Senate Bill 606, introduced in Maryland on March 12, 2025, aims to enhance tenant rights by establishing a right of first refusal for tenants wishing to purchase their residential rental properties. This legislation seeks to address concerns over housing stability and affordability, particularly in a market where rising property values often displace long-term renters.

The bill stipulates that if a property owner intends to sell their rental property, tenants must be notified of their right to purchase the property before any third-party offers are accepted. Specifically, tenants can exercise this right if the owner receives an offer that is at least 10% lower than any previous offer made to the tenant. Additionally, if a third-party offer is made without the property being publicly listed, tenants must still be given the opportunity to match that offer.

Key provisions of the bill include requirements for property owners to provide written notice to tenants, detailing the third-party offer and the terms under which tenants can respond. This notice must be delivered through reliable means, ensuring tenants are adequately informed of their rights and the sale process.

Debate surrounding Senate Bill 606 has highlighted concerns from property owners and real estate investors, who argue that the bill could complicate sales processes and deter investment in rental properties. Supporters, including tenant advocacy groups, contend that the bill is a necessary step toward protecting vulnerable renters from sudden displacement and ensuring they have a fair chance to secure their homes.

The implications of this legislation could be significant, potentially reshaping the dynamics of rental markets in Maryland. Experts suggest that if enacted, the bill could empower tenants, promote homeownership among renters, and contribute to greater housing stability. However, it may also lead to increased tensions between landlords and tenants, as property owners navigate the new requirements.

As the bill progresses through the legislative process, its future remains uncertain, with potential amendments and further discussions likely to shape its final form. The Maryland Legislature is expected to continue deliberating on the bill, weighing the interests of tenants against those of property owners in the coming months.