Montgomery County, MD has enacted new rent control regulations, effective July 24, 2024, to address rental affordability and stability for tenants. Here’s a detailed look at the key aspects of this law and its implications for renters and landlords.
Key Provisions of the Rent Control Law
Rent Increase Cap:
- Rent increases are capped at the lesser of 3% plus the Consumer Price Index for All Urban Consumers (CPI-U) or 6%.
- For the period from July 23, 2024, to June 30, 2025, the CPI-U is 3.3%, so the maximum allowable rent increase is 6%.
Guidelines and Exemptions:
- Specific guidelines govern rent increases for new leases, lease renewals, and previously vacant units.
- Exemptions include:
- Newly constructed units offered for rent for less than 23 years.
- Units in licensed medical or temporary shelter facilities.
- Owner-occupied group houses and religious facilities.
- Units in transient lodging, school dormitories, and assisted living facilities.
- Buildings designed for two dwelling units with one occupied by the owner.
- Accessory dwelling units.
- Units in buildings substantially renovated within the past 23 years.
- Units owned by landlords with two or fewer rental units.
Regulatory Processes:
- Landlords can apply for exemptions to rent increase caps for capital improvements, substantial renovations, or if they are not receiving a fair return on investment.
- The law regulates the fees landlords can charge and mandates compliance by October 21, 2024.
Tenant and Landlord Resources:
- The Department of Housing and Community Affairs (DHCA) provides webinars and training sessions for education on the new law.
- A new Rental Housing Portal will be launched for landlords to register rents, file petitions, and for tenants to verify compliance.
Impact on Renters
Renters benefit from predictable and capped rent increases, helping to prevent sudden spikes that can lead to housing instability. This provides a safeguard for families and individuals on fixed incomes, ensuring more predictable housing costs.
Impact on Landlords
Landlords must navigate the new regulations, adjusting their rental strategies and ensuring compliance with reporting and cap guidelines. The law includes processes and exemptions to balance tenant protections with landlords' financial considerations.
Moving Forward
Both renters and landlords in Montgomery County need to stay informed about their rights and responsibilities under the new law. The DHCA will offer resources and guidance to assist with compliance and understanding.
Conclusion
The new rent control law in Montgomery County represents a significant shift in the local housing market. By capping rent increases and introducing eviction protections, the law aims to create a more stable and fair rental environment. For further details and updates, visit the Montgomery County DHCA rent stabilization page.
