Understanding rental rates may not seem obvious to investors or property owners, especially if you’re a new landlord. You might be asking yourself, “How much rent can I charge for my property on the east coast of Florida?” or “What is the recommended percentage-wise increase in this market?”
There are many factors and legal considerations to anticipate when increasing rent prices.
What Factors Increase Property Value?
To stay ahead of the curve when it comes to rental rate increases, you’ll need a clear understanding of your market area. Three main factors play into how to handle rent increases for local property owners:
Location is influential when it comes to setting rental rates. You’ll need to consider things like the distance of your property from local attractions or businesses, public transportation, and other amenities, as well as how much competition your rental property faces from similar properties in the area. Stay up to date on what other landlords in your area are charging for rent and average lease terms.
2. Property Type
Property type is another important factor when it comes to setting rental rates. For example, a studio apartment will likely rent less than a three-bedroom house. Additionally, properties that come furnished may charge a bit more than those unfurnished.
3. Current Market Conditions
Current market conditions will also affect how much rent you can charge for your property. If the market is experiencing high demand and low vacancy, landlords can usually charge more for their properties. However, if the market is saturated or in a downward trend, landlords may need to adjust their rental rates to attract tenants.
How Does this Correlate with Rent Increases?
Landlords want to know how much they can increase their monthly rates once their tenant’s contract is up without being too harsh on tenants and violating state or federal law.
What is the Average Rent Increase Percentage for Landlords in Florida?
The answer depends on the location of your property. In some markets, like Miami-Dade County or Broward County, it’s not uncommon for landlords to raise rents by as much as ten percent or more. However, in other areas like the city of Cape Coral and Lee County in Florida, it’s not uncommon to see increases of around five to seven percent. In many cases, supply and demand influence rental rates within a given area.
Jupiter, FL, located in Palm Beach County and Florida’s east coast, is an area that has grown in popularity among investors and property owners. The region, known for its beautiful beaches and unspoiled natural areas, makes it one of Florida’s most desirable and profitable vacation rental destinations. However, to do so successfully requires understanding how to increase rents on properties and when to do so.
The best way to approach raising rent on your properties is by doing your due diligence and carefully analyzing the market so you can increase rents in line with what other landlords are asking.
Other Factors to Consider When Looking to Increase Your Rental Rate in Florida
1. Market Rates
When it comes time for a landlord to increase rents on their properties, there are a few things to consider. The first is the seasonality of the market. Properties in prime locations along the coast can often command higher rents during the seasonal months when demand is highest. However, landlords should also consider how much they want to increase rents and ensure they are still within market range.
If the time has come to increase rents on your properties, take the necessary steps to ensure a smooth transition for your tenants. Give them adequate notice of the increase and a reasonable timeframe for finding new housing if they cannot afford the increased rent. Florida law allows rental agreements to be either written or oral, but notices must be in writing.
Pro tip: Our expert property managers’ advice is to have written agreements and notices. Oral agreements can be misinterpreted and are hard to prove.
2. Market Demand
Landlords need to consider market rates and demand when increasing rents on their properties. While many investors are eager to raise rents to take advantage of current trends or conditions, not doing so may prevent them from fully capitalizing off a high-demand property.
Take the time to understand your market and be aware of current conditions. These factors will help ensure that you can increase rents on properties for maximum return but still fall within the fair market range. A competitive pricing strategy, amenities, and a great location can help warrant a high-demand property.
3. Market Analysis
Rent increases are typical, especially in high-demand regions, and this presents one of the most difficult aspects of being a landlord. However, some factors can influence how much you increase rent and the best time to do so for Florida properties.
One of the most important things to consider is what other landlords in your area are charging for rent, as well as average lease terms. A comprehensive market analysis can give you a good idea of how much you can increase rents while still within the market range. Additionally, it’s important to be aware of any recent changes in the market that may affect the demand for rental units.
The changing demand for rental properties in your region can also play into how much landlords can increase rent. Properties located in prime vacation destinations, like Miami Beach or Fort Lauderdale, may experience higher rates during seasonal months when demand is high. Other areas will see lower increases due to low vacancy rates and saturated markets where landlords cannot charge as much.
By doing your due diligence and carefully analyzing the market, landlords can increase rents on their Florida rental properties with confidence, knowing they are in line with what other investors are charging.
When preparing rent increases for your properties, take the appropriate measures to make a seamless change for your tenants. Preserve healthy relationships with existing renters by thinking about their best interests.
Stay up to date on what other landlords are charging in your area, as well as average lease terms for the Jupiter, FL area. And finally, remember to consider market demand when increasing rents.
The easiest solution to reduce the stress and confusion of successfully increasing rents on your rental properties is to use a reputable local property management company.
Let Real Property Management Sunstate Do the Hard Work for You
Leave the hard work to Real Property Management Sunstate. We provide experienced property management in Jupiter and throughout Palm Beach County.
If you’re a landlord looking to increase rents, reduce costs, and improve cash flow on Jupiter and Palm Beach County properties, contact us online or call us at 877-373-8404.
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