On July 23, 2024, the Montgomery County Council adopted Executive Regulation 2-24, Landlord-Tenant Relations – Rent Stabilization, as proposed by the Department of Housing and Community Affairs (DHCA). These regulations go into effect immediately.

These regulations implement  Bill 15-23, which was passed by the Council in July 2023. The new regulations will have broad implications across the housing landscape, especially with the new rent increase cap of 3% plus the Consumer Price Index for All Urban Consumers (CPI-U). This also includes a hard cap at 6% in instances where the CPI-U number comes in over 3%.

Some of the most impactful rules set forth in these regulations are:

1. Rent increase guidelines for new leases, lease renewals and previously vacant units
2. A regulatory process for exemptions to rent increase caps due to approved capital improvements, fair return petitions and substantial renovation
3. Designated list of permittable rental fees

Some of the exemptions to these rules include:

• a rental unit owned by a landlord who owns two or fewer rental units within the county,
• accessory dwelling units,
• an owner-occupied group house and
• a newly constructed unit that has been offered for rent for less than 23 years.

What's next?

GCAAR has collaborated with other stakeholders to weigh in throughout the regulatory process to better shape these regulations. While some of our suggestions were accepted, many others were denied by DHCA. GCAAR is in the process of updating its property management forms for Montgomery County. We will keep you updated on this process as it moves forward.  

For more information on the rent regulations as they are implemented, please visit the DHCA rent control page.