When it comes to owning rental property in Montgomery County, being designated a “Troubled Property” carries serious consequences.
It acts as a financial anchor, tied directly to your rental income. Once a property lands on the county’s Troubled Property list, the consequences ripple far beyond inspections and paperwork.
Under Montgomery County’s Rent Stabilization Law, properties currently designated as “troubled” are legally restricted when it comes to rent increases. Even if market conditions support higher rents, landlords on this list cannot raise their rents, ultimately freezing their income as expenses continue to rise.
At Mainstay Property Management, we see this designation as entirely preventable. Avoiding the Troubled Property list isn’t about luck or finding good tenants. It’s about systems, documentation, and proactive oversight.
As Montgomery County tightens enforcement heading into 2026, professional property management has become the most reliable way to protect your rental property investment.
Decoding the DHCA Scoring System
Montgomery County doesn’t label properties as “troubled” on a whim. The Department of Housing and Community Affairs (DHCA) relies on a data-driven system to score properties based on inspection results.
What are the TV and SV Scores?
Two key metrics determine whether a rental property raises red flags:
- Total Violations (TV) – the simple count of how many code violations inspectors find across the property
- Severity of Violations (SV) – assigns weight to each violation based on how dangerous it is to tenant health or safety. This is the more important metric.
The Point System
Under Executive Regulation 1-25, violations are scored using a points system:
- 5 points – Health & Safety Issues: Examples include missing smoke detectors, non-functioning carbon monoxide alarms, or blocked egress
- 3 points – High Priority Issues: These include water leaks, mold conditions, and lead-based paint hazards
- 1-2 points – Medium and Lower Priority Issues: Items like cracked tiles, deteriorating caulking, or peeling paint fall here.
The 20% Rule
There’s also a hard-line rule landlords often miss: the 20% rule. If rodent or insect infestations are found in 20% or more of units, the property can be automatically flagged. And that’s regardless of its TV or SV total scores.
The Consequences: Why Landlords Should Be Worried
Once a property is flagged as “troubled,” county officials conduct property inspections much more frequently. At least once a year, your rental is inspected, which could lead to further violation points.
Then there’s the rent impact. With the rent stabilization framework, troubled properties cannot increase rent. Rent increases are restricted to covering repairs, not to offset inflation, rising insurance premiums, or operating costs.
The financial pressure doesn’t stop there. If violations aren’t corrected in a timely manner, re-inspection fees escalate with each follow-up visit. These recurrent, compounding costs can become unmanageable and cause further income loss.
Increasing expenses, locked rent, and constant oversight: this is a dangerous combination for landlords. The longer a property stays on the troubled list, the harder it becomes to regain financial momentum.
How to Get Off the List: The Recovery Plan
Getting off Montgomery County’s Troubled Property list isn’t about quick fixes. It requires a documented, methodical recovery process. This is where many landlords struggle, and where property management makes the biggest difference.
Step 1: Immediate Abatement of Life-Safety Issues
Health and safety violations carry the highest Severity of Violations (SV) points. Items such as non-functioning smoke detectors, blocked exits, or missing carbon monoxide alarms must be addressed first, typically within 24–48 hours, to prevent further penalties.
Professional property management ensures these critical issues are corrected immediately and properly documented, giving DHCA a clear record of compliance.
Step 2: Submit a County-Approved Corrective Action Plan (CAP)
DHCA requires a detailed Corrective Action Plan for all Troubled Properties. The CAP must outline:
- Each violation to be corrected
- Timelines for completion
- Licensed vendors performing the work
- Verification procedures
Generic or incomplete CAPs are often rejected. A properly prepared CAP aligns with DHCA expectations, helping ensure your plan is approved the first time.
Step 3: Maintain Ongoing Documentation and Internal Logs
DHCA evaluates sustained compliance through ongoing inspections. Landlords must maintain quarterly maintenance logs, work orders, and repair records to demonstrate consistent oversight.
By organizing and tracking these records, property managers provide evidence that the property is being properly maintained, not just temporarily fixed for an inspection.
Step 4: Pass Follow-Up Inspections
Once violations are corrected and the CAP is in place, properties undergo follow-up inspections. DHCA re-evaluates Total Violations (TV) and Severity of Violations (SV) scores to determine if the property still meets the Troubled designation criteria.
Passing these inspections is the final step toward returning the property to compliant status.
The Mainstay Property Management Approach
Avoiding or recovering from a Troubled Property designation isn’t about luck. It’s about systems, planning, and local expertise.
- Pre-inspections mirror DHCA evaluations to catch potential issues before they accumulate points.
- Proper documentation and CAP preparation ensure compliance aligns with ER 1‑25 scoring.
- Proactive management protects rental income, preserves rent flexibility, and reduces costly enforcement cycles.
With the right systems and expert guidance, restoring compliance and removal from the Troubled Property list is not only possible but can be done efficiently and confidently.
Get Help With Troubled Properties in Montgomery County
Professional property management has become a form of insurance for Montgomery County landlords. It protects your cash flow, preserves your rent flexibility, and can shield your portfolio from costly enforcement cycles.
Don’t wait for a DHCA notice to take action. Contact Mainstay Property Management today to schedule a portfolio compliance audit and protect your investment before problems surface.