Raising the rent is a reality of owning and managing rental property, especially in the highly competitive and now heavily regulated Silver Spring market. For smart landlords, retaining good tenants while protecting profitability is the ultimate goal. In Montgomery County, MD, achieving this balance requires a meticulous understanding of the Rent Stabilization Law.
If you own a rental property in Silver Spring, your rent increase strategy must now start with compliance.
The New Reality: Rent Stabilization in Montgomery County
Unlike other parts of Maryland, which have no statewide rent control, Montgomery County’s Rent Stabilization Law (enacted as Bill 15-23) imposes a strict cap on annual rent increases. This is the single most important legal factor affecting your property’s financials.
What is the Maximum Allowable Increase for 2025?
The annual rent increase allowance is calculated based on the Consumer Price Index for All Urban Consumers (CPI-U) plus three percent (3%), with a maximum cap of six percent (6%).
- 2025 Update: For the period July 1, 2025, through June 30, 2026, the maximum allowable rent increase for regulated units is 5.7%. This rate is slightly lower than the cap from the previous year.
- The Voluntary Guideline: The county also publishes a Voluntary Rent Guideline (VRG), which for 2025 is 3.3%. While this guideline is non-binding for most units, the county encourages landlords to adhere to it.
Does the Law Apply to Your Silver Spring Property?
The Rent Stabilization Law applies to all County-licensed residential rental units unless specifically exempted. This includes single-family homes, townhouses, and individual condo units in Silver Spring.
The most common factor determining coverage is the age of the building:
| Coverage Status | Criteria |
| Regulated | Units in buildings where construction was completed in 2002 or earlier (i.e., properties that are 23 years old or older as of January 1, 2025). |
| Exempt (Temporary) | Units in buildings constructed after January 1, 2002. These units have a 23-year exemption from the stabilization law. |
| Exempt (Permanent) | Individual landlords who own two or fewer rental units in the county (provided the owner is a natural person or trust). |
If your Silver Spring unit falls into the “regulated” category, you must comply with the yearly increase cap.
Step-by-Step Compliance for a Silver Spring Landlord
1. Know Your 90-Day Notice Requirement
Montgomery County law is clear: all landlords must provide tenants with written notice of a rent increase at least 90 days before the effective date of the increase. This applies to all licensed residential rentals, regardless of whether the unit is regulated or exempt. Failure to meet the 90-day window invalidates the increase.
2. Evaluate Market Conditions vs. the Cap
Even with a cap, it’s essential to assess the local Silver Spring rental market.
- Market Data: Use localized data for neighborhoods like Downtown Silver Spring, Woodside Park, or Glenmont to ensure your rate (up to the 5.7% cap) is competitive and justifiable.
- Property Taxes: If rising Montgomery County property taxes are a reason for your increase, have that data ready.
3. Communicate With Documentation
Given the new complexity, tenant communication is a legal requirement as much as a relationship tool.
- Your formal notice must be delivered via U.S. Mail or in person with a signed receipt.
- The notice must clearly state that the increase does not exceed the maximum allowed under the Montgomery County Office of Landlord-Tenant Affairs (OLTA) regulations.
4. Justify the Increase with Value-Adds
Since you are limited on how much you can raise the rent, focusing on why the property is a good value is critical for retention. Highlight specific benefits valued by Silver Spring tenants:
- Transit Access: Proximity to the Red Line Metro or major bus routes.
- Amenities: Recent updates to common areas or landscaping.
- Local Attractions: Mention access to the AFI Silver Theatre or Sligo Creek Parkway.
Partner with a Local Property Management Expert
Navigating the Rent Stabilization Law, the 90-day notice rule, and the specific requirements of the Montgomery County Department of Housing and Community Affairs (DHCA) can be overwhelming. Attempting to self-manage through these new regulations puts your investment at risk of non-compliance, which can lead to rent escrow issues or tenant disputes.
Mainstay Property Management specializes in helping Silver Spring and Montgomery County landlords thrive within these regulatory constraints. We eliminate the guesswork by:
- Ensuring 100% Compliance with all DHCA and OLTA regulations.
- Strategically Pricing your property to maximize returns while staying within the 5.7% maximum allowable increase.
- Managing the Mandatory 90-Day Notice and all required documentation.
Let Mainstay guide you through strategic rent increases that support your bottom line and preserve the tenant relationships that keep your Silver Spring properties thriving. Contact Mainstay Property Management today for a consultation on your regulated unit.