Rent Increases and Decreases: What is Rent Control?

The average monthly rent of apartments in Florida has increased substantially in the past year. As of September 2021, the average rent of a two-bedroom apartment in Florida cost 1,670 U.S. dollars, which was an increase of approximately 350 U.S. dollars from September 2020.

What is Rent Control?

Rent control is a system of rent regulation, typically implemented as a local government ordinance, that sets price ceilings on how much landlords can charge for rent on residential properties. It is intended to make housing more affordable and accessible for low- and moderate-income residents by capping the amount of rent that landlords can charge.

There are two types of rent control: vacancy control and rental control. Vacancy control means that landlords cannot raise the rent above a certain amount when a tenant moves out. Rental control means that landlords cannot raise the rent above a certain amount at any time, regardless of whether or not a tenant has moved out.

What are the Different Types of Rent Control?

In general, there are three types of rent increases:

  1. Yearly allowable increases
  2. Pass-throughs for capital improvements
  3. Vacancy decontrol

Yearly allowable increases are increases that landlords are allowed to pass on to tenants each year, up to a maximum amount set by the municipality. These increases are often tied to the Consumer Price Index (CPI), which is a measure of inflation.

Pass-throughs for capital improvements are one-time increases that landlords can pass on to tenants if they have made significant improvements to the property, such as installing a new roof or upgrading the plumbing. The amount of the increase is typically based on the cost of the improvement and is spread out over a period of years.

Vacancy decontrol is when rental rates are allowed to increase to the market rate when a tenant moves out. This can result in significant rent increases for tenants, as landlords are able to capitalize on the turnover in their units.

Rent stabilization is when there is a limit on how much rents can be increased each year, regardless of the CPI. This ensures that tenants have some stability in their rental payments from year to year.

Rent control is when there is a cap on how much landlords can charge for rent, regardless of the CPI or any other factors. This can result in below-market rents, which can be a boon for tenants but can also lead to disrepair and neglect if landlords are not able to keep up with maintenance and repairs.

Why was Rent Control Created?

Rent control was created as a way to keep housing affordable for low- and moderate-income renters. By capping how much landlords can charge for rent, it ensures that these renters are not priced out of their homes as rents increase.

What Are the Pros of Rent Control?

There are several pros of rent control, including:

  • It keeps housing affordable for low- and moderate-income renters.
  • It protects tenants from being evicted solely for the purpose of increasing rent.
  • It allows tenants to stay in their homes even if their income decreases.
  • It encourages landlords to keep their properties well-maintained.

What Are the Cons of Rent Control?

There are also several cons of rent control, including:

  • It can decrease the availability of rental housing.
  • It can lead to lower-quality housing.
  • It can discourage landlords from making needed repairs.
  • It can result in higher rents for those not covered by rent control

Overall, rent control can have both positive and negative consequences depending on the specific situation. It is important to consider all of these factors before making a decision about whether or not to implement rent control in a particular area.

Florida Rent Control Laws

Florida is a state that does not have any statewide rent control laws. This means that cities and counties are unable to enact their own rent control ordinances. However, there are a few exceptions:

  • The first exception is for manufactured homes. Manufactured homes are regulated by the state, and there are limits on how much landlords can increase rent each year.
  • The second exception is for mobile home parks. Mobile home parks are also regulated by the state, and there are limits on how much landlords can increase rent.
  • The third exception is for public housing. Public housing is housing that is owned and operated by government agencies, such as the Housing Authority. Government-owned housing is subject to federal laws, which do place some restrictions on how much rents can be increased.

The Cost of Rent in Florida

Rent prices in Miami have increased by 10% over the past month and a 66% increase from last year’s rates. Currently, the median price of a one-bedroom apartment in Miami sits at $2,700. A two-bedroom apartment sits at $3,600.

Fort Lauderdale rent prices have increased by 3% over the past month. According to year-over-year comparisons, rent prices have increased by 41% compared to last year at the same time. Currently, a one-bedroom median price is $1,975, and a two-bedroom price sits at $3,024.

Rent control laws vary from state to state. In Florida, there are no statewide rent control laws. However, some localities have enacted their own rent control ordinances.

There are a number of different ways to implement rent control. Some jurisdictions limit the amount that landlords can increase rent each year. Others place controls on the initial rent that landlords can charge for an apartment or other rental units.

What Affects the Cost of Rent in Florida?

The cost of rent in Florida is affected by a number of factors, including the local economy, the availability of housing, and state and local regulations.

In addition, landlords may charge different rents for different units in the same building, depending on the unit’s amenities, size, and location.

The Local Economy

The local economy plays a significant role in determining the cost of the rent. When the economy is strong and there is high demand for housing, landlords can charge higher rents. Conversely, when the economy is weak and there is less demand for housing, landlords may be forced to lower their rent in order to fill their units.

The Availability of Housing

The availability of housing also affects the cost of the rent. When there is a shortage of housing, landlords can charge higher rents because there are more people looking for apartments than there are available units. On the other hand, when there is an overabundance of housing, landlords may be forced to lower their rents in order to attract tenants.

State and Local Regulations

State and local governments also play a role in the cost of rent, which can affect the laws and regulations for Florida rent control. Florida rent control laws may vary depending on the area you live in.

For example, some cities or counties have implemented rent control ordinances, which place limits on how much landlords can increase rent each year. Other areas may have laws that prohibit landlords from evicting tenants without cause.

The type of housing you are looking for will also affect the cost of the rent. For example, apartments in luxury buildings with amenities such as swimming pools and fitness centers may be more expensive than other types of housing. Similarly, apartments that are located in desirable neighborhoods or close to public transportation may also be more expensive than other units.

Your income is another factor that will affect the cost of your rent. Landlords typically want tenants who earn three times the monthly rent to qualify for an apartment. For example, if you are looking for an apartment that costs $1,000 per month, the landlord will likely want you to earn at least $3,000 per month.

Finally, the number of bedrooms in an apartment will also affect the cost of the rent. Generally speaking, the more bedrooms an apartment has, the more expensive it will be. These are just some of the factors that can affect the cost of rent in Florida. Be sure to do your research before signing a lease so that you know what to expect.

How to Negotiate the Cost of Rent

If you are looking to rent an apartment in Florida, there are a few things you can do to try to negotiate the cost of the rent.

  • First, it is important to remember that the landlord wants to find a tenant who will pay their rent on time and take care of the property. With this in mind, be sure to have your finances in order before you start looking for an apartment. This will show the landlord that you are responsible and capable of paying the rent.
  • Second, try to find an apartment that is not in high demand. If there are many people interested in renting the same apartment, the landlord will be less likely to negotiate on price. However, if there are not many people interested, the landlord may be more willing to negotiate.
  • Third, be prepared to sign a lease for at least a year. Landlords are usually more willing to negotiate on price if you are willing to commit to a longer lease.
  • Fourth, be sure to ask about any discounts that the landlord may offer. For example, some landlords offer a discount for paying rent on time or for signing a longer lease.
  • Fifth, be prepared to move in quickly. If you can move in as soon as possible, the landlord may be more likely to offer a lower price.
  • Sixth, keep in mind that the landlord may not be willing to negotiate on price if they think that they can find someone who is willing to pay the full amount.

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Mitchell IssaRent Increases and Decreases: What is Rent Control?
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