With rents rising all over the country, property managers, landlords, and tenants everywhere are wondering what the laws are surrounding rent increases. In some states, rent control and stabilization laws prevent landlords from making rent increases over a certain percentage within a set period of time. In other states, rent is not regulated at all. In this post, we’ll go over where Florida stands in terms of rental rate regulations and rent increases, including when a landlord can, and cannot, raise a tenant’s rent.
Understanding Florida’s Legal Framework for Rent Increases
Florida is one of the states that does not regulate rental rates for residential or commercial property. Not only does Florida not regulate rental rates on a statewide level, but any attempt to control rents by local governments is expressly banned by Florida Statute § 125.0103. This means that a landlord can increase a tenant’s rental rate by any amount, at any time, as long as they adhere to any existing lease terms and provide adequate notification to the tenant of the upcoming rental rate increase.
Notice Requirements for Rent Increases
Florida law does require that landlords give tenants adequate notice before raising their rental rate. While there is no clear cut definition of “adequate”, the general rule of thumb is as follows:
- For a year-long lease and rental agreement, a 60-day notice of the intent to increase rent is required
- For a month-to-month lease or rental agreement, a 15-day notice of the intent to increase rent is required
- For a week-to-week lease or rental agreement, a 7-day notice of the intent to increase rent is required
For tenants under a fixed lease or rental agreement, the landlord must honor the rental rate set in the lease or rental agreement for the duration specified. Only upon renewal of the lease or rental agreement can the landlord attempt to raise the rental rate, at which point the tenant can accept and renew the contract or decline and move.
When Increasing Rent is Illegal
While Florida does not regulate property rental rates, making it generally okay for landlords to raise rent as they like, there are a few instances where raising the rent could be considered illegal. If a landlord raises the rent on a tenant in a discriminatory fashion or retaliation for the tenant voicing a complaint, then the rent increase could be a violation of the Federal Fair Housing Act. A few areas in Florida, like Miami-Dade County, expand on these protections to include some other population groups.
Best Ways to Handle Raising the Rent
No tenant ever wants to hear that they’re rent is going up, even if they’re expecting it. However, making these decisions and notifying tenants are necessary parts of being a landlord or property management company. When delivering this type of news, it’s essential to follow best industry practices to avoid conflicts and ensure the law is being followed:
Give as Much Lead Time as Possible
Even though the industry rule-of-thumb may say you only have to give a tenant a 7-day notice of an upcoming rent increase, we all know this is not really enough time to find another place to live and actually move there. Give tenants as much time as possible to locate another residence when making a choice to raise the rental rate. If you know about the increase 60 days ahead of time, give the tenant that much time to make their decision and plans. Treat your tenants as you would like to be treated yourself.
Communicate Openly
When informing a tenant about an upcoming rental rate increase, explain your rationale for the increase to help the tenant understand why the increase is necessary. From rising taxes to insurance to maintenance costs, the cost of being a landlord is always going up, and unfortunately that means rent has to as well. By communicating openly with tenants about the reasons behind rent increase decisions, you can develop trust and avoid harsh feelings. Also be willing to listen to and address the tenant’s response and concerns.
Do Your Research
If your plan is to raise rents due to rising rents across the local market, come to the discussion with the tenant armed with that information. Show them reports and graphs detailing the local rise in rental rates to back up your claims. Don’t expect them to just take what you say at face value – have the facts ready to go so you’re well prepared when uncomfortable questions come up.
Rental Property in Southwest Florida? Douglas Realty Property Management is Here to Help
If you own rental property in southwest Florida, including the cities of Cape Coral, Fort Myers, San Carlos, Punta Gorda, Port Charlotte, Lehigh Acres, and North Port, you need a dedicated property manager you can trust. From finding and screening tenants to handling maintenance requests to dealing with rent increases, the team at Douglas Realty Property Management knows this area inside and out, always securing the very best tenants at competitive rental rates for our landlord clients. For more information about how we can turn your rental properties into a truly passive yet lucrative income stream, contact us at 239-542-6906 or message us online.
