COMCOR 29.58.01 Rent Increases
Chapter 29. Landlord-Tenant Relations - Regulations
Montgomery County, Md., COMCOR § 29.58.01.01 (2026)
29.58.01.01 Rent Increase for New Lease or Lease RenewalLinkCopy Citation
(a)
A landlord of a regulated rental unit must not increase the base rent of the unit more than once in a 12-month period.
(b)
The annual rent increase allowance governing the first year of a multi-year lease applies to the subsequent lease years.
(c)
Unused rent increase allowances under (b) may be banked under Section 29-58(a) of the Code.
Montgomery County, Md., COMCOR § 29.58.01.02 (2026)
29.58.01.02 Rent Increases for Troubled or At-Risk PropertiesLinkCopy Citation
(a)
If the landlord of regulated rental units located in a property designated by the Department as Troubled or At-Risk under Section 29-22(b) of the Code meets the following conditions before the property’s next scheduled inspection under COMCOR 29.40.01, the Director must remove the Troubled or At-Risk Property designation.
(1)
For properties designated as Troubled:
(A)
all violations identified during the initial inspection must be corrected by the landlord and verified by the Department;
(B)
the landlord must submit to the Department a corrective action plan, as defined in COMCOR 29.40.01.02(a), that meets the Department’s approval;
(C)
the landlord must submit a minimum of two quarters of maintenance logs to the Department under COMCOR 29.40.01.04(k)(3); and
(D)
a reinspection of the property determines that the SV and TV scores do not result in a designation as a Troubled or At-Risk Property under COMCOR 29.40.01.
(2)
For properties designated as At-Risk:
(A)
all violations identified during the initial inspection must be corrected by the landlord and verified by the Department; and
(B)
a reinspection of the property determines that the SV and TV scores do not result in a designation as a Troubled or At-Risk Property under COMCOR 29.40.01.
(b)
A landlord of a regulated rental unit located in a property designated by the Department as Troubled or At-Risk under Section 29-22(b) of the Code must not increase rent in excess of an amount the Director determines necessary to cover the costs required to improve habitability. If a landlord or a regulated rental unit located in a property designated by the Department as Troubled or At-Risk under Section 29-22(b) of the Code is unable to meet the requirements of COMCOR 29.58.01.02(a), the landlord may submit a fair return application under Section 29-59 of the Code.
(1)
If the Director approves the fair return application, the landlord may increase the rent on a regulated rental unit in the amount approved by the fair return application while the property is still designated by the Department as Troubled or At-Risk under Section 29-22(b) of the Code.
(2)
If the Director denies the fair return application, the landlord must not increase the rent on the regulated rental unit while the property is designated by the Department as Troubled or At-Risk under Section 29-22(b) of the Code.
Montgomery County, Md., COMCOR § 29.58.01.03 (2026)
29.58.01.03 Allowable Rent Increase for Previously Vacant UnitsLinkCopy Citation
(a)
If a unit becomes vacant after the effective date of these regulations, the base rent for the unit may be increased up to the banked amount or to no more than the base rent on the date the unit became vacant plus each allowable increase under Section 29-58(a) of the Code.
(b)
If a regulated rental unit was vacant before these regulations became effective, then upon return to the market, the landlord may set the base rent in the landlord’s discretion. After the unit is leased, the rent for the subsequent lease or lease renewal must be determined by Section 29-58(a) of the Code.
Montgomery County, Md., COMCOR § 29.58.01.04 (2026)
29.58.01.04 Limited Surcharge for Capital ImprovementsLinkCopy Citation
(a)
A landlord may petition the Director for a limited surcharge for capital improvements under Section 29-58(d) of the Code.
(b)
Processing of Capital Improvement Petitions.
(1)
Filing. The Capital Improvements Petition, in the form published by the Director, and one copy of supporting documents, must be filed with the Department.
(2)
Notice to Tenants of Filing. The landlord must notify each affected tenant of the filing of the Capital Improvement Petition by sending a copy of the Capital Improvement Petition (excluding supporting documentation) by first-class mail and electronic mail, within five business days of the filing.
(3)
Petition Processing. Within 30 days of receiving a Capital Improvement Petition, the Director must review the Capital Improvement Petition and notify the landlord in writing that (a) the Capital Improvement Petition is complete, or (b) the Capital Improvement Petition is incomplete and identify the missing information or documentation. If the landlord fails to deliver the missing information or documentation to the Director within ten business days of receipt of the notice in (b) above, then the Director may deny the Capital Improvement Petition by written notice to the landlord.
(4)
Preliminary Decisions. Within 60 days after receiving a complete Capital Improvement Petition, the Director must review the petition and issue a preliminary decision, either approving or denying the petition. The decision must include a reasoning and, if applicable, the allowable surcharge for capital improvements in accordance with the phasing schedule set forth in the Capital Improvement Petition (“Preliminary Approval”).
(5)
Material Change. If there is any material change in the scope, phasing, pricing, or other matter set forth in the Capital Improvement Petition, the landlord must submit to the Director a supplement to the Capital Improvement Petition (“Supplement”) including any revisions to the recommended surcharge for capital improvements, if any, to be allowed in accordance with the phasing schedule set forth in the Capital Improvement Petition. Within 30 days after receiving the Supplement, the Director must notify the landlord of a decision stating the reasons for the approval or denial of the Supplement, including any revisions to the recommended surcharge for capital improvements.
(6)
Final Reconciliation. Upon completion of the capital improvements set forth in the Capital Improvement Petition or upon completion of the capital improvements applicable to any phase set forth in the Capital Improvement Petition, the landlord must submit a final reconciliation package to the Director identifying the actual costs of the completed capital improvements with supporting documentation and a recalculation of the surcharge for capital improvements (“Reconciliation Package”). Within 30 days after receiving the Reconciliation Package, the Director must issue and notify the landlord of a decision identifying the approved surcharge for capital improvement by unit applicable to the completed project or phase.
(7)
Notice to Tenants of Decision. The landlord must by first class mail and electronic mail, notify all affected tenants of the decision within 5 business days of the receipt of the decision.
(c)
Except as provided in (d), the landlord must not recover the cost of a capital improvement through a rent surcharge under Section 29-58(d) of the Code if a landlord makes the improvement to a rental unit or a housing accommodation before the approval of a Capital Improvement Petition.
(d)
A landlord who makes a capital improvement without prior approval of a Capital Improvement Petition may recover the cost of the improvement under Section 29-58(d) of the Code, following the approval of the Petition, only if the capital improvement was immediately necessary to maintain the health, safety, and security of the tenants and the Petition was filed no later than 30 days after the completion of all capital improvement work.
(e)
A landlord must file a Capital Improvement Petition certifying:
(1)
that the subject improvements are capital improvements;
(2)
whether the capital improvements are required under federal, state, or County law;
(3)
that the capital improvements do not include the costs of ordinary repair or maintenance of existing structures;
(4)
that the capital improvements would protect or enhance the health, safety, and security of the tenants or the habitability of the rental housing;
(5)
whether the capital improvements will result in energy cost savings that will be passed on to the tenant and will either result in a net savings in the use of energy in the rental housing or are intended to comply with applicable law; provided, however, that energy cost savings are not required for capital improvements to qualify for a surcharge for capital improvements;
(6)
the basis under the federal Internal Revenue Code for considering the improvement to be depreciable;
(7)
the estimated costs of the capital improvements, including any interest and service charge;
(8)
the dollar amounts, percentages, and time periods computed by following the instructions listed in (f);
(9)
all regulated units are properly registered and licensed with the Department; and
(10)
the planned phasing schedule for the capital improvements, if applicable.
(f)
The Capital Improvement Petition must contain comprehensive calculations for the following in accordance with this section and in accordance with the phasing schedule, if applicable:
(1)
the estimated total cost of a capital improvement calculated in accordance with the phasing schedule, if applicable;
(2)
the dollar amount of the surcharge for capital improvements for each regulated rental unit in the rental housing and the percentage increase above the base rents charged as of the date of the Capital Improvement Petition; and
(3)
the estimated duration of the surcharge for capital improvements and its pro-rated amount in the month of the expiration of the surcharge.
(g)
The total cost of a capital improvement must be the sum of:
(1)
any costs actually incurred, to be incurred, or estimated to be incurred to make the capital improvement, in accordance with (i);
(2)
any interest that must accrue on a loan taken by the landlord to make the capital improvement, in accordance with (j); plus
(3)
any service charges incurred or to be incurred by the landlord in connection with a loan taken by the landlord to make the capital improvement, in accordance with (k).
(h)
The interest and service charge on, “a loan taken by the landlord to make the capital improvement” is the portion of any loan that is specifically attributable to the costs incurred to make the capital improvement, in accordance with (l). The dollar amount of the calculated interest and service charge must not exceed the amount of the portion of that loan.
(i)
The costs incurred to make a capital improvement must be determined based on invoices, receipts, bids, quotes, work orders, loan documents or a commitment to make a loan, or other evidence of costs as the Director may find probative of the actual, commercially reasonable costs of the capital improvement. The total cost of a capital improvement must be reduced by the amount of any grant, subsidy, credit, or other funding not required to be repaid that is received by a landlord from or guaranteed by a governmental program for the purposes of making the subject capital improvement.
(j)
The interest on a loan taken to make a capital improvement means all compensation paid or required to be paid by or on behalf of the landlord to a lender for the use, forbearance, or detention of money used to make a capital improvement over the amortization period of the loan, in the amount of either:
(1)
the interest payable by the landlord at a commercially reasonable fixed or variable rate of interest on a loan of money used to make the capital improvement, or on that portion of a multi-purpose loan of money used to make the capital improvement, as documented by the landlord by means of the relevant portion of a bona fide loan commitment or agreement with a lender, or by other evidence of interest that the Director finds probative; or
(2)
in the absence of any loan commitment, agreement, or other evidence of interest, the Director may apply the average 52-week Wall Street Journal’s U.S. Prime Rate, as reported by The Wall Street Journal’s bank survey, applied over a seven-year period. The average is calculated as the mid-point between the high and low Prime Rates reported for the 52 weeks immediately before the effective date of the surcharge for capital improvements.
(k)
For the purposes of (j)(1), if a landlord has obtained a loan with a variable rate of interest, the total interest payable for the purposes of the Capital Improvement Petition must be calculated using the actual rate of the loan over its term, provided that if the Capital Improvement Petition is submitted before the expiration of the loan term, the total interest rate for any unexpired term of the loan must be calculated using the actual interest rate applicable at the time the Capital Improvement Petition was filed. If the interest rate changes over the duration of the loan, any Certificate of Continuation must list all changes and recalculate the total interest on the loan.
(l)
The service charges in connection with a loan taken to make a capital improvement must include points, loan origination and loan processing fees, trustee’s fees, escrow set-up fees, loan closing fees, charges, costs, title insurance fees, survey fees, lender’s counsel fees, borrower’s counsel fees, appraisal fees, environmental inspection fees, lender’s inspection fees (in any form the foregoing may be designated or described), and other charges (other than interest) required by a lender, as supported by the relevant portion of a bona fide loan commitment or agreement with a lender, or by other evidence of service charges as the Director may find probative.
(m)
Except when a continuation is permitted in accordance with (s), the duration of a rent surcharge for capital improvements requested or allowed by a Capital Improvement Petition or phase therein must be the quotient, rounded to the next whole number of months, of:
(1)
the total cost of the capital improvement, in accordance with (g); divided by
(2)
the sum of the monthly surcharges for capital improvements permitted by Sections 29-58(d)(3) and (4) of the Code on each affected regulated rental unit.
(n)
A surcharge for capital improvements in the final month of its duration must be no greater than the remainder of the calculation in (m), prior to rounding.
(o)
A Capital Improvement Petition must include external documents to substantiate the total cost of a capital improvement and must be supplemented with any new documentation reflecting the actual total cost of the capital improvement, until the capital improvements are complete.
(p)
A Capital Improvement Petition, as filed with the Director, must include a listing of each rental unit in the housing accommodation, identifying:
(1)
which regulated rental units will be affected by the capital improvements;
(2)
the base rent for each affected regulated rental unit, and any other approved surcharges for capital improvements; and
(3)
the dollar amount of the proposed surcharge for capital improvements for each regulated rental unit and the percentage by which each surcharge for capital improvements exceeds the current rents charged as of the date of the Capital Improvement Petition.
(q)
A decision authorizing a surcharge for capital improvements must be implemented within 12 months of the date of issuance but no earlier than 12 months following any prior rent increase for an affected regulated rental unit; provided that if the capital improvement work renders the unit uninhabitable beyond the expiration of time, the surcharge for capital improvements may be implemented when the unit is reoccupied. The amount of the surcharge for capital improvements must be clearly identified as an approved surcharge for capital improvements in the new lease or in the lease renewal and may not be implemented during the lease term.
(r)
Not less than 90 days before the expiration of an authorized surcharge for capital improvements a landlord may request to extend the duration of the surcharge for capital improvements by filing an application with the Director and serving each affected regulated rental unit with notice by first-class mail and electronic mail, if, within five business days that the total cost of the capital improvement has not been recovered during the originally approved period of the surcharge for capital improvements and requesting to extend the approval (“Certificate of Continuation”). The application for a Certificate of Completion must be deemed complete when delivered to the Director unless within ten business days after receiving the Certificate of Continuation, the Director notifies the landlord in writing of missing or incomplete information or documentation. If the landlord fails to provide the missing or incomplete information or documentation to the Director within ten business days after receipt of the notice, the Director may reject the Certificate of Continuation.
(s)
A Certificate of Continuation must set forth:
(1)
the total cost of the capital improvements as approved by the Capital Improvement Petition, including, if applicable, any changes in the total interest due to a variable-rate loan;
(2)
the dollar amount actually received by the implementation of the surcharge for capital improvements within its approved duration, including any amount estimated to be collected before the expiration of its approved duration;
(3)
an accounting of and reason(s) for the difference between the amounts stated in (1) and (2); and
(4)
a calculation of the additional number of months required, under currently known conditions, for the landlord to recover the total cost of the capital improvements by extension of the duration of the surcharge for capital improvements.
(t)
The Director must review the Certificate of Continuation and must issue and notify the landlord of a decision either approving or denying the continuation. The Director must only approve the request if the landlord demonstrates good cause for the difference between the amounts stated in (s)(1) and (2). If the Director approves the Certificate of Continuation, the landlord must notify each affected tenant by first-class mail and electronic mail, within five business days of the receipt of the Director’s notice of approval.
(u)
If the Director does not issue a decision before the expiration of the surcharge for capital improvements, the landlord may continue the implementation of the surcharge for capital improvements for no more than the number of months requested in the Certificate of Continuation. If a Certificate of Continuation is subsequently denied, the order of denial is a final order to the landlord to pay a rent refund to each affected tenant in the amount of the surcharge for capital improvements that has been demanded or received beyond its original, approved duration in which it was implemented, and, if the surcharge for capital improvements remains in effect, to discontinue the surcharge.
(v)
A surcharge for capital improvements implemented pursuant to an approved Capital Improvement Petition may be extended by Certificate of Continuation no more than once.
(w)
If a Capital Improvement Petition is denied by the Director, the property may not file a subsequent petition for six months following the issuance of a denial.