HAGERSTOWN — Rising costs for utilities, maintenance and taxes are straining local landlords and complicating discussions around potential rent stabilization policies, according to testimonies presented during the April 14 Mayor and Council work session.
Members of the local landlord association, John Craft, Michael Stanford, and Nancy Allen, shared financial data and market trends as city officials continue assessing whether rent stabilization measures might alleviate residents’ affordability concerns.
Joe Craft, president of the landlord association, said the group aimed to provide a clearer picture of operating costs and rental market conditions before any policy decisions are made.
Costs rising faster than rents
Michael Standford presented a profit-and-loss breakdown for a seven-unit apartment building, showing an annual cost increase of nearly $14,939 between 2024 and 2025, a 17.34 percent rise.
Utilities were identified as a major driver, increasing by about 35 percent during that period. Maintenance, insurance, labor and property taxes also contributed to rising expenses.
Landlords said those increases are difficult to fully recoup through rent hikes, particularly when trying to retain long-term tenants.
“I won’t recoup that amount this year or next year,” Stanford said, noting it could take several years to recover rising costs.
Regulatory pressures and tenant protections
Landlords also stated changes in state regulations that limit security deposits and strengthen tenant protections, which they said can increase financial risk.
Restrictions on deposits and longer eviction timelines can make it harder to offset losses from nonpayment, they said, while also forcing stricter tenant screening.
“We’re not accepting” applicants who may have been approved in the past due to tighter financial requirements, John Craft explained.
Rental market snapshot
Data shared during the meeting showed approximately 189 rental units currently available across Washington County, with about two-thirds located within city limits.
Average monthly rents were reported as:
- $2,592 for four-bedroom units or larger
- $1,867 for three-bedroom units
- $1,327 for two-bedroom units
- $1,081 for one-bedroom units
- $1,031 for studio apartments
Council seeks transparency, balance
City officials emphasized that no rent stabilization policy is currently being implemented and that the discussion remains in an information-gathering phase.
Officials said they have received complaints from residents about steep rent increases, including cases in which the monthly rent rose significantly over a short period.
“The goal is … to understand what we can do as a governmental entity and to get information to the people that rent impacts the most,” Councilwoman Tiara Burnett said.
Council members also raised concerns about transparency, noting that tenants often do not understand why rents increase or what factors are driving those changes.
Concerns about unintended consequences
Landlord representatives cautioned that broad rent stabilization policies could have unintended effects, including reducing the supply of rental housing and discouraging investment in property maintenance.
They said maintaining quality housing requires balancing affordability with the financial realities of operating rental properties.
“We want to have a really good, vibrant city with nice properties that people want to come and rent,” Nancy Allen said.
Next steps
City officials said they will continue gathering input from landlords, tenants and housing experts before considering any potential policy changes.
The discussion is expected to continue in future work sessions as the city weighs affordability concerns against the need to maintain a stable and sustainable housing market.
