What Is Rent Escrow?

Rent escrow is a legal action that can be brought by tenants to make landlords repair dangerous conditions in their rental housing. This legal action allows you as a tenant to pay your rent into an account set up by the court, instead of to your landlord, until your landlord repairs the dangerous conditions. The account is called a "rent escrow" account.

As a tenant, you have the right to live in housing that is not dangerous to the life, health or safety of you or your family. This pamphlet describes how the rent escrow law can help you if you live in housing having dangerous conditions that your landlord does not repair.

Types of Housing Conditions Covered by the Rent Escrow Law

The rent escrow law can be used to fix conditions in your rental housing that cause a fire hazard or are a serious threat to your life, health or safety. Examples of some of the conditions normally covered are:

The rent escrow law does not cover minor defects or conditions that are not dangerous to your life, safety or health. Examples of some conditions that are normally not covered by the rent escrow law are:

Before Using the Rent Escrow Law

Before you may go to court, your landlord must know about the dangerous conditions. The best way to let your landlord know is to send a letter by certified mail listing every dangerous condition in the home and asking for repairs to those conditions. You should keep a copy of the letter and the certified mail receipt.

You may also use the rent escrow law in court if your landlord actually knows about the dangerous conditions by your telling the landlord about the conditions, by your landlord seeing the conditions, or by your landlord being cited for building code violations by the local government inspectors.

Once your landlord knows about the dangerous conditions, he/she has a "reasonable" amount of time to make repairs. In general, the law gives the landlord 30 days to make the repairs. However, a shorter period of time may be allowed if the conditions are very severe (such as no heat, water or electricity).

Using the Rent Escrow Law

If your landlord has not repaired the dangerous conditions within a reasonable time after knowing about the conditions, then you may use the rent escrow law in court. There are two ways to use the rent escrow law:

No matter which way you choose to use the rent escrow law, you must bring with you to court all rent that you owe as of the date of the hearing.

Getting a Rent Escrow Order

Once you go to court, you must prove that: 1) there are conditions that are a danger to life, safety or health; 2) your landlord knew that those conditions existed; and 3) your landlord had a chance to make the necessary repairs but did not do so.

Your landlord can try to keep the court from issuing a rent escrow order by proving that: 1) you caused the dangerous conditions; 2) you would not allow reasonable entry into your home to make repairs; or 3) the court has entered more than three court judgments within the past 12 months for not paying your rent.

If the judge decides to set up a rent escrow account, you must immediately pay to the court all rent due as of that day. You must then continue to pay your rent into the court escrow account each month on the day rent is normally due. The law allows a court to lower the amount of rent you must pay each month if the conditions in the home are very serious. You must ask the judge to do this at the hearing.

Stopping the Rent Escrow Account

Under the law, a rent escrow account may be stopped if:

The court may also give out some or all of the money in rent escrow, without stopping the account, under certain conditions, such as:

Getting Legal Advice

If there are dangerous or unhealthy conditions in the home you rent, you may want to talk to an attorney about your legal rights. You may be eligible for free legal services from the Legal Aid Bureau, a law school clinic, or a "pro bono" program.

In Montgomery County and Baltimore City there are local laws on rent escrow that give tenants certain additional protections. If you live in Montgomery County or Baltimore City and would like more information on rent escrow, contact the Legal Aid Bureau or another attorney.

Remember: The law often changes. Each case is different. This pamphlet is meant to give you general information and not to give you specific legal advice.

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Last legal review 9/2000 (LAB)