The landlords will have the option to increase rent more than 5%, they will just pay higher taxes if they do.
That said, like Marty, I don't support a policy like this at all.
I support policies that get more units built and then I trust supply and demand to figure it out.
But my trust isn't 100%.
We have this anti-competitive rent price collusion going on with RealPage. In a more just world, there would be swift court decisions putting RealPage out of business, and forcing the landlords who used it to return some money to renters. Trump should have made sure they were shut down back in 2017.
In their zeal to reduce or eliminate regulations on business, Republicans lately have been blind to fraudulent, anti-competitive, and kickback-based practices that are rampant in today's economy. And Democrats haven't helped either.

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