Filing a Rent Escrow Case

Rent escrow allows tenants to withhold rent when a landlord fails to make essential repairs to a rental property. 

To use the rent escrow process, a dangerous condition must exist on the leased premises or in the common areas and must create, or if not promptly corrected will create, a fire hazard or a serious threat to the life, health or safety of the tenants. 

Examples of such conditions are: 

• Lack of heat, light, electricity, or adequate sewage disposal facilities
   
• Lack of hot or cold running water (except where tenant pays for water and the lack of water is a result of his failure to pay the water charge)
   
• Presence of lead paint on interior surfaces, where it would be a violation of the Baltimore City Code and the landlord has notice of the lead painted surfaces

Before Using Rent Escrow 

Before bringing a rent escrow action or using the dangerous condition as a defense for nonpayment of rent, the landlord or landlord’s agent must also have refused or failed to remedy the condition within a reasonable time after receiving notice of the defective condition in one of the following ways: 

• A letter sent by certified mail return receipt (tenant should keep a copy of the letter and the return receipt);
   
• A violation or condemnation notice from the Department of Housing and Community Development or other appropriate agency; or
   
• Actual notice (the landlord has first-hand knowledge of the condition).

A reasonable time to remedy the dangerous condition is left to the discretion of the court but there is a rebuttable presumption that more than 30 days after receiving notice is unreasonable. 

The tenant must pay into the court the amount of rent due under the lease, unless or until that amount is modified by court order. The tenant must also not have had more than 5 judgments for unpaid rent in the year immediately prior to initiating the suit or using the dangerous condition as a defense (or not more than 2 judgments if the tenant has lived on the premises 6 months or less). 

Once you have contacted the District Court and initiated a Rent Escrow action, the Rent Escrow Clerk will give the Tenant either an Expedited or Non- Expedited Rent Escrow and Housing Inspections document.

• Both the Tenant and Landlord will be given a court date to appear in District Court.
  • A summons will be mailed to the landlord’s address that is provided by the tenant.
     

• The Tenant is advised to contact DHCD Inspections within 3 business days after filing their complaint between the hours of 8:30 am-4:30 pm to schedule a housing inspection for a Non-Expedited Rent Escrow housing inspection. Call 410-396-4161 or 410-396-4163.

• For Expedited Rent Escrow Cases, the Tenant is advised to contact 311 within 24 hours of filing a complaint to schedule an emergency housing inspection. Also, the Tenant is advised to contact the inspector to inform them they called 311 to report the emergency.

• An Inspection is conducted and notice will be issued for violations observed during the inspection.
  • FYI: All violations do not pose a threat to Health & Safety but DHCD does address all the Tenant’s concerns.
     
• The Owner will have either 3, 5, 10 or 30 days to address the violations. 

  • 3 or 5 Days for emergency violation (No Heat, No Hot Water, Sewage or Defective Fire device). 

• Once a notice is approved by the Supervisor, Owner receives 1 certified copy and 1 mailed copy of the notice. 

• Rent Escrow Inspectors are required to print 4 copies of each notice and photos for the 1st inspection and 2 copies for re-inspection to take to Court. 

• Rent Escrow Inspectors circle all threats in red on the notice. 

• During the hearing the Judge will hear from both sides to determine if escrow is needed.

  • A new inspection and court date will be scheduled if the escrow is needed. Inspection dates are given by the Inspector.

• After all threats are completed during the next inspection. If the Court finds that a rent escrow is established, a rent escrow account is set up and the judge can take several actions.
  • The Court can order that money be returned to Tenant or Landlord, or both from the account as compensation. 
  • The Judge can order other actions.
     

• A new inspection can be ordered if violations are outstanding or out of an abundance of caution.