A Montgomery County Council bill would reinstate a limit on rent increases after the previous cap expired.
The maximum allowed rent increase in the county was previously set to the Voluntary Rent Guideline (VRG) of 0.4%, but the measure expired May 15. While it was in effect, landlords could not notify tenants of a rent increase greater than 0.4%. Since its expiration, landlords can notify about greater increases, but they cannot take effect until 90 days after notice.
The new bill would impose a 6-month limit of 4.4% on rent increases and notifications of rent increases. During this period, a landlord would not be allowed to notify of an increase of more than 4.4%. Therefore, increases more than this figure would be prohibited for nine months after the legislation goes into effect, because landlords must give 90 days notice of an increase, according to council documents.
The bill would extend the previous policy, Councilmember Will Jawando said during a council meeting Tuesday.
“Realizing that, unfortunately, we’re still in the pandemic and we’re still seeing the new variants and the cases rise and the economic and, on top of that, inflationary pressures on residents,” Jawando said. He was lead sponsor for the previous bill that extended limitations against rent increases and late fees.
“This would give us some time to stop those increases that have been issued since May 15, which would go into effect — if they were issued that day — on August 15,” Jawando said.
County Executive Marc Elrich proposed the 4.4% cap during a media briefing last month. Council President Gabe Albornoz is lead sponsor at the request of the County Executive. A public hearing is set for July 26.
If the bill passes, a landlord who previously notified a renter of an increase greater than 4.4% would have to modify the increase to align with the legislation.
