PRINCE GEORGE'S COUNTY, Md. — The Prince George's County Council voted Tuesday to approve a bill that will cap how much a landlord can increase rent for at least one year.
Under the Rent Stabilization Act, a landlord is not allowed to increase rent to an amount that exceeds 3% per year of the existing rent amount for any tenant. Additionally, the landlord can’t issue a notice of rent increase, late fees or penalties during the six-month period of this act.
The vote passed with a celebration.
"The rent was going up $326 a month," said 72-year-old retiree Janet Vinson who was facing a sharp rent increase in May.
That change is not off the table for Vinson.
While these measures may protect renters, some members of the Prince George's County Council were openly against the Rent Stabilization Act, saying it would drive away people who rent properties.
"I don't want our seniors living in slums or run-down properties," said bill opponent and Councilmember Mel Franklin. "Pitting renters against property owners is asinine."
Before the vote, a contentious debate ensued. Property owners said rent control will lead owners to defer maintenance and let properties languish.
Investors like former Chamber of Commerce Chairman Sherman Ragland said money for new housing will head elsewhere and make an affordable housing shortage worse. He also warned all homeowners may see a decrease in valuation because of limits on future rental potential.
Councilmember Crystal Orihada said the vote is a win.
"Someone testified that what we're trying to do is take away your opportunity to take advantage of the market -- you're exactly right," Orihada said. "I'm taking away your opportunity to take advantage of people."
The 3% cap on rent increases for the county is good for one year. In that time the Council aims to come up with a permanent scheme to stabilize rents, while promoting housing development.
This is not the first measure passed to protect renters in Prince George's County recently. Earlier this month, City Council in Mt. Rainer, which is in Prince George's County, unanimously voted to create a rent stabilization board, which would penalize landlords and property managers whenever they increase rent by more than 60% of the consumer price index.
The legislation would fine first offenders $500 and then an additional $1,000 for every violation committed after that.
"They can no longer make a profit on their rental properties in Prince George’s," Franklin said earlier this month. "It sends them to other jurisdictions like Charles County [and] Anne Arundel County, other jurisdictions that don’t have rent control.”
One small landlord echoed Franklin’s concerns at Mt. Rainier’s council meeting.
“The rent stabilization law also disincentivizes maintenance for existing properties and disincentivizes new investment,” Mt. Rainier landlord Joel Kelty said.
A Prince George's County resident was shocked that her rent increased by $800 with such short notice.