Residential Leases - Late Payment Penalties - Calculation

HB 273 changes Maryland's rules for late rent penalties in residential leases by limiting penalties to a percentage of the *unpaid rent* rather than the total rent due. It caps late fees at 5% of the unpaid rent for monthly leases or $3 per week (with a monthly maximum of $12) for weekly leases. This directly affects landlords and tenants by preventing excessive penalties and making any higher fees unenforceable. Tenants can also recover damages if landlords attempt to enforce illegal late fees. The bill takes effect October 1, 2025.