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economics Economy

Rents and inflation

For months I have been posting about how the eviction moratorium is killing landlords. Many landlords are leaving the business, on top of that, there is inflation to deal with. The increased costs, increased risk, increased demand, and falling supply has combined with record inflation to put a lot of pressure on rental prices.

So now Orlando area residential rents are seeing the highest rate increases in history. In the last year, rent in the Orlando market has increased nearly 14%. I know that we have seen increases in our costs: insurance, taxes, lawn maintenance, and other expenses have increased. This means that we will be increasing rent on our properties, I just don’t know by how much yet. The increase will be at least four percent, maybe as much as ten. I will know more in the fall. Our next lease renews right before Thanksgiving, so I will know by mid October.

5 replies on “Rents and inflation”

A couple coworkers wete discussing the issue of rent moratoriums, ours expires soon.

One coworker was happy because both of his rental properties have renters who never missed a payment. The other coworker is out thousands because the tenants in his one property have not paid in a year, even though they are getting covid cash and bought a new quad and other toys. Plus he got fined by the city because the renters stopped mowing the lawn.

These moritoriums were never about protecting people during the crisis but about destroying peoples income.

“The increase will be at least four percent, maybe as much as ten.”

Aim high – since a lease increase is at least a year away, and costs are constantly and instantly variable, build in a “safety buffer.” Might be possible to make it more palatable to a renter by offering some sort of end-of-lease kickback if costs do not rise by the maximum, but that can very easily become an expectation to be complained about if it does not materialize.

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