Connecticut bill limits rental increases after property ownership transfer

On February 14, 2025, the Connecticut State Legislature introduced House Bill 6892, aimed at regulating rental charges in residential properties upon ownership transfer. The bill seeks to address rising housing costs and protect tenants from excessive rent increases, particularly in a market where affordability has become a pressing concern.

The key provision of House Bill 6892 establishes a presumption that any proposed rental increase exceeding ten percent following a change in ownership is excessive, unless the new owner has undertaken significant renovations. These renovations must involve at least two primary building systems, such as plumbing, heating, or electrical systems. This measure is designed to ensure that tenants are not unfairly burdened by sudden spikes in rent, especially when ownership changes hands.

Debate surrounding the bill has highlighted concerns from both landlords and tenant advocacy groups. Proponents argue that the legislation is essential for maintaining housing affordability and stability for renters, particularly in urban areas where housing costs have surged. Conversely, some landlords express apprehension that the bill could deter investment in rental properties and limit their ability to recoup costs associated with property improvements.

The economic implications of House Bill 6892 could be significant. By capping rental increases, the bill may help stabilize the housing market and provide tenants with greater financial predictability. However, critics warn that it could also lead to reduced property maintenance and investment, potentially exacerbating housing quality issues in the long term.

As the bill progresses through the legislative process, its future remains uncertain. Stakeholders are closely monitoring discussions, with potential amendments likely to emerge as lawmakers seek to balance the interests of tenants and property owners. The bill is set to take effect on July 1, 2025, should it pass, marking a pivotal moment in Connecticut's approach to housing regulation.