Montgomery County MD - Are your rents under market = Your Screwed

Rental Property Investor · Laurel, MD · Member since 2016 · 383 posts · 382 votes

Today, July 18, 2023 Montgomery County council is voting on a rent control bill that could limit your rent increases to as little as 3%.

I want to thank all the hard work that the landlord association and investors are doing to fight...... Oh wait that's right. There is no landlord association, group or anything standing up to Montgomery County! You do not have a say in trying to stop this or at the very least, getting a say in what the bill says in the end.

Remember, your investment into properties can go south real fast. When you don't pay attention to possible legislation that can hurt you. This is what will happen and it can get worst.

https://www.mymcmedia.org/vote...

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Russell BrazilBusiness Member

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Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes

Quote from @Tim Miller:

@Russell Brazil It's great to know that you're fighting this. If you don't mind my asking, what groups are fighting this. Only asking because we're not hearing anything about them.

GCAAR, AOBA, MR and NAR.

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Nathan GesnerBusiness Member
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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
3y
Quote from @Tim Miller:

This is why it's important to keep rent rates close to market. As we witnessed with COVID, legislators can - and will - turn our world upside-down at the drop of a hat.
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Jay Williams
Investor · Laurel, MD · Member since 2014 · 23 posts · 7 votes
3y
So true! Thanks for sharing Tim. I watched a friend scale his business big time by being involved & engaged with the local political community. Your post reminds me to do more to be active and know whats coming down the pipeline so I can invest/pivot accordingly.
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Chris SeveneyBusiness Member
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Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
3y
Quote from @Tim Miller:

Today, July 18, 2023 Montgomery County council is voting on a rent control bill that could limit your rent increases to as little as 3%.
I want to thank all the hard work that the landlord association and investors are doing to fight...... Oh wait that's right. There is no landlord association, group or anything standing up to Montgomery County! You do not have a say in trying to stop this or at the very least, getting a say in what the bill says in the end.
Remember, your investment into properties can go south real fast. When you don't pay attention to possible legislation that can hurt you. This is what will happen and it can get worst.
https://www.mymcmedia.org/vote...
https://landlordassociation.ne...
https://collegeparkhousing.wil...

I would disagree that there are no associations/groups opposing this. I worked with a company that has around 1500 units in MoCo and them along with other groups are constantly working with council members on this.
As others mentioned, this is why its important to keep rents at market rates, in most years 3% rent increase is normal - its only last few years because of covid that this has been an issue.
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Russell BrazilBusiness Member
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Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
3y
Quote from @Chris Seveney:

Quote from @Tim Miller:

Today, July 18, 2023 Montgomery County council is voting on a rent control bill that could limit your rent increases to as little as 3%.
I want to thank all the hard work that the landlord association and investors are doing to fight...... Oh wait that's right. There is no landlord association, group or anything standing up to Montgomery County! You do not have a say in trying to stop this or at the very least, getting a say in what the bill says in the end.
Remember, your investment into properties can go south real fast. When you don't pay attention to possible legislation that can hurt you. This is what will happen and it can get worst.
https://www.mymcmedia.org/vote...
https://landlordassociation.ne...
https://collegeparkhousing.wil...

I would disagree that there are no associations/groups opposing this. I worked with a company that has around 1500 units in MoCo and them along with other groups are constantly working with council members on this.
As others mentioned, this is why its important to keep rents at market rates, in most years 3% rent increase is normal - its only last few years because of covid that this has been an issue.

Yup lots of groups fighting this. Ive personally been involved in fighting it representing one of the 3 most powerful lobbys in the county.
[email protected]301-893-4635 Podcast Guest on Show #192
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Bruce WoodruffPro Member
Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
3y
2 negatives here....1) not keeping your rents close to market where they should be anyway, 2) doing business in a Blue state/County where they're more likely to do crap like this....
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Tim Miller
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Rental Property Investor · Laurel, MD · Member since 2016 · 383 posts · 382 votes
3y
@Russell Brazil It's great to know that you're fighting this. If you don't mind my asking, what groups are fighting this. Only asking because we're not hearing anything about them.
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Bjorn AhlbladPro Member
Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
3y
The Washington LL Association fought against this and we won, earlier this year. It will come up again.
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Russell BrazilBusiness Member
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Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
3y
Quote from @Tim Miller:

@Russell Brazil It's great to know that you're fighting this. If you don't mind my asking, what groups are fighting this. Only asking because we're not hearing anything about them.
GCAAR, AOBA, MR and NAR.
[email protected]301-893-4635 Podcast Guest on Show #192
District Invest Group545 Reviews
Website View Page
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Dan H.Pro Member
Investor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes
3y
The only way rent is limited to 3% is that there is not a positive CPI. I do not believe that has ever happened. The rent increase proposed is 3% plus CPI. Fed target CPI is 2%, which would make target rent increase 5%.
It also seems that there is some members of the counsel against stringent rent increases. This implies 1) maybe it will not pass 2) maybe the max rent increase will be increased in final form.
It is near universal by economists that rent control is a poor thing. It reduces rental housing and the quality of the housing.
The issue is tenants do not understand the ramifications and there are a lot more tenant constituents than LL constituents. The politicians therefore have a political pressure to prioritize tenants over LLs.
I hope this did not pass. It will not help the tenants. In the long run it will hurt the tenants.
Good luck
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Tim Miller
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Rental Property Investor · Laurel, MD · Member since 2016 · 383 posts · 382 votes
3y
Montgomery County Council did pass rent control. The max you can increase rent is going to be 6% as long as CPI is at 3% or higher. There could even be a year where the max will be 3% as it happen in 2015. I wish all the Landlords/investors in Montgomery county luck, you're going to need it.
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