PropM, Inc. is a professional property management company serving the Sarasota / Bradenton & Portland area. Our topic today is rent control laws, and it’s important you find information that is specific to your city and municipality. When we’re talking about legal changes, the requirements always depend on where you’re located.
Rent Control is Timing and Amount
Rent control is controversial. No state has really discovered an effective policy. The rent prices are easing up a little, and nationwide there’s only a 1.7 percent rent increase on average. Rent control is the government’s attempt to restrict rent increases. They try to manage the timing, meaning you have to give tenants longer notice when rent is going to be increased, and the amount of the increase. Rent is driven by supply and demand, which makes it a tough subject. If you control the rent increases, you’re also hurting the builders and investors because they won’t buy or build if they can’t get top dollar. Which is more impactful to the economy?
Market Driven Rental Prices
We see lots of different areas where rental increases require extra notice, and some areas don’t allow increases over a certain amount. It’s important to plan ahead and allow the market to ultimately drive the rent price. If you’re asking a price that’s too high, you’ll notice no leads are coming in. You won’t get any interest, so it does control itself.
Supply and Demand
With rent prices slowing down, there may not be so many people debating this subject. However, you need to be aware that it’s a supply and demand issue. With less inventory, builders will charge higher rents and if people are lining up to pay for them, they will get the rent they want. Determining how much you can increase that rent over time is yet to be determined.
We are watching rent control laws very carefully. It’s part of our property management in Sarasota / Bradenton and property management in Portland. There are good prices for rentals right now that might hurt home ownership numbers because tenants can get a lot for their money. If you have any questions about rent control, please contact us at PropM, Inc.
