Category: Affordable Housing

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Knowledge of Laws and Legislation is Power

Rentals. Their management and tenancy are a significant part of real estate ownership. At Properties on the Potomac, we follow legislative updates in all three of our jurisdictions: Virginia, Maryland, and Washington, D.C. Each has its own landlord-tenant laws that must be carefully observed.

As professionals, we help property owners secure good tenants who care for their homes. We do this across all three jurisdictions. We also assist past clients who are transitioning into rentals for lifestyle changes or interim situations.

Unlike residential sales, rentals are governed largely by statute. Landlord-tenant laws affect day-to-day operations, which can significantly impact a landlord’s finances.

Affordable housing is a major topic today. Alongside that discussion, tenant rights and landlord obligations are receiving increased attention. Maryland has already enacted stricter rules involving security and pet deposits. Virginia is considering several similar measures.

Security Deposit rules by jurisdiction

 (their refund rules will be addressed in a future blog):

Washington, D.C.
All security deposits must be held in FDIC-insured escrow accounts and must accrue interest.

Maryland
Security deposits are limited to one month’s rent. Pet deposits are not allowed, though landlords may negotiate non-refundable rent increases related to pets. All deposits must be held in FDIC-insured escrow accounts.

Virginia
There is currently no cap on security deposits, and no escrow or interest requirement. However, this may change with pending legislation.

Delinquent Rents and Eviction Initiation

Washington, D.C.
Landlords must provide 30 days written notice of nonpayment. Tenants may cure during that period.

Maryland
Tenants generally have 10 days to pay or vacate. The eviction process itself is often lengthy.

Virginia
Currently requires a 5-day pay-or-quit notice. Proposed legislation would extend this to 14 days.

It is critical that landlords follow the rules of their jurisdiction. Failure to comply can result in loss of deposits, unnecessary repair responsibilities, fines, and delayed legal action.

For many landlords, working with a professional property manager helps reduce risk and keeps operations compliant.

Virginia Legislative Updates – 2026 Session

When I attended the Northern Virginia Association of Realtors Legislative Day in Richmond on January 29, I learned about several landlord-tenant bills currently under consideration in the Virginia General Assembly. Many could meaningfully affect landlords.

Eviction and Payment Reforms

• HB 15 (Price) — Extends the grace period for late rent payments from 5 days to 14 days before eviction proceedings may begin.
• HB 95 (Bennett-Parker) — Requires landlords to offer payment plans of up to six months to tenants behind on rent before terminating a lease.
• HB 281 (Callsen) / SB 373 (Boysko) — Removes the requirement for tenants to pay disputed rent into court before asserting legal defenses.
• HB 837 (McClure) / SB 273 (Locke) — Updates the Eviction Diversion Program’s eligibility and notification process.

Fees and Maintenance

• SB 313 (Ebbin) / HB 1005 (Price) — Prohibits landlords from charging for routine maintenance unless caused by a tenant’s lease violation.
• HB 1409 (Schmidt) — Bans certain charges for common-area utilities, delivery fees, and services beyond actual costs.
• SB 349 (Locke) — Limits pre-tenancy fees and requires full written disclosure prior to showings.

Tenant Protections

• HB 14 (Price) — Allows local governments to pursue legal action against landlords who fail to correct hazardous conditions.
• HB 1408 (Schmidt) — Expands protections for victims of family abuse.
• HB 1252 (McClure) — Requires disclosure of algorithmic rent-pricing tools and allows tenants to request human review.
• HB 329 (McClure) — Expands definitions of retaliatory conduct and tenant remedies.

Local Authority and Market Regulation

• HB 278 (Clark) — Allows local governments to adopt anti-rent gouging policies.
• SB 547 (Sturtevant) — Limits ownership of single-family homes by certain entities and requires public marketing periods.

As a current or prospective landlord, review these proposals and determine how they might affect your properties and investments. You have the right to address concerns or express support with your elected representative.

At Properties on the Potomac, we track legislative changes closely to help our clients stay informed and prepared.

If you own rental property and have questions, we are available to help. Text Broker, Krasi Henkel to discuss your questions.

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Northern Virginia Updates

By Krasi Henkel, Broker

After attending the Loudoun County Chamber of Commerce ‘PolicyMaker Series: Postelection Aftermath’ I walked away with concerns and considerations. This blog is not intended to make or take a political stand, but to outline possibilities and current actions. Keeping you informed so that you can make the best possible decisions, is always my goal.

Politicians and analysts banter the term, affordable housing.  Let’s unpack this concept and discover how, if at all, affordability can be affected.

The variables of affordability consist of the following obvious pieces:

  • The price of real estate
  • The mortgage interest rate
  • The mortgage term (number of years)
  • Cost to insure
  • Taxes
  • Income tax incentives (if any)
  • Housing supply and local zoning

To improve affordability, one or more of the above variables must be influenced as follows:

  • Private property values are subject to market forces.
  • Mortgage interest rates while variable, can be subsidized by jurisdictions or offset by tax savings
  • The term of the mortgage 15-30-50 affects the monthly payment
  • Insurance is partly environmental risk based, and partly determined by your desired value to insure and what to include.
  • Taxes – real estate taxes are based on jurisdictional assessments. You can appeal assessments. You can elect officials who would reduce tax rates.
  • The Federal government or even the state can make interest, taxes, etc. deductible at higher rates – AKA – subsidizing through deductibility.
  • Supply and demand shifts from scarcity to accessibility can partially be accomplished through thoughtful zoning and maybe expeditious reviews.

Below are possible solutions but will require bold federal and state participation.

Let’s clear one thing up – homeowners do not plan to decrease the asking prices for their houses in a scarcity scenario. Insurers have suffered massive losses and will likely not be reducing their rates, and their reinsurers will most likely not be doing the same.

Property taxes – you can evaluate your jurisdictional budgets and determine potential austerity measures with which to justify tax reductions. We all know that this is a long term project involving studies, hearings, and elections.

While on the topic of property taxes and local jurisdictions, one way to increase supply would be to loosen zoning regulations and shorten permit and inspection periods. All of that requires public hearings. Realistically, when was the last time a voting block voted to increase density?

Income tax deductibility or credits could be useful subject to income limits. This will require political maneuvering, bills, vetoes, and committees, and lots of talk and perhaps a little help.

Mortgage interest is a possible variant. When affordability is addressed, it is often addressed for first time home buyers.  The US government, states, and local governments offer mortgage loans to offset cash down payments, and structure loans based on a variety of criteria. This is where creativity can set in and offers interesting options to consider.

Let’s look at Virginia for example. There are several assistance loan products including down payment and closing cost grants. After that there is Virginia Housing (formerly VHDA), which is funded through bonds and are not and do not affect the tax base.  These loans come with quite a few strings and qualification can be onerous. Looking at today’s mortgage rate, I note that VHDA is offering their loan for 6.5%. Yet FHA, VA, USDA are all below 6%.

Another mortgage alternative is increasing the loan amortization terms from 30 to 50 years. Yes, the total interest paid will be higher, but the monthly payment can become affordable. Consider the example below:

$500,000 loan at 5.75%

30 year principal and interest (PI) payment:       $2918

50 year principal and interest (PI) payment:       $2540

The monthly savings will be:                                     $  378

That difference can make the difference in qualifying.

It will cost more over the life of the loan. The reality is that most people move every seven years. Loans can be refinanced if rates decline. I have met very few people who retained their original loan to its final payment. The 30-year mortgage was originally tied to the 30-year treasury bill. Though, the 10-year Treasury Note is a more direct benchmark. The 30-year treasuries are called “long bonds.”

Zoning:

Zoning adjustment measure has been on Virginia’s local jurisdiction radar for over five years. Since 2020 initiatives to modify local zoning to permit density increases have been proposed.

Last week, a circuit court judge recently ruled in favor of the City of Alexandria in the “Zoning for Housing” lawsuit, dismissing the case and allowing the city’s zoning reforms to stand.

The case had been brought by local property owners, Coalition for a Livable Alexandria, protesting the density changes and their perceived impact on their properties.  This ruling allows the city’s “Zoning for Housing” ordinance to proceed. 

A question: with the decision in place, can a developer now buy a single family house, tear it down and build a multi-family structure? What are the limits? What are the safeguards? Where will those residents park?  How will the existing infrastructure support the additional density as far as education and traffic?

In Tysons, a similar initiative has been enacted. Click here to learn more about these and other Virginia measures.

While political promises abound, reality sets in. The recent election platform was heavy on affordable housing. When I inquired at the recent event, about the “how” of the promises, the moderator ‘ran out of time.’ I asked why VHDA loan rates outstrip all other loan rates. When I approached one of the State senators, he told me that they are “looking into it.”  The urgency? Subject to interpretation. They seem focused on zoning changes as the primary solution.

There is no easy fix. Everyone must get involved and ask the hard questions: When politicians promise ‘affordable housing,’ ask them: Affordable to BUY, or affordable to RENT? Those are two very different things – one builds wealth and independence, the other creates permanent tenants beholden to landlords and government programs. The days of happy ambivalence are gone. You should pay close attention and make your decisions thoughtfully.

If you want to buy your first home, contact Broker Krasi Henkel. Her nearly 40 years of experience and exceptional lender network, produce dream-come-true scenarios. If you want to be one of the lucky few – text Krasi today – 703-624-8333.