Naples considers 60-day landlord notice before increase of rent

The Naples City Council voted Wednesday to approve an ordinance that would require landlords to give timely notice before a rent hike, a law Collier County is still considering. 

The proposed ordinance would require landlords to give tenants 60 days' written notice prior to a rent increase of more than 5%. The council plans to schedule a second required reading and final vote by June 1. 

The Naples ordinance passed on first reading by a 6-1 vote, with Councilman Terry Hutchison voting against it. He expressed doubt that the 60-day notice would be fair to landlords who may incur unexpected costs such as "storm damage, septic to sewer conversions, property value tax assessments, and increases that are higher insurance costs."

"You know, 60 days later, we're saying that well, you should be able to handle that. I'm not so certain that that's the case," Hutchison said. 

Homeless counts in SWFL:Mixed findings but lack of affordable housing is grim

Affordable housing shortage has long been a problem in SWFL. Can we fix it?

The ordinance mirrors one that Miami-Dade County Mayor Daniella Levine Cava signed into law in March.

The city of Lake Worth Beach quickly followed suit, adopting a similar ordinance in April, and the city of Tampa may do the same pending the outcome of a vote May 19.

It is also the same law Collier commissioners rejected by a 3-2 vote May 10. Commissioners Rick LoCastro, Andy Solis and Bill McDaniel voted against the ordinance while commissioners Penny Taylor and Burt Saunders voted in favor.  

"You're not having to reinvent the wheel. You're just having to say, yes, I care about my community, I care about the people, I want to help them," Jacqualene Keay told council members during public comment on Wednesday.  "Or you can say, no, I don't care about my community. I don't care about my people. I don't want to help them. It's easy."

Keay is a candidate for the Collier County school board in District 5. 

In case you missed it:

• Collier commissioners reject law requiring landlord rent increase notice
• Collier officials on the fence over proposed rent increase notification law
• Collier residents discuss 60-day rental increase notice at emergency meeting

Warren L. Nyerges, a landlord of four rental properties in Collier County told the Naples Daily News that he sees the proposed ordinances in Naples and the county as government overreach that does not consider the needs of landlords already struggling financially in a competitive real estate market. 

"Most landlords work hard and create what we own. We are not greedy people. We want to make a fair return on our investment, just as everyone does, whether it be through personal businesses, real estate investments, mutual funds, or stock portfolios," Nyerges said. 

He added that passage of the new laws might cause him to no longer offer year-long lease terms and having his tenants go month to month.

"This way, we're not locked into a fixed rental (lease) structure for a year or more in some instance at a time with our tenants," he said. "If this proposal passes, I will use every option at my disposal to derail and challenge it."

Naples looking to Collier

The proposed law in Collier would apply to leases with at least a year-long term and would not include leased properties in the cities of Naples, Everglades, and Marco Island.

The County Commission is set to vote on an amended version of the ordinance at its next meeting May 24. Amendments will be based on recommendations of staff following an emergency meeting May 16 that included the Affordable Housing Advisory Committee. 

The special meeting was called by LoCastro after he voted against the ordinance May 10. LoCastro, who is a member of the advisory committee, did not attend the meeting, triggering criticism from members of the public and the committee.

Councilman Ray Christman mentioned that he would prefer Naples and Collier County's ordinances mirror each other "in order to have the maximum impact and benefits that we'd like to see."

He added: "We are not trying to influence any decisions that any landlord makes about rent increases or to involve the government in the discussions that would occur between a tenant and a landlord. It's entirely trying to provide a minimum level of notification for rent increases that are in excess of 5%."

At the May 10 meeting, Solis mentioned he would vote in favor of the ordinance if it was amended to include a provision that would alert tenants about the county's rental assistance programs.

Based on discussion among staff, committee members, and the public at the emergency meeting, the ordinance is expected to be changed to meet Solis' requests. 

However, during the city council meeting, Vice Mayor Michael McCabe suggested that he would not approve an ordinance that included Solis' suggestion. 

"Does the landlord have to go out and seek the information necessary to make sure that a tenant knows about it?" McCabe asked.

"It's putting too much on the landlord," adding that the ordinance as written was already "crystal clear."

Collier emergency rental assistance 

Collier has spent $5.2 million out of $11 million it received from the federal government under former President Trump's emergency rental assistance program. The money goes to qualified applicants living in Collier County, including Naples. 

The deadline to spend the remaining funds meant to assist households that are unable to pay rent or utilities is September before the money has to go back to the federal government. 

Related:Rental assistance program in Collier risks losing millions in unspent funds

According to data published by the U.S. Treasury Department, Collier is one of five local governments in the state that failed to spend more than 50% of the rental assistance funds by March 2022. Collier spent 38% of their allocation.

Emergency rental assistance funds went to 32 local governments in Florida early last year.

Applications for rental assistance and mortgage payments can be found on the Collier County government website: https://www.colliercountyhousing.com/community-assistance-program/

Connect with Government Watchdog Report Rachel Heimann Mercader: @racheyy_marie (Twitter), rachel.heimann@naplesnews.com, or cell: 239-359-7948