Portland Rent Board approves modest increases for 305 Deering Ave after lengthy debate on owner‑performed management fees

The Portland Rent Board on April 22 approved modest monthly rent increases for two units at 305 Deering Avenue after an extended public hearing and deliberation focused on whether owners may recover self‑performed management work as an operating expense.

The board concluded that a reasonable owner‑performed management fee for the current year is $3,150 and adopted final allowable monthly increases of $79.96 for Unit 307 and $89.12 for Unit 305. The motions passed unanimously following detailed questioning of the applicant and a lengthy exchange among board members about evidence and precedent.

The applicant, Anna, told the board she had taken on more management responsibilities and documented time spent preparing the application. “I think upwards of 40 [hours],” Anna said when asked to estimate the time she had spent on application work and related management activities. Board members requested invoices and itemized breakdowns for capital work and owner‑performed labor to support the claims.

Much of the meeting turned on how to separate one‑time, capital or repair work from ongoing management duties. Board member Kristen argued that management activity is real work and should be compensable whether done by a third‑party firm or by the owner: “Buildings just don't manage themselves… These activities, somebody has to do it,” she said. Laura warned that paying a landlord for management work can look like “one hand paying the other,” noting the risk that a landlord could collect increased rent and later stop paying an outside manager while retaining the higher income.

Counsel advised that the board’s current regulations are framed as a reasonableness standard rather than a detailed rulebook and suggested the board consider rulemaking to define what qualifies as owner‑performed labor vs. management fees. The board agreed: members said they want clearer, consistent standards to apply in future cases.

To reach a practical resolution for this application, board members used the applicant’s own estimate of a $35 hourly opportunity cost and subtracted time the applicant said was devoted to preparing the application. Working from that range the board settled on the $3,150 figure as a reasonable management fee for the year under review and then applied banked rent calculations so previously authorized but not yet realized increases would not be double‑counted.

Chair Matthew called the motion and the board voted unanimously. Counsel then recommended a brief executive‑session consultation on the legal framing, which the board authorized under 1 M.R.S. §405(6)(E). After returning from recess and final math checks, the board formalized the per‑unit increases and recorded all votes.

The board also requested that staff and counsel prepare materials for a rulemaking process to define management‑fee eligibility, hourly rates, and evidence requirements going forward. That work will determine documentation landlords must supply (invoices, time logs, spreadsheets and lease histories) when claiming owner‑performed labor or management fee recovery.

The board’s action resolves the 305 Deering application for this cycle but signals broader policy work ahead: members repeatedly said they anticipate refining the rules so future evaluations are more transparent and consistent.