Maryland’s Fair Chance Housing Act Takes Effect October 1, 2026: What Landlords Need to Know
Tenant screening is one of the most important risk-management tools available to a rental property owner. However, beginning October 1, 2026, some Maryland landlords will need to change how criminal history is handled during that process.
Maryland has enacted the Fair Chance Housing Act, formally Senate Bill 937 and Chapter 752. The new law establishes restrictions on when landlords can ask about criminal history, what information can be considered, and how certain rental decisions must be handled.
For Maryland rental property owners, the takeaway is simple: a screening procedure that worked in the past may need to be updated before the next application is processed.
What Is Maryland’s New Fair Chance Housing Act?
The Maryland Fair Chance Housing Act changes the use of criminal-history information when evaluating prospective residential tenants.
The legislation was approved as Chapter 752 and takes effect October 1, 2026.
Among other requirements, the law restricts certain criminal-history questions before a conditional offer, limits the criminal-history information landlords may consider, establishes procedures surrounding conditional rental offers, and creates additional requirements when criminal history affects a leasing decision.
This is not simply an industry recommendation or best practice. It is a change to Maryland law.
Does the New Law Apply to Every Maryland Landlord?
No.
One of the first things property owners should determine is whether the new requirements apply to their portfolio.
According to the official enacted legislation, the Act generally applies to landlords who own or manage five or more residential rental units in Maryland, including units owned or managed through different legal entities.
The subtitle does not apply to an owner-occupied residential rental unit.
That distinction can be especially important for investors operating several rental properties through separate LLCs. Owners should not automatically assume that separating properties among different entities means the five-unit threshold does not apply.
The Order of Tenant Screening Is Becoming More Important
Traditionally, a landlord might receive an application and review income, employment, rental history, credit, eviction records, and criminal history as part of one screening process.
For landlords covered by Maryland's new law, criminal-history screening now requires greater attention to when information is requested and considered.
Before extending a conditional offer, a covered landlord generally may not require or request that a prospective tenant disclose whether the applicant has a criminal history or has been accused of or charged with a crime, subject to the exceptions contained in the Fair Chance Housing Act.
This makes the sequence of the application process increasingly important.
A landlord cannot simply rely on an old application form or screening checklist without determining whether it complies with the new requirements.
What Is a Conditional Offer?
One of the most important concepts introduced by the new law is the conditional offer.
Under the Maryland Fair Chance Housing Act, a conditional offer is an offer to lease residential property that remains contingent upon a subsequent inquiry into the prospective tenant's criminal history.
In other words, criminal-history screening may occur at a different stage than other qualification criteria.
After a conditional offer has been extended, the Act permits landlords to consider certain criminal convictions specified by the statute.
However, discovering a criminal record does not necessarily mean a landlord can automatically withdraw the offer.
A Criminal Record Should Not Automatically Mean “Application Denied”
One of the biggest compliance risks is treating every criminal record the same way.
Maryland's new law identifies specific categories of criminal history that may be considered and establishes limitations surrounding their use.
When criminal-history information permitted by the Act is identified, withdrawing a conditional offer must be connected to a substantial, legitimate, and nondiscriminatory interest, as described in the official legislation.
This makes blanket screening policies particularly important to review.
For example, a policy simply stating:
“No applicants with criminal records.”
should not automatically be treated as a safe screening standard.
Federal requirements also matter. The Federal Trade Commission's guidance for landlords using consumer reports explains landlords' responsibilities when using consumer reports during tenant screening.
Applicants May Have an Opportunity to Explain the Record
Background reports are not infallible.
Records can contain incorrect information, outdated information, or records belonging to someone with a similar name.
The Federal Trade Commission's tenant background-check guidance explains that tenant screening reports can contain errors involving criminal records and housing-court information.
Maryland's new law also establishes procedures allowing applicants to provide applicable information concerning inaccuracies, rehabilitation, or mitigating circumstances.
That creates an important operational lesson for property owners:
Never treat a screening result as a substitute for the verification and review process required by applicable law.
Rental Advertisements Also Need to Be Reviewed
The application itself is not the only place where compliance problems can occur.
The Maryland Fair Chance Housing Act also addresses statements and advertisements concerning criminal history.
Covered landlords generally cannot knowingly publish advertisements stating that applicants with arrests or criminal convictions will not be considered, except where otherwise required by federal law.
This means owners should review more than their formal rental application.
Check your:
Property listings
Website language
Pre-screening questionnaires
Automated applicant responses
Leasing scripts
Application forms
Screening criteria
An old sentence copied from one listing to another could create a compliance problem even if the landlord's internal screening policy has already changed.
Don't Overlook What Happens Before Collecting an Application Fee
This is the type of operational detail a self-managing landlord could easily miss.
Before accepting an application fee, landlords covered by the Act must provide prospective tenants with specified written information regarding the use of criminal-history records.
The required information includes notice concerning the applicant's ability to provide evidence addressing inaccuracies, rehabilitation, or mitigating circumstances.
The applicant must also receive notice concerning the individualized assessment required under the enacted Maryland law.
In other words, compliance can begin before the background check is even ordered.
What Happens If a Conditional Offer Is Withdrawn?
Documentation becomes especially important when criminal-history information affects the final decision.
The Act establishes written-notice requirements when a conditional offer is withdrawn based on criminal history and provides a process through which a prospective tenant can request reassessment.
It also establishes procedures surrounding requests for the information relied upon in making the decision.
These requirements are detailed in the official Chapter 752 legislation.
For property owners and managers, this is another reason every screening decision should have a clear paper trail.
Instead of simply recording:
“Applicant failed background.”
the applicant file should demonstrate that the required screening, review, notification, and decision-making procedures were followed.
Maryland Law Is Not the Only Rule Landlords Need to Consider
Maryland landlords using third-party tenant screening reports may also have responsibilities under the federal Fair Credit Reporting Act.
According to the Federal Trade Commission, tenant background reports can qualify as consumer reports under the FCRA.
If information from a consumer report contributes to an adverse decision—such as denying an application, requiring a cosigner, or imposing less favorable terms—the landlord may have federal adverse-action notification obligations.
This is why Maryland landlords should not evaluate the new state law in isolation.
State screening requirements and federal consumer-reporting requirements can both affect the same application.
Why Verification Matters More Than Ever
Tenant screening should never become a simple exercise of clicking “approve” or “deny.”
A screening report provides information.
The landlord or property manager still needs an organized and compliant process for evaluating that information.
The FTC's tenant-screening resources explain that tenant background reports can contain information such as rental history, eviction records, criminal history, and other screening data.
For landlords, a strong screening process should combine:
Verification consistent criteria
documentation
applicable legal requirements.
What Maryland Landlords Should Review Before October 1, 2026
September is an excellent time for affected Maryland property owners to audit their leasing process.
Review your:
Rental advertisements
Pre-screening questions
Rental application
Application-fee disclosures
Screening criteria
Background-check procedure
Conditional-offer process
Decision notices
Reassessment procedures
Recordkeeping
Then make sure everyone involved in leasing understands the updated procedure.
This includes property managers, leasing coordinators, assistants, and anyone communicating directly with prospective tenants.
Consistency matters.
Having an updated policy sitting in a folder does little good if the actual leasing process does not follow it.
Property Management Is About More Than Collecting Rent
Rental-property regulations continue to evolve.
Owners have to manage leasing, screening, rent collection, maintenance, licensing, resident communication, documentation, and compliance all while protecting the performance of the investment itself.
The Maryland Fair Chance Housing Act is a perfect example of how quickly one part of the leasing process can change.
At Indigo Blue Property Management, we believe good property management starts with organized processes and informed decision-making.
Our role goes beyond filling vacancies. We help rental property owners establish structured systems for leasing, tenant coordination, property operations, and day-to-day management.
Because one of the biggest risks in rental-property ownership is not always what happens inside the property.
Sometimes, it is the rule that changed while you were busy managing everything else.
Need Help Managing Your Maryland Rental Property?
If you own rental property in Maryland and want a more structured approach to leasing, tenant coordination, rent collection, compliance, and day-to-day property management, contact Indigo Blue Property Management to learn how our team can support your rental portfolio.
This article is provided for general educational purposes only and does not constitute legal advice. Laws and their application can vary depending on the property and circumstances. Rental property owners should consult qualified legal counsel regarding their specific obligations.
