office to understand how this provision and any applicable local ordinances interact with their specific lease.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 14, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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