Frequently Asked Questions

Frequently Asked Questions Montclair’s Rent Regulation (Chapter 257)

Montclair Township’s Rent Control Ordinance, codified under Chapter 257 Rent Regulation in the Township Code, went into effect on May 9, 2022.  This fact sheet provides general information regarding rent control and the administration of the ordinance and should not be considered legal advice.  Please refer to Chapter 257 for the entire text of the ordinance.

The Rent Control Office and the Rent Control Board participate in the administration of Rent Regulation, what are their respective duties? See §257-4 - §257-5

The Rent Control Office:

  • Obtains, maintains, and makes records available for inspection such as Landlord Registrations Statements, Vacancy Allowance Applications, etc.
  • Provides information to landlords and tenants
  • Assists landlords and tenants with conflict resolutions and compliance
  • Accepts, processes, and investigates tenant complaints
  • Refers cases to the Rent Control Board as appropriate
  • Attends all Rent Control Board meetings

The Rent Control Board holds hearings and renders determinations regarding:

  • Major Capital Improvement rent increase applications
  • Major Additional Services Surcharge applications
  • Hardship rent increase applications
  • Decline in Services rent decrease applications
  • Appeals of determinations made by the Rent Control Officer

What structures ARE NOT included in the rent control ordinance? See §257-2

  • Units in buildings in which the owner resides that contain three or fewer residential units.
  • Units for which the amount of rent is determined as a function of household income by a government program.
  • Motels, hotels, and similar type buildings intended for transient use, floor space used strictly for commercial purposes in any type of building, including state-licensed rooming houses.
  • Dwelling units rented for the first time after the adoption of Chapter 257  (May 9, 2022). (The initial rent may be determined by the landlord, but all subsequent rents are subject to the provisions of Chapter 257).
  • Dwelling units exempted by state or federal law.
  • Single-family homes, single condominiums, single co-operative units.
  • Housing provided for students by a school, college, or similar institution which owns and/or controls that housing.

What structures ARE included in Montclair’s new rent control ordinance?

  • Rental units in buildings containing 2 or 3 units in which the owner does not reside.
  • All units in buildings containing 4 units or more (except for exceptions listed above).

What is “base rent”? See §257-3 [1].

  • For any dwelling unit where the landlord collected an increase in rent from an existing tenant on or after May 1, 2020, the base rent shall be the rent in effect as of May 1, 2020.
  • For any dwelling where the landlord provided notice of a rent increase to an existing tenant but did not collect or otherwise seek to collect such increase, on or after May 1, 2020, the base rent shall be the rent in effect as of May 1, 2020.

What are the permitted increases in “base rent” under Chapter 257? See §257-9

  • The maximum permissible annual rent increase on a dwelling unit is 4% of the base rent which cannot be charged more than once in any 12-month period, as long as no tenant living in the unit is 65 years or older. 
  • If at least one tenant is living in the dwelling unit who is 65 years or older, the maximum annual increase is 2.5% of the base rent.
  • A one-time 6% increase of the base rent is permitted for as long as the landlord did not raise the rent on an existing tenant between May 1, 2020, and May 9, 2022, AND as long as no tenant living in the unit is 65 years or older.

 [1]  Refer to ordinance for any updates or modifications of the definition.

Is parking covered by Chapter 257? See §257-11

Yes, any parking provided by the landlord, or anyone related to the landlord, rented in conjunction with the apartment rental to the tenant, whether or not billed separately, is subject to Chapter 257. Any increases to parking must not exceed the maximum permissible annual rent increase. 

Are there circumstances under which a landlord can raise the rent above the maximum permissible rent increase as described above?  See §257-9

Under certain circumstances and upon application to and approval of the Rent Control Board, a landlord may raise the rent over the maximum permissible annual rent increase of 4% or 2.5%.  Such circumstances include:

  • Application for a Hardship Increase. The annual operating expenses for any one building exceed at least 65% of the total gross income.    
  • Application for a Major Capital Improvement or Major Additional Services Surcharge. 

    The improvement or service inures a benefit for the tenant, that was not previously provided or required to be provided by law or lease. It materially adds to the value of the dwelling or housing space and prolongs its life; includes a substantial increase in services, furniture, furnishings, or equipment provided to tenants since the date of the most recent rent increase and it that must not be upkeep, maintenance, repairs, rehabilitation or replacement of items or services. See § 257-3

  • Vacancy Allowance Application. Upon submission to the Rent Control Office, a landlord may increase the rent over the maximum permissible annual rent increase of 4% or 2.5% in vacant units if; See § 257-12
    • The vacancy is due to a voluntary, uncoerced vacation of the property, and
    • An application is submitted no more than once in 5 years.

What can I do if my question is not answered here?

Submit your question to RentControl@montclairnjusa.org

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