Rental Rates: Stabilizing After a High-Growth Period
After years of rapid increases, rental rates in Central Florida have leveled off in recent months.
Orlando’s average rents are about 2% lower than a year ago and essentially flat
month-over-month. This modest dip comes on the heels of the pandemic-era boom when some Florida landlords saw annual rent hikes above 20% – a trend that cooled significantly in 2024. For context, the average advertised apartment rent in Orlando was around $1,767 in late 2024 (Orlando Multifamily Market Report – December 2024 - Yardi Matrix), reflecting a slight decline as new units came onto the market. Single-family home rentals, which typically command higher rents due to size and privacy, also saw slower growth. Property owners who could easily raise the rent last year are finding that pricing a home the same as in 2023 might now prolong vacancies. In short, the rental market has shifted from red-hot to manageable, requiring landlords to price competitively and perhaps offer small incentives to attract quality tenants.
Vacancy Trends: High Supply Meets Steady Demand
A surge of new apartment construction in 2023-2024 pushed vacancies up slightly, but recent trends show stabilization. In fact, Orlando’s multifamily vacancy inched lower in Q3 2024 as the market began absorbing the new supply. Overall rental vacancy for the metro (all property types) sits in the high-single digits (approximately 8.9%) (Comprehensive Housing Market Analysis for Orlando-Kissimmee-Sanford, Florida), a bit higher than pre-pandemic levels. The apartment sector has felt the impact of nearly 12,000 new units delivered last year – with an apartment vacancy rate around 9.9% mid-2024 and average rents down ~2% year-on-year to
$1,786 (Comprehensive Housing Market Analysis for Orlando-Kissimmee-Sanford, Florida). By contrast, many single-family rentals fill quickly, as families and longer-term renters tend to stay put. Market experts anticipate that we are at or near the peak in vacant inventory, since the pace of new completions is slowing (Central Florida Public Media). Going forward, as fewer new rentals hit the market, any excess vacancy should begin to ease.
Fierce Competition: Orlando was ranked the 13th most competitive rental market in the nation last year, with roughly 10 prospective renters per available unit (Central Florida Public Media). Even with more apartments available, demand remains strong.
High Renewals: About 66% of Orlando renters renewed their leases in 2024 rather than move (Central Florida Public Media). This high renewal rate signals that many tenants prefer to stay put – likely to avoid tough competition and rent hikes elsewhere.
Despite an uptick in supply, Central Florida’s population growth and job recovery continue to drive solid rental demand. Average asking rents, though off their peak, are still over 11% higher than three years ago, underscoring the market’s long-term strength. Property owners
should monitor local vacancy in their neighborhood; in many desirable Orlando communities, it’s not unusual to find multiple applications for a well-priced listing. The recent plateau in rents and occupancy suggests a healthier balance between landlords and renters, a trend that could continue into the next quarter if no major supply shocks occur.
New Landlord Regulations and Policy Changes
Florida implemented several important regulatory changes in the past year that affect Central Florida landlords. It’s crucial for property owners to understand these updates to stay compliant and maximize returns:
Statewide Rental Law Preemption: Florida passed a law centralizing tenant-landlord regulations at the state level, voiding stricter local rules. For example, Orange County’s ordinance requiring 60 days’ notice for big rent increases is now overridden (Florida Governor Signs Preemption Legislation Impacting Tenant Protections across State | National Low Income Housing Coalition). All counties must follow the uniform state statutes moving forward.
30-Day Notice for Rent Changes or Termination: As of July 2023, landlords must give at least 30 days’ written notice for any rent increase (of any amount). Similarly, ending a month-to-month rental agreement now requires 30 days’ notice by the landlord (Florida Governor Signs Preemption Legislation Impacting Tenant Protections across State | National Low Income Housing Coalition) – a change from the previous 15-day notice rule. This gives tenants more time to adjust and has become standard practice statewide.
Security Deposit Alternative: A new provision in Florida law allows landlords to offer tenants the option of paying a non-refundable fee instead of a security deposit. While this fee (often paid monthly) can lower move-in costs for renters, owners should weigh the trade-offs since it cannot be used to cover damages. Proper insurance or guarantees are advised if using this alternative.
Rent Control Ban: Florida reinforced its ban on local rent control measures (Florida Governor Signs Preemption Legislation Impacting Tenant Protections across State | National Low Income Housing Coalition). No city or county in Central Florida can impose caps on rent increases, except in narrowly defined emergencies and with state approval. For landlords, this means rental pricing remains market-driven, but also that sudden spikes in costs (like insurance or taxes) can be passed through within legal notice requirements.
Staying up-to-date on these regulations helps landlords avoid penalties and maintain positive tenant relationships. Documentation is key – always provide required notices in writing and keep records. With the state preempting local ordinances, property owners should review their lease agreements to ensure they reflect current Florida law (e.g. updated notice periods and any offer of deposit alternatives).
Overall, Central Florida’s rental market as we enter 2025 is more balanced than the frenetic pace of the prior two years. Slightly softer rents and higher vacancies in late 2024 were a natural result of abundant new construction, but those conditions are showing signs of improvement. For property owners, this environment calls for strategic thinking: set competitive rent prices, emphasize your property’s best features (since renters have more choices now), and be mindful of the latest legal requirements. The good news is that Orlando’s long-term fundamentals – job growth, population gains, and desirability – remain very strong. By adjusting to current market signals, landlords can minimize vacancies and secure quality tenants even in this evolving landscape.
Partner with Ackley for Expert Property Management
Navigating these trends and rules can be time-consuming, but you don’t have to do it alone. Ackley Florida Property Management is here to help Central Florida property owners succeed in any market climate. Our team closely tracks rental rates, screens tenants to reduce vacancy time, and ensures full compliance with Florida’s latest regulations. Let us handle the details while you enjoy stress-free rental income. Call Ackley at 407-846-8846 today to discuss how we can maximize your investment and keep your rental property performing at its best.
