For all those investing in Portland, Maine - as many of you know, rent control is going to become our new reality. As the city works to try and figure out how to interpret and enforce these rules, I want everyone to be aware of some of the information out there right now. Refer to the link below for an article in the Portland Press Herald as well as the image for the highlights of what is in the referendum. One item of note are the new requirements surrounding termination of leases that are tenant at will. It now requires 90 days notice to terminate an at-will tenancy for no cause - unless you pay tenants $500 for a 60-89 day notice or $1000 for a 30-59 day notice. The other important items obviously revolve around limitations on rent increases: capped to inflation every year; 5% upon new tenancy; potentially up to 10% rent increase, but never more, if you can prove to a rent board that you spent enough money in upgrades. Another key point in the referendum revolves around the new rent board to be established that will handle landlord-tenant disputes and mediation. This board will be made up of 7 members, of which no more than 3 can be landlords and must contain at least 3 tenants. The rent control limitations do NOT apply to owner occupied properties of 4 units or less. With all this being said, Portland is still a desirable place to be and live with tons of people moving here from other parts of the country, both renters and home buyers. With the lack of housing inventory available as well as the new restrictions on development, it will be interesting to see how rent control mixes with the local economics of little supply and huge demand. See the details below for more info.
Wow...thank god I live in florida!!!
@Dan Weber great write up! Yes, I’m really interested to see how this plays out. I’m also curious to see how this rent board rules on disputes.
The only thing I feel that will happen is some current tenants in multifamily family homes will have more secured housing.
I also see some landlords moving new people in every year to get that 5% increase....
I doubt we will see any month to month leases anymore. All the benefits are gone. Maybe a quarter year leases? 3 month with auto 3 month renewal?
I didn't realize it didn't effect single family homes. Most of my homes won't be effected.
Thanks @Dan Weber for the info and keeping me up to date. I apricate it.
Cya at the next meeting whenever that may be.
do you know if this affects south portland area also?
@Robert Beardsley it does not. This was on the ballot for Portland residents only on 11/3.
well thats good, for now. im sure it will be sooner then later.
@Dan Weber great write up, thank you!
I have never been one to be concerned too much with these things. I find water often finds it's level and so do these types of issues.
Again, thanks for posting!
@Dan Weber This is exactly why landlords need to be more active in the legislative process. Without small mom and pop landlords taking the time to explain how difficult and expensive these mandatory rules make life, these small business owner landlords are going to go extinct, leaving the hedge fund megalords to take over.
More govt control in the PRIVATE sector. Who keeps voting for these folks?
@Josh Nigh most of our local government officials actually came out publicly in opposition of it. It was a local group that was able to get it on the ballot and unfortunately, the votes fell their way.
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