How to be a landlord in Florida

Thinking of Becoming a Landlord?
Here are some helpful things to consider to decide if this is the right decision for you!

Becoming a landlord can be an exciting way to build wealth and create a steady stream of income. It’s also a big responsibility that comes with important legal, financial, and logistical steps. Whether you’re renting out your first home or adding another property to your portfolio, taking the time to prepare will help set you — and your tenants — up for success.

Below, we’ve put together a guide to walk you through the key things to consider before making the leap into property management.

Checklist

Open up an LLC and Move Home to LLC
Set up a limited liability company (LLC) to protect your personal assets and move the property under it for liability protection and clearer financial separation.

Get a New Insurance Policy
Switch to an insurance policy specifically for investment or rental properties, as standard homeowner policies typically don’t cover rental situations.

Understand Tax Changes
Once you rent out the home, your homestead exemption will be removed, leading to an increase in property taxes.

Florida Rental Income Tax
While Florida doesn’t have a state-level income tax, it does charge a 6% state sales tax on all rental income.
Florida Sales Tax Guide
Consult a CPA to verify your tax obligations.

Subscribe to a Landlord-Tenant Portal
Platforms like TurboTenant or Avail make it easy to manage tenant applications, payments, and maintenance requests.

Consult a CPA
Get professional advice on how to structure your business and understand tax implications before renting out your home.

Open an Escrow Account
Security deposits must be held in a separate escrow account. These can be set up at most local banks.

Learn Florida Landlord-Tenant Laws
Familiarize yourself with Florida statutes to understand your responsibilities and legal requirements.

Check With Your HOA

Confirm that rentals are allowed in your community.
Some HOAs limit the percentage of homes that can be rented.
Ask if there’s a minimum ownership period before leasing (some require one year of owner occupancy).
Tenants typically need HOA approval, so understanding this process upfront is crucial.

Apply for a Rental Tax Certificate
You’ll need to apply with your local governing authorities before renting out your property.

How Listing Your Home for Rent Works

When listing your home for rent, the process typically includes:

Tenant Screening – Tenants submit a full rental package including background check, credit score, eviction history, proof of income (at least 3x monthly rent), and a signed contract to lease.
Deposits – Standard practice is to collect first month’s rent, last month’s rent, and a security deposit equal to one month’s rent.
HOA Fees – Many HOAs charge separate application and approval fees for tenants.
Listing Fees – The cost to list your home for rent is one month’s rent, split between the listing brokerage and tenant’s brokerage.

Our services include:

Professional photos
MLS listing
Supra lockbox access
Coordinating and communicating with cooperating brokers
Providing and reviewing documents
Qualifying rental applications
Being present for move-in day with a detailed checklist and key hand-off

Note: Our brokerage only facilitates annual rentals.

Documents & Access Needed

Please email [email protected] the following before listing:

All HOA documents, rules, and regulations
Spare key to the home
Fobs for amenities
Gate code entry

These items will be uploaded to the MLS to streamline the process for tenant agents and applicants.

Questions We Will Have for You

Will you permit pets? If so, what is your pet deposit?
What does the HOA cover vs. the tenant? (e.g., utilities, water, cable, internet)
Will you require tenants to have renter’s insurance?
Have you confirmed with your HOA that you are permitted to rent your property?
Is the property furnished or unfurnished?
Is parking included? Are there fees for additional spaces?
Is laundry included?

Is Renting Profitable?

To determine if renting your property makes financial sense:

Calculate rental income – total expected rent each month.
Estimate vacancy rate – commonly estimated between 5%-10% annually.
Deduct operating expenses – these typically include:
- Property taxes
- Insurance
- Maintenance and repairs
- Property management fees (if applicable)
- Utilities not covered by tenants
- HOA fees (if applicable)
- Other recurring costs
Calculate Net Operating Income (NOI) – rental income minus operating expenses.
Factor in mortgage payments – deduct this from NOI to determine cash flow after financing.
Consult a tax professional – to understand any additional income tax obligations.

Using a rental calculator can make this process easier and provide a clearer picture of potential profit.

Utilize this helpful rental calculator: CLICK HERE

What Else Should You Know?

Legal Requirements and Obligations

Fair Housing Laws
As a landlord in Florida, you must comply with federal fair housing laws, which prohibit discrimination against tenants based on protected characteristics such as race, color, national origin, religion, sex, familial status, and disability.

Landlord-Tenant Laws
Florida has specific landlord-tenant laws that outline the rights and responsibilities of both parties. These laws cover various aspects such as lease agreements, security deposits, rent increases, repairs, and evictions.

Lease Agreements
You must provide tenants with a written lease agreement that clearly outlines the terms and conditions of the tenancy. This includes the lease duration, rent amount and due date, security deposit, pet policies, and rules regarding maintenance and repairs.

Security Deposits
Florida law limits the amount you can charge for a security deposit. It also specifies the procedures for collecting, holding, and returning deposits at the end of the tenancy.

Maintenance and Repairs
As a landlord, you are responsible for keeping the property in a habitable condition and making timely repairs. Neglecting these duties can result in legal consequences and liability.

Notice Requirements
Florida law outlines specific notice requirements for actions such as entering the property, terminating the tenancy, or making changes to the lease.

Evictions
If a tenant violates the lease or fails to pay rent, you may have grounds for eviction. However, you must follow Florida’s legal eviction process, which includes giving proper notice and filing through the courts if needed.

Property Management

Rent Collection
Set up a reliable system for rent collection, such as online payments or direct deposit, to ensure timely and consistent payments.

Property Maintenance
Regular upkeep is essential to preserve property value and tenant satisfaction. This includes landscaping, pest control, HVAC servicing, and general repairs.

Tenant Screening
Carefully screen prospective tenants to avoid future problems. Check background, verify employment and income, and review references to ensure a reliable tenant.

Tenant Relations
Strong communication and prompt responses to concerns help create positive landlord-tenant relationships and long-term tenancy.

Legal Protections and Rights

Property Rights
As a landlord, you can establish rules and policies for your rental property, provided they comply with fair housing and other regulations.

Right to Entry
Florida law permits landlords to enter a property for inspections, repairs, or emergencies. Typically, 12 hours’ notice is required unless it’s an urgent situation.

Legal Recourse
If a tenant causes damage or violates the lease, you can seek damages or pursue eviction through legal channels.

Financial Considerations
Florida does not have state income tax, but there is a 6% state sales tax on rental income.
Florida Sales Tax Guide

Operating expenses like mortgage interest, property taxes, insurance, maintenance, and yard care can reduce your taxable rental income. Property tax rates vary by county, so check your county’s rate here: Florida Property Tax Rates.

Best Practice: Keep receipts for all services related to property maintenance to maximize deductions during tax season.

Florida Renters’ Rights and Landlord Responsibilities

Give tenants three days' notice before filing for eviction.
Maintain habitable housing; tenants may withhold rent if the home is not livable.
Return security deposits within 15 days if there are no deductions, or within 30 days if there are deductions.
Provide at least 12 hours' advance notice before entering the unit (except in emergencies).
Disclose any known lead paint hazards in the property.

Tenant Responsibilities

Tenants must also uphold their end of the lease by:

Complying with housing codes to maintain safety and cleanliness.
Avoiding damage or defacement of property, including appliances.
Maintaining clean and functioning plumbing fixtures.
Disposing of garbage regularly and properly.
Respecting neighbors by avoiding disruptive or unsafe behavior.

Criminal Background Checks

Criminal background is not a protected class under federal fair housing law, but rejecting tenants solely based on criminal history may lead to discrimination claims.
Applications can be denied for convictions related to drug manufacturing/distribution, homicide, or stalking.
Do not ask about arrest records, only convictions.
Miami-Dade County prohibits asking about prior eviction records until after a conditional rental offer is made.

Landlords should maintain consistent, equal screening policies to avoid unintentional discrimination.

Tenant Screening Criteria

Florida has no statewide laws limiting criminal background checks.
Miami-Dade requires landlords to wait until a conditional offer to check prior eviction history.
Clearly state your screening criteria and apply it equally to all applicants to stay compliant with federal fair housing rules.

Application Fees

Florida does not cap application fees.
Be transparent about fees upfront to avoid misunderstandings with applicants.

Required Lease Disclosures

If these disclosures are missing, the lease may be invalid:

Radon Gas Notification – must be included in the lease.
Security Deposit Disclosure – for landlords with five or more units, you must disclose the name and address of the bank where deposits are held.

Learn More

For detailed information, visit:
Florida Rental Laws – TurboTenant