Many Floridians aspire to own an investment property someday. After all, Florida is a prime vacation spot – and a place where many people want to live (approximately 18% of non-Florida residents would rather live in Florida if they could move). There are many steps that you will need to take in order to rent your house in Florida if you are considering putting your home up for rent.

One of the most important things you will need to do is get all of your legal ducks in a row, from drafting a written lease agreement to complying with all applicable laws, regulations, and restrictions. You should also understand what tenants are looking for and take time to get your property in good shape. A seasoned property management team can help you with the process.

Eaton Realty works with buyers, sellers, tenants, and landlords in Hillsborough County, Florida. If your goal is to become a landlord, we can help you make that a reality. Reach out to learn how our team can assist you with purchasing, marketing, and managing rental properties in the Tampa-St. Petersburg area.

Want to learn even more about becoming a landlord in Hillsborough County? Contact us to speak with an experienced Hillsborough County property manager.

Figure Out What Renters Want

If you want to become a landlord, one of the most important things to understand is that the business is driven by demand. In a tight real estate market, it may be easy to rent out your property even if it lacks amenities or isn’t in a great neighborhood. However, when demand goes down due to a recession or other factors, it can be incredibly difficult to keep your unit rented if potential tenants find it lacking.

There are certain things that most tenants prefer in a rental unit, such as having access to a washer and dryer (ideally in their own unit), one or more parking spaces, a good pet policy, and (especially in Florida!) air conditioning. Other amenities that are nice to have include a fenced-in yard, access to a pool, outdoor living space, and walk-in closets.

Of course, it isn’t always possible to offer all of these things. For example, if you own an apartment building, you are probably limited in the amount of outdoor space you can provide. However, it is always a good idea to consider what features are in high demand among tenants and try to offer as many of those amenities as possible.

Follow State and Local Laws and Restrictions

It is easy to get hyped up about the possibility of earning passive income by renting a property. In some cases, however, your excitement may be quickly dampened by the reality of Florida law and other regulations. For example, suppose you own a house that is part of a homeowner’s association (HOA). In that case, the rules you agreed to when purchasing the property may actually forbid using the home as a rental property (particularly for short-term rentals).

In Florida, landlords are required to comply with the requirements of applicable building, housing, and health codes. For example, in Hillsborough County, property maintenance codes set minimum standards for heating and sanitary conditions, prohibit nuisance conditions such as overgrowth, and require maintenance of building exteriors.

If you plan to rent your house as a short-term vacation rental, you may be required to obtain a license. The question of whether a particular property counts as a vacation property depends on several factors. You should contact a real estate attorney or a property management company if you have any concerns.

Finally, you should review your insurance policy to make sure that the policy allows you to rent the property. Switching to a landlord policy will probably be necessary if you currently have a homeowner’s insurance policy. If your insurance company does not know that you’re renting the property, they may deny claims on this fact alone. While this type of insurance isn’t required under Florida law, your mortgage lender may require it – and property insurance is always a good idea in a state where natural disasters and extreme weather events are unfortunately common.

Make Sure You Have a Well-Drafted Lease

A lease can be written or oral in Florida. However, to protect your interests and ensure there aren’t misunderstandings, you should have a written lease for all rental properties. The lease should cover items such as:

• The amount of rent and when it is due;

• Penalties for late payment of rent;

• Who is liable for the rent (i.e., each individual tenant can be held responsible for the total amount if one tenant refuses to pay);

• The length of the lease;

• The security deposit;

• How the property is to be used (for residential or commercial purposes only);

• Rules and regulations regarding the unit (such as quiet hours);

• Expectations for the tenant (such as maintaining the unit);

• Who is responsible for paying utilities;

• Access to the premises;

• Rules regarding subletting; and

• A severability clause (so that if one portion of the lease is found to be invalid, it can be severed from the lease).

An experienced property management company can provide a lease agreement customized to meet your needs. You may also choose to work with a real estate lawyer to assist you with the process.

Get Your Property Rent Ready

One of the most important things any landlord can do before putting their property on the market is to take the time to get it in good shape. This goes beyond meeting the bare minimum code standards. Instead, you should invest in proper cleaning and maintenance to ensure the unit looks its best.

Depending on your property, this may include having the unit painted and the carpets or floors thoroughly cleaned. A cleaning service can do a deep cleaning to make sure that the property is as clean as possible.

This is also an excellent time to consider whether anything in the unit needs to be repaired or replaced. For example, if the sliding doors to the patio keep coming off the track, you may consider having them serviced, buying new doors, or replacing them with a new style. If you notice the carpet is worn and threadbare, it’s time to replace it.

Taking these steps ensures that your property is attractive to prospective tenants. It is also a way to set a baseline for evaluating a property before deciding to return a tenant’s security deposit. If there is more than reasonable wear and tear, then you may be able to take deductions or keep the security deposit in its entirety to cover the damages.

Don’t Forget that Renting Is a Business

For first-time landlords in particular, it can be difficult to remember that this is a business. This is especially true if you are renting out your own home and have an emotional attachment to it. It’s important to set reasonable expectations for yourself. Because things will break and become worn over time, the house will never look as good as when you lived there. If you want to be successful as a property investor, you have to set aside any emotion and make the best choices for your bottom line.

For many landlords, this may include using a property management company to streamline the process of finding suitable tenants, keeping the unit in good condition, handling tenant complaints and repair requests, and marketing the property. Having a professional on your team can help to remind you of your goals in becoming a landlord – and will ensure that you won’t get overwhelmed by the day-to-day tasks of being a landlord.

Want to Rent Your House in Florida? We Can Help.

There are a lot of benefits to owning an investment property. Nevertheless, knowing exactly what to do as a landlord can be challenging, especially if you are new to the business. Eaton Realty can assist you with all aspects of being a landlord, from finding the right property to purchase to handling property maintenance.

Based in Lithia, Florida, our full-service real estate team works with landlords and investors throughout the Tampa Bay region. We take the time to understand your needs and goals as a landlord and help you come up with a plan to achieve your dreams. With more than 130 years of combined experience in the real estate industry, we have the knowledge to help you with every step of the process.

If you’d like to learn more, fill out our online contact form or give us a call at 813-672-8022 to talk to a team member.