Florida Rent Increase Laws: How Much Landlords Can Raise Rents

When you own a rental property, you want to ensure that you are at least covering your expenses - if not making a profit. You also want to treat your tenants fairly. It may be necessary to increase the rent from time to time, which leads to the question of how much you can raise the rent.

Florida has outlawed local rent control ordinances. Without rent control, landlords can charge whatever rent they believe is appropriate for their rental properties and increase the rent when necessary. The only real limit on landlords' ability to increase rent is what the market will bear.

Eaton Realty offers premier property management services to landlords throughout Hillsborough County, Florida. We help landlords handle all types of situations, including raising the rent, using our knowledge and expertise to make sure that it is done properly. If you own a rental property in the greater Tampa area, reach out today to talk to a member of our team.

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Does Florida Have Rent Control Laws?

Rent control refers to laws and regulations that specify how much a landlord can increase the price charged to tenants to rent a property. Other rent control laws limit evictions. Generally, cities and municipalities are responsible for enacting rent control laws. For example, New York City famously has rent control laws that allow some people to live in one of the most expensive cities in the world for relatively low rent.

Rent control regulations aim to ensure a supply of affordable housing, particularly in areas with high costs of living. However, some debate exists about whether these laws are the best way to achieve that goal.

Florida does not have any rent control laws. In fact, Florida law actually prohibits counties, municipalities, and other local government agencies from enacting any ordinance or rule that imposes controls on rent. The only exception to this law is if rent control laws are necessary to eliminate an existing housing emergency that is “so grave as to constitute a serious menace to the general public.” In the case of a housing emergency, a rent control ordinance could be enacted for 1 year.

In 2023, Governor DeSantis signed the Live Local Act into law. This law prohibits local governments in Florida from imposing rent stabilization or rent control ordinances, effectively preempting rent control laws. The act also contains measures designed to increase the state's affordable housing supply.

With no rent control in the Sunshine State, landlords are free to raise rent as they see fit. The only limitation on the amount of the increase is what the market will tolerate.

Raising Rent: Limits on Landlords

As a landlord, you are free to set the rent that you believe is proper for your rental properties. This includes increasing the rent for any currently-occupied properties.

If your tenant has a lease, you can probably only increase the rent after the current lease term has expired. A lease is a contract, and unless there is a clause explicitly allowing for rent increases during the lease term, increasing the rent would likely violate the lease without such a clause.

In some municipalities, you may be required to provide a 60-day notice to your tenants before increasing the rent by 5% or more. Beyond these ordinances, it is generally a good idea to give your tenants some notice before increasing the rent. As a practical matter, it is important for your tenants to make a decision about whether they can afford the increased rent - or if they want to find a new place to live. They also need to know the correct amount of rent to pay.

A good rule of thumb is to provide notice at least one payment period in advance. For example, if your tenant’s lease ends on June 30, 2025, you should probably provide them with notice by May 1, 2025. Depending on the length of the lease term, you might provide as little as 7 days’ notice (week-to-week) or as much as 60 days’ notice (year-to-year).

The only other limit on rent increases is that it cannot be done illegally. Specifically, a landlord cannot raise the rent to discriminate or retaliate against a tenant. For example, if a landlord learns that a tenant is gay and decides to raise the rent to force that tenant out because they don’t want to rent to gay people, it would be considered a discriminatory increase. Similarly, if the tenant files a complaint about living conditions with a local housing authority, a landlord cannot raise rent in retaliation.

A Tampa property manager can help you with the decision to increase rent - and provide the appropriate rent increase notice to your tenants. They can also ensure that any rent increase that you decide to do is done legally, not in violation of the lease or federal or state housing laws.

How To Determine What To Charge For Rent

When you decide to rent out a property, you must decide what to charge for rent. Ideally, this rent price should be enough to cover your expenses and result in a bit of profit as well. If you spend some time thinking about an appropriate rent, you might not need to increase your tenants’ rent.

Apply The 1% Rule

First, you can get a ballpark figure for rent by using the 1% rule. The way this works is simple: rent should be 1% of the value of your property. For example, if you have a rental property that is valued at $300,000, then the rent should be $3,000. This is just a rough estimate, but it can be a useful starting point before you dive into the details.

Calculate Your Expenses

Second, you should calculate your operating costs. This includes everything you will spend to pay for and maintain your rental property: your mortgage and interest, maintenance costs, homeowners’ association (HOA) fees, property taxes, and carrying costs if your property is vacant. Ideally, your rent should be high enough to cover your operating expenses and provide you with at least 5% of the gross monthly income as profit.

Perform A Rental Market Analysis

Third, you should run a rental market analysis. In other words, you will need to compare your rental property to similar rental properties in the area to help you decide on a price. You should look at the number of bedrooms and bathrooms, the neighborhood, the floor plan, and amenities like a pool, parking, and any upgrades to the house itself (like an updated kitchen). If your rental is located in Hillsborough County, Eaton Realty can perform a free professional rental market analysis for you.

Estimate Demand

Fourth, you should also examine the demand for rental properties in your town or city. Is the market oversaturated with rental properties or are rental properties snatched up as soon as they get on the market? Is there a seasonal aspect to rentals? For example, if your property is near a college or university, you might note that students are looking for rental properties at certain times of the year. Again, your property manager can help you understand demand in your market.

These factors should all be part of your calculation when setting rent. For example, you might have somewhat low operating costs because you got a great deal on the property. You might only need to charge $1,000 a month to cover expenses and turn a profit - but a house like yours rents for $2,500 to $3,000 in your neighborhood and there is high demand for rental properties. In this situation, you would almost certainly want to charge rent that is comparable to other properties, which will help ensure that you not only make a profit but have enough in reserve to pay your expenses even if the property is vacant.

No matter how careful you are in deciding what rent to charge, there will almost certainly be times when raising rent is necessary - perhaps due to unexpected maintenance or repairs, or tax or insurance increases. Our team of skilled Tampa property managers will work with you to help you set a fair price for rent and handle any rent increase notices that may be necessary.

Seamless Property Management with Eaton Realty

Being a landlord can be a great way to build your financial future. However, it still requires a fair amount of work and attention to detail. Our Tampa property management experts will handle the day-to-day of managing your properties for you, from marketing and listing to rent collection, maintenance, and tenant notices.

At Eaton Realty, we offer full-service real estate services, including property purchases, sales, and management. We work with landlords throughout West Central Florida to ensure their rental properties are operated efficiently. We can also help you find and purchase a rental property - or sell one of your units when the time is right. If you’d like to learn more, fill out our online contact form or give us a call at 813-672-8022 to talk to a team member.