On July 23, 2024, the Montgomery County Council voted to approve Executive Regulation 2-24 for the county’s Rent Stabilization law. This new regulation prohibits rent increases and associated fees above defined thresholds for rental properties through June 30, 2025. See the Rent Stabilization FAQ webpage for more details.
Impact to Property Owners
With these new restrictive controls in place, landlords now will be at the mercy of a maximum annual rental rate increase of 6%. Along with rampant and erratic inflation in recent years, this rent control measure is likely to significantly erode profits for landlords. As these controls take effect, many landlords will be forced to absorb more and more essential maintenance costs, which will eat away at any planned investments or nonessential maintenance plans for their properties. This may reduce the market value for affected assets and prevent owners from achieving rent potential more in line with market demands. As revenues stagnate and expenses continue to increase, diminished net operating income for impacted property owners in Montgomery County is anticipated.
With the above in mind, it is critical to closely scrutinize property tax assessments that often fail to account for this type of value loss. The subject matter experts at Ryan are available to assist you in managing your property tax liabilities. We urge you to reach out to one of our local team members to discuss how we can help.
TECHNICAL INFORMATION CONTACTS:
Shawn Eskow
Principal
Ryan
571.481.9427
shawn.eskow@ryan.com
Cutchin Powell
Principal
Ryan
202.470.3094
cutchin.powell@ryan.com
Grant Steinhauser
Principal
Ryan
202.470.3105
grant.steinhauser@ryan.com
The material presented in this communication is intended to provide general information only and should solely be seen as broad guidance and not directed to the particular facts or circumstances of any individual who may read this publication. No liability is accepted for acts or omissions taken in reliance upon the content of this piece. Before taking (or not taking) any action, readers should seek professional advice specific to their situation from Ryan, LLC or other tax professionals. For additional information about this topic, please contact us at info@ryan.com.