Derwood Rental Property Rules: Rental Registration Rules (2026)

Montgomery County Code Chapter 29, Article II requires every person who offers a dwelling unit for rent to obtain a rental facility license from the Department of Housing and Community Affairs (DHCA). The license must be obtained before the unit is first rented and renewed every two years. The application requires the landlord to provide contact information, a designated agent for service of process who resides in Maryland, the number of units, and compliance with lead paint disclosure requirements. DHCA conducts inspections of rental properties to verify compliance with Chapter 26 housing maintenance standards. Inspections may occur at initial licensing, upon renewal, or in response to tenant complaints. The license fee varies by property type: single-family rental homes, townhouses, and condos pay a per-unit fee; multifamily buildings pay based on the number of units. Landlords must display the license number in the lease agreement and provide it to tenants upon request. Properties that fail inspection receive a correction order and must be re-inspected. The county maintains a public database of licensed rental properties.