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Why should an investor reserve for serious repairs even when a this school tenant has signed a lease?

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Georgia Tech

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University of Maryland, Baltimore County

The Maryland Attorney General guide describes rent-escrow remedies for serious health or safety defects, including lack of essential utilities in the stated circumstances, inadequate sewage disposal, qualifying rodent infestation, uncorrected lead hazards and serious structural or fire hazards. Small cosmetic defects do not automatically qualify. Maintain a repair-response reserve and written maintenance records; a lease does not remove these duties or turn escrow into routine free rent.

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