In Montgomery County, the Department of Housing and Community Affairs (DHCA) has released its first report on the outcomes of the Rent Stabilization law that hit the ground running in July 2023, showing that it's been effective in delivering stable, predictable rent and fee increases for tenants while maintaining fair returns for landlords. The report highlights significant findings for the County's landscape of rent-stabilized properties more than 23 years old, according to Montgomery County's announcement.
"Montgomery County enacted our rent stabilization law to give many renters more stability by stopping excessive rent hikes and junk fees" County Executive Marc Elrich said, according to an announcement from Montgomery County, the law which became effective on July 23, 2024, through Executive Regulation 2-24 has geared towards not only providing tenants with peace of mind but also ensuring that landlords' needs are respected, furthermore the Office of Rent Stabilization (ORS) pointed out the benefits for communities of color and seniors, among other demographics.
The report offers a snapshot of the financial outcomes for both landlords and tenants, crowning the Rent Stabilization law's initial 18 months a resounding success with over $90,000 in rent and fee refunds for tenants. ORS managed to respond to 1,390 inquiries by residents, leading to these significant refunds and an average 56% reduction in proposed annual rent increases per tenant, stated the county's press release.
From the landlord side of the coin, the DHCA Director Scott Bruton noted, "The successful first year and a half of Rent Stabilization in Montgomery County is encouraging news for both tenants and landlords," highlighting that the regulation doesn't just combat steep price hikes but also stops landlords from sneaking in rent increases through mandatory fees, laying out a fair competition in the housing market, this coupled with the fact that DHCA has greenlit all the Fair Return and Capital Improvement petitions submitted by landlords cements the law’s promise of financial protection for both sides of the aisle.
Community outreach plays a substantial role, too, with ORS conducting 34 events and catering to numerous service requests, ensuring that the law's benefits and regulations are widely understood. Moreover, the legislation has led to an impressive decrease in "Troubled" and "At-Risk" properties, showcasing enhanced efforts by landlords to correct housing code violations, thus reflecting on the overall improvement in living conditions under the rent stabilization law.
For those seeking more information or needing to file a complaint in Montgomery County, they've directed tenants and landlords to call MC311 or explore the details on the DHCA website, providing a crucial touchpoint for those navigating the rent-stabilized housing market.
