Needing some help regarding rentals in Naples, Florida

[Dana Kimberly]

Hi,  I would love to hear back from people who are familiar with South West Florida.

I have a relative that has a condo that he rents out in Naples, Florida.

He currently has great renters and would like to draw up a 2 year lease with them to have them stay on. What percentage increase in rent would you suggest for year two....2.5%, more...or..less?

I really appreciate any and all feedback!

[Josh Yelensky]

Dana,

We have a property management company in Naples.

Couple things:

1. If the property is located in a condo association, most will only allow a maximum lease of 1 year.  A lease longer than that could violate those rules and regulations.

2. Rental increases are very specific to each property.  Payment history, maintenance, property taxes, association dues, and the current market all play a role.

3. In my experience, most people will not move for 2-3% increase if their rental experience has been positive.  I am always honest with tenants about why we are increasing rent.

Hope this helps!

Josh