Montgomery County landlords will have to accept certified checks, money orders and personal checks for rent under a bill the County Council approved unanimously on Tuesday, Nov. 10.

Bill 40-26, led by Council President Natali Fani-González, fills a gap in Maryland law. State law already requires landlords to accept certified checks, money orders and cash during eviction proceedings. It says nothing about which payment forms landlords must take for regular rent, security deposits or fees, according to a staff report prepared for the Nov. 10 vote.

The council said the bill followed complaints from renters whose landlords refused to accept checks or money orders, The MoCo Show reported.

"Renters deserve more payment options when rent comes due at the end of the month," Fani-González said, according to The MoCo Show.

Co-sponsors included Councilmembers Stewart, Sayles, Mink, Luedtke, Glass, Katz, Friedson, Evans and Council Vice President Balcombe.

What the bill does

The bill requires landlords to accept certified checks and money orders for rent, security deposits, fees or any other tenant obligation. Leases must spell out which payment forms a landlord accepts. The MoCo Show reported that the approved bill also requires landlords to accept personal checks.

Landlords can still offer electronic portals and other payment methods. But if a landlord already lets tenants pay through a portal, the bill prohibits the landlord from cutting off that access.

The staff report also outlined proposed amendments for the full council's consideration on Nov. 10. Those included a bounced-check provision allowing landlords to refuse personal checks for up to three months, a receipt requirement for every payment and a rule that landlords with more than four units provide a physical payment location in the county. The record does not confirm which of these amendments the council adopted.

Who spoke up

The bill drew broad support at an Oct. 6 public hearing. The Department of Housing and Community Affairs (DHCA) backed the measure, saying electronic portals create accessibility concerns for some tenants, including older adults less familiar with the technology.

The Apartment and Office Building Association of Metropolitan Washington also supported the bill. Mr. Kraut spoke on the group's behalf, according to the staff report.

Mr. Michaels, speaking for We Are CASA, supported the bill but asked the council to also require landlords to accept cash and to accept payments on-site. Ms. Thomas of the Gardens of Traville Tenant Association and the Montgomery County Renters Alliance also testified in favor.

Costs and trade-offs

The county's Office of Management and Budget found no fiscal impact. DHCA estimated about 120 staff hours to update educational materials, sample leases and webpages, work the department said it could absorb with existing staff.

For landlords, the staff report noted one-time compliance costs to revise leases, update payment procedures and train staff. For renters, the report said the bill could reduce payment barriers for those without reliable internet or banking access. It also warned that some renters might face higher rents if landlords pass costs through.

The county's Office of Legislative Oversight anticipated the bill would have a positive impact on racial equity, noting it "could disproportionately benefit Black and Latinx tenants, especially those who have limited digital literacy, or limited access to banking or the internet."

The new requirement takes effect 91 days after County Executive Marc Elrich signs the bill into law.