Recently, the local and state legislatures have begun taking steps to combat skyrocketing rental prices. With over 1,000 people per day moving to Florida, investment money pouring in from all corners of the globe, and a scarcity of building materials, prices, for both sales and rentals, have skyrocketed over the last few years, to the point that many Central Florida residents in particular are feeling the negative effects of wages that can't keep up with costs of living increases.
Renewal Rates
The Orange County Commission recently passed a renewal ordinance, requiring landlords and property managers to inform tenants, in writing, at least 60 days in advance, if a tenants renewal rate will be higher than 5%. It is likely that the other surrounding counties in the Central Florida region may consider something similar. This is meant to give the tenants enough time to look and find something that may be more suitable prior to committing to renewing their lease.
Rent Control
The Orange County Commission also recently announced a rent control ordinance to be placed on the ballot this coming November. What this means is that rents would be limited so that they don't surpass the consumer price index.
There are a number of legal challenges that both of these moves face, but it is likely that even if these are struck down, the legislature will do something else in its place to try and alleviate the skyrocketing rent for renters in Central Florida. The Rent Control measure in particular is likely to be voted in favor of, in wide measure, but it is unclear as to whether State Law or the state legislature will allow this ordinance to actually take effect.
If you're an investor with multiple properties, it is important to keep an eye on both of these measures and see how this may affect your properties. If you're looking to sit down and discuss in depth what this may mean to you, feel free to give me a call at 407.517.8693, email me at isellcflhomes@gmail.com, or simply fill out the box below, and let's set a time to discuss further!