Over the last few years, there have been multiple factors causing serious strain on the relationship between Florida landlords and their tenants. This issue is shared across the nation. The compounding of those issues has made this strain even more prevalent – COVID-19 putting people out of work, a hot real estate market raising property values (and prices), and increasing property taxes.
A study showed that Florida property values rose 26% between 2021 and 2022 which is historically unprecedented. First-time buyers and people who are from out of state are being hit with high tax bills, meaning new investors or out-of-state investors need to make room to cover those costs.
In the first of a three-part blog series, we’re going to explore 3 key issues that are causing significant tensions between landlords and tenants which will lead to increased conflicts and litigation in Florida.
A Disconnect on Affordability
Renters feel like they’re being priced out of the market because of those increased rental costs, but rental properties are a business for landlords. If you’re a Florida real estate investor with rental properties you understand that this is how you feed your families. Unfortunately, the tension won’t help your situation so we want to help alleviate this as much as possible. So, how can you bridge the gap while still making money for yourself and your family?
The Rent Control and Cancellation Movements
People across the entire country were stretched thin due to the pandemic. A lot of hard-working Americans were left without income and couldn’t afford to pay rent. The humane answer obviously was never going to be to push the thousands and thousands of laid-off workers out onto the streets.
This resulted in a national eviction moratorium which provided a temporary fix. Kicking the can down the road on monthly rent led to some Floridians renters accruing tens of thousands of dollars in rental debt, though. This resulted in a push to “cancel” the overdue rent and let everyone start clean. Of course, landlords would then be on the hook for the millions of dollars missing from rental income.
At this point, the cancel rent movement appears to have stalled and doesn’t look like an ongoing threat. However, what has stemmed from it is a push for rent control and other ways to lower the burden on tenants, thus increasing the burden for landlords. It’s important to keep up with legislative changes that could impact your ability to collect rent from your tenants.
Tenant Bill of Rights
Another item that has stemmed from the rent control and cancellation movements is a tenant bill of rights. Certain municipalities in Florida, like West Palm Beach, are already implementing new guidelines requiring landlords to provide additional notice when increasing rent among other changes. Hillsborough County, Boynton Beach, and Miami-Dade County all moved forward with tenant bill of rights ordinances that add new guidelines for landlords.
It’s important to be aware of such a bill wherever your rental properties are located in order to avoid litigation down the line. Missing out on rental payments from your tenants puts a huge strain on your business, but a lawsuit could ruin your business and your reputation.
Work with an Attorney
At Bryant Taylor Law, our team is constantly staying in touch with legal and social changes that impact Florida landlords. Your business needs to be protected amidst the shifting tide against landlords today. Our team can help you structure your properties properly and help you avoid personal liability should litigation come your way. Contact our team and protect your Florida real estate investments.
Bryant Taylor
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