Raising the monthly rent on a Brevard County investment property is something every landlord will inevitably experience. There are many reasons to raise the rent on your property, including increasing your profits, accommodating tax increases, paying for maintenance or improvements, or matching market rates. When raising the rent, it’s important to consider vacancy rates and tenant turnover—too low, and you may miss out on profit, but too high, and you might face extended vacancy periods. In Florida, there is no cap on how much a landlord can raise their property rent, which ensures you can keep up with the market. If you are a landlord in Brevard County, keep reading to learn the steps you should follow when raising the rent on your property.
Step One: Research the Brevard County Rental Market
The first step before increasing rent should be assessing the local real estate market. Market research can ensure you avoid overcharging or undercharging your tenants. As mentioned above, overcharging tenants could lead to increased complaints or extended vacancy periods, while undercharging tenants could result in lost profit.
You can research the market by looking at Brevard County rental advertisements or speaking to other landlords who own comparable properties. There are also online tools to help you learn about the price of rentals in your area. Alternatively, to get your property’s most accurate rental values, you should speak to an experienced Brevard County property manager who knows your local area.
Step Two: Consider Your Cash Flow
To build a successful rental business, you need to maintain a good cash flow. A positive cash flow means that your business is profitable and running smoothly. As a landlord, your ultimate goal should be to earn more money than you spend, and increasing rent may be the best way to achieve this.
When deciding on your optimal rental price, it’s important to factor in your expenses, such as;
- Insurance premiums
- Property taxes
- Cost-of-living expenses
- Property management fees
- HOA dues
- Utility expenses (if applicable)
These numbers should also be reviewed before every lease renewal period to ensure you’re still adequately covering your expenses.
Step Three: Determine How Much to Raise the Rent
A comparative market analysis (CMA) is the best way to determine how much you should raise your rent. When correctly done, a CMA will ensure you charge a competitive rent that will help you achieve top dollar. Aside from the profit, setting a competitive rental rate will also help reduce tenant turnover. Lower tenant turnover means you can save on marketing costs you would otherwise incur when finding new tenants.
If you need help with completing a CMA, contact a knowledgeable local property management company that can help.
Step Four: Follow Florida’s, Landlord-Tenant Laws
Your lease agreement and Florida’s landlord-tenant laws will dictate when you can increase rent. In general, landlords are required to give tenants 60 days’ notice before increasing the rent in Brevard County. It’s important to note that no statute dictates the amount the rent can be increased. This notice period ensures that tenants have the opportunity to adjust their budget accordingly and prepare for the rental increase.
Step Five: Provide Tenants with a Rent Increase Notice
Finally, you should officially inform your tenants of your intention to raise the rent in a clear and precise written communication. This will help to minimize potential conflicts. It’s essential to leave no room for confusion and to address all of your tenant’s concerns if applicable. If you feel uncomfortable communicating this with your tenant, consider hiring a licensed property manager who can do it on your behalf. A property manager can ensure that all tenant communications are professional and abide by applicable Florida tenancy laws.
Hire A Property Manager in Brevard County
For a Brevard County landlord, rent increases are a normal part of doing business. You should periodically review your rental rates for each property to ensure they reflect the local market. If you need help raising the rent on your Space Coast rental property or have questions about renting your property, click here to connect with one of our experienced property managers today. We’ve helped hundreds of landlords across Brevard County to increase their profits and scale their rental business efficiently.