Orlando renters feel crunch as vacancies fall, prices rise

Orlando renters are feeling the squeeze as deals and vacancies disappear while rents have increased more than almost anywhere in the country.

Metro Orlando rents were up 8 percent in March from a year earlier — the third biggest jump among the nation’s top 137 markets — according to a report from ALN Apartment Data. Virtually no units are available in the Orlando area for students or for affordable housing, and competition for apartments overall in the region has mounted.

“The landlord is now in the driver’s seat in terms of being able to dictate,” said Orlando attorney Peter McGrath, who specializes in landlord-tenant disputes. “Whether it's deposits, pets, you name it, landlords are really insulating themselves as much as possible and foisting as much responsibility as possible on the tenants.”

Perhaps the biggest challenge for renters is rising costs. The midpoint monthly rent for Or-

ange, Seminole, Osceola and Lake counties was $1,242, increasing 8 percent from March of last year. Only Reno, Nev., and Springfield, Mo., renters experienced sharper rent boosts during that time.

Some say renters now face greater disadvantages as economic pressures increasingly favor landlords.

Orlando resident Latiya Collins said she tried to get her landlord to make repairs, including stopping rainwater from leaking into an electrical box. Ultimately she reported the problems to county code enforcement officers, and they were addressed. But she soon faced an eviction and hired an attorney to help her fight it.

Court records from the eviction show that the fees she owes include administrative fees related to courier services and paymentportal costs, and she said the charges are unfair.

“Their form of harassment has been to put all these charges on me for things that I shouldn't be paying,” she said.

Renters say they face more fees, penalties and unrefunded deposits as property management becomes a big business. Equity funds, institutional buyers and other investors have purchased more than 16,000 residential properties in the four-county Orlando region, according to analytics firm Attom Data Solutions.

One of the leading groups is the Blackstone Group’s Invitation Homes, which grew more powerful in August when it merged with corporate landlord Starwood Waypoint Homes and became the largest owner of single-family rentals in the United States, according to the group. A spokeswoman for the company said the group has less than half a percent of the country’s single-family rental market and works hard to ensure residents have great experiences at every step of the process.

“Our homes are an affordable option for individuals and families seeking to live in great houses near good schools and jobs,” said Clare Parker, spokeswoman for the company. “Residents give us high ratings for customer service and satisfaction, and renew their leases and stay 50 percent longer compared to the apartment industry.”

At least one tenant, though, is taking the company to court. Orlando resident Christopher C. Coburn filed a legal complaint against Invitations Homes for refusing to return his $1,650 deposit after he provided a video showing that he left the house on Blue Major Drive clean and in good condition.

“They always, always keep the deposit, and most people don’t know what to do, so they roll over and die,” said Coburn, who owns a company that helps consumers restore their credit. Renters, he added, usually accept their landlords’ terms because they fear marks against their credit rating that could ultimately hurt their chances of becoming homeowners.

Tony Romano, director of the Atlanta-based nonproft Right to the City, said renters are bearing a new burden. His group is affiliated with tenants-rights groups nationally, including several in South Florida.

“I think what the folks are experiencing on the ground in Orlando is rising rents, which are going through the roof, which cause evictions or force them to pay a large portion of their paychecks to rent,” Romano said. “And the other thing you have is owners who are putting very little resources in properties to maintain them.”

The outlook for renters is unlikely to improve in the near future. Daren Blomquist, senior vice president with Attom Data Solutions, said upward pressures are likely to mount on rental rates.

“Home affordability constraints, along with a preference for renting over buying, will continue to place upward pressure on rental rates and downward pressure on vacancy rates, forcing renters to spend more of their income on housing or pushing them to move to a more affordable market,” Blomquist said.