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Updated almost 3 years ago,
First time raising rent in Montgomery Cty MD, need clarification
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