Finding the perfect rental rate to maximize your profits as a landlord while maintaining as close to 100% occupancy as possible is always the goal. The rental market has been volatile in recent years, leaving many landlords unsure of how to adjust their rates while also being fair and ethical with tenants. Florida’s laws, both state and local levels, play a vital role in how rental rate increases must be handled. All landlords should be intimately familiar with said laws or use a reputable property management company to do so for them.
Rental Rates are on the Rise
If you stay tuned in to the rental market here in Florida, there’s no doubt that you’ve heard reports on the recent rise in rental rates, both residential and commercial. Zillow estimates that as of June 2024, Florida’s average rental rate of $2,500 sits at 18% over the national average. This is due to the wave of inflation sweeping the globe which has increased the cost of owning and maintaining real property, an influx of remote-workers moving to Florida during the COVID-19 pandemic, a lack of rent control laws, and an overvaluation of the rental market in general. While there has been some slowing of rent increases in the state during 2024, several Florida housing markets continue to dominate the top U.S. housing market lists.
No Rent Increase Laws Allowed in Florida
One contributing factor to the recent rise in Florida’s rental rates is the state’s official stance on the topic, with no state or local-level laws allowed on the books to prohibit rental rate increases or establish caps. Florida is known for being a very business-friendly location, so landlords are free to raise their rents as often as they like, for almost any reason. In 1977, Florida passed a ban on all rent control measures except in a few situations, including the declaration of a housing emergency. In 2023, Governor Ron DeSantis removed the housing emergency exception in the “Live Local Act”, prohibiting rent control measures of any kind in the state, except in the cases of discrimination or retaliation, which are prohibited under the federal Fair Housing Act. It’s important to note that along with the banning of rent control, the Live Local Act also includes a huge investment in affordable housing in Florida, less zoning restriction for multi-family housing, special programs for first responders, and programs to curb the impact of housing price inflation.
Rent Increase Notifications to Tenants
While rent control itself is not allowed in Florida, local laws can be enacted to mandate certain notification requirements when rent is being raised. Very few localities actually have these laws in place though.
Even with laws to govern rental rate increase notifications, it is standard practice to use the same notification periods required for lease termination:
- Week-to-week lease: 7 days’ notice
- Month-to-month lease: 15 days’ notice
- Quarter-to-quarter lease: 30 days’ notice
- Year-to-year lease: 60 days’ notice
Manage Rental Rates for Your Properties Like a Pro
Are you struggling to figure out the ideal rental rate for your southwest Florida properties? Douglas Realty Property Management can help. Our rental market professionals can set you up for success as a landlord with competitive rental rates, high occupancy rates, and gold-star service. For properties in Ft. Myers, Cape Coral, San Carlos, Lehigh Acres, Port Charlotte, Punta Gorda, North Port, or nearby areas, set up property management services with Douglas by calling 239-542-6906 or send a message online.
