Rental laws in Florida are administered at the state level. Cities and counties throughout the state are prohibited from making any rental laws that conflict with what the state mandates. The recent legislative session resulted in the passage of a new law that would ban mid-lease rental increases on affordable housing units, but the governor did not sign it into law. There was also some movement on further regulation of vacation rentals in Florida, but that bill was vetoed as well.
This leaves us with no brand new bills to adjust to in the coming year, but that doesn’t mean you can relax your vigilance around legal compliance. Let’s take a look at what needs your attention as you continue to rent out properties in Central Florida.
A Refresher on Recent Legal Updates in Florida
Here is a reminder of some of the new laws that have settled into our day-to-day business as property managers over the last year or two.
- Preemption of Local Landlord-Tenant Regulations (Effective July 1, 2023)
As we mentioned, the state laws preempt any local laws when it comes to rental housing in Florida. House Bill 1417 (Section 83.425, F.S.) prohibits local governments from enacting ordinances that regulate residential tenancies. This means that municipalities can no longer impose additional rules on areas such as security deposits, rental agreements, fees, and notice requirements. The state law now governs these aspects uniformly across Florida.
- Security Deposit Alternatives (Effective July 1, 2023)
House Bill 133 allows landlords to offer tenants the option to pay a nonrefundable fee or monthly fees instead of a traditional refundable security deposit. Alternatively, tenants can choose to pay a security deposit in installments. If a fee is charged, it must be disclosed in writing, and landlords are required to notify tenants within 15 days of any unpaid rent or damages. Fees cannot be increased during the lease term.
Fair Housing Laws in Florida
Fair housing laws require that you do not discriminate against any applicants or tenants because of the characteristics that are covered in the list of protected classes. We have found that if a property owner is going to slip into a legal pitfall, it’s usually because they are not screening tenants consistently.
According to state fair housing laws, which follow the federal laws, owners cannot make rental decisions based on:
- Race
- Color
- Religion
- National origin
- Sex (including gender identity and sexual orientation as of 2021)
- Familial status
- Disability
We recommend that you establish some qualifying rental criteria that you’ll apply to all applicants so you’re holding everyone to the same standards. This will keep your screening process objective and legally compliant, and it will also protect you against any claims of discrimination or unfair treatment.
Most of the landlords and property owners we work with would never discriminate against any particular applicant or tenant intentionally, however you’d be surprised at what can be perceived as discrimination. You have to be mindful in your marketing, in your screening, and in any of your communications so that it’s clear you are treating everyone the same.
Laws Around Accessory Dwelling Units (ADUs)
With affordable housing on the minds of tenants across the state and both long-term and short-term rental property owners looking for ways to maximize the value of the property they already own, ADUs are growing in popularity. Think of a guest house in the backyard. An apartment over the garage. A tiny home.
Florida recognizes the potential of ADUs to help tackle affordable housing challenges, and state laws empower local governments to make it easy for homeowners and rental property owners to maximize the construction of ADUs on their existing properties. Under certain and specific conditions, there are even tax breaks for these properties.
Florida’s State Housing Initiatives Program (SHIP) is especially helpful to local governments and homeowners who are looking for funding to create and preserve affordable rental housing. This is not a program specifically focused on ADUs, but SHIP funds can be used to support ADU initiatives:
- Funding for Construction or Rehab. Some local SHIP programs offer grants or low-interest loans to build or rehabilitate ADUs, especially if they’ll be rented to income-eligible tenants.
- Code and Permit Assistance. SHIP-funded initiatives may help cover costs related to permitting, zoning, or bringing an ADU up to code.
- Affordable Housing Incentives. If you agree to rent the ADU at affordable rates, you may qualify for additional support through your local housing authority.
This flexibility allows cities and counties to promote ADUs as a practical solution for affordable housing. For rental property owners, there’s additional access to financial incentives or streamlined processes to get your ADU project off the ground.
Looking Ahead: Where Will Florida Rental Laws Land?
We don’t expect to be dealing with any new and sudden laws around tenant rights or rent control or even restrictions on property rights and landlords. If we’re going to see new laws next year, we believe they will be more oriented towards property owner rights, tax considerations, and insurance requirements. There was briefly some talk about eliminating property taxes in Florida, but that’s a long and difficult road to travel even for the most ambitious lawmakers.
We’re watching the insurance landscape especially closely. Many people are surprised that as a state, Florida does not require property owners to have property insurance. Obviously, it’s something to have anyway. Your mortgage company will require it even if the state does not, and if you’re in a flood zone, flood insurance may also be necessary.
Florida remains an incredibly landlord-friendly state, especially compared to other rental markets. However, there are still laws that require attention compliance. Working with a local property management expert can protect you from common mistakes. We can also keep you informed when there are new laws or new interpretations of laws that will impact how you’re renting out properties.
Let us help. Please contact us at Park Avenue Property Management. We provide exceptional leasing, management, and maintenance expertise in Celebration, Orlando, Lake Buena Vista, Kissimmee, Maitland, Altamonte Springs, West Palm Beach, Tampa Bay, and throughout Central Florida.
