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Bill

SB 589

Business Regulation - Collection Agencies and Property Managers

2026 Regular Session Introduced by Ben Kramer

SB 589 exempts property managers from Maryland collection agency licensure requirements when collecting rent and property-related fees from tenants and owners.

Hearing 4/01 at 1:00 p.m.
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Bill Summary · SB 589

Legislative bill overview

SB 589 would exempt property managers from licensure requirements that typically apply to collection agencies in Maryland. The bill specifically carves out property managers who collect rent, fees, or other charges on behalf of property owners from needing a collection agency license to conduct those activities.

Why is this important

Property managers currently may need collection agency licenses to perform core business functions like collecting unpaid rent or maintenance fees, creating administrative and compliance burdens. This exemption would streamline operations for residential and commercial property management companies while potentially reducing regulatory costs for the industry.

Potential points of contention

  • Consumer protection concerns: Collection agency licenses exist to protect tenants and residents from predatory practices; exempting property managers could reduce oversight of debt collection tactics used against renters
  • Competitive fairness: Licensed collection agencies may argue the exemption gives property managers unfair advantages by allowing them to collect debts without meeting the same regulatory standards
  • Scope ambiguity: The bill's definition of covered activities may be unclear—whether it applies only to collecting from current tenants or also to pursuing old debts, and what enforcement mechanisms remain for complaints against exempt property managers

Compiled from official sources — confirm details with the bill’s official record.

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