Coakley Realty & Property Management

 

Maryland, DC and Northern Virginia
Property Management Specialists


4.5.10

Rent control needed in county, report finds

But recommendation by tenants work group finds little support on council

To help Montgomery County renters, a work group recommends that the county adopt rent control — a price ceiling for rental housing.

That recommendation was part of a larger report on renting in the county released by the county's tenants work group, which formed in 2008.

County Executive Isiah Leggett, who established the group and appointed its members, says he does not back rent control, but would support enhancing voluntary guidelines already in place.

There also appears to be a lack of support among County Council members for rent control. Councilman Marc Elrich of Takoma Park, who was the driving force in the formation of the tenants work group, is the only council member to publicly support it.

The 15-member work group includes county officials, renters, landlord representatives and others.

The report and the results of a survey found that renters primarily were concerned about large rent increases, a feeling of insecurity about their housing, uncertainty about who to turn to when they have concerns and a fear of retaliation from landlords.

The county has about 95,000 renters.

Elrich said he has heard from renters who have seen their rent increase as much as 16 percent in one year with no improvement in the quality of the building.

"Rents are going out of control," he said.

The majority of the nearly 600 renters who completed the survey administered by the work group between August and October 2009 said their rent had increased between 4 percent and 7 percent a year on average.

Matt Losak, who chairs the tenant work group, said members believe that landlords should be able to make a profit, but that renters should have a reasonable expectation of how much their rent will increase.

Elrich said renters also have concerns that they can be evicted without just cause.

Landlords should be able to evict tenants for not paying rent or being disruptive — not for complaining about rent or maintenance issues or voicing other concerns, Elrich said.

"[Landlords] feel like they should just be able to evict anyone with or without just cause," he said.

The Apartment and Office Building Association of Metropolitan Washington, which was represented on the work group, opposes rent control, according to W. Shaun Pharr, senior vice president of government affairs for AOBA.

Pharr also cited the report and said Montgomery County renters reported moderate and reasonable rent increases over the past five years.

"Rent control is a failed social and housing policy that has been outlawed in 34 states because of the damage it causes to a community's housing stock by discouraging investment in rental housing," Pharr said in a written statement.

"There's no strong incentive to continue to invest in the building," said Councilman Philip M. Andrews of the impact of rent control.

Andrews, of Gaithersburg, who does not support rent control, said the result is that buildings are neglected by landlords.

Programs that direct county funds to affordable housing would be more effective than a "rent control bureaucracy," Pharr said.

Councilwoman Duchy Trachtenberg of North Bethesda said she grew up in New York City, where rent control was in place and said she does not believe it is a viable option for Montgomery County.

Instead, there should be a renewed focus to work with landlords and help them comply with voluntary rent guidelines, which recommended a 2.8 percent rent increase for renters in 2010. The recommendation was for a 4.4 percent increase in 2009.

County Council Vice President Valerie Ervin said Tuesday it was odd that Leggett would commission a task force of mostly rent control supporters when he opposes rent control.

"All of us looked at that and were kind of scratching our heads," Ervin said of the council's reaction.

Source: washingtonpost.com

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