By Andy B. Cooper — Florida Licensed Real Estate Broker, SFR Certified · Cabana West Real Estate
A lot of first-time landlords picture passive income: collect rent, repeat. Then a water heater fails at 11 p.m., a tenant stops paying, or a deposit dispute lands in their lap, and they realize being a landlord is a real business with real legal duties. The owners who treat it that way from day one tend to do well. The ones who wing it tend to learn the hard way.
If you're thinking of renting out a property in Florida, here's what to get right before you hand over the keys.
Know the Law That Governs You
Residential rentals in Florida fall under the Florida Residential Landlord and Tenant Act, Florida Statutes Chapter 83. It defines your responsibilities and your tenant's, covering deposits, maintenance, notices, and the lawful process for handling problems. Read it, or have your attorney walk you through it, before you list.
Screen Tenants Carefully and Fairly
Good screening prevents most landlord headaches. A consistent process typically includes:
- Credit and background checks
- Income and employment verification
- Rental history and landlord references
Apply the same criteria to every applicant. Federal and Florida fair housing laws prohibit discrimination based on protected classes. Judge applicants on objective, financial criteria, not on personal characteristics.
Use a Solid, Written Lease
A clear lease protects everyone. Make sure yours addresses:
- Rent amount, due date, and late-fee terms
- Security deposit amount and handling
- Maintenance responsibilities
- Rules on pets, guests, and subletting
- Lease term and renewal or termination procedures
Handle Security Deposits the Right Way
Chapter 83 sets specific rules for holding and returning deposits. When you collect a deposit, you must follow the statute's notice requirements about where the money is held. At move-out, if you intend to keep any portion, you generally must send the tenant written notice within the statutory timeframe by certified mail. Miss that window and you may forfeit the right to make a claim. Keep meticulous records.
Maintain the Property
Florida landlords generally must comply with applicable building, housing, and health codes and keep the rental in a livable condition. Budget for ongoing maintenance and respond promptly to repair requests. A well-kept property keeps good tenants longer and reduces disputes.
Plan for the Money Side
Before you count on profit, account for:
- Property taxes (note: a rental is not your homestead, so it won't carry the homestead exemption)
- Insurance, often a landlord or dwelling policy rather than a standard homeowners policy
- Maintenance and repairs
- Vacancy periods between tenants
- HOA fees, if applicable
Rental income also has tax implications, so a CPA is worth the cost.
Decide: Self-Manage or Hire Help
Managing a rental takes time, knowledge of the law, and availability for emergencies. Some owners self-manage; others hire a property manager to handle screening, rent collection, maintenance, and compliance. Weigh your time against the cost.
FAQ
Q: How much can I charge for a security deposit in Florida?
Florida law doesn't cap the standard residential security deposit amount, but it does regulate how you hold and return it under Chapter 83. Follow the statute's notice rules carefully.
Q: Can I reject an applicant for any reason?
No. You may decline applicants based on lawful, objective criteria like income or credit, but you cannot discriminate based on protected classes under fair housing laws. Apply consistent standards to everyone.
Q: Do I need a special license to rent out my own home?
Generally an individual renting out their own property doesn't need a real estate license, but local rules, HOA restrictions, and short-term rental ordinances may apply. Check your local requirements.
Q: What happens if a tenant doesn't pay rent?
Florida law sets out a specific notice and legal process for nonpayment. Follow it precisely, and consult a Florida attorney rather than taking matters into your own hands.
Andy B. Cooper is a Florida Licensed Real Estate Broker, SFR Certified, and the owner of Cabana West Real Estate, serving Wellington, Palm Beach County, and all of Florida. Cabana West is a bilingual (English/Spanish) brokerage that helps property owners rent and manage with confidence.
Disclaimer: This article is for general educational purposes only and is not legal, tax, or financial advice. Landlord obligations involve strict procedures and deadlines. Consult a licensed Florida real estate attorney and a CPA before renting out your property.