Start with the federal laws. Those will usually trump most state laws, unless the state laws are more in favor of protecting the tenants. When you buy a foreclosed home that is occupied, make sure you understand how the occupants are protected under The Helping Families Save Their Homes Act of 2009 (specifically: Protecting Tenants In Foreclosure Act). If the current tenants were not the owners who were foreclosed on (or family members of the owners), you’ll need to give them 90 days notice of eviction if they were renting month-to-month. However, if they signed a lease, then you will have to allow them to stay until the end of their lease. An exception to this is if you are planning to live there yourself, in which case, you just need to give the tenants 90 days notice of eviction.
Once you’ve figured out what to do about the current renters, it’s up to you to decide whether to sign a new lease with those same renters or find new renters. In either case, you will have certain responsibilities as a landlord, and those will vary by state. Here are some things to keep in mind if you’re planning to become a landlord in the state of Florida:
- In Florida, landlords don’t need to give a reason to evict, but they do need to provide notice. As a landlord in Florida, you will have to comply with local building, housing, and health codes and return your tenant’s security deposit or transfer it to the new owner.
- You should learn about any exceptions to the landlord/tenant rights and restrictions in Florida. For example, tenants in the military or tenants who are victims of domestic violence are allowed to break their leases, as long as they go through the proper legal channels. Click here to learn more about the details of tenant laws protecting victims of domestic violence in Florida.
- As the new owner of an REO property in Florida, you and your tenants have a right to utility services, and under Florida law, you nor your tenants can be charged for unpaid utilities from a previous owner or tenant.
- If you have problems with a tenant paying the rent, you’ll have to file suit in the county court in order to begin the eviction process. The tenant has five days to respond to the suit, and if he doesn’t or if the judge rules in favor of you, the landlord, then the county court clerk will issue a “Writ of Possession” to the sheriff. At this point, the tenant will be forced to vacate the premises within 24 hours.
- You, as the new property owner, are responsible for the maintenance and upkeep of the property. Be sure to respond within a suitable amount of time and address any legitimate issues appropriately. In fact, be proactive when you first take ownership and ask the tenants if everything is working properly. For more information about maintenance responsibilities and rights to inspect, Click Here to read about the Landlord Right of Entry Laws in Florida.
Of course, there is a lot more information out there to be learned. Make sure you are diligent about learning your rights and your tenants’ rights at the federal, state, and local levels. Renting out a property can be a great investment, but you have to know the property and laws before you really know what you’re getting yourself into as a landlord and an investor.
Links to More Information about Federal and Florida Rental Laws:
After you have read and digested all of the above information and if you are still thinking that this may be the time to invest in some income producing property, send me an email or call me (561-602-1258) to get my free Income Property Evaluation Cheat Sheet.
As always...thanks for reading my blog.
Steve
