Maine Residential Lease Agreement

Standard Maine Residential Lease Agreement Template_1 on iPropertyManagement.com

A Maine residential lease agreement (“rental agreement”) is a legal contract between a landlord overseeing a residential property and a tenant who wishes to rent it. A residential lease may, on or before move-in, additionally require a security deposit from the tenant as assurance against future property damage.

Maine Residential Lease Agreement Disclosures

The below disclosures are required for all or some residential lease agreements in Maine.

Disclosure Applicable To
Late or Returned Check Fees All Leases Charging Late Fees
Bed Bugs All Units with Suspected/Confirmed Infestation
Radon All Units
Energy Efficiency Tenants Who Personally Pay Utilities
Common Area Utilities Units Sharing Utilities with a Common Area
Security Deposit Holdings All Leases Collecting a Security Deposit
Smoking Policy All Units
Lead Paint All Units Built Before 1978

Late or Returned Check Fees

Applicable to any Maine rental charging late fees.

Maine will only enforce late fees or returned check fees which are disclosed and agreed in the rental agreement. The state caps late fees at 4% of the monthly rent, not to be charged until the rent is at least 15 days late. [1]

Bed Bug Disclosure

Applicable to any Maine rental a suspected/confirmed infestation, including adjacent units.

Maine leases of property with an adjacent or contiguous bed bug infestation must provide a disclosure to tenants. If asked, the landlord must also disclose the last date of inspection for bed bugs in the unit to be rented, as well as adjacent units. [2]

This is an example of a bed bug disclosure clause:

BED BUGS. At the time of presenting this agreement, Landlord certifies:

[ ] No known current infestation or history of bed bugs in this property.
[ ] There is no known current infestation, but there is a history of infestation in this property.
[ ] There is no known current infestation, but there is a nearby infestation or history of infestations which may place the property at risk.

See attached addendum for more information.
This is a standard bed bug addendum.

Radon Disclosure

Applicable to all Maine rentals.

Maine requires landlords to test radon levels for safety. Rental units must be tested at least once every 10 years for radon. For residential buildings constructed after March 1, 2014, the landlord must test for radon within 12 months of an occupancy.

A registered radon tester must perform the test, with the date and results of testing provided to new tenants as an addendum to the rental agreement (with the format provided by the Department of Health and Human Services). The tenant must also receive information about the risks of radon gas, and sign the addendum along with the landlord to acknowledge reading and understanding it. [3]

Energy Efficiency Disclosure Statement

Applicable to all Maine rentals.

Maine rentals must make available an energy efficiency statement including disclosure of either the utility supplier’s information or the property’s 12-month energy consumption history. The disclosure must be signed, and the landlord must retain a copy for at least three years. The landlord must disclose the property’s energy efficiency where the tenant will pay utility costs, as well as to any person who requests the statement. [4]

The following language must be included in an energy efficiency disclosure statement:

You have the right to obtain a 12-month history of energy consumption and the cost of that consumption from the energy supplier.

Written Cost Disclosure

Applicable to all Maine rentals.

Beginning in 2025, Maine landlords cannot execute a lease without providing the prospective tenant with a disclosure of costs associated with renting the premises. This cost disclosure must include rent, recurring fees, utility service costs (or, if not possible, an energy efficiency disclosure), and other costs the tenant will be responsible for paying. [6]

The landlord may choose the form of the disclosure, but it must be plain and readily understandable by the general public. The disclosure is not valid unless signed by both parties, with a copy provided to each.

Common Area Utility Disclosure

Applicable to any Maine rentals agreements where the tenant is responsible for paying utilities in common areas.

Maine leases for property that shares a utility line with a common area (i.e., stairwell, hallway, storage area, water heaters, etc.) or other areas outside of the dwelling must disclose this to the tenant in the lease. A landlord may offer compensation in the form of monthly rent reductions or other consideration. Alternatively, a landlord may give notice that no compensation is to be provided.

Security Deposit Holdings Disclosure

Applicable to any Maine rentals collecting a security deposit.

Maine landlords collecting a security deposit must disclose, in writing, how those security deposit funds will be kept during the lease term. All security deposits received after October 1, 1979 must be held in an account at a bank or other financial institution.

At the tenant’s request, this disclosure must include the name of the holding institution, the location of the holding, and the account number where the funds are held. Funds from a deposit cannot be combined with personal assets.

Smoking Policy Disclosure

Applicable to all Maine rentals.

Maine landlords must specify the rules for smoking on the premises, including where smoking is and is not allowed. [5] The landlord must obtain a written acknowledgement of the smoking policy from the tenant.

Lead-Based Paint Disclosure

Applicable to any Maine rentals built before 1978.

For any property built before 1978, federal law requires that a Maine residential lease must contain a lead-based paint disclosure. This requires landlords to do the following:

Optional Disclosures and Addenda (Recommended)

The following lease agreement disclosures and addenda are not required by Maine law in residential lease agreements, but assist with tenant management and help limit landlord liability.

Optional Disclosure Purpose
Asbestos Informs tenants about any asbestos hazards related to the property. Tenants can take precautions to reduce asbestos hazards by avoiding any disturbance of asbestos fibers.
Landlord’s Name and Address Specifies the name and address of the landlord or authorized agent. This enables smooth communication of any important legal notice.
Medical Marijuana Use Informs tenants about policy related to medical marijuana use on the rental property. Some state laws allow landlords to restrict marijuana usage to non-smoking methods only, or allow use only in designated smoking areas.
Mold Disclosure Informs tenants about actual or suspected mold contamination on the property, along with any remediation efforts, to help limit landlord liability.
Move-In Checklist Takes inventory of existing property damage, when the tenant takes possession of the rental property. This enables accurate deductions from the security deposit upon move-out.

Consequences of Not Including Mandatory Disclosures

Mandatory disclosures outline important health, safety, and property information for the benefit of both landlord and tenant. A landlord who fails to provide federally or state-mandated disclosures could face legal consequences or monetary penalties, either from a tenant lawsuit or from state officials. Many lease provisions may be unenforceable without legally required disclosures.

Maine tenants can sue a landlord who fails to comply with the state’s bed bug notice requirements. The potential penalty is $250 or actual damages, whichever is greater, plus reasonable attorneys’ fees.

Likewise, if a landlord fails to provide a radon disclosure to the tenant, or falsifies testing or results, they can be fined up to $250 per violation. Since radon is a habitability problem, this may also open the landlord to further liability.

Failure to comply with the federal lead-based paint hazard disclosure risks fines of tens of thousands of dollars per violation.

Sources

…A landlord may assess a penalty against a residential tenant for late payment of rent for a residential dwelling unit according to this section.

1. Late payment. A payment of rent is late if it is not made within 15 days from the time the payment is due.

2. Maximum penalty. A landlord may not assess a penalty for the late payment of rent which exceeds 4% of the amount due for one month.

3. Notice in writing. A landlord may not assess a penalty for the late payment of rent unless the landlord gave the tenant written notice at the time they entered into the rental agreement that a penalty, up to 4% of one month’s rent, may be charged for the late payment of rent…

…D. Before renting a dwelling unit, a landlord shall disclose to a prospective tenant if an adjacent unit or units are currently infested with or are being treated for bedbugs. Upon request from a tenant or prospective tenant, a landlord shall disclose the last date that the dwelling unit the landlord seeks to rent or an adjacent unit or units were inspected for a bedbug infestation and found to be free of a bedbug infestation…

…2. Notification. Within 30 days of receiving results of a test with respect to existing tenants or before a tenant enters into a lease or tenancy at will agreement or pays a deposit to rent or lease a property, a landlord or other person who on behalf of a landlord enters into a lease or tenancy at will agreement for a residential building shall provide written notice, as prescribed by the Department of Health and Human Services, to a tenant regarding the presence of radon in the building, including the date and results of the most recent test conducted under subsection 1, 5 or 6, whether mitigation has been performed to reduce the level of radon, notice that the tenant has the right to conduct a test and the risk associated with radon. Upon request by a prospective tenant, a landlord or other person acting on behalf of a landlord shall provide oral notice regarding the presence of radon in a residential building as required by this subsection.

The Department of Health and Human Services shall prepare a standard disclosure statement form for a landlord or other person who on behalf of a landlord enters into a lease or tenancy at will agreement for real property to use to disclose to a tenant information concerning radon. The form must include an acknowledgment that the tenant has received the disclosure statement required by this subsection. The department shall post and maintain the forms required by this subsection on its publicly accessible website in a format that is easily downloaded…

1. Energy efficiency disclosure. A prospective tenant who will be paying utility costs has the right to obtain from an energy supplier for the unit offered for rental the amount of consumption and the cost of that consumption for the prior 12-month period. A landlord or other person who on behalf of a landlord enters into a lease or tenancy at will agreement for residential property that will be used by a tenant or lessee as a primary residence shall provide to potential tenants or lessees who pay for an energy supply for the unit or upon request by a tenant or lessee a residential energy efficiency disclosure statement in accordance with Title 35‑A, section 10117, subsection 1 that includes, but is not limited to, information about the energy efficiency of the property. Alternatively, the landlord may include in the application for the residential property the name of each supplier of energy that previously supplied the unit, if known, and the following statement: “You have the right to obtain a 12-month history of energy consumption and the cost of that consumption from the energy supplier.”

2. Provision of statement. A landlord or other person who on behalf of a landlord enters into a lease or tenancy at will agreement shall provide the residential energy efficiency disclosure statement required under subsection 1 in accordance with this subsection. The landlord or other person who on behalf of a landlord enters into a lease or tenancy at will agreement shall provide the statement to any person who requests the statement in person. Before a tenant or lessee enters into a contract or pays a deposit to rent or lease a property, the landlord or other person who on behalf of a landlord enters into a lease or tenancy at will agreement shall provide the statement to the tenant or lessee, obtain the tenant’s or lessee’s signature on the statement and sign the statement. The landlord or other person who on behalf of a landlord enters into a lease or tenancy at will agreement shall retain the signed statement for a minimum of 3 years.

…3. Notification. A landlord who or other person who on behalf of a landlord enters into a lease or tenancy at will agreement for residential premises shall provide written notice to a tenant or potential tenant regarding the allowance or prohibition of smoking on the premises.

A. The notice must state whether smoking is prohibited on the premises, allowed on the entire premises or allowed in limited areas of the premises. If the landlord allows smoking in limited areas on the premises, the notice must identify the areas on the premises where smoking is allowed…

1. Definitions. As used in this section, unless the context otherwise indicates, the following terms have the following meanings. A. “Mandatory recurring fee” has the same meaning as in section 6000, subsection1-A. B. “Optional recurring fee” has the same meaning as in section 6030-I, subsection 1. C. “Rent” has the same meaning as in section 6000, subsection 1-B. D. “Utility service costs” has the same meaning as in section 6000, subsection 3-A.

2. Written disclosure prior to tenancy. Notwithstanding any other provision of this chapter, prior to entering a lease or tenancy at will agreement, a landlord shall provide a potential tenant or lessee written disclosure of the costs the tenant or lessee will be responsible for paying pursuant to the lease or tenancy at will agreement that contains at a minimum the following: A. The total cost of rent; B. Any mandatory recurring fee; C. Any optional recurring fee; D. Any utility service costs; and E. Any other cost that the tenant will be responsible for paying pursuant to the lease or tenancy at will agreement.The disclosure must be plain and readily understandable by the general public. If a landlord is unable to obtain utility service costs for a dwelling unit, the landlord may provide a completed residential rental energy efficiency disclosure statement in accordance with Title35‑A, section 10117, subsection 1. The disclosure must be signed by both parties, with a copy provided to each.

3. Exception. A written disclosure under subsection 2 is not required if the tenant is not responsible for paying any mandatory recurring fee or any optional recurring fee.

Sec. 13. Effective date. This Act takes effect January 1, 2025.

Frequently Asked Questions

How Long Can a Residential Lease Be in Maine? Depending on circumstances, in Maine it’s usually possible to have a lease of any length of time, as long as the length of the lease term is specific and agreed in writing by the landlord and tenant. Oral leases are considered a tenancy at will in Maine, with only basic legal protections. Read more » Is a Contract to Lease Binding in Maine? Yes, a contract to lease is legally binding in Maine. To be valid, a contract to lease may have to be written, especially for a fixed term over one year. Oral leases may be valid in some cases (especially when both parties later behave as though there’s an enforceable oral lease), but often have strict limitations on enforceability for things like length of the lease term. Read more » Do Lease Agreements Need to Be Notarized in Maine? No, lease agreements do not need to be notarized in Maine. A notary helps establish the identity of the people signing the lease, if there’s a claim of fraud, but a notary isn’t necessary for a lease to be valid. Read more » Can a Lease Automatically Renew in Maine? Yes, a lease can automatically renew in Maine. Most rental agreements will automatically renew when the initial tenancy period is over, if neither party takes action. Past this point, the lease typically becomes a tenancy at will, with the same basic terms and conditions otherwise as the original lease. Read more »