Learn the facts about the rent control proposal that will be on the ballot during the midterm elections next month
As an Orlando multifamily owner or landlord, you’ve likely heard of the Orange County rent stabilization ordinance over the past few months, but it’s important for you to fully understand what it entails and how it would affect you and your tenants before voting during the 2022 midterm elections next month.
What is the Orange County rent stabilization ordinance?
Voted to be placed on the ballot by the Orange County Board of County Commissioners in early August, the Orange County rent stabilization ordinance would require landlords and owners of multifamily properties with over four units to cap rent increases for one year based on the most recent 12 month average percentage change in the Consumer Price Index. [1,2]
As part of the ordinance, compliance would be ensured by requiring landlords to send registration statements to the Orange County Planning Department. [2]
The ordinance will be on the ballot for the public to vote yes or no during the midterm elections on November 8.
When will the ordinance take effect?
If passed during the election on November 8, the ordinance could take effect as early as November 21 of this year and last for one full year. [1]
What types of multifamily properties would be affected?
The ordinance would affect existing multifamily properties that are not considered luxury apartment buildings based on the definition in Florida Statutes §125.0103(4). [2]
The types of multifamily properties that would be exempt from the ordinance includes:
- Seasonal or tourist units
- Second housing units (including accessory dwelling units)
- Units located in a luxury apartment building per the definition in Florida Statutes §125.0103(4)
- Units located in single-family homes, townhomes, condominiums, or mobile homes
- Units owned, operated, or managed by a government agency
- Units located in a cooperative apartment occupied by a holder of a proprietary lease
- Units located in a disability facility, hospital, nursing home, assisted care community, or other health care facility
- Units for which the landlord receives federal, state or local housing subsidies
- Units currently under rent control by virtue of local, state, or federal housing subsidy
- New rental units that receive a Certificate of Occupancy on or after the effective date of the Ordinance [2]
What do proponents of the ordinance say?
Although the ordinance alone would not fix the affordable housing crisis, proponents believe that it would allow residents to plan for rent increases and should be enacted alongside other affordable housing policies like creating a tenants’ bill of rights. [1,3]
What do opponents of the ordinance say?
Opponents of the ordinance believe that it does not solve the affordable housing crisis and it would harm the value of multifamily housing in Orlando.
“This ordinance is like drinking Kool-Aid. It tastes delicious at the moment, but it’s not providing the nutrition that eating vegetables does,” says Joe LaFleur, multifamily investment advisor and co-founder of 100Units. “The housing crisis in Orlando is a supply and demand issue. We have too much demand with over 30,000 people moving into the Central Florida market, and only 15,000 units being built by multifamily developers.”
How can I prepare for the ordinance to pass as an owner or landlord?
“First, make sure you’re not renewing leases that will come due in the next 12 months, but if you are, make sure you’re pushing rents all the way to market,” advises Joe. “Second, as you renew leases, make sure you’re editing the leases, so that there’s rent plus other fees like utility reimbursement, trash fees, service fees, and pest control fees.”
How we can help
At 100Units, our multifamily investment advisors are well-versed in what’s going on in the Greater Orlando multifamily market such as how this ordinance will affect our network of investors.
As a specialized team, we’re always here to hear you out or offer advice as you navigate changes in the Orlando multifamily market.
Interested in speaking with one of our highly-qualified advisors?
Call us at 866-GO-UNITS or fill out this form for someone to reach out to you.
Sources:
1: Orlando Business Journal | Orange County Commission sends rent stabilization ordinance to voters
2: Lowndes | Orange County Commissioners Approve Rent Stabilization Measure for November Ballot
3: Orlando Business Journal | Orange County to hire consultant to study possible rent control policy