Did you know that Florida has no rent control or rent stabilization laws? This means Sarasota landlords can increase rental rates as long as they properly notify their tenants.
Landlords can increase rent with limited consequences whenever they want, but that doesn't always mean that they should.
It's important to set a fair rental rate based on property values in the area. Doing so can help you maximize your income. Keep reading to learn more.
Florida Rent Control
Although landlords can increase rental rates as they please, they must abide by current lease agreements. Landlords and tenants sign and agree to lease terms. Normally, a lease lasts a year.
When raising the rent, you still have to follow fair housing policies. A property management company can help you stay compliant with this federal law and other local laws.
Once a current lease is up, landlords can raise the rent price. Rent increase laws state how much notice you must provide to tenants.
For example, if you are offering a year-long lease renewal, you have to provide the tenant with at least a 60-day notice in writing of the rent increase.
Week-to-week tenants don't get as much notice. Typically, you can let them know of a rent increase seven or more days before the changes take place.
Writing Rent Increase Notices
It's easy to write a rent increase notice, especially after the first time. Once you have an outline in place, you can use the same template to notify multiple tenants simply.
Some of the most important information a notice requires includes:
- New rent price and current rent price
- Date the rent price changes
- Tenant name and address
- A property manager or landlord's name
- Timeframe to renew
To avoid any disputes, make sure you have a section in all lease agreements stating your right to increase rent. Reference the lease in your notice to remind tenants what they agreed to upon signing their lease.
How to Calculate Rental Increases
Learning how to calculate rental increases depends on your reasoning for doing so. Because landlords can increase rent for almost any reason, rental increase calculations can be very specific.
If you are increasing rent to afford modern appliances, consider the costs of the new items. Then add a little extra to profit from your improvement.
If you are increasing rent to put more money into your pocket, do some rental market research. Find out the average property market value in Sarasota to ensure your rental price isn't too high.
Comparing your rental with neighborhood rent prices is the best way to learn what tenants are willing to pay. You can also use a rent increase calculator or seek help from a property manager.
How a Sarasota Property Manager Can Help
A Sarasota property manager can teach you how to calculate rent increases. They do so in a way that will keep quality tenants and maximize your profits.
Gulf Coast Property Management is your premier management service in Sarasota. Since 2003, we've worked in the local area and have dedicated time to understanding it to its fullest.
Our comprehensive services prevent landlord burnout. Let us run the day-to-day for you! Discover how you can maximize profits now with our free ROI calculator.
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