Key Takeaways:
- President Biden’s proposal offers landlords two options to control rent increases.
- The policy targets landlords with over 50 apartments, exempting new construction units.
- Brickfront Properties and Construction supports this initiative.
- Implications for the DMV real estate market.
National Rent Cap Unveiled
On Tuesday, 16th of July, President Biden unveiled a groundbreaking proposal to address the escalating housing crisis. Large landlords must cap rent increases at 5% or lose a federal tax break for faster depreciation write-offs. This bill specifically targets landlords who own more than 50 apartments, while new construction units are exempt from the cap.
“Some corporate landlords have taken advantage of the shortage of available units by raising rents by more than increases in their own costs—resulting in huge profits at a time when millions of Americans are struggling to cover rent each month,” a statement from The White House said. “And recent analysis showed that the six largest publicly-traded apartment companies reported large profits earlier this year, and many of these same landlords are named in pending litigation for their alleged use of proprietary algorithms to raise rents on tenants.”
Brickfront Properties and Construction, a leading real estate firm in the DMV area, strongly supports this initiative. As a company dedicated to creating affordable housing solutions, Brickfront Properties and Construction believes this policy will provide much-needed relief to renters facing rapidly rising housing costs.
Brickfront Properties and Construction recognizes the positive impact this policy will have on the DMV real estate market. The proposal caps rent increases to prevent tenants from being priced out, ensuring stability and predictability in housing expenses.
As this proposal progresses, Brickfront Properties and Construction will continue to advocate for policies that promote affordability and stability in the housing market.
Stay updated with Brickfront Properties as this policy impacts and reshapes the rental landscape.
For more detailed information about the rental cap plan, click here.
