Last month, the Prince George's County Council introduced CB-059-2024-Rental Housing Disclosure. County residents have long complained about the lack of accessible information about property ownership. This legislation, if enacted, would directly address those complaints by increasing transparency in the rental housing market. The bill, sponsored by Councilmember Watson (D-4), had its second reading earlier in the month and came out of the Planning, Housing, and Economic Development Committee.
Background
Renters in Prince George's County are often frustrated by uncertainty about who owns their property. This confusion by renters regularly leads to difficulty scheduling routine maintenance requests, solving legal issues, and eventually holding irresponsible landlords accountable for neglect. In some cases, tenants even struggle to contact their landlords directly and rely on property management companies that may not be as responsive. The absence of transparency in ownership undermines the confidence and ability of county renters to sustain secure and well-maintained living conditions.
This is not just a national issue. Recently the Center for Investigative Reporting (CIR) filed a lawsuit in federal court under the Freedom of Information Act so they could obtain records that were held by the Financial Crimes Enforcement Network (FinCEN), a division of the Treasury Department. These records contain important information about the true owners of residential real estate that were purchased in all-cash offers through LLCs and corporate entities between 2016 and 2019. This highlights the growing trend of lack of transparency in property ownership.
As private, corporate investors buy more rental properties, transparency is diminishing. For instance, the share of rental properties with easily identifiable ownership has dropped from 92% in 1991 to just 74% in 2015. This example underscores the importance of legislation like CB-059-2024, which seeks to make property ownership more transparent and hold landlords accountable.
This is particularly concerning when one considers the role of corporate-owned rental properties, where property ownership details can be concealed through multiple layers of companies and agents. Recent studies have found that corporate landlords, or institutional investors, owned 3.8% of the 15.1 million single-unit rental properties in the United States. Some analysts expect that by 2030, large institutions may own more than 40% of all single-family rentals on the market. Tenants can feel powerless without clear information and unsure who is ultimately responsible for the condition of their homes.
Corporate ownership has also been shown to create instability for renters and low-income individuals. Research from the Federal Reserve Bank of Atlanta has shown that corporate landlords are 8% more likely than small landlords to file eviction notices. Separately, studies have also shown that being evicted increases the risk of homelessness and long-term residential instability and can lead to a modest decrease in earnings.
The Purpose of CB-059-2024
CB-059-2024 addresses residents' concerns by requiring all rental property owners to disclose essential information when applying for a rental license. The bill would require owners to provide their name and physical address, their agent's name and address, and details about their mortgage holder. This information must be included in the license application and made available to the public upon request, potentially increasing transparency and addressing renters' concerns. During the debate on the bill, amendments were offered, requiring property owner information to be accessible via an online, searchable public database maintained by Prince George's County Department of Permitting, Inspections, and Enforcement. This means anyone can easily learn who owns a rental property and is responsible for its maintenance.
Why This Bill Matters
If enacted, this would hold landlords accountable by making their ownership public. If property owner contact information was readily available, renters could communicate their needs and concerns easier. When tenants know who owns their home, they are better positioned to assert their rights and ensure their living conditions meet legal standards. The bill also can potentially promote better transparency in the housing market in general. Communities benefit when property ownership is clear, as it can prevent issues related to property neglect and ensure that landlords are held to high standards.
Next Steps
As initially stated, CB-059-2024 had its "second reading before the Council went on recess." This means that the bill has been discussed by the Planning, Housing, and Economic Development Committee, the relevant committee, and has been formally "read" and discussed by the full Council. CB-059-2024 now moves to the third reading. It will be here where the Council will read the bill one more and, with any amendments, hold a final debate and vote. CB-059-2024 is officially approved if it passes the vote on the third reading. As of today, the third reading has not been scheduled.
Text of CB-059-2024
Comments