Renting Your Property Out? Have You Considered These Things?

In today’s hot real estate market, it may seem like there aren’t a lot of places to buy, or at least, not many to buy affordably. True or not, that perception does create quite a demand for rentals.

You may be wondering if it is a good idea to buy property and rent it out, to get in on the demand for rental properties. While that can be profitable, it isn’t something you should go at alone.

Here are some basic issues or questions that you need to understand or answer, before just becoming a landlord.

The law of security deposits – While you can charge what you want for a security deposit, there are laws that dictate how those deposits are held, and what accounts they can be held in. There are also laws as to how you make a claim on those deposits—for example, time limits in which you must notify the tenant you are keeping all or part of the security deposit.

Florida’s security deposit laws got a bit more complex, as now you can charge different kinds of deposits—for example, monthly payments for the deposits—with different rules that apply to those.

Maintenance – Maintenance isn’t “the tenants problem,” because if you are supposed to fix or repair something and you don’t, the tenant can legally withhold rent (with proper notice). Misunderstanding your maintenance obligations can land you in legal trouble. Make sure your lease clarifies what you are responsible for and what the tenant is responsible for.

And once it does, make sure that you are able to quickly and effectively respond to maintenance requests. Those requests may come at times you don’t want them—late nights, or Saturday afternoons.

Alteration – Can the tenant install a rug? A ceiling fan? Hang pictures? These and other things like it, cause changes or alterations to your property. What will your lease allow and what will it prohibit?

Pets – Will you have a pet policy? If the property is governed by a homeowners association, you’ll have to live by their rules when it comes to pets (and everything else). Even if the tenant’s pet is allowable, many landlords take an extra deposit, or an extra monthly fee, to account for the wear and tear that pets can put on property. And don’t forget a provision that requires that tenants clean up after their dogs, even if they aren’t on your property.

Drugs – Yes, marijuana usage is legal with the appropriate prescription or medical usage in Florida. But that doesn’t mean that you need to allow it in or on your property. That is entirely up to you, but make sure your lease is clear, either way (and again-make sure you are in compliance with HOA rules).

Evictions – Nobody likes to think of evictions. You like to think that everything will go smoothly. But you may need to get a tenant out—and fast. Especially one who may be breaking a law. Unless you understand the legalities of Florida’s summary eviction procedure, have an attorney ready to help you if needed.

Rentals or purchases, we can help you with your real estate needs. Call the West Palm Beach real estate lawyers at The Law Offices of Larry E. Bray today.

Sources:

floridapolitics.com/archives/616160-new-law-allows-landlords-to-charge-fees-in-lieu-of-security-deposit/

fdacs.gov/Consumer-Resources/Landlord-Tenant-Law-in-Florida