When you’re renting out your property in Nevada, you need to stay on top of the rental laws that dictate how you manage your property and your tenant. Sometimes, the changes can be head-spinning.
As you probably remember, in 2019, SB 151 was passed, which limited the amount of late fees you could collect on overdue rent to no more than five percent of the rental amount.
There are new regulations in place, and we want to make sure you’re up to speed.
Late Fee Restrictions on Nevada Rental Properties
The latest law, AB 308, says that owners and Nevada property managers cannot charge late fees until at least three days after rent is due on a monthly rental. So, if rent is due on the first of the month and it isn’t paid, the late fee cannot be charged to your tenants until the fourth of the month.
If the lease agreement you’re using states something different, you must still follow the new law from now on. For example, if your lease says that late fees are charged on the second, you must now wait until the fourth to charge late fees. Otherwise, you could be in violation of state law, and a tenant could win a legal case against you. At lease renewal, you will need to update your lease to comply with state law.
Landlords who don’t follow all laws can find themselves facing expensive legal issues. AtStrawberry Property Management Las Vegas, we keep up with law changes to help our landlord and investor clients avoid costly legal problems.
Rent Increases on Nevada Rental Properties
When you’re renting out a property for a month or longer, there are new requirements on notice that you’ll need to provide when the rent is going up.
To comply with AB 308, we must provide at least 60 days of notice before a rental increase goes into effect. So, if you want the rent to go up on January 1, you’ll need to notify your tenants in writing of the new rental amount no later than November 1.
No Mandated Rent Control in Nevada
While these new legislative bills are a little less landlord-friendly, Nevada remains one of the best environments for landlords and investors in the western U.S. There aren’t any rent control laws on the books and while owners are required to limit what they charge in late fees and when they impose those fees, they are still free to increase the rent as much as they want when leases renew, and with proper notice.
This doesn’t mean you should make huge leaps in the rental amount you’re charging. It could backfire, leaving you with a longer vacancy period that will quickly disrupt your cash flow and eat into your ROI.
You have to do some research on what similar properties are renting for, and you have to attach rental values that meet the market conditions. Typically atStrawberry Property Management Las Vegas, we recommend keeping rent increases to slightly under market rents. Here’s why:
- You’ll have an easier time attracting tenants to your property when it’s on the market. Tenants are smarter than they’ve ever been before, and they know what they’re willing to pay.
- You’ll encourage good tenants to stay in place. Retention is a great way to leverage your assets and maximize what you earn. Turnover is costly, and it’s the number one reason renters move. When rents go up too high, your good tenants begin looking elsewhere.
- Reasonable increases are more profitable. If you’re too aggressive with increases, you’re going to spend more money than you expected on marketing for a new renter, making maintenance fixes, and paying to protect the property while it’s vacant.
If you have any questions about the new laws or anything pertaining to Las Vegas property management, we’re your best resource. Contact us atStrawberry Property Management Las Vegas.