Working For Justice In Housing

RENT ESCROW

Lack of decent maintenance is probably the prime complaint of tenants.  Close to it is the way tenants are often treated when they complain about needed repairs-- with indifference approaching hostility.

Therefore, many tenants feel that they have the right to withhold rent-- to put it in "escrow", i.e., keep it or put it in their own bank account until the repairs are made.  This is not the legal way to establish rent escrow.

Rent escrow is a procedure established by a judge and involves paying rent to the court until repairs are made.  In Maryland, the rent escrow process was first established in Baltimore City.  Later, Baltimore County and the state passed similar laws.

Rent escrow laws cover situations that could threaten the life, health and safety of tenant: defective heating equipment, bad plumbing, bad wiring, structural defects such as leaking roof, defective stairs, lack of heat and hot water when the landlord is required by the lease to provide them, etc., and in multi-family dwellings, rodent and vermin infestation, etc.  Such laws do not cover items like lack of fresh paint, worn wall-to-wall carpeting, small cracks in walls and ceiling, etc.

The first step in the rent escrow procedure is for the tenant to inform the landlord of the needed repair by certified mail ( a written notice from a housing inspector is also sufficient).  The landlord must have a reasonable time to make the repair -- beyond 30 days is normally considered unreasonable.

If the landlord does not make the repair, then the tenant may file for a rent escrow hearing.  Such affirmative rent escrow allows the tenant to seek rent escrow before having to withhold rent.  Many tenants, however, after giving the landlord reasonable time, withhold rent and are taken to Rent Court by the landlord.  At that point, the tenant may request rent escrow.  Although this is normally a faster process, it does involve some risk for the tenant.

If the judge does not grant escrow, the tenant may have to pay late charges and court costs.

To establish rent escrow, the tenant must have a case which would include the following:

• proper notice to the landlord

• repair which could affect life, health and safety

• damages which were not caused by the tenant

• a condition which has not been remedied

• the tenant has not refused reasonable entry for the landlord to make repair

• the tenant has a good rent record

The tenant must also have the full rent to pay to the court.

If the decision is in favor of the tenant, the judge may order the landlord to:

• make the needed repair

• reduce the rent to an amount that fairly represents the condition of the premises

• order the rent to be paid to the court with a refund of part of the rent to be given to the tenant when the repairs are made  

If the tenant desires, the judge may also end the tenancy. 

The hope in a rent escrow situation is that the landlord will make the needed repairs after receiving the tenant's certified letter and that the tenant will not have to go to court.  This is more likely if the tenant also files a complaint with a local housing inspector. 

Baltimore City law now allows rent escrow to be used to cover items not essential to health and safety, if such were promised in the written lease or in a written inducement to rent.  For example, failure to repair a dishwasher or failure to provide promised free parking. 

Click here to see what Maryland law says about this issue

Legally Reviewed - BNI. Last Update - March 2001