Though Maryland doesn’t have statewide rent control laws, some local laws may apply to multi-family housing buildings in certain counties and jurisdictions. You need to know whether rent control is something you need to be aware of as a landlord, as it can directly affect a property’s profitability.
Several jurisdictions in Maryland have rent control rules that limit how much property owners can increase rent each year. Sometimes, rent control rules apply only to multi-family buildings of a certain age, not to newly built structures. If local rent control rules stop you from getting fair returns and having enough income to maintain habitability, you may get approval to raise rent about the limits for your area.
Call the Heyman Law Firm’s Baltimore real estate transaction and disputes lawyers for a free case evaluation at (410) 305-9287.
Does Maryland Have Statewide Rent Control Laws for Multi-Family Buildings?
Rent control laws prevent landlords and property owners from raising rents by more than a specified amount each year. Statewide rent control laws are pretty rare, and it’s normally something legislated on a more local level.
Maryland doesn’t have any statewide rent control laws for multi-family buildings or other rental properties. Other statewide provisions apply to tenants and landlords, such as limits on security deposit amounts, the implied warranty of habitability, and caps on late fees for late rent payments.
While there are no statewide rent control laws in Maryland, individual counties can enact their own, such as Montgomery County and Prince George’s County. Rules vary considerably by jurisdiction. We can determine which rules, if any, apply to your property, and explain what that means for possible rent increases from year to year.
How Can Rent Control Laws Apply to Multi-Family Housing Buildings?
Anyone who owns or is considering purchasing a multi-family housing building in Maryland should check if the county has rent control measures in place. While specifics of these rules vary from jurisdiction to jurisdiction, the effects are similar for nearly all property owners.
Rent stabilization is typically based on the regional Consumer Price Index (CPI), which reflects the cost of living. Property owners may only raise rent by a specific percentage from year to year.
In general, rent control laws limit rent increases from year to year for certain units. For example, Montgomery County’s rent control rules in Maryland apply only to multi-family buildings that have been standing for at least 23 years, meaning rent control laws there don’t apply to new apartment buildings.
How Can Rent Control Laws Hurt Multi-Family Housing Building Owners?
The purpose of rent control laws is to prevent displacement due to egregious rent increases. Unfortunately, there can be unintended consequences when these rules become too strict for landlords.
Rent control laws that allow only slight annual rent increases can prevent landlords from achieving a fair return and impede their ability to maintain a habitable, safe living environment for tenants. Property owners also face annual cost increases, and rent increases should help cover them.
Limited profitability also means limited resources for renovations and repairs, making it harder for landlords to address maintenance requests and habitability issues. Over time, this can affect property values and overall profitability of multi-family housing buildings.
FAQs About Maryland Rent Control Laws and Multi-Family Housing Buildings
What Are the Chances that Rent Control Laws Apply to a Multi-Family Housing Building?
Whether or not any rent control laws apply to a multi-family housing building you own depends on the local jurisdiction you are in. There aren’t statewide rent stabilization laws in Maryland; there are only local laws, and our Maryland real estate transaction and disputes lawyers can determine whether any apply to a building you own or are interested in buying.
Should You Buy a Multi-Family Housing Building in Maryland if Rent Control Laws Apply?
It’s your decision whether to purchase a multi-family housing building in a certain part of Maryland. Still, it’s important to be informed and know whether local rent control laws apply before making an offer.
Can You Still Raise Rent if Rent Control Laws Apply?
Rent increases are still allowed under local rent control laws in jurisdictions throughout Maryland, but they’re very limited. Based on the laws that apply to your building, we can calculate the largest legal increase.
Can You Evict a Tenant from a Rent-Controlled Apartment?
Rent control laws don’t stop you from evicting a tenant a rent stabilized apartment if you have just cause, whether because the tenant stopped paying rent, violated the lease, or remained in the unit after the lease expired.
Do You Need a Lawyer’s Help with a Rent Control Dispute in Maryland?
Rent control disputes between property owners and tenants can get heated quickly, and it’s important to have an attorney present during any negotiations, mediation, or other conversations.
Can You Raise Rent Above the Increase Cap in Maryland?
Depending on where the building is located in Maryland, you can seek approval to raise rent over the local cap to achieve fair returns, which they need to maintain habitability for tenants. Our lawyers can see if this sort of exception applies to you when overseeing your case.
What if Rent Control Laws Don’t Apply to a Multi-Family Building?
If there are no rent control laws in your area, or laws don’t apply to the multi-family housing building you own because of its recent construction, you can raise rent however much you see fit from year to year and when renewing leases. More income from rent may mean more funds to add amenities or do renovations, making your building even more attractive to potential renters.
Call Us for Help with a Real Estate Dispute in Maryland
For the help that you need with your case, call the Columbia, MD real estate transaction and disputes lawyers of Heyman Law Firm at (410) 305-9287.