First time raising rent in Montgomery Cty MD, need clarification

[Mike Hourihan]

I have units in Montgomery County, Maryland and have never raised rents but would like to do so now as my rents are far below market.  One tenant's lease ends 3/31 and the other is month-to-month.  I see the Voluntary Rent Guideline for 2022 letter dated feb 4, 2022.  From what I understand after reading it, it looks like prior to a law being passed last year, there was no restriction on rent increases and that since the law was passed, they were capped at 1.4% and then on feb 4, the amount changed to only .4%, the rate which will apply until May 15, 2022.  At that point, would it then change to a new rate or is the cap supposed to end?

What constitutes an increase?  If their lease is ending and you are proposing amounts for a new lease, is that an increase?  Or is it only when raising within their lease, assuming the lease allows for increases during the lease term? 

If you cant propose a new lease to the current tenant with an increase above the VRG, can you find a new tenant and ask for a higher amount?  Or is it considered raising rents even though its a new tenant?

The law is a little vague for someone who has never raised rents.  Any help would be appreciated.  I will probably call 311 on Monday but it might be easier to get answers from experienced moco landlords

[Tim Miller]

Good old Montgomery County! You're looking to raise rents on current tenants. A few things to know, 1. you can only raise rent once every 12 months. 2.  Montgomery County would most likely not allow raising rents in the middle of a lease, regardless of what the lease stated.

Not sure how far below market you are but, you need to wait until May 15, 2022. That's when Bill 30-21 will end and you can raise your rents. You may want to wait till the end of May to send out notices. Because all rent increases notices have to be given 90 days before hand. If you give notice now, you can only increase rent by .4%. After May 15, 2022 you can raise it higher but I wouldn't go over 5% on the increase. 

It doesn't manner how the rent is increasing, you have to give 90 day notice. If a current lease is ending before May 15, 2022, let the tenant go month to month. On May 30, 2022 send a notice that you want to renew the lease on August 1, 2022 at the new rent amount.