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.
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.
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%).
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.
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.
Even with a cap, it’s essential to assess the local Silver Spring rental market.
Given the new complexity, tenant communication is a legal requirement as much as a relationship tool.
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:
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:
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.
Raising the rent is a reality of owning and managing rental property, especially in a competitive market like Maryland. But for smart landlords, retaining good tenants while protecting profitability is the ultimate goal. With the right approach, rent increases can be implemented thoughtfully, with minimal pushback and maximum retention.
Unlike some other states, Maryland does not impose statewide rent control. However, **local regulations vary.** For example: * Montgomery County limits rent increases based on the Consumer Price Index. * Prince George’s County enforces certain controls for specific types of housing. Rental property owners in Maryland must stay informed about local ordinances, including notice periods, caps on rent increases, and tenant protections, to ensure compliance with the law.
Before implementing any rent increase, it’s essential to assess the current rental market. Look at similar properties in your area for rent prices, features, and condition. Consider:
Relying on data from rental platforms and property management reports will help justify the decision and ensure the new rate aligns with the market.
Tenant communication is a critical step. Giving residents ample notice not only satisfies legal requirements but also builds trust and shows professionalism. More importantly, it offers tenants time to process the change. Consider starting the conversation before sending a formal notice. A brief phone call or in-person conversation can build goodwill. When communicating, be clear about:
Be ready to listen. Often, tenants are more understanding when they feel heard and respected.
If you’re asking tenants to pay more, make sure they see added value. Highlight any recent improvements or upgrades. These can include:
When tenants see you’re reinvesting in the property, they’re more likely to stay, even at a higher price.
Smart landlords and property managers understand that flexibility goes a long way. Options such as phased increases or payment schedule adjustments can help ease the transition for budget-conscious tenants. You might also:
These thoughtful options show tenants you’re interested in their comfort, not just your bottom line.
Each jurisdiction in Maryland may have its own rules regarding rent increases. Typically, a 30-day notice is required for month-to-month leases, but annual leases may require more lead time. NOTE: Ensure that all communication is documented and served following local law. When in doubt, consult with a property management company or legal advisor to avoid compliance issues.
In some cases, it might make sense to increase revenue without raising base rent. This strategy can help maintain affordability while improving returns. Consider:
These options allow tenants to opt in to additional costs rather than facing a blanket increase.
Retaining reliable tenants is often more profitable than finding new ones. A professional property manager in Maryland understands that maintaining tenant satisfaction throughout the year results in smoother rent adjustments. Build trust by:
Request tenant feedback whenever possible and consider it when making decisions. A little bit of input can go a long way in creating a positive experience.
Raising rent can be complicated, especially when considering local regulations, tenant expectations, and market conditions. A professional property management company can eliminate the guesswork from the process. Mainstay Property Management specializes in helping Maryland landlords across Howard County, Montgomery County, and Prince George’s County.
Let Mainstay guide you through strategic rent increases that support your bottom line and preserve the tenant relationships that keep your properties thriving. Contact Mainstay Property Management today and let our local expertise and tailored strategies maximize your investment while keeping your tenants happy.
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