Portland's Rental Property Rules: The Rules That Matter

Every city handles rental property rules a little differently. In Portland, Maine, there are 5 distinct rules that residents and property owners should be aware of. Some are stricter than what neighboring cities enforce, and others are more relaxed. Here is what you need to know.

Rent Control

Portland caps how much landlords can raise rent on most rental units under the voter-approved Rent Stabilization Ordinance, Code of Ordinances Chapter 6, Article VI. The Housing Safety Office sets an Allowable Increase Percentage every September equal to 70 percent of the change in the Boston-area Consumer Price Index, and Sec. 6-231 exempts owner-occupied two-to-four-unit buildings, subsidized housing, dorms, religious facilities and accessory dwelling units from the cap.

Key details: Governing law: Rent Stabilization Ordinance, Ch. 6 Art. VI. Annual cap formula: 70% of Boston-area CPI-U change. Hard ceiling per increase: 10 percent maximum. Base rent snapshot date: Rent charged as of June 1, 2020. Turnover increase allowed: 5% extra on voluntary vacancy.

Charging rent above the registered Base Rent plus permitted increases violates Sec. 235.1, and any single increase exceeding the 10 percent ceiling in Sec. 6-234(c) is void as to the excess. The Housing Safety Office investigates overcharge reports; unresolved disputes go to the Rent Board for a de novo hearing under Sec. 6-263(c), which can order refunds and set penalties consistent with the Code.

This is one of the stricter rules in Portland's municipal code. If you are unsure whether your situation complies, it is worth checking with the city before proceeding.

Repairs & Habitability

Portland's Housing Code sets minimum structural habitability standards for every dwelling in the city. Sec. 6-108 bars occupying or renting a unit whose foundations, walls, roof, floors, windows, or stairways fail to meet weathertight, vermin-proof, and structurally sound standards, and unfit properties can be condemned.

Key details: Core standard: Weathertight, vermin-proof, structurally sound. Condemnation trigger: Unsanitary, unsafe, or missing utilities. Enforcing authority: Health or building authority. Posted property: Cannot be reoccupied until compliant. Securing penalty: $500 plus actual costs if city must secure it.

Violations of Article V's habitability standards are punished under Sec. 6-130 and Sec. 6-1(a)(3): a minimum $100 and maximum $2,500 per day, rising to $500-$5,000 per day after a written correction notice is ignored, and $1,500-$10,000 per day after a second notice. Sec. 6-131 separately allows the city to secure a dangerous property itself and bill the owner $500 plus actual securing costs.

This is one of the stricter rules in Portland's municipal code. If you are unsure whether your situation complies, it is worth checking with the city before proceeding.

Rent Increase Notice

Before raising rent on a covered unit, a Portland landlord must deliver a signed written notice at least 90 days before the increase takes effect. Code of Ordinances § 6-234(d) requires the notice to state the tenancy start date, the increase date and amount, any remaining banked rent, and the increase's justification: a notice missing that information is void.

Key details: Minimum notice: 90 days before increase, in writing. Must state: Tenancy start date, increase date & amount. Must disclose: Any remaining Banked Rent. Must include: Justification under § 6-234(b). Noncompliant notice: Void: increase unenforceable.

Serving a rent-increase notice that omits the tenancy start date, increase date, amount, banked-rent balance or required justification is a violation of Article VI, and § 6-234(d) declares the entire notice void: the landlord cannot collect the increase. Tenants report noncompliant notices to the Housing Safety Office, which can refer unresolved cases to the Rent Board for a de novo hearing and penalty determination.

Rental Registration

Every rental unit in Portland, long-term or short-term, must be registered with the Permitting and Inspections Department under City Code §§ 6-150-6-151, renewed every January 1, with a new unit required to register within 14 days of entering the rental market.

Key details: Governing sections: §§ 6-150, 6-151, 6-152. Annual deadline: January 1 each year. New unit deadline: 14 days after entering market. Long-term fee: $55/year ($30 funds Rent Board). Late fees: $50 after Jan 15; $200 after Feb 15.

Section 6-155 lists specific violations subject to § 6-1 penalties: failing to timely register a unit or file a required update, an unregistered short-term rental failing to display its registration number, renting any unregistered rental unit, and providing false registration information, the last of which carries a flat $1,000 penalty regardless of § 6-1. Section 6-156(b) separately bars the city from issuing a certificate of occupancy for any property subject to registration that isn't registered.

Just Cause Eviction

Portland landlords can't end a tenancy on short notice. Code of Ordinances § 6-236(a) requires a minimum 90-day written notice to terminate, dropping only for a 7-day for-cause termination under 14 M.R.S. § 6002(1), a short-term rental under 30 days, or if the landlord pays one or two months' rent to shorten the notice to 60-89 or 30-59 days.

Key details: Default notice: 90 days, written. For-cause exception: 7 days, under 14 M.R.S. § 6002(1). Short-term rentals: Under 30-day terms exempt. 1-month buyout: Shortens notice to 60-89 days. 2-month buyout: Shortens notice to 30-59 days.

A termination notice given with fewer than 90 days' notice, without qualifying for the 7-day for-cause exception, the short-term-rental exemption, or a compliant buyout under § 6-236(a), violates the Rent Stabilization Ordinance. Landlords who evict or otherwise retaliate against a tenant within six months of a Rent Board complaint face the rebuttable presumption of retaliation in § 6-237(e).

This is not one of those rules that cities tend to ignore. Portland actively enforces its just cause eviction requirements.

The Bottom Line

Portland is tougher than many cities when it comes to rental property rules. Out of the 5 rules covered here, 3 are rated strict. If you are a homeowner, renter, or business owner in Portland, take the time to understand these requirements before they become a problem. Most violations come with fines, and some repeat violations can escalate.

All of the above reflects Portland's municipal code as of our last review. If you need specifics on fines, exemptions, or filing requirements, the detailed ordinance pages linked above have the full breakdown.