Rent Control: What You Can Do as an Orlando Real Estate InvestorLiam Pool
Orlando does not have any rent control, and unless something dramatic and unexpected happens, the city cannot pass a rent control bill anytime soon. That’s because a state law in Florida prohibits municipalities and cities from implementing any limits on what landlords can charge their tenants in rent.
This is one of the reasons so many out-of-state investors choose to acquire rental properties in Orlando. This is a landlord-friendly state, and the only thing stopping you from charging sky-high rent is the market and a pool of well-educated tenants who know what your home is actually worth.
There’s no rent control here, but that doesn’t mean you should be reckless when establishing a rental value or raising the rent at renewal time. Here are some of the things you can do as an Orlando investor to maximize what you earn without chasing away well-qualified tenants.
Setting Your Rental Value: Study the Orlando Rental Market
Property owners do not ultimately set the rent. It’s set by the market. If you’re hoping to earn $3,000 a month on a property but everything else that’s similar to yours is only renting for $2,000 a month, you’ll need some really special amenities or agreeable rental terms to find a tenant who is willing to pay so much more than what the market demands.
Analyze the comparable market data in order to set a competitive and profitable rent. Compare your property to those currently on the market, and remember that things change quickly. Maybe a home rented for $2,500 last month. A similar home next month may rent for $2,300. It really depends on what’s happening in the local market and with tenants economically.
You can look for listings online to get an idea of what homes are renting for in your neighborhood. It’s better to get a rental analysis from an Orlando property management company. We can check the Multiple Listing Service (MLS) to find out how the market is trending. We can see actual prices that homes have rented for. It also shows us how many days the property was on the market, which helps us manage the initial property pricing.
Property Condition Impacts Your Price, Too
While the market is not something you can control as a property owner, there are ways to increase the value of your Orlando rental property. If your property is renovated and well-maintained, with attractive landscaping and upgraded appliances and lighting, you can probably earn more.
Unique features are also going to impact your rental value. If there’s an attached or detached garage, a garden shed or a workshop, or a fenced yard, you may be able to ask a little more. If you’re going to allow pets, you’ll have an easier time attracting good tenants for higher rents.
Think about the attractiveness of your property. Time of year will also have an impact. There may be a lot of demand or a waning demand because of the winter season or the holidays.
Renewals and Orlando Tenant Retention
Vacancy and turnover costs can eat into your ROI faster than anything else. When you have a good tenant in place, who pays rent on time, reports maintenance in a timely manner, and takes care of your property, you want to do everything you can to keep that tenant.
Don’t be unreasonable when it’s time to renew the lease agreement and you’re thinking about increasing the rent.
You should raise it by two or three percent, unless the market says otherwise. Most tenants expect a small increase from year to year. Even though there are no rent control requirements, you should still be careful when you’re trying to retain a tenant. You want a higher rent so you can meet increased costs, especially when it comes to maintenance. However, remember that it will cost you much more to turn the property over and prepare it for a new tenant. Make sure your rental increase is reasonable.
We can help you with pricing and with market data. When you’re ready to talk about your Orlando rental property’s value, contact us at Homevest Management. We provide expert Orlando property management, real estate, property rentals, and HOA management. We serve all of central Florida, including Winter Garden, Doctor Phillips, Baldwin Park, Winter Springs, and Windermere.