Is Florida A Landlord-Friendly State?
There are certain states and localities that are considered tenant-friendly. This generally means that they have laws and regulations in place that are far more favorable to tenants. Florida is the opposite: while there are protections for tenants in our landlord-tenant laws, it is overall considered to be a landlord-friendly state.
There are several reasons why it’s great to be a landlord in Florida. Our state has no state income taxes and comparatively low property taxes. Florida law also prohibits most forms of rent control and restrictions on short-term rentals. In addition, the eviction process is relatively fast, and landlords are not limited when it comes to things like security deposits and late fees.
At Eaton Realty, we work with landlords throughout Hillsborough County to help them manage their rental properties. As experienced Tampa Realtors, we can also work with investors to help them find the perfect property for their portfolios. If you’re considering investing in a rental property in Florida, our team can help you find the perfect property in Hillsborough County. Reach out today to talk to a member of our West Central Florida property management team.
Why Is Florida Considered Landlord-Friendly?
There are some states, like California, that are notoriously tenant-friendly. While Florida is not considered a “hostile” state for renters, it does tend to be a more favorable climate for property investors. Due to a combination of laws and regulations, Florida is a great place to own rental properties.
Below, we break down some of the reasons why Florida is landlord-friendly. From low taxes to minimal regulations on the landlord-tenant relationship, if you are interested in owning a rental property, Florida is a great place to get started.
Lower Taxes
Florida does not have a state income tax. This means that the rental income that you earn as a landlord will not be subject to state income taxes. However, you will still have to report the income on your federal taxes. In comparison to states with income taxes, Florida’s laws make being a landlord more profitable because you will pay less in taxes overall.
Short-term rental income in Florida will be taxed through the state sales and use tax. At 6%, this tax rate is typically far less expensive than what you might pay in state income tax. This tax is collected by the Florida Department of Revenue.
Landlords will have to pay property taxes for the rental properties. However, Florida has relatively low property taxes, with an effective rate of 0.74%. Compared to states like Texas, with an effective rate of 1.36%, property taxes in Florida are fairly low.
The upshot of this tax scheme is that Florida is pretty friendly to landlords. When you pay less in income and property taxes, you can keep more of your rental property income. This makes being a landlord more profitable compared to many other states.
No Cap On Security Deposits
Florida’s landlord-tenant laws do not cap the amount that landlords can charge for security deposits. This means that you can charge whatever the market will bear in terms of a security deposit. For landlords, this can be important because lower security deposits might not be enough to cover things like property damage and unpaid rent.
However, keep in mind that Florida law does place some restrictions on how landlords handle security deposits. Once a security deposit is established in the lease, it cannot be increased during the lease term. Landlords must also place security deposits in interest-bearing or non-interest-bearing accounts or obtain a bond for the amount of the security deposit. Our Tampa property management team can help you navigate the rules related to security deposits for your rental properties.
No Rent Control Laws
Rent control laws are seen as tenant-friendly because they limit the amount of rent that a landlord can charge for their rental property. Florida does not have rent control laws. This makes Florida a more landlord-friendly state.
In fact, in the state of Florida, counties, municipalities, and other local government agencies are prohibited from imposing rent control on landlords. The only exception is situations where rent control is necessary to eliminate a housing emergency that is “so grave as to constitute a serious menace to the general public.” In that situation, a rent control ordinance could be enacted for 1 year.
These laws mean that landlords in Florida can generally charge whatever rent they think is appropriate for their rental property. Of course, you will want to charge a rent that is reasonable to reduce vacancies, but it is helpful to know that your rent prices won’t be controlled by the government. If you need help setting a rent price that works, our property management team can help. We offer free rent value analyses to help you determine what an appropriate rental rate would be for your property.
Shorter Eviction Process
Florida does not allow for self-help eviction. If you want to evict a tenant for nonpayment of rent or a lease violation, you will have to go through the formal eviction process. That being said, Florida has a relatively short process for evicting a tenant.
Landlords do have to provide notice to tenants before starting the eviction process. This notice either gives tenants 3 days to pay rent or leave the premises, or 7 days to either come into compliance with the lease or vacate the premises. If the tenant does not comply, then a landlord can file an eviction complaint with the Hillsborough County Court. The tenant then has to respond to the complaint within 5 business days.
The entire eviction process in Florida can take 3 to 6 weeks, if all of the paperwork is in order and the tenant does not respond to the complaint. While this may seem like a long time, especially if you aren’t getting rent, it is much shorter than the process in more tenant-friendly states like California. Our property management team can handle every step of the eviction process for you.
Favorable Short-Term Rental Regulations
Some cities and states have cracked down on short-term rentals. This can make it difficult for landlords who rely on tourists and others for rental income. In Florida, local governments are not permitted to ban short-term rentals or regulate the length or frequency of stays.
However, local governments can enact rules to minimize the disruptive impact of short-term rentals on a community. For example, in Hillsborough County, vacation rentals are only allowed in areas that are zoned for “transient rental accommodations” (i.e., a rental for 7 days or fewer). This ensures that property investors can still offer their rentals for short-term stays, while protecting the integrity of a community.
These laws are far more landlord-friendly than those in states and cities that have gone so far as to completely ban short-term rentals. In a tourist state like Florida, being able to rent your property out for shorter stays is a great way to keep your business profitable. While Eaton Realty does not manage short-term rentals, we can help property investors find rental units that are zoned appropriately for short-term stays and that will be a profitable investment.
Interested in Becoming a Landlord in Hillsborough County? Give Us a Call.
Florida is generally considered to be a far more landlord-friendly state than other states. While Florida law does offer protections to tenants, it does not overly restrict the rights of landlords. This typically results in more profit and flexibility for landlords in Florida.
At Eaton Realty, we work with property investors to help them purchase a great property and manage it. We offer full-service property management services to help you maximize profits while minimizing the challenges that often come with being a landlord. We can market your property, screen tenants, handle move-in and move-out, and more.
If you’d like to learn more about our real estate and property management services in West Central Florida, fill out our online contact form or give us a call at 813-672-8022 to talk to a team member.
