If you're a landlord in Charlotte, you’ve faced this question: How much should I raise the rent this year? It’s not always a simple answer (especially with new rules possibly on the horizon).

There’s talk of a new rule that would limit rent increases to 5% per year. While this might sound like a fair cap, it doesn’t always reflect what’s happening in the real world.

Landlords don’t just pick a number randomly. They research comparable properties in the area to make sure our rent is in line with the current market. Some years, that means raising rent by less than 5% like right now. Other years, when the market shifts, a larger increase might be necessary to keep up with rising costs.

What This Could Mean for Renters and Owners

If this legislation passes, it could actually have the opposite effect of what’s intended. Instead of protecting renters, it might encourage new landlords to automatically raise rent by 5% every year, even when the market doesn’t call for it  just to stay ahead of the cap.

That’s not necessarily good for renters, and it removes the flexibility that many responsible landlords use to keep rent fair and competitive.

Raising rent should always be based on market data, property condition, and tenant relationships not a fixed percentage. The proposed 5% cap could unintentionally lead to routine increases that don’t benefit anyone in the long run.