🏘️ Maryland's Rent Control Measures: Impacts on Tenants and Landlords

Maryland is taking bold steps to address housing affordability—especially in two of its largest jurisdictions, Montgomery County and Prince George’s County. With new rent control laws now in full effect, tenants are gaining long-sought protections… but not without raising concerns from landlords, developers, and investors.

In this blog, we’ll break down what’s changing, how it impacts the market, and what both renters and property owners need to know moving forward.

📜 What’s In the Law?

As of 2025, both Montgomery and Prince George’s counties have implemented some of the strictest rent control policies in the Mid-Atlantic region. Here's what they include:

• Annual Rent Caps: Rent increases are limited to 3% plus the rate of inflation, with a hard cap not to exceed 6% total per year.

• Applies to Most Units: These rules apply to nearly all rental units, including vacant ones between tenants, reducing landlords’ ability to reset prices after a turnover.

• Enforcement & Penalties: Property owners who violate the law may face fines, legal action, or even rent rollbacks.

These reforms were passed in response to sharp rental increases over the past few years, as demand outpaced supply across much of the region. Advocates argue that renters need predictable, stable housing costs, especially amid rising inflation and stagnant wages.

🧍‍♀️ How It Helps Tenants

For renters, the benefits are clear:

• Predictability: Tenants now have a clear idea of what to expect at renewal time—no more surprise 15–20% rent hikes.

• Protection from Displacement: Renters living on fixed or moderate incomes are less likely to be forced out due to sudden price surges.

• Increased Advocacy: The policies also come with greater tenant protections and a more transparent rental process.

For many Marylanders, these changes offer long-overdue relief in one of the country’s most expensive housing corridors.

🏢 But What About Landlords and Investors?

While tenants may be breathing easier, many landlords are concerned about the unintended consequences. Here’s why:

• Tight Profit Margins: With rising insurance, maintenance, and tax costs, many small landlords feel squeezed. A 3–6% cap often doesn’t keep pace with expenses.

• Deferred Maintenance Risks: If landlords can’t raise rents to fund repairs or upgrades, property conditions may suffer.

• Investor Pullback: A recent study found a 13% decline in multifamily investment in these counties as investors shift focus to less regulated markets.

• Less Incentive to Build New Housing: Rent caps can discourage developers from initiating new projects, especially if they feel future returns will be limited.

While larger property firms may be able to weather these shifts, “mom-and-pop” landlords—many of whom own just one or two properties—are feeling the pressure most.

⚖️ The Bigger Picture: Is Rent Control the Long-Term Answer?

The rent control debate isn’t new. Supporters argue it’s an essential tool in fighting displacement and keeping cities livable. Critics warn it can stifle supply, slow investment, and reduce overall housing quality.

In the long run, the effectiveness of these measures will depend on:

• Whether local governments balance regulation with incentives for new development;

• The availability of support for landlords who maintain affordable units;

• And how quickly housing stock can be expanded to meet demand.
  
  

✅ Advice for Maryland Renters and Property Owners

🏠 Tenants:

• Know your rights under the new law—most counties have dedicated offices or hotlines.

• Keep records of lease agreements, rent payments, and communication with your landlord.

• Advocate for well-maintained housing; rent control does not mean landlords can defer upkeep.

🏘️ Landlords:

• Review your property’s operating costs and ensure compliance with local ordinances.

• Consider long-term strategies: energy-efficient upgrades, unit mix changes, or seeking exemptions where applicable.

• Join a local landlord association for guidance and policy updates.
  
  

🗣 Final Thoughts

Rent control in Maryland is here, and it’s changing the game. Whether you're a renter grateful for the breathing room or a landlord rethinking your investment strategy, staying informed is key.

As with any major policy shift, there are trade-offs—but understanding how the law works and what it means for you can help you make better decisions in this new era of housing.

Have questions about how rent control could affect your real estate plans in Maryland?
Reach out anytime—I’m here to help you navigate these changes with clarity and confidence.

Sean Tavalozzi ~ Realtor
Keller Williams
Danmar Properties Group
Personal Cell: 203-233-8445
Main KW Office: 410-729-7700
Work Phone: 301-945-8697