Rent Control in Florida
Under Florida law, local governments are allowed to consider rent control if there is a housing crisis that is so bad it is considered a serious menace to the general public and rent control is necessary and proper to eliminate the housing emergency. Even if Florida’s local governments find the housing crisis is a serious menace, rent control is only allowed for one year. The rent control can neither be extended nor renewed but, rather, local officials must vote on new rent control measures to meet the serious housing need. Under HB 6053 and SB 1390, the need to vote for new rent control measures after one year would be eliminated.
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Orlando’s Housing Crisis
According to a 2018 report from the National Low Income Housing Coalition, there are a mere 17 rental units available for every 100 low income renters in the region covering Orlando, Kissimmee, and Sanford. Studies show that Orlando renters must earn at least $33,900.00 annually to rent a studio apartment without spending more than 30% of his or her income on rent and utilities. The United Way reports that nearly half of Central Floridian households struggled to cover basic needs like food, healthcare, childcare, and transportation costs in 2016.
Impact of Rent Control on Florida Tenants and Landlords
The public policy theory behind rent control is to allow tenants the ability to live in an area that they may otherwise have been priced out due to the rising rental market. As a result of rent control a tenant can expect a small and steady increase in rent costs instead of getting a notice all of a sudden one day that rent has increased by thousands of dollars.
While rent control benefits tenants, there is a negative impact on landlords. This is because rent controlled properties and units are often rented out at prices to tenants that are much lower than the market value rate for comparable residencies. In fact, rent controlled properties can also cost landlords money due to the costs of repairs, mortgage, taxes, and insurance expenses.
Rent control generally puts a ceiling, or cap, on the amount a property owner can charge for rent.
Orlando Residential Real Estate Attorneys
The commercial and residential real estate attorneys at Bogin, Munns & Munns have 40 years of experience handling all types of real estate matters. Whether you have questions about rent control and are a landlord or tenant in Orlando or anywhere else in Florida, our skilled lawyers can explain your rights under Florida law. Contact us today to schedule your real estate consultation.
NOTICE: The article above is not intended to serve as legal advice, and you should not rely on it as such. It is offered only as general information. You should consult with a duly licensed attorney regarding your Florida legal matter, as every situation is unique. Please know that merely reading this article, subscribing to this blog, or otherwise contacting Bogin, Munns & Munns does not establish an attorney-client relationship with our firm. Should you seek legal representation from Bogin, Munns & Munns, any such representation must first be agreed to by the firm and confirmed in a written agreement.