Managing Rental Property

The CARES Act 3-Day Notice Requirement. Now What?

Fri, 17 Apr 2026 18:57:13 GMT

The CARES Act 30-Day Notice Requirement:

Why It’s Still Causing Confusion—and Controversy

Few issues in landlord-tenant law today are as misunderstood—and politically charged—as the CARES Act’s 30-day notice to vacate requirement. What began as an emergency COVID-19 protection in 2020 has evolved into a lingering federal mandate that continues to impact eviction proceedings across the country. Now, with recent federal rollbacks and industry advocacy campaigns calling to “stop enforcement,” many landlords are left asking a simple question: Is this rule still in effect or not?

The answer, frustratingly, is: yes—and no.

The Origin: A Pandemic-Era Protection That Never Expired

The Coronavirus Aid, Relief, and Economic Security (CARES) Act, passed in March 2020, included a temporary federal eviction moratorium for certain properties tied to federal funding or financing. That moratorium expired in July 2020.

However, a separate provision survived —and still exists today.

Section 4024 of the CARES Act requires landlords of “covered properties” to provide tenants with at least 30 days’ written notice to vacate before filing an eviction for nonpayment of rent .

Importantly, this requirement:

Applies to properties with federally backed mortgages or federal housing subsidies
Has no expiration date
Has been upheld by multiple courts as an ongoing legal obligation

Estimates suggest that roughly one-quarter of all U.S. rental units fall into this “covered” category.

The Confusion: Federal Agencies Step Back

In 2025 and 2026, several major federal agencies began rolling back enforcement mechanisms tied to the 30-day notice rule.

For example:

Fannie Mae and Freddie Mac announced they would no longer enforce compliance through loan requirements or audits.
The U.S. Department of Housing and Urban Development (HUD) rescinded its own regulatory rule requiring a 30-day notice in public housing and voucher programs.

HUD’s February 2026 rule explicitly reverted notice requirements back to pre-pandemic standards , often allowing shorter timelines governed by state law.

At first glance, these actions appear to signal the end of the 30-day requirement.

But that conclusion would be incorrect.

The Critical Reality: The Law Still Exists

Here’s the key distinction many landlords miss:

Federal agencies can change regulations and enforcement policies
They cannot repeal a federal statute

And the CARES Act is still federal law.

Legal analysts and practitioners consistently emphasize this point. As one housing law firm noted, “HUD can withdraw its own regulations but cannot repeal a law passed by Congress.”

Another advisory warns plainly:

“The CARES Act is still the current federal law… courts can still dismiss your eviction” if the 30-day notice is not properly given.

In practical terms:

The enforcement pressure has been reduced
But the legal risk remains

That means tenants—and increasingly, tenant attorneys—can still raise CARES Act compliance as a defense in eviction proceedings.

The Industry Response: A Push to End It

This legal gray area has sparked a growing backlash from landlord and housing industry groups.

Organizations such as the National Apartment Association and the National Association of REALTORS® have publicly advocated for:

Complete elimination of the 30-day requirement
Passage of federal legislation to return eviction law fully to the states
An end to what they describe as a “lingering pandemic policy”

According to one industry report, continued enforcement of the rule has:

“contributed to financial loss for housing providers”
delayed eviction proceedings
created inconsistent outcomes in courts

Some advocacy statements go further, arguing that the rule was “intended to be temporary” and is now being applied beyond its original purpose.

This is the context behind alerts and campaigns urging policymakers to “stop federal enforcement.”

Real-World Impact: A Legal Trap for Landlords

For landlords—especially smaller operators—the situation creates a dangerous compliance trap.

In many states, including Florida:

Standard eviction notices for nonpayment may be as short as 3 days
But if the property is CARES-covered, 30 days is required instead

Failing to recognize that distinction can result in:

Case dismissals
Restarting the eviction process
Additional financial losses

Even more problematic, determining whether a property is “covered” is not always straightforward. It may depend on:

Mortgage backing (Fannie Mae, Freddie Mac, FHA, VA)
Participation in federal housing programs
Historical financing structures

Where Things Stand Now

As of 2026, the situation can be summarized as follows:

The CARES Act 30-day notice requirement still exists in federal law
Federal agencies have reduced or eliminated enforcement mechanisms
Courts may still require compliance in applicable cases
Industry groups are actively pushing for full repeal

In other words, the rule is no longer being aggressively enforced at the federal level—but it remains very much alive in the courtroom.

Bottom Line

The current environment is not one of clarity—it is one of transition and uncertainty .

For landlords, the safest course remains:

Determine whether your property is CARES-covered
Use a 30-day notice when required
Avoid assuming that federal rollbacks mean the rule is gone

Until Congress acts to repeal or amend the statute, the CARES Act’s 30-day notice requirement continues to operate as a quiet—but powerful—factor in eviction law.

And for now, that means one thing: Ignore it at your own risk.

What Smart Landlords Are Watching in 2026

Mon, 13 Apr 2026 20:22:54 GMT

Florida Rental Market Indices:

What Smart Landlords Are Watching in 2026

After several years of rapid rent growth and tight inventory, Florida’s rental market is entering a new phase—one defined not by momentum, but by measurable shifts in key market indices. For landlords, understanding these indicators is no longer optional. It is essential.

The data tells a clear story: the market is stabilizing, and in some areas, softening.

Vacancy Rates Are Rising

The most important index in today’s environment is vacancy—and it is moving in the wrong direction for landlords.

Across Florida, vacancy rates have increased notably over the past 12 to 18 months. In many markets, vacancy is approaching or exceeding what would traditionally be considered a “balanced” level. In practical terms, this means more available units, longer leasing times, and increased competition.

This shift is largely the result of new supply. Thousands of multifamily units have come online across the state, particularly in metro areas like Jacksonville, Tampa, and Orlando. At the same time, in-migration has slowed from its pandemic peak, and many tenants are adjusting their housing choices due to affordability concerns.

For landlords, the implication is straightforward: vacancy is now a cost center that must be actively managed—not assumed away.

Rent Growth Has Slowed—or Reversed

Another key index—rent growth—has undergone a significant change.

Where rents were once increasing at double-digit rates, growth has now flattened, and in some markets, turned slightly negative. Properties that pushed rents aggressively in 2021–2023 are now encountering resistance from tenants who simply cannot absorb further increases.

In markets like Jacksonville, modest rent declines have already been reported. Even where rents are holding steady, the pace of increase has slowed dramatically.

The takeaway is critical:
The era of automatic rent increases is over—at least for now.

Landlords who continue to price based on last year’s expectations risk extended vacancies, which are far more costly than modest pricing adjustments.

Occupancy Remains Stable—But Softer

Occupancy rates remain relatively healthy, but they are no longer tightening. Instead, they are drifting downward slightly as new supply enters the market.

Units are still leasing—but more slowly. Prospective tenants are taking longer to decide, comparing more options, and negotiating more aggressively.

This creates a subtle but important shift in leverage. Where landlords once dictated terms, tenants now have meaningful choices.

Affordability Is a Long-Term Strength

One bright spot in Florida’s rental market is affordability—particularly in cities like Jacksonville.

Compared to national averages, many Florida markets still fall below the commonly cited affordability threshold of 30% of income spent on housing. This supports long-term demand and provides a foundation for future rent growth once the current supply surge stabilizes.

In other words, while the short-term picture shows softening, the long-term outlook remains fundamentally strong.

Supply Is Driving the Market

The dominant force behind current conditions is supply. New construction—especially in the multifamily sector—has temporarily outpaced demand.

However, much of this new inventory is concentrated in higher-end units. Meanwhile, the supply of truly affordable housing continues to decline over the long term.

This imbalance suggests that today’s softer conditions may not last indefinitely. Once new construction slows, the market could tighten again—particularly in workforce housing segments.

What This Means for Landlords

The Florida rental market is not collapsing—it is normalizing. But normalization requires a different approach.

Successful landlords in this environment will:

Price realistically based on current conditions, not past trends
Act quickly when tenants fall behind or units become vacant
Focus on occupancy over maximum rent
Operate professionally, with strong systems and documentation

The landlords who struggle will be those who assume the market still favors them.

Bottom Line

Florida’s rental market in 2026 is defined by shifting indices:

Vacancy is rising
Rent growth is slowing
Supply is elevated
Tenant leverage is increasing

For experienced landlords, this is not bad news—it is simply a new phase of the cycle.

And as always, those who adapt to the data will outperform those who ignore it.

New Supply from Accidental Landlords Is Cooling Rent Growth

Wed, 08 Apr 2026 19:18:14 GMT

New Supply
From Accidental Landlords
Is Cooling Rent Growth

A notable shift is underway in the U.S. housing market: the rapid rise of so-called “accidental landlords” is helping to moderate rent growth after years of sharp increases. These are homeowners who, unable or unwilling to sell in today’s market, are instead converting their properties into rentals—often temporarily. The result is a meaningful increase in supply that is reshaping rental dynamics nationwide.

According to recent housing data, a “near-record (and rising) share of homeowners are turning their unsold properties into rentals.” This phenomenon has pushed the share of rental listings coming from former for-sale homes to roughly 2.3%, one of the highest levels recorded in recent years

The underlying driver is a gridlocked housing market. Elevated mortgage rates and shifting buyer leverage have made it harder for sellers to achieve desired prices. Rather than accept a discount, many are choosing to “buy time” by renting. As one analysis summarized, these are homeowners who “couldn’t sell and they’re now renting,” reflecting a pragmatic response to market conditions.

This influx of new rental inventory—particularly single-family homes—is having a clear impact on rents. Increased supply, combined with a wave of new apartment construction, is easing upward pressure on pricing. Zillow forecasts that rent growth will remain modest through 2026, with single-family rents rising just 1.8% and multifamily rents 0.9% by year-end.

In practical terms, this means renters are gaining leverage. Higher vacancy rates and more choices are forcing landlords to compete more aggressively on price, concessions, and amenities. The market is shifting from the landlord-dominated conditions of recent years toward a more balanced environment.

However, the trend also carries broader implications. While it increases rental supply, it simultaneously removes potential inventory from the for-sale market, as owners delay selling decisions. This dynamic may prolong tight conditions for buyers even as rents stabilize.

Ultimately, the rise of accidental landlords represents a structural adaptation to a changing housing landscape. By expanding rental supply at a critical moment, these reluctant participants are playing a significant role in cooling rent growth—offering relief to tenants while adding a new layer of complexity to the broader real estate market

Oregon Moves To Expand Tenant Privacy Laws

Tue, 24 Mar 2026 11:46:03 GMT

Oregon To Expand Tenant Privacy Laws

What Landlords Need to Know

Oregon lawmakers are advancing another piece of legislation that continues a broader trend: increasing regulation on how landlords handle tenant information.

A new bill—recently passed by the state legislature and now awaiting the governor’s signature—would significantly tighten restrictions on what landlords can do with a tenant’s personal data.

What the Bill Does

At its core, the proposed law focuses on protecting tenant confidentiality. If enacted, landlords would face stricter limits on sharing or disclosing sensitive information, including:

Immigration or citizenship status
Social Security numbers
Medical or disability-related information

While many landlords already treat this information carefully, the difference here is enforcement—and potential financial consequences.

Real Financial Penalties

One of the most notable features of this legislation is the addition of explicit monetary damages.

If a landlord is found to have knowingly disclosed protected tenant information, the tenant could be entitled to compensation of up to twice the monthly rent.

That’s a major shift. Previously, tenants could challenge improper conduct through legal action, but this bill creates a clearer and more direct financial penalty structure.

Builds on Existing Law

This proposal doesn’t come out of nowhere—it builds on earlier Oregon laws that already:

Prohibit discrimination based on immigration status
Restrict landlords from using or threatening to use such information to intimidate or retaliate against tenants

The new legislation essentially strengthens those rules by adding teeth—specifically, defined damages.

Why This Is Happening

Supporters of the bill argue that tenants—particularly vulnerable populations—should not have to worry about their personal information being used against them.

Advocates say stronger protections are necessary to ensure that renters feel secure, especially in situations involving domestic violence or immigration concerns.

The Bigger Picture for Landlords

For landlords, especially those outside Oregon, this is another signal of where rental regulations are heading nationwide.

We’re seeing a consistent pattern:

More rules around documentation and disclosures
Increased tenant protections
Higher penalties for compliance mistakes

Oregon is often on the leading edge of these changes—and other states frequently follow.

Practical Takeaway

Even if you don’t operate in Oregon, the lesson is clear:

Treat all tenant information as highly sensitive, and limit access or sharing to only what is absolutely necessary.

Because in today’s regulatory environment, what used to be considered a simple mistake could quickly turn into a costly liability.

Could This Happen in Florida?

Florida landlords aren’t dealing with this type of law—yet.

Currently, Florida statutes do not impose the same level of restrictions on handling tenant personal data, nor do they include automatic financial penalties tied to disclosure in this way.

However, that doesn’t mean you’re in the clear.

Florida law does touch related areas, including:

General privacy expectations under federal law (like Fair Housing considerations)
Protections tied to discrimination and retaliation
Data security expectations when handling sensitive information

More importantly, trends like this rarely stay isolated.

States such as Oregon, California, and New York often act as policy test markets. Once legislation proves workable (or politically popular), similar concepts tend to appear elsewhere—sometimes in modified form.

What Florida Landlords Should Do Now

Even without a specific statute, smart operators should treat this as a warning shot:

Limit data collection to only what is necessary
Restrict access to tenant files (digital and physical)
Avoid informal sharing of tenant details—even in casual conversations
Secure storage systems (especially cloud platforms and email)

Because if—and when—laws like this reach Florida, landlords who are already operating with discipline won’t have to scramble to catch up

HUD Proposes Major Changes to Eviction Rules and Housing Assistance

Mon, 16 Mar 2026 21:08:30 GMT

HUD Proposes Major Changes to Eviction Rules and Housing Assistance

A new proposal from the U.S. Department of Housing and Urban Development (HUD) could significantly change how federally assisted housing programs operate across the country. The rule, released in early March 2026, would give local housing agencies more authority to enforce work requirements, limit how long some tenants receive assistance, and speed up the eviction process in certain situations.

While the proposal is aimed primarily at federally subsidized housing programs, the policy shift could affect millions of households and reshape how public housing is administered nationwide.

Faster Eviction Timelines

One of the most notable elements of the proposal is the rollback of a federal rule that required housing providers to give tenants at least 30 days’ notice before eviction for nonpayment of rent. HUD has moved to remove that requirement, returning eviction timelines to standards determined by state law and local lease agreements.

Because of this change, eviction notices in federally assisted housing programs could be issued with significantly shorter timelines in some areas. In certain cases, lease termination could occur in as little as five days, depending on local regulations and the housing program involved.

Industry groups representing housing providers have generally supported the change, arguing that the previous federal mandate created operational challenges and delayed the ability of landlords and housing agencies to address unpaid rent.

Work Requirements for Housing Assistance

The proposed rule would also allow housing authorities and certain subsidized housing providers to require able-bodied adults to work or participate in qualifying activities in order to remain eligible for housing assistance.

Under the proposal:

Work requirements could reach up to 40 hours per week for eligible adults.
The rule would apply to non-elderly, non-disabled residents receiving federal housing assistance.
Local housing agencies would decide whether to implement the requirements.

The programs potentially affected include:

Public Housing
Housing Choice Vouchers (Section 8)
Project-Based Vouchers
Project-Based Rental Assistance

HUD officials say the intent is to encourage self-sufficiency and ensure housing assistance functions as a temporary support rather than a permanent benefit.

Term Limits on Housing Assistance

Another major element of the proposal involves time limits on how long some households can receive federally subsidized housing.

The rule would allow housing providers to establish residency limits, potentially as short as two years for certain tenants who are able to work and do not qualify for disability or elderly exemptions.

However, these limits would not be mandatory. Local housing authorities and property owners would have the option to adopt the policy based on local conditions and administrative capacity.

Public Comment Period

Because the rule is still in the proposal stage, HUD is accepting public comments before making a final decision. The comment period is open until May 1, 2026.

During this time, housing authorities, property owners, advocacy groups, and members of the public can submit feedback that may influence the final version of the regulation.

A Significant Shift in Housing Policy

If implemented, these changes would represent one of the most significant shifts in federal housing policy in recent years.

Supporters argue that the new rules could:

Reduce long-term dependency on housing assistance
Give local housing providers more flexibility
Allow faster action when tenants fail to pay rent

Critics, however, warn that stricter requirements and shorter eviction timelines could make it more difficult for vulnerable households to maintain stable housing.

What It Means for Landlords

Although these rules apply primarily to federally assisted housing programs, they may influence how affordable housing is managed nationwide.

For landlords who participate in programs such as Section 8 or other HUD-assisted housing initiatives, the changes could eventually affect tenant eligibility standards, lease enforcement policies, and administrative procedures.

As the rulemaking process moves forward, housing providers and property owners will be watching closely to see how the final policy is structured and how widely it may be implemented.

Jacksonville Considers Rental Property Registry

Mon, 16 Mar 2026 20:33:25 GMT

Jacksonville Considers Rental Property Registry:

What Local Landlords Need to Know

A proposal introduced in the Jacksonville City Council could bring a significant change to the way rental housing is regulated in the city. Councilman Jimmy Peluso has been working to introduce legislation that would create a citywide rental property registry, a database listing rental properties and their owners.

While the proposal has not yet become law, it has sparked growing discussion among housing advocates, tenants, and landlords throughout Duval County.

What Is a Rental Property Registry?

A rental registry is essentially a government database of rental housing. Under the concept being discussed in Jacksonville, landlords would likely be required to provide certain information to the city about each rental property they own.

Typical rental registries in other cities require landlords to submit information such as:

The property address
The name of the property owner
Contact information for the owner or property manager
A local contact person responsible for maintenance or emergencies

Supporters say this information helps tenants and city code enforcement officers identify who is responsible for maintaining a property.

Why Supporters Want the Registry

Tenant advocates argue that many renters struggle to determine who actually owns the property they are living in. In cases where repairs go unaddressed or utilities are shut off, it can be difficult for tenants or city officials to locate the responsible party.

Supporters of the proposal say a registry could:

Improve transparency in rental housing
Help code enforcement respond more quickly to complaints
Allow tenants to verify ownership before signing a lease

Some advocates also suggest the registry could include information about past code violations, giving prospective tenants insight into the condition of a property.

Why Landlords Are Watching Closely

Many landlords are concerned that a registry could be the first step toward broader regulation of rental housing.

In several cities around the country, rental registries began as simple ownership databases but later expanded to include:

Annual registration fees
Mandatory inspections
Licensing requirements
Additional compliance reporting

Because of this history, some property owners worry that Jacksonville could eventually adopt similar requirements.

Current Status of the Proposal

At present, Jacksonville does not have a landlord registry, and no ordinance has been adopted. Earlier legislative efforts were introduced as resolutions encouraging the city to explore the idea. Those measures were later withdrawn so that council members could consider a more detailed ordinance.

As of now, discussions about a registry are ongoing within the City Council.

What Happens Next?

If the proposal moves forward, it would likely go through several steps:

Introduction of a formal ordinance
Committee review and public hearings
Debate and vote by the City Council
Implementation timeline if approved

Because rental housing is a major part of Jacksonville’s housing market, any registry proposal would likely generate significant debate.

What Jacksonville Landlords Should Do

For now, landlords are not required to register their properties with the city. However, property owners may want to follow the issue closely as it develops.

Rental registries are becoming more common in cities across the country, and Jacksonville may eventually decide whether to adopt one of its own.

For landlords, the key question will be whether such a system remains a simple transparency tool—or evolves into a broader regulatory program affecting rental property operations

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Accidental Landlords on the Rise as Housing Market Adjusts

Wed, 11 Mar 2026 17:19:17 GMT

Accidental Landlords on the Rise

A growing number of homeowners are turning unsold homes into rental properties, creating what housing analysts call “accidental landlords.” Recent research shows this trend has reached its highest level in roughly three years as the housing market shifts in favor of buyers.

The phenomenon occurs when owners who originally planned to sell a home decide instead to rent it out after failing to secure the price they expected.

Unsold Homes Are Entering the Rental Market

According to a new analysis from Zillow, about 2.3% of homes currently listed for rent on Zillow were recently listed for sale.

That figure is near the highest level the company has recorded since it began tracking the data several years ago. The only time the share was slightly higher was in November 2022, when roughly 2.4% of rental listings had recently been on the market for sale.

The trend suggests that homeowners who cannot sell quickly are increasingly choosing to lease their properties instead.

Sellers Face a Different Housing Market

Housing economists say the rise of accidental landlords reflects changing conditions in the real estate market.

During the pandemic housing boom, demand for homes was extremely strong and sellers often received multiple offers quickly. Today, however, buyers have gained more negotiating power, and homes in many areas are staying on the market longer.

Instead of lowering their price significantly, some owners choose to rent their homes temporarily while waiting for the market to improve.

One housing economist noted that renting can give sellers time rather than forcing them to accept a price they believe is too low.

Florida Among the Areas Seeing More Accidental Landlords

The trend is not evenly distributed across the country.

Several Sun Belt markets, including parts of Texas and Florida, are seeing higher concentrations of accidental landlords. Cities such as Denver, Houston, Austin, San Antonio, Portland, Tampa, Miami, Dallas, Jacksonville, and Nashville rank among those with the largest share of homes that moved from “for sale” listings to rental listings.

These areas generally have more buyer-friendly conditions, where homes tend to take longer to sell and price reductions are more common.

Single-Family Homes Lead the Trend

Detached single-family houses make up the largest portion of accidental-landlord properties.

Zillow’s analysis found that 3.4% of single-family homes listed for rent recently had been listed for sale.

The share is smaller for other property types:

Townhomes: about 2.2%
Condominiums: about 1.1%

However, condos have seen the fastest growth in accidental landlords compared with the past several years.

Most Homeowners Are Not in Financial Distress

One important point highlighted by the research is that these homeowners typically are not being forced to rent their homes due to financial trouble.

Instead, many owners still have significant equity in their properties. Recent data indicates that only a small percentage of homes nationwide are currently worth less than their last purchase price.

Because of that financial cushion, many sellers have the flexibility to rent their homes rather than selling immediately at a lower price.

What This Means for the Rental Market

The rise of accidental landlords can have several effects on rental housing markets:

More rental supply as unsold homes become rentals
Greater competition among landlords in certain markets
Potential pressure on rent growth if rental inventory increases

For tenants, the trend may mean more housing options, especially in cities where many homeowners are converting unsold listings into rentals.

A Sign of a Changing Market

Housing analysts say the increase in accidental landlords reflects a broader rebalancing of the housing market after several years of intense competition among buyers.

As conditions shift, some sellers are discovering that renting their property temporarily can be a practical strategy while they wait for better selling conditions.

For now, the data suggests that accidental landlords will continue to play a noticeable role in shaping the rental housing supply in many U.S. cities.

FTC Getting Into Rental Regulation?

Wed, 11 Mar 2026 17:01:05 GMT

FTC May Regulate Rental Fees

What Landlords Need to Know About New Federal Rules

Federal regulators examine pricing transparency in the rental market

Federal regulators are taking a closer look at fees charged to renters, and the outcome could eventually affect landlords and property managers across the country.

The U.S. Federal Trade Commission (FTC) has begun the early stages of a rulemaking process aimed at improving transparency in rental housing pricing. The agency is examining whether certain rental-related fees are being presented to consumers in ways that could be misleading or confusing.

Although no final rule has been adopted, the move signals that federal regulators are increasingly interested in how rental prices and associated fees are disclosed to tenants.

The FTC’s Early Rulemaking Process

In early 2026, the FTC submitted an Advance Notice of Proposed Rulemaking (ANPRM) related to rental housing fees. This step starts the federal rulemaking process and allows regulators to gather information before deciding whether to propose formal regulations.

If the agency moves forward, the process would include:

Publication of a proposed rule
A public comment period
Review of industry feedback
A final rule vote by the commission

This process can take considerable time, and it is not certain that a final regulation will emerge. However, the issue has clearly gained attention in Washington.

Why Regulators Are Interested in Rental Fees

The discussion around rental housing fees is part of a broader federal campaign against what regulators often call “junk fees.”

These are charges that consumers may not see until later in the purchasing process. In rental housing, examples could include:

Administrative fees
Mandatory technology or service packages
Application processing fees
Required utility or amenity fees
Move-in or inspection charges

Consumer advocates argue that renters should see the total cost of housing upfront, rather than discovering additional charges later in the leasing process.

Landlords and property managers, on the other hand, often note that some fees reflect legitimate costs associated with operating and maintaining rental properties.

Earlier FTC Action in Other Industries

The FTC has already taken action in other markets where fees were not clearly disclosed.

In 2024 the agency adopted regulations requiring businesses in the ticketing and short-term lodging industries to disclose mandatory charges as part of the advertised price.

Although that rule did not apply to traditional long-term rental housing, it demonstrated the type of transparency rules regulators may consider in other industries—including residential rentals.

Property-Management Software Also Under Scrutiny

Federal regulators have also recently contacted several companies that provide property-management software used by landlords and apartment operators.

The FTC raised concerns that some platforms might make it difficult for landlords to display the full monthly cost of renting a unit, including mandatory charges.

The agency warned that failing to clearly disclose required fees could potentially raise issues under federal laws prohibiting unfair or deceptive business practices.

What This Could Mean for Florida Landlords

While the FTC proposal is federal and still in its early stages, Florida landlords should also be aware of state-level developments affecting rental fees and disclosures.

Several issues in Florida already intersect with the same transparency concerns regulators are discussing in Washington.

Florida Law Already Regulates Certain Fees

Florida law allows landlords to charge various fees, but some charges are specifically addressed by statute.

For example:

Application Fees
Florida law allows landlords to charge application fees for screening tenants. However, landlords should clearly disclose these charges before accepting an application.

Security Deposits
Florida Statute §83.49 governs how security deposits must be handled, including requirements for holding deposits in separate accounts and providing written notice to tenants.

Advance Rent and Fees
Landlords commonly collect first month’s rent, last month’s rent, and a security deposit at move-in. These amounts should always be clearly explained in the lease agreement.

Failure to properly document these charges can sometimes lead to disputes when a tenancy ends.

Local Governments Are Watching Rental Fees

Although Florida has strong state preemption laws limiting local regulation of rental housing, some municipalities and advocacy groups have shown interest in issues such as:

Application fees
Administrative fees
Late fees
Mandatory service packages

If federal rules emerge, these local discussions could gain additional momentum.

Advertising and Pricing Transparency

Another issue landlords should pay attention to is how rental prices are advertised.

If federal rules eventually require that mandatory fees be included in advertised rent prices, landlords and property managers may need to adjust how they list rental properties on websites or online marketplaces.

Clear and consistent pricing disclosures could become an important compliance issue.

Practical Advice for Florida Landlords

Even before any federal regulation is adopted, landlords can reduce risk by following a few best practices:

Disclose all fees clearly.
Tenants should understand every charge before signing a lease.

List recurring charges in writing.
Monthly service fees, technology packages, or utility pass-through charges should be spelled out in the lease.

Avoid surprises during move-in.
Unexpected charges are one of the most common causes of tenant complaints.

Keep application fee policies consistent.
Applying the same screening policies to all applicants can reduce disputes.

The Bottom Line

The FTC’s exploration of rental housing fees is still in its early stages, but it reflects a broader national conversation about pricing transparency in the housing market.

Whether federal rules ultimately emerge or not, landlords—especially in states like Florida with active rental markets—may benefit from reviewing how their fees are disclosed and documented.

Clear communication with tenants about the true cost of renting a property can help prevent misunderstandings and maintain smoother landlord-tenant relationships.

Editor’s Note

Some housing industry observers view the FTC’s interest in rental housing fees as potentially more significant than it may first appear.

At the moment, federal regulators are focusing narrowly on fee transparency and disclosure practices. However, critics worry that this could represent the familiar regulatory pattern sometimes described as “the camel’s nose under the tent.” In other words, a limited rule addressing one issue may gradually expand into broader federal involvement in the rental housing market.

Historically, residential landlord-tenant law has largely been governed at the state and local level. Landlord licensing requirements, eviction procedures, security deposit rules, and rent regulations are typically established by state legislatures and local governments.

If federal agencies begin regulating pricing disclosures or rental fee structures, some property owners fear that the next steps could include additional federal standards related to:

Lease terms and disclosures
Tenant screening practices
Fee limitations
Late fee structures
Eviction procedures
Rent-setting policies

Supporters of stronger federal oversight argue that nationwide standards could help prevent deceptive practices and make housing costs easier for renters to understand. Critics counter that expanding federal involvement could create one-size-fits-all rules that may not reflect the realities of local housing markets.

At this stage, the FTC’s inquiry is limited to examining how rental fees are disclosed. But for many in the housing industry, the discussion raises a broader policy question: Should the federal government play a larger role in regulating residential rental housing, or should those decisions remain primarily with states and local communities?

As the rulemaking process develops, landlords, property managers, and housing advocates across the country will be watching closely.

PFH

What Landlord Insurance Often Leaves Out for Short-Term Rentals

Sun, 01 Mar 2026 17:39:25 GMT

What Landlord Insurance Often Leaves Out for Short-Term Rentals

When you transition a long-term rental to short-term your insurance may fall woefully short

When you transition a property from a long-term rental to a short-term rental(STR) — like listing it on Airbnb or Vrbo — the insurance you once counted on may not provide the protection you think it does. Traditional landlord or dwelling policies are structured for long-term tenants, not for frequent guest turnover and short-duration stays. That difference matters when it comes to what’s actually covered and what isn’t.

Why Standard Landlord Policies May Fall Short

Many typical landlord insurance plans are geared toward long-term rental arrangements (generally leases longer than six or 12 months). Because of that, they often exclude or limit coverage related to the way short-term rentals operate — especially when it comes to guest-caused incidents and business-related risks.

Here are key gaps you need to be aware of:

1. Guest-Related Liability and Injuries

Standard landlord insurance usually includes liability coverage for injuries to named tenants. However, it often excludes liability incidents involving people who stay for only a few days or weeks. Many insurers view short-term rentals as a business activity, and claims arising from guests’ injuries or lawsuits may be denied under a standard policy.

2. Theft and Damage by Short-Term Guests

Landlord policies generally protect the structure itself, not the personal contents you provide for guests. That means if a short-term guest steals furniture, appliances, décor, or other items you’ve put in the space, your policy might not reimburse you.

3. Wear and Tear or Mechanical Breakdowns

Routine mechanical failures — like a broken water heater, refrigerator, or HVAC — typically aren’t covered unless you add a special endorsement. While policies may respond to sudden damage from fire or storm perils, they usually don’t pay for normal wear or equipment breakdowns, which can be a big cost for STR operations with high usage.

4. Pest Infestations

Infestations such as bed bugs are considered preventable or maintenance issues, so they’re excluded from standard coverage. Because pest problems can render a property unusable for guests for days or weeks, an owner may be left covering both the treatment costs and the income lost while the property is uninhabitable.

5. Loss of Rental Income

Landlord insurance may cover loss of rent if your long-term tenant leaves due to a covered peril, but this doesn’t translate well to short-term rental income loss. For example, if a major repair or pest problem forces you to cancel bookings, most traditional policies won’t reimburse the income lost from those reservations.

6. Business Liability and Off-Premises Exposures

Certain amenities common in short-term rentals — such as hot tubs, pools, or recreational equipment — can create liability risks that a standard landlord policy won’t cover. Similarly, liabilities that extend beyond your property lines, like injuries from guest activities off the premises, generally require additional or specialized insurance.

Bottom Line: Short-Term Rentals Are Treated Differently

Because short-term rentals involve frequent turnover, business-style operations, and heightened guest interactions, they

aren’t well served by traditional landlord insurance alone. Many property owners choose to either:

Add a short-term rental endorsement or rider,
Obtain a specialized short-term rental policy, or
Secure commercial property or liability coverage designed for hospitality-style rentals.

Before hosting guests, talk with your insurance agent to understand the limitations of your current policy and explore options that align with how you’re using your property.

Are Banks Heading Back To Looser Lending Standards?

Thu, 26 Feb 2026 20:22:49 GMT

Are Banks Heading Back To
Looser Lending Standards?

Recent moves from U.S. financial regulators suggest banks could play a larger role in mortgage lending again -- Potentially making loans easier and more affordable for qualified borrowers.

What’s Changing in Bank Lending Rules

For years, stricter post-2008 financial crisis regulations limited how aggressively banks could write new mortgages. These rules — designed to prevent the kinds of risky lending that contributed to the housing collapse — made it more expensive and complex for banks to hold and service home loans.

Now, regulators are considering adjustments that would ease some of those constraints:

One proposal would lower the leverage ratio requirement for smaller, community banks, giving them more flexibility to lend without having to maintain as much capital relative to their assets.
Officials are also exploring changes to how banks account for mortgage servicing assets, which could make it cheaper for banks to service loans they originate instead of selling them off.

The goal, regulators say, is to strike a balance: keep safeguards in place to protect the financial system while enabling banks — especially local institutions — to compete more effectively for mortgage business.

Why This Matters for Borrowers

If these reforms move forward:

Home loan availability could improve, especially for community lenders that traditionally underwrite smaller mortgages. More lenders competing for loans can lead to better pricing and terms for borrowers.
Small investors — like buy-and-hold landlords or property flippers — may find it easier to secure financing with competitive rates.

Industry groups have pointed out that the current regulatory framework has made some banks reluctant to participate robustly in mortgage origination and servicing, ceding market share to nonbank lenders and specialty finance companies.

Banks Have Strong Balance Sheets

Many traditional banks entered this cycle with significant capital and robust profitability, giving them room to take on more lending risk than they have in recent years. This provides comfort to regulators that easing certain requirements won’t undermine financial stability.

That said, any regulatory revisions would still maintain core consumer protections put in place after the crisis — such as thorough income verification and limits on loan features that were widespread before 2008 (like negative amortization or very low initial payments).

What to Watch Next

These proposals are still under discussion, and it will take time for formal rule changes to be finalized and implemented. The debate reflects broader tensions in housing finance: how to encourage credit availability without re-introducing the types of risk that contributed to the 2008 housing crash.

When Tenants Weaponize Code Enforcement, HOAs, and Complaints

Mon, 16 Feb 2026 21:01:20 GMT

When Tenants Weaponize

Code Enforcement, HOAs, and Complaints

Most Florida landlords understand the importance of maintaining their properties and responding promptly to legitimate repair requests. Code enforcement, housing authorities, and HOAs exist for a reason. But in recent years, many landlords have encountered a troubling trend: tenants using complaints as leverage rather than protection.

This is not about ignoring real safety issues. It’s about recognizing when systems designed to ensure habitability are being strategically weaponized to delay rent, stall eviction, or force concessions.

How Weaponized Complaints Typically Appear

These situations often follow a predictable pattern:

A tenant falls behind on rent or receives a notice.
Communication becomes tense or evasive.
Suddenly, the landlord receives notice of:
A code enforcement complaint
An HOA violation
A housing authority inquiry
The tenant hints—or directly states—that the complaint will “go away” if the landlord cooperates.

In many cases, the issues cited are minor, exaggerated, or long-standing conditions that were never previously raise

Why This Is Increasing in Florida

Several factors make Florida landlords particularly vulnerable:

High population growth leading to overburdened enforcement agencies
Tenant advocacy messaging online, often oversimplified or misleading
Delays in eviction proceedings, making leverage more effective
Self-managed properties, where landlords may not have formal documentation systems

Tenants quickly learn that even a minor complaint can trigger inspections, letters, and deadlines—creating stress and expense for owners.

The Cost to Landlords Goes Beyond the Complaint

Even when complaints are unfounded or minor, they can result in:

Mandatory inspections
Repair deadlines
Re-inspections
Administrative fees
HOA fines
Insurance or underwriting questions
Delays in eviction proceedings

More damaging is the loss of leverage. Once a complaint is active, many landlords hesitate to act at all, fearing retaliation claims—even when rent remains unpaid.

The Difference Between Legitimate Issues and Tactical Complaints

Not every complaint is abusive. Legitimate habitability concerns should always be addressed promptly.

Red flags suggesting a tactical complaint include:

Issues raised only after rent problems begin
Vague descriptions without repair requests
Refusal to allow access for repairs
Complaints filed simultaneously with eviction notices
Statements implying negotiation through enforcement

Recognizing the difference allows landlords to respond appropriately without becoming defensive or paralyzed.

Why Over-Accommodation Can Backfire

Many landlords respond by:

Offering rent concessions
Delaying notices
Making unnecessary repairs immediately
Avoiding communication altogether

Unfortunately, this often reinforces the behavior. Tenants learn that complaints produce results—even when unrelated to actual conditions.

This doesn’t mean landlords should ignore issues. It means responses must be documented, consistent, and professional.

Best Practices to Protect Yourself

Florida landlords can reduce risk by adopting a few key habits:

Document Everything
Maintenance requests, responses, inspections, and access attempts should be logged in writing.
Respond Promptly—but Formally
Acknowledge complaints and outline steps clearly. Avoid emotional or defensive language.
Maintain Access Records
If tenants deny or delay access, document every attempt.
Separate Maintenance From Rent Enforcement
Handle repairs appropriately—but continue rent enforcement according to law.
Do Not Negotiate Through Complaints
Never tie rent concessions to complaint withdrawal.
Continue Legal Timelines
Properly issued notices and filings should proceed unless advised otherwise by counsel.

When Professional Support Matters

When complaints coincide with non-payment or eviction, landlords often benefit from professional assistance. Experienced eviction services understand how to proceed without triggering retaliation claims or unnecessary delays.

Knowing when to act—and when to hold firm—can prevent a minor issue from becoming a costly, drawn-out problem.

Final Thoughts

Code enforcement, HOAs, and housing authorities play a vital role in protecting tenants. But when those systems are used as bargaining tools, landlords must respond with clarity—not fear.

The goal isn’t confrontation. It’s consistency.

Landlords who document well, act promptly, and separate emotions from operations are far less likely to be derailed by tactical complaints. In today’s Florida rental environment, understanding this dynamic is no longer optional—it’s part of running a resilient rental business

Why Delaying Eviction Often Backfires for Landlords

Mon, 16 Feb 2026 20:31:16 GMT

Why Delaying Eviction Often Backfires for Landlords

It is natural for landlords—especially experienced, conscientious ones—to hesitate before taking formal eviction action. Most rental relationships begin with good intentions, and when a tenant falls behind, many owners look for ways to work things out rather than escalate the situation.

Common reasons for delay include:

Tenant hardship stories that appear genuine
Acceptance of partial payments in good faith
A general discomfort or fear of the court process
The belief that the tenant will eventually “catch up”

These instincts are understandable. However, both data and long-term field experience point to a consistent and difficult reality: tenants who fall significantly behind rarely recover without formal intervention .

According to guidance from the Consumer Financial Protection Bureau, prolonged delinquency tends to compound rather than resolve, as tenants must balance rent against other financial obligations. In practice, once a tenant is more than a month or two behind, the likelihood of full recovery diminishes sharply.

In fact, many landlords eventually discover a more uncomfortable truth: some tenants, consciously or not, begin to treat nonpayment as a temporary financial advantage. When rent is not being enforced, funds are often redirected to other pressing needs—credit cards, car payments, or relocation costs. By the time enforcement begins, the tenant may already be financially positioned to move on, leaving the landlord with accumulated losses.

Equally important, delay sends a signal . When rent enforcement appears inconsistent or uncertain, it can unintentionally encourage continued nonpayment. As noted by the National Apartment Association, consistent policy enforcement is one of the most critical factors in maintaining payment discipline across a rental portfolio.

Florida Law Is Built Around Timelines

In Florida, landlord-tenant law is structured with clear procedural timelines. Under Florida Statutes Chapter 83, the eviction process begins with a 3-day notice for nonpayment of rent, followed by court filings if the balance remains unpaid.

These timelines are not arbitrary—they are designed with the expectation that landlords will act promptly when rent is not paid.

When landlords delay, several consequences follow:

Court hearing dates are pushed further into the future
Possession of the property is delayed
The likelihood of recovering unpaid rent decreases

The longer the delay, the greater the financial exposure. Lost rent is rarely recoverable in full, particularly once a tenant vacates or becomes judgment-proof.

Acting promptly is not about being harsh—it is about protecting the asset and maintaining the financial integrity of the rental business.

Early Action Still Leaves Room for Resolution

One of the most common misconceptions among landlords is that filing an eviction immediately ends the possibility of working things out. In reality, the opposite is often true.

Formal action frequently creates clarity and urgency.

Tenants who were previously unresponsive often engage once a notice or filing is issued
Court deadlines provide a clear framework for resolution
Payment plans or move-out agreements become more structured and enforceable

Data from the Urban Institute suggests that many eviction filings do not ultimately result in a completed eviction, but instead lead to negotiated outcomes—payments, stipulations, or voluntary move-outs.

In other words, filing is often the beginning of resolution—not the end of it .

The Bottom Line

Delaying eviction may feel compassionate in the moment, but it often leads to greater financial loss and fewer workable solutions. Prompt, professional action reinforces expectations, preserves options, and aligns with the legal structure already in place.

Landlords can—and should—remain fair and reasonable. But fairness does not require inaction. In most cases, the best outcomes occur when landlords act early, communicate clearly, and allow the process to create the structure needed for resolution.

Why Florida Landlords Should List Every Adult On The Lease

Sat, 17 Jan 2026 14:26:34 GMT

Why Florida Landlords Should List Every Adult Occupant on the Lease

For Florida landlords and property managers, small oversights often turn into big problems. One of the most common — and preventable — mistakes is allowing adults to live in a rental property without being formally named on the lease.

While it may seem harmless to allow a spouse, partner, or roommate to “move in later,” failing to update the lease can weaken your legal position, slow down enforcement, and complicate evictions.

The Reality of Modern Rentals in Florida

According to prominent Florida Attorney, Harry Heist, Florida’s rental market is fast-moving and highly competitive. Properties turn over quickly, tenants relocate frequently, and many rentals involve roommates, blended families, or seasonal residents. In this environment, it is not unusual for additional adults to begin living in a unit after the lease is signed.

The problem is not the additional occupant — it is the lack of documentation.

When adults live in a property but are not on the lease, landlords often lose clarity over:

Who is legally responsible for rent
Who can be held accountable for damage
Who must comply with lease rules
Who must be named in an eviction

Risks of Unlisted Adult Occupants

Unlisted adults create gray areas that tenants — and their attorneys — can exploit. Common issues include:

Eviction delays
If an adult occupant is not on the lease, disputes may arise over whether they are a tenant, a guest, or something in between.
Responsibility disputes
When damage occurs or rent goes unpaid, tenants may argue over who caused the problem or who should pay.
Unauthorized tenant claims
Long-term occupants may attempt to claim tenant rights, even though they never signed the lease.
Enforcement challenges
Lease violations committed by an unlisted adult can be harder to enforce against the named tenant.

Each of these issues can add time, cost, and uncertainty to what should be a straightforward process.

The Advantage of Listing All Adults on the Lease

Requiring every adult occupant (18 and over) to sign the lease provides clarity and leverage.

When all adults are listed as tenants:

Each tenant is jointly and severally liable for rent
Lease violations by any occupant apply to all tenants
Enforcement actions are simpler and cleaner
Evictions proceed without arguments over occupancy status

From a management perspective, this removes ambiguity and reduces risk.

Florida Law Favors Clear Written Agreements

Florida landlord-tenant law, found in Chapter 83 of the Florida Statutes, emphasizes the importance of written agreements. While oral leases may exist in limited situations, they offer far less protection than a comprehensive written lease signed by all adult occupants.

Recent changes to Florida law have created faster procedures for removing true squatters — individuals with no lease and no permission to occupy a property. However, those laws do not apply when someone has lived in the unit with the landlord’s knowledge or implied consent.

If an adult occupant has been allowed to stay — even informally — they may be treated as a tenant, requiring a full eviction. Listing all adults on the lease from the beginning helps prevent this problem.

Best Practices for Florida Property Managers and Landlords

To protect your investment and streamline enforcement, consider adopting the following practices:

Require full disclosure during the application process
Ask for the names of all intended adult occupants and screen each one.
Prohibit unauthorized occupants in writing
Your lease should clearly state that additional adults are not allowed without written approval.
Screen every adult tenant
Joint liability only helps if all tenants meet your screening standards.
Use lease addendums when circumstances change
If a new adult moves in, require a written addendum adding them as a tenant.

Consistency is key. Policies only protect you when they are applied uniformly.

A Simple Policy That Prevents Major Problems

Listing every adult occupant on the lease costs nothing, but it can save thousands of dollars in legal fees, lost rent, and property damage. In Florida’s high-demand rental market, proactive lease management is one of the most effective tools landlords and property managers have.

When in doubt, consult a Florida-licensed attorney familiar with landlord-tenant law to ensure your lease language remains current and compliant.

Final Thought: Know Who Is Living in Your Property

Strong screening and clear leases go hand in hand. Knowing exactly who is living in your rental — and who is legally responsible — puts you in control from day one.

That’s not just good management. It’s smart business.

Fake Identities - When the Applicant Isn’t Who They Claim to Be

Sat, 17 Jan 2026 13:31:20 GMT

Fake Identities

When the Applicant Isn’t Who They Claim to Be

For decades, verifying a rental applicant’s identity was fairly straightforward. Landlords met the person in person, examined a driver’s license, reviewed a paper application, and verified employment and rental history through direct phone calls. In 2025, that world is gone.

Today’s rental process is overwhelmingly digital, driven by remote leasing platforms and online applications. While this offers convenience, it has unleashed identity fraud on an unprecedented scale. According to recent industry reports, 85% of landlords have encountered rental fraud , up sharply from previous years, with synthetic identities and falsified documents leading the surge.

Fake names, stolen Social Security numbers, synthetic identities (blending real and fabricated data), and "borrowed" identities from acquaintances with strong credit are now commonplace. Many landlords only uncover the deception months later—when rent payments stop and eviction proceedings reveal no traceable real person behind the lease.

How Identity Fraud Happens

Scammers exploit vulnerabilities in digital processes with sophisticated tactics:

Stolen personal information from massive data breaches, readily available on the dark web.
Synthetic identities , combining real SSNs or credit elements with fake names, addresses, and details to build seemingly legitimate profiles.
Borrowed identities from friends or family with good credit, often without their knowledge.
AI-generated forgeries , including deepfake selfies, manipulated ID photos, and fabricated documents like pay stubs or bank statements.

Automated screening systems often fail to catch these because the identities appear "clean"—especially if unused for prior housing fraud. TransUnion and other reports highlight synthetic fraud as the fastest-growing type, accounting for a significant portion of digital scams.

 Why Tech Made It Worse

The shift to remote leasing eliminated in-person meetings, the traditional bulwark against fraud. Applicants now upload scans of IDs, selfies, and supporting documents—many altered using AI tools or "template farms" that mass-produce fakes.

Credit reports can look pristine for new synthetic profiles, and employer references may route to controlled emails or voicemails. With AI advancing rapidly, deepfakes and manipulated media are making even video verifications riskier, though live checks remain a strong defense.

Warning Signs Landlords Miss

Fraudulent applicants often exhibit subtle red flags:

Reluctance to join live phone or video calls.
Blurred, inconsistent, or overly perfect ID photos.
Minor name variations across documents (e.g., middle initial differences).
Employer or reference contacts leading to personal emails or voicemails.
Urgency to "move fast," offering higher rent or advance payments.
"Perfect" applications with no gaps in history but lacking verifiable depth.

What Landlords Should Change

To combat this evolving threat, adopt layered verification:

Require live video or in-person meetings before final approval—biometric matching of ID photos to real-time selfies is essential.
Independently verify all contacts , calling employers via official numbers found online, not provided ones.
Use advanced tools for document forensics, synthetic fraud detection, and biometric checks.
Cross-reference multiple data points , including SSN traces, address history, and behavioral analysis.
Be wary of flawless applications —genuine ones often have minor, natural inconsistencies.
Many property managers now integrate AI-powered fraud detection platforms that flag anomalies automated systems miss.

Bottom Line

Identity fraud in rentals is no longer rare—it's routine and increasingly sophisticated in 2025. Landlords relying solely on basic automated screening are exposing themselves to significant financial and legal risks, including lost income and unrecoverable damages. By prioritizing robust, multi-layer identity verification—including human oversight and live interaction—you can protect your properties and ensure reliable tenants. Staying vigilant isn't optional; it's essential for survival in today's digital rental landscape

Florida’s Rental Market in 2026: Rents, Vacancies, and What’s Driving the Shift

Sat, 17 Jan 2026 12:30:16 GMT

Florida’s Rental Market in 2026

Rents, Vacancies, and What’s Driving the Shift

Florida’s rental market has entered 2026 in a noticeably different posture than the peak “pandemic boom” years. After a period of rapid rent gains and razor-thin availability, many parts of the state are now in a normalization phase: demand is still strong (Florida remains a high-migration state), but a wave of new supply and slower household formation has eased pricing pressure in many metros. For renters, that can mean more choices and modest negotiating leverage. For landlords and investors, it means sharper competition, more emphasis on property condition and marketing, and a closer watch on vacancy.

Below is a statewide snapshot focused on three core questions: What is the typical (median/market) asking rent? What are vacancy conditions in multifamily? And what do we know about vacancy conditions for single-family rentals?

Median asking rent:

What does it cost to rent in Florida?

There is no single rent figure that fully captures Florida’s diverse rental market. Conditions vary widely between South Florida, Central Florida, the Panhandle, and inland regions, as well as between urban high-rise apartments and suburban single-family homes. Still, widely used rent indices help establish a reliable statewide benchmark.

One commonly cited measure is the Zillow Observed Rent Index (ZORI), which tracks typical market rents while adjusting for changes in the mix of available units. As of late 2025, Florida’s typical market rent measured by this index stood at approximately $1,901 per month.

This figure should be understood as a statewide reference point rather than a precise “median asking rent” for every neighborhood. Coastal and high-growth metros—such as Miami-Fort Lauderdale, Naples, and parts of Tampa Bay—often exceed this level, while many smaller and inland markets fall below it.

To understand the impact on households, it is also useful to look at rents actually being paid. Data from the University of Florida’s Shimberg Center for Housing Studies shows that Florida’s median gross rent (rent plus utilities) increased from $1,238 in 2019 to $1,719 in 2023, a rise of roughly 39 percent in just four years. While gross rent is not the same as asking rent, it highlights the significant affordability pressure Florida renters continue to face.

Bottom line: Rents remain elevated compared with pre-2020 levels, but the story entering 2026 is less about rapid increases and more about stabilization, segmentation, and heightened competition—especially in areas with recent apartment deliveries.

Multifamily vacancy

Are apartments easier to find?

The defining feature of Florida’s multifamily market in 2025 and early 2026 has been new supply. Large numbers of apartment units delivered across major metros have outpaced near-term demand in several areas, pushing vacancy rates higher and slowing rent growth.

Examples from major Florida markets in Q3 2025 illustrate this trend:

Miami: Multifamily vacancy rose to roughly 7.4 percent, reflecting increased availability following a wave of new construction.
Orlando: Occupancy around 92.2 percent, implying a vacancy rate near 7.8 percent.
Tampa: Vacancy reached approximately 10.3 percent, signaling a more competitive leasing environment.
Jacksonville: Vacancy climbed higher, to about 12.2 percent, as new deliveries exceeded absorption.

These figures underscore an important point: Florida does not have a single multifamily market. Vacancy conditions vary significantly by metro, submarket, and property class. Newer, higher-priced properties often feel the pressure first, while well-located workforce housing may remain relatively tight.

Higher multifamily vacancy typically results in:

Increased concessions and move-in incentives
Longer lease-up times
Greater emphasis on unit condition, amenities, and marketing
Slower rent growth, and in some pockets, modest rent declines

Single-family rentals

A different dynamic

Single-family rentals operate under a different set of dynamics than apartments. Tenants are often families seeking more space, school proximity, and longer-term stability. Supply is also more constrained, particularly because many homeowners remain locked into low mortgage rates and are reluctant to sell.

One challenge in analyzing this segment is data availability: Florida-specific single-family rental vacancy rates are not consistently published as a standalone metric. However, two reference points help frame the discussion.

First, Florida’s overall rental vacancy rate—which includes apartments, small multifamily properties, and single-family rentals—was approximately 10.0 percent in 2024, according to Census-based estimates. This provides a broad statewide availability indicator but does not isolate single-family homes.

Second, at the national level, single-family rental vacancy rates have been reported in the range of 6 percent to 6.5 percent during 2024–2025. While Florida’s exact figure may differ, this suggests that single-family rentals generally remain tighter than many apartment markets.

Practical takeaway: Even as apartment vacancy rises in some Florida metros, well-located single-family rentals—especially in desirable school zones and suburban commuter areas—can remain comparatively resilient. That said, they are not immune to affordability constraints and increased competition from concessions in the multifamily sector.

What’s driving Florida’s rental market?

Several forces are shaping current conditions:

New supply: Apartment deliveries have outpaced short-term demand in several metros, lifting vacancy.
Affordability constraints: Rapid rent growth earlier in the decade continues to strain household budgets.
Migration and job growth : In-migration remains a long-term demand driver, but not always enough to absorb new supply immediately.
Operating costs : Insurance, taxes, and maintenance costs influence landlord pricing decisions and investment behavior.

Outlook for 2026

As Florida moves through 2026, the rental market is likely to reward disciplined pricing, responsive management, and property differentiation. Landlords may need to adjust rents more frequently, emphasize unit readiness, and use concessions strategically. Renters, meanwhile, may find improved availability and better negotiating leverage than during the peak years of 2021–2022.

Quick summary

Typical market rent: About $1,900 per month statewide
Multifamily vacancy: Ranges roughly from 7 percent to 12 percent, depending on metro
Overall rental vacancy (Florida): About 10 percent
Single-family rentals: Generally tighter than apartments, but showing modest softening

Is Renting to Section 8 Tenants Worth It in Florida?

Wed, 03 Dec 2025 19:54:29 GMT

For years, Florida landlords have been divided on whether accepting Section 8 housing vouchers—officially known as the Housing Choice Voucher (HCV) Program—is a smart business move. But as the rental market softens in many metros and affordability pressures rise, more owners are taking a fresh look at the program.

Here’s an updated, Florida-specific analysis to help landlords decide whether Section 8 tenants are a good fit in 2025.

The Benefits:
Why Florida Landlords Are Reconsidering Section 8

✔ Guaranteed Rent (Mostly)

Housing Authorities pay their portion of the rent directly to the landlord, on time, every month. This has become even more attractive as tenant delinquencies have risen statewide due to inflation and debt burdens.

✔ Strong Demand in Many Counties

As of 2025:

Miami-Dade, Broward, and Palm Beach have long voucher waitlists.
Jacksonville, Tampa, and Orlando report voucher holders struggling to find units.
Rural counties often have outdated housing stock, giving private landlords a competitive edge.

In many regions, voucher tenants are actively searching for units—and willing to sign longer lease terms to secure them.

✔ Local Incentives Are Growing

To encourage landlord participation, some Florida Housing Authorities now offer:

Sign-on bonuses (often $300–$1,000 per unit)
Damage mitigation funds (covering damage beyond deposit amounts)
Faster reinspection windows
Vacancy loss payments if the tenant moves out unexpectedly.

Programs vary by county, but these incentives can significantly improve ROI.

The Downsides:
What Florida Landlords Dislike About Section 8

✘ Inspections Can Be Slow or Inconsistent

The required Housing Quality Standards (HQS) inspection is the #1 complaint. Failures for minor issues—such as missing outlet covers or loose handrails—can delay move-ins and rent payments.

Some Housing Authorities are improving turnaround times, but others still suffer from backlogs.

✘ Rent Caps May Limit Profitability

Each county has a Payment Standard based on HUD’s Fair Market Rents. In areas where market rents have risen faster than HUD adjustments, landlords may not be able to charge top-of-market rates. This is more problematic in high-demand counties like Miami-Dade and Monroe, and less of an issue in affordable counties like Polk or Escambia.

✘ Dealing With Tenant Behavior Issues

Voucher tenants must comply with program rules, but:

Evictions still follow standard Florida procedure.
Some Housing Authorities may be slow to terminate assistance for noncompliance; but this does not prevent a landlord from evicting for failure to cure non-compliance.
Poor housekeeping or higher wear-and-tear can increase turnover costs.

The Financial Reality:
Section 8 Can Outperform Market Rent

In certain ZIP codes, especially in mid-tier neighborhoods, Section 8 payment standards exceed what many tenants can afford normally . This makes voucher tenants highly competitive and reduces vacancy time.

Section 8 often works best where:

Properties are in B or C-grade neighborhoods
Competition with new Class-A apartments is irrelevant
Turnover tends to be low
Landlords want predictable cash flow

For higher-end homes or neighborhoods with rapidly appreciating rents, however, the payment standards may fall short.

4. Verdict: Is It “Worth It”?

Section 8 is not a one-size-fits-all solution. But in 2025 Florida’s environment makes it increasingly attractive for:

Cash-flow investors
Landlords with multiple mid-tier units
Owners needi ng rent certainty
Long-distance landlords who want stable tenants
Properties where market rent is close to HUD standards

Florida Insurance Crisis Update - What Landlords Should Expect in 2025-2026

Wed, 03 Dec 2025 19:21:05 GMT

Premiums remain elevated ,
but stability (and modest relief) may finally be on the horizon

Insurance remains the single biggest cost issue for Florida landlords in 2025, with many owners seeing premium increases of 40–100% over the past three years. While the situation is still serious, several developments suggest the worst may finally be behind us.

Fewer insurance carriers are leaving the state

After years of insolvencies and withdrawals, 2024 marked the first year where more insurers entered Florida than exited. This is due in part to:

Recent reforms cracking down on fraudulent roof claims.
Reduced litigation costs.
Increased reinsurance stability.

While premiums remain historically high, greater market participation should eventually lead to more competitive pricing.

 Citizens Insurance is shrinking again

Citizens, the state-run insurer of last resort, hit over 1.4 million policies at its peak. But in 2024–25:

Thousands of policies are being transferred back to private carriers.
New eligibility restrictions are reducing Citizens enrollment.
Premiums for Citizens customers continue rising due to statutory requirements.

For landlords, this means fewer “emergency” options, but more private alternatives returning.

Landlords should prepare for inspections and mitigation requirements

Insurers are increasingly requiring:

Four-point inspections (even on properties previously insured).
Wind-mitigation updates.
Proof of licensed roof replacement.
Updated panel boxes (especially removal of Federal Pacific and Zinsco).
Evidence of no galvanic plumbing issues.

Many insurers now offer premium reductions for proactive upgrades such as:

Impact windows
Modern roofing systems
Water-leak detection and automatic shutoff devices
Updated electrical systems

While the upfront cost can be painful, these improvements significantly reduce long-term premiums.

The long-term outlook: Stabilizing, but no return to old pricing

Experts predict that:

Premium increases will slow or flatten in 2025–26.
A few carriers may begin modest reductions in competitive counties.
The reinsurance market is improving, which slows the rate of increases.

However, Florida insurance will not return to pre-2019 levels. Landlords should budget conservatively and maintain a property-improvement reserve for required upgrades.

The New Wave of Out-of-State Investors Is Changing Florida’s Rental Landscape

Wed, 03 Dec 2025 19:06:48 GMT

Florida saw a massive surge of Wall Street-backed investor activity between 2020 and 2023. Companies like Blackstone, Invitation Homes, and institutional REITs aggressively purchased single-family homes, often paying above asking price and crowding out local buyers. But 2024–2025 are telling a different story.

Institutional buying is way down

High borrowing costs, insurance volatility, and flattening rents have forced many institutional investors to:

Halt acquisitions
Sell off non-performing units
Scale back development projects
Shift capital to the Sun Belt states with lower insurance burdens (e.g., Tennessee, Alabama)

This retreat is opening up opportunities for smaller landlords.

Florida still attracts out-of-state buyers
but the profile has changed

Today’s investor movement is coming from:

Small investors from the Northeast, California, and Chicago
Retirees purchasing rental homes as a side income
Former “accidental landlords” turning second homes into long-term rentals
Entrepreneurs using 1031 exchanges to relocate wealth

These buyers are more cautious and more focused on cash flow instead of speculation.

How this shift benefits Florida landlords

With Wall Street money pulling back:

There is less competition for investment properties.
Small landlords can negotiate more favorable terms.
Sellers are more willing to accept inspection or appraisal contingencies.
Rent growth is stabilizing, making analysis clearer.

It’s a return to a more balanced , less overheated market.

Keys for landlords planning to expand in 2025

To take advantage:

Target counties with lower insurance premiums (Polk, Marion, Hernando, Escambia).
Avoid HOAs with aggressive enforcement or high fees.
Focus on homes built after 2005 to minimize insurance costs.
Use realistic rent projections—no more “pandemic premiums.”
Maintain at least a 3–6 month reserve fund for insurance spikes.

Smart acquisitions today will look brilliant in 2027–2028.

Florida Rental Market Report - December 2025

Wed, 03 Dec 2025 14:46:31 GMT

Florida Rental Market Report
Vacancy and Rent Trends as of December 2025

Statewide Snapshot – Cooling but Still Strong

Median asking rent (all property types, FL statewide, May 2025): ≈ $2,090.
Statewide vacancy rate: about 6.9%, up from 5.8% a year earlier, reflecting softer demand and a lot of new supply.
What this means: the COVID-era boom is over; Florida is in a normalizing / slightly tenant-favored phase, but rents are still far above 2019 levels.

Metro-Level Highlights

Recent data show flat to slightly lower rents in many big counties compared with 2024:

Miami-Dade: median rent around $3,000, down ~6% YoY; vacancy ~7.8%.
Tampa (Hillsborough): median ≈ $2,100, down ~5% YoY; vacancy ~6.5%.
Orlando (Orange): median ≈ $2,000, down ~4% YoY; vacancy ~6.2%; rents in Central FL are roughly 2% lower than a year ago.
Jacksonville (Duval): rents roughly $1,750–1,960, essentially flat or up just 1–2% YoY, with relatively stable vacancy.

Despite softer pricing, competition for well-priced units is still intense in some markets. In Orlando during 2024 there were about 10 applicants per vacant unit, with occupancy around 94–95% and ~66% of renters renewing.

Supply & Construction

Huge wave of new multifamily delivered in 2023–24; thousands more units were under construction as of late 2024 in Orlando and other metros.
Starts slowed sharply in 2024, which should help vacancy peak and then ease by late 2025–26.

Result : Short-term pressure on rents and higher vacancy, especially in Class-A apartments, but a healthier balance long-term.

Tenant Financial Health

Florida has one of the highest credit-card delinquency rates in the country (90-day+ delinquencies ≈ 11.7%), making it harder for renters to qualify under strict credit standards. The Listing Real Estate Management
Inflation and insurance premiums are squeezing renters, pushing many to seek lower rents or concessions rather than pay top-of-market. The Listing Real Estate Management+1

Outlook for 2026

Most forecasts expect:

Modest rent growth (roughly 0–3% annually) instead of the 10–20% spikes seen in 2021–22.
Vacancy gradually drifting down as construction slows and population growth continues.

Practical Takeaways for Florida Landlords

Price to the current market, not 2022.
Think smaller increases ($25–$75/mo) and be willing to undercut the shiny new complex down the street if your vacancy is stretching.
Shorten your “days on market.”
With vacancy edging up statewide, aggressive top-end pricing can cost more in lost months than you gain in rent.
Focus on retention.
High renewal rates in places like Orlando show tenants prefer staying put; good maintenance and clear communication are now as important as price.
Watch local micro-markets.
Downtown Class-A apartments may need concessions; workforce single-family homes in good school zones can still command strong rents and multiple applications.

How to Spot Fake ESA Letters and Avoid Scams

Wed, 03 Dec 2025 14:19:15 GMT

HOW TO SPOT FAKE ESA LETTERS & AVOID SCAMS

For many people, getting an Emotional Support Animal (ESA) letter is the key to keeping their companion animal by their side. A valid ESA letter gives you protections under the Fair Housing Act (FHA) — no-pet housing rules no longer apply, and landlords can’t charge pet deposits or fees.

But there’s a big problem: the internet is full of websites offering “instant ESA letters” that don’t hold up when landlords check them. These scams can cost you money, your housing, and even your legal standing.

So how do you tell if your ESA letter is legitimate or a scam?

Why ESA Letter Scams Exist

ESA scams thrive for one reason: demand. Millions of people search for ways to live with their emotional support animals without facing fees, rejection, or eviction. Scammers know this and prey on vulnerable people by:

Promising instant approval with no evaluation
Offering “ lifetime ESA letters ”
Using official-looking seals or logos to appear credible
Advertising at ultra-low prices ($49–$69) to lure desperate buyers

The truth: a real ESA letter requires an evaluation by a licensed mental health professional (LMHP) . If a website skips that step, it’s not legitimate — and your landlord will know.

Red Flags of Fake ESA Letters

Here are the most common signs that an ESA letter is fake:

❌ No evaluation required → You fill out a quick form and instantly get a letter.
❌ No provider details → Missing license number, state, or contact information.
❌ Out-of-state providers → Your provider must be licensed in your state.
❌ Lifetime promises → Real ESA letters typically need annual renewal.
❌ Public access claims → ESAs don’t have ADA rights. Only PSDs do.
❌ Suspicious formatting → Letters that look like copy-paste templates with no official letterhead.

What a Legit ESA Letter Should Include

A genuine ESA letter should look professional and verifiable. Here’s what belongs in it:

Full name and credentials of the provider (psychologist, psychiatrist, LCSW, LPC, LMFT)
License type, number, state of issuance, and expiration date
Provider’s contact details (phone/email/office address)
Date of issuance (within the last 12 months)
Statement that you have a mental/emotional condition and your ESA helps alleviate symptoms
Issued on official letterhead, signed by the provider

Pro Tip: Before submitting your letter to a landlord, check the provider’s license in your state’s database . If you can’t find them, neither will your landlord.

Why Fake ESA Letters Backfire

Submitting a fake ESA letter might feel like a shortcut, but it usually creates bigger problems:

❌ Housing rejection → Landlords can deny requests if letters aren’t verifiable.
❌ Loss of FHA protection → Without a valid letter, you’re legally considered a pet owner.
❌ Legal risk → In states like Florida and California, submitting fake ESA documents can result in fines or even misdemeanor charges.
❌ Damaged trust → Fake letters make landlords more suspicious of all ESA claims, making it harder for legitimate tenants to be approved.

How Landlords Spot Fake ESA Letters

Landlords have become savvy because fake letters are so common. When you submit your ESA letter, they typically:

Check the provider’s license
They’ll look up the license number in a public state database.
If the license is expired, from another state, or doesn’t exist — red flag.
Review formatting
A real ESA letter will be on professional letterhead, signed, and dated.
Sloppy formatting, missing details, or generic templates = suspicion.
Look at timeliness
Most landlords require letters issued within the last 12 months.
Call for confirmation
Landlords may call the provider’s office to verify legitimacy.
They cannot ask about your diagnosis, but they can confirm whether the letter was issued.

Submitting a clean, verifiable letter makes approval smooth and stress-free.

Step-by-Step Guide: How to Check if Your ESA Letter is Real

Before handing your letter to a landlord, run through this checklist:

Verify the license – Look up your provider in your state’s licensing database.
Check the date – Is it issued within the last year? If not, renew.
Look for full details – Name, credentials, license info, contact details must all be present.
Confirm the format – Official letterhead, signature, professional language.
Watch for red flags – Words like “lifetime approval” or “instant guarantee” are signs of a scam.

If your letter passes all five checks, you’re on solid ground.

Read More

Fair-Housing Mythbusters: ESA Denial, from Apartments to Dorms

Wed, 24 Sep 2025 14:06:21 GMT

Fair-Housing Mythbusters:
ESA Denial, from Apartments to Dorms

By John Triplett, Fair Housing Institute

A misconception many housing providers face is the belief that certain (Emotional Support Animal - ESA) situations justify denying an ESA request and most of these scenarios are rooted in myth rather than law.

Emotional support animals (ESAs) remain one of the most misunderstood areas of fair-housing compliance.

While property managers and housing providers often encounter resident concerns about animals, the Fair Housing Act sets clear boundaries. When a resident or student has a verified disability and a legitimate need for an ESA, housing providers must make reasonable accommodations.

This applies across the board, whether the setting is a college dormitory or a multifamily apartment complex.

The biggest misconception many housing providers face is the belief that certain situations justify denying an ESA request. In reality, most of these scenarios are rooted in myth rather than law.

Myth 1: Certain Breeds Can Be Banned

One of the most common concerns surrounds specific dog breeds, particularly pit bulls. Community fears often lead housing providers to believe they can deny an ESA based on breed restrictions.

However, the Fair Housing Act does not allow this.

What providers can and should do is ensure they carry adequate liability insurance that covers any potential incident involving animals on their property. What they cannot do is shift that responsibility onto the resident or deny an ESA solely because of breed.

Myth 2: College Housing Is Exempt

Another frequent misconception is that ESAs do not apply to college or university housing. Because dormitories operate differently from standard rental housing, some providers assume they are exempt from ESA requirements.

In truth, student housing falls under the same legal framework as other housing providers. If a student presents proper documentation verifying a disability and the need for an ESA, the institution must accommodate them. Denial based on housing type is a clear violation of the Fair Housing Act.

Myth 3: ESAs Must Be Hypoallergenic

Concerns about allergies often surface when an ESA request is made. Some housing providers may think they can deny an animal because it is not hypoallergenic.

Generally, this is not a valid reason for denial. Only in rare cases, such as communal living arrangements where another resident’s medical needs are directly at stake, might this factor be considered. Even then, careful evaluation is required to ensure compliance with fair-housing standards.

Myth 4: Multiple ESAs Are Not Allowed

Another area of confusion is the number of ESAs a resident is allowed to have. Some providers believe there is a limit, or that multiple animals are automatically unreasonable.

The truth is that each request must be evaluated on an individual basis.

If a resident can demonstrate medical documentation supporting the need for more than one animal, the request should be processed accordingly. Past acceptance of the animals or long-term residency also plays a role in evaluating the request fairly.

Myth 5: Late Disclosure Justifies Denial

A final misconception arises when residents disclose their ESA needs after moving in or after being approved for housing. Providers sometimes view this as dishonest and believe they can deny the request.

While late disclosure is not ideal, it does not invalidate the resident’s rights.

Housing providers must still process the request through the reasonable-accommodation process. Maintaining professionalism and consistency is essential in these situations to avoid the appearance of retaliation or discrimination.

Building Confidence Through Compliance

The key to addressing ESA-related concerns is not to rely on assumptions but to return to the principles of fair-housing law.

Denials based on myths or misunderstandings can quickly escalate into complaints or legal action.

For example, some residents may purchase ESA letters online to back up requests tied to these myths, such as breed restrictions, hypoallergenic requirements, or multiple animals. These letters can be misleading, and they often complicate the verification process for housing providers.

The best way forward is through training, consistency, and careful evaluation of each request.

By separating fact from fiction and staying alert to new challenges like online ESA letters, housing providers can protect themselves from costly mistakes while fostering trust and fairness in their communities.

Compliance is not just about following the law; it’s about creating housing environments where residents feel supported and respected.

Collect Late Fees

Sat, 30 Aug 2025 11:08:34 GMT

How To Make Sure You Get Your Late Fees

An article about a Kansas Supreme Court ruling ( Click Here ) was celebrated as a big win for a landlord when the court decided his tenant had to pay $21,000 in back late fees. I think he lost.

If the landlord followed these simple management practices the late fees would already be in his pocket and he would have avoided the drama and expense of several huge court trials all over late fees!!??

Three Simple Rules

Always classify “late fees” as “additional rent” in the lease and elsewhere, because in Florida you can evict a tenant for non-payment of rent but not unpaid late fees, security deposit, or expenses.
Adopt a company policy written into the lease: “Any money paid will be applied to non-rent items first and to the rent.” This way, if the tenant tries to pay rent but not some other money he owes, he is short on the rent!
Use on-line rent collection with automatic late fee invoices. Too many landlords go lenient on late fees, soon the tenant catches on and never pays them. Tenants paying online see the late fee automatically added, reducing disputes. The landlord can still forgive them anytime he wants.

Now, if there is a downside to this, it is: Your tenants will be more likely to pay their rent on time.

Groundwater Contamination

paul@flalandlord.com (Paul Howard) — Tue, 24 Jun 2025 22:52:26 GMT

IMPORTANT: If you are a Landlord and you provide water to your tenants via pump and well, here is a page from the website of "America's Largest Injury Law Firm". This looks like a new market for them and that should get your attention!

Groundwater Contamination:
May Be A Problem for Florida Landlords

Hey Landlords—Your Well Water Could Get You in Trouble

If you’re a landlord providing water through a well, pay attention. Dirty groundwater is a serious issue in Florida, and it’s not just about wells. It can mess up city water, crops, and local rivers. Here’s what you need to know to stay safe and avoid big problems.

What’s Wrong with Groundwater?

Groundwater is the underground water many Floridians use for drinking, cooking, and farming. But it’s getting polluted by harmful stuff like:

PFAS (“forever chemicals”): These come from firefighting foam used at military bases or airports. They can cause cancer or other health issues.
Chemicals like TCE or PCE: These come from factories or dry cleaners and can make people sick.
Bacteria like E. coli: These can cause serious illness if they get into water.

This pollution comes from places like military bases, farms, or old leaky tanks. It’s a big deal because:

It can make drinking water unsafe, whether from a well or city pipes.
It can get into food if farmers use bad water on crops.
It can hurt fish and wildlife when polluted water reaches rivers or lakes.

Florida’s ground lets water move easily, so pollution spreads fast. A study says 95 million Americans, including lots of Floridians, might be drinking contaminated groundwater. Cities like Titusville are already fighting this problem.

Landlords: You Could Face Trouble

If you’re a landlord with a well supplying water, Florida law says you have to keep that water safe. If it’s contaminated and causes harm, you could face lawsuits or money problems.

What Could Go Wrong?

Lawsuits: If your water makes people sick and you didn’t fix the problem, you could be sued. A lawsuit might claim:
You knew (or should’ve known) the water was bad.
The water caused health issues, like cancer or stomach problems.
You didn’t act, and people got hurt or lost money.
Money Problems: Lawsuits could cost you for medical bills, suffering, or lower property value. You might also have to pay for water tests or cleanup.
New Rules: In 2024, the EPA set strict limits on PFAS in water (4 parts per trillion for PFOA and PFOS). Even if your well isn’t covered by these rules, people expect safe water, and you could still get in trouble.
Bad Reputation: If word gets out your water’s unsafe, your property could lose value or be hard to rent out.

Real Examples

In 2025, someone in Miami-Dade County sued because PFAS in their water was linked to kidney cancer.
Titusville joined a 2023 lawsuit against companies like 3M to clean up polluted wells.
Years ago, bad water at Camp Lejeune (with TCE and PCE) made people sick, showing how serious this can be.

Can You Defend Yourself?

You might say you didn’t know the water was bad, especially if pollution came from somewhere else, like a nearby factory. But if there were signs—like complaints about water taste or sickness—and you ignored them, a court might still blame you. It’s not easy to prove bad water caused harm, but you don’t want to risk a lawsuit.

It’s Not Just Wells

Dirty groundwater isn’t only a problem for private wells. It can affect:

City Water: Many Florida towns use groundwater for tap water. If it’s polluted, faucets might not be safe.
Farms: Bad water used on crops can make food unsafe to eat.
Nature: Polluted water can flow into lakes or rivers, hurting animals and people downstream.
Businesses: Stores or offices with wells could have the same issues, affecting workers or customers.

How to Protect Yourself

For Landlords

Test Your Water: Check wells for PFAS, chemicals, or bacteria, especially if you’re near a military base, airport, or factory.
Use Filters: Get a water filter that removes PFAS or other bad stuff, like reverse osmosis or carbon filters. It shows you’re keeping water safe.
Act Fast: If you hear about water problems, investigate and keep records of what you do.
Be Honest: If you know about water issues, don’t hide them—it could save you from bigger trouble.
Get Help: Make sure your insurance covers water contamination problems and talk to a lawyer who knows environmental issues.

Rising Insurance Costs in Florida

paul@flalandlord.com (Paul Howard) — Sun, 18 May 2025 19:49:52 GMT

Strategies for Landlords in 2025

Florida landlords approach rental property purchases with economic precision, unlike homebuyers who pay 8-12% premiums for “feel-good” features in 2025’s $435,000 median home market. With rental properties averaging $400,000, skyrocketing insurance costs threaten profitability. In 2025, Florida’s home insurance premiums average $5,376 annually for $300,000 in coverage—over double the national average of $2,181—driven by hurricanes, inflation, litigation, and attorney fees. For landlords in a tight rental market (6.5% vacancy rate), managing these costs is crucial. Here’s why rates are climbing and how to protect your cash flow.

Why Insurance Costs Are Skyrocketing

Frequent Hurricanes : Storms like Helene and Milton (2024) caused over $200 billion in damages, prompting insurers to raise premiums by 15-25% to cover claims. Florida’s 1,350-mile coastline, especially in Miami-Dade, amplifies risk.
Inflation and Rebuild Costs : Construction materials and labor costs rose 5-7% in 2025, per JLL’s Construction Outlook, increasing replacement costs by 55% since 2020, forcing higher premiums.
Outrageous Attorney Fees : Florida’s litigation-heavy insurance market, driven by excessive attorney fees, accounts for 70% of U.S. property insurance lawsuits. Lawyers often exploit “assignment of benefits” or bad-faith claims, inflating costs by 20-30% for insurers, who pass these to landlords.
Market Instability : Since 2022, 12 insurers exited Florida or went insolvent, reducing competition. Citizens Property Insurance, covering 1.4 million policies, charges higher rates for less coverage.
Fraud : Inflated claims, like unnecessary roof replacements, persist despite reforms like SB 2A (2022), adding to premium hikes.

Impact on Landlords

Premiums, up 31% since 2022, erode cash flow, forcing landlords to absorb costs, raise rents (risking turnover), or cut maintenance. Unlike emotional homebuyers, landlords must balance 5-7% cap rates with tenants’ demands for modern rentals, making cost control essential.

How to Manage Rising Insurance Costs

Shop Around Annually ($0-$200): Compare quotes from private insurers and Citizens via Policygenius. Seek wind mitigation discounts, which cut rates for 75% of Miami-Dade policyholders in 2025.
Invest in Mitigation Upgrades ($2,000-$10,000): Install impact windows or hurricane shutters to reduce premiums by 10-20%. A windstorm mitigation inspection ($150-$300) identifies credits.
Raise Deductibles ($0): Choose a $5,000 deductible over $1,000 to lower premiums, saving 15% for Tampa landlords in 2024, but maintain cash reserves for claims.
Bundle Policies ($0): Combine home and auto insurance with one carrier (e.g., Progressive) for 5-10% discounts, despite limited carrier options.
Hire an Insurance Broker ($500-$1,000): A broker can secure better rates for multi-unit properties, where rent-to-insurance ratios hit 40% in some areas.

Real-World Example

You own a $500,000 Clearwater triplex with a $6,000 premium in 2025. Adding $5,000 in shutters and raising the deductible to $5,000 cuts the premium to $4,800 (20% savings). Bundling auto insurance saves $240. Total savings: $1,440—cash for tenant upgrades or debt.

Why It’s Critical

With premiums projected to reach $11,759 by late 2025, rising costs threaten your economic edge. Savings can fund modern rentals, meeting tenants’ emotional demands while preserving 4.5% rental yields.

* Grok contributed to this article

Tax Strategies: Cost Segregation

paul@flalandlord.com (Paul Howard) — Sun, 18 May 2025 19:30:04 GMT

Supercharge Cash Flow with Cost Segregation in 2025

Florida landlords approach rental property purchases with economic precision, unlike homebuyers who pay 8-12% premiums for “feel-good” features in 2025’s $435,000 median home market. With rental properties averaging $400,000 and costs like property taxes up 15%, cost segregation is a game-changing tax strategy to boost cash flow. By accelerating depreciation deductions, cost segregation puts thousands of dollars back in your pocket upfront, perfect for reinvesting in Florida’s competitive rental market (6.5% vacancy rate). Here’s how it works and how to make it pay off.

What Is Cost Segregation?

Cost segregation is an IRS-approved tax strategy that lets you reclassify parts of your rental property as shorter-life assets, accelerating depreciation deductions. Instead of depreciating the entire building over 27.5 years (standard for residential rentals), you identify components like carpets, lighting, or HVAC systems as 5-, 7-, or 15-year property. This front-loads deductions, slashing taxable income in the first few years after purchase.

For example, a $400,000 property might yield $60,000-$80,000 in year-one deductions with cost segregation, compared to $11,636 with standard depreciation. At a 25% tax rate, that’s $15,000-$20,000 in tax savings—cash for upgrades, debt payments, or new acquisitions.

Why Cost Segregation Matters in 2025

Immediate Cash Flow : Florida landlords face rising expenses (e.g., 15-25% insurance premium hikes). Cost segregation delivers big tax savings early, offsetting purchase costs or tenant-demanded improvements like modern kitchens.
Market Advantage : Tenants prioritize emotionally appealing rentals. Use tax savings to fund upgrades, justifying 3-5% rent increases while staying competitive.
Complements Other Strategies : Pair with Section 179 (up to $1.22 million for appliances) or bonus depreciation (20% for improvements) for even greater deductions, as allowed under 2025 IRS rules.

Key Rules and Considerations

Eligible Properties : Residential rentals (e.g., duplexes, apartments) purchased or improved in 2025 qualify. The property must be “placed in service” (rent-ready).
Study Required : A cost segregation study, conducted by a specialist, identifies and reclassifies assets. Costs range from $5,000-$15,000, depending on property size.
Recapture Risk : Accelerated deductions are subject to 25% depreciation recapture upon sale. Defer this with a 1031 exchange , a strategy 30% of Florida landlords used in 2024, per NAR, to swap properties tax-free.
Best for High-Value Properties : Cost segregation shines for properties over $500,000 or multi-unit buildings, where savings outweigh study costs.

How to Implement Cost Segregation

Hire a Specialist ($5,000-$15,000): Engage a cost segregation firm (e.g., KBKG, CSSI) to conduct a detailed study, ensuring IRS compliance. Verify their experience with Florida rentals.
Get an Appraisal ($500-$1,000): Confirm the property’s building vs. land value (e.g., 80% building, 20% land) to maximize the depreciable basis.
Track Assets : Log reclassified components (e.g., $20,000 in lighting) in QuickBooks ($30/month) for accurate tax reporting.
Consult a CPA ($1,000-$3,000/year): Ensure the study aligns with your tax strategy, including Section 179 or 1031 exchanges. File deductions on IRS Form 4562.
Plan for Sale : Discuss 1031 exchange options with your CPA to defer recapture taxes, preserving long-term wealth.

Real-World Example

You buy a $600,000 Orlando apartment building in June 2025, with $480,000 as the building basis. A $10,000 cost segregation study reclassifies $120,000 as 5-year property and $50,000 as 15-year property. Year-one deductions:

Cost Segregation : $40,000 (5- and 15-year assets) + $12,364 (remaining basis ÷ 27.5) = $52,364.
Tax Savings : $13,091 at 25% tax rate—cash for tenant upgrades or debt.

Why It’s a Landlord’s Edge

Cost segregation aligns with your economic focus, offsetting high purchase prices and rising costs. Unlike emotional homebuyers, you can use these savings to meet tenants’ demands for modern rentals, boosting cash flow and returns.

* Grok contributed to this article

Maximize Cash Flow with Depreciation: A Landlord’s Tax Advantage in 2025

paul@flalandlord.com (Paul Howard) — Sun, 18 May 2025 18:55:58 GMT

Unlock Cash Flow with Depreciation:

Florida landlords know that buying a rental property is a calculated move, unlike emotional homebuyers who pay 8-12% premiums for “feel-good” features in 2025’s $435,000 median home market. With rental property prices averaging $400,000 and costs rising, tax rules on depreciation can boost your cash flow significantly. By leveraging standard depreciation , bonus depreciation , and Section 179 deductions , you can lower taxes and keep more cash for reinvestment. Here’s how to make it work in Florida’s competitive rental market (6.5% vacancy rate).

What Is Depreciation and Why Does It Matter?

Depreciation is a tax deduction that lets you spread the cost of your rental property over its “useful life,” reducing taxable income without out-of-pocket costs. For a $400,000 duplex, this can mean thousands in annual tax savings, offsetting expenses like maintenance or debt. In 2025, three key depreciation strategies can supercharge your cash flow.

Key Depreciation Rules for 2025

Standard Depreciation :
How It Works : Deduct the building’s cost (not land) over 27.5 years using the straight-line method. For a $400,000 property with 20% land ($80,000), the depreciable basis is $320,000, yielding $11,636/year ($320,000 ÷ 27.5).
Cash Flow : At a 25% tax rate, this saves $2,909 annually.

Bonus Depreciation :
How It Works : Deduct 20% of the cost of qualified improvements (e.g., new flooring, appliances) in year one. For a $30,000 renovation, that’s $6,000 upfront.
Cash Flow : Saves $1,500 in taxes in 2025, ideal for post-purchase upgrades.

Section 179 Deduction :
How It Works : Deduct up to $1.22 million for personal property (e.g., appliances, furniture) or certain improvements (e.g., HVAC, fire alarms) in the year of purchase, if actively managing your rentals. For example, deduct $20,000 for new refrigerators in year one instead of over 5 years.
Cash Flow : Saves $5,000 in taxes at 25%, but ensure the property is “in service” (rent-ready) and you meet active management rules.

Cost Segregation (Advanced): Reclassify assets (e.g., carpets) as 5- or 7-year property for faster deductions. A $400,000 property might yield $60,000-$80,000 in year-one deductions, saving $15,000-$20,000 in taxes.

Beware of Depreciation Recapture
When selling, the IRS taxes total depreciation claimed at 25% ( depreciation recapture ). For $100,000 in deductions, you’d owe $25,000 upon sale. Defer this with a 1031 exchange , swapping one rental for another—30% of Florida landlords used this in 2024, per NAR.

How to Maximize Depreciation

Get an Appraisal ($500-$1,000): Allocate purchase price accurately (e.g., 80% building, 20% land) to maximize the depreciable basis.
Use Section 179 Wisely : Deduct qualifying purchases (e.g., $20,000 in appliances) if actively managing. Confirm eligibility with a CPA, as passive investors may be limited.
Consider Cost Segregation ($5,000-$15,000): For properties over $500,000, accelerate deductions with a specialist’s study.
Track Improvements : Log capital expenses (e.g., $10,000 AC unit) in QuickBooks ($30/month) for accurate depreciation.
Hire a CPA ($1,000-$3,000/year): Ensure compliance and explore 1031 exchanges or “real estate professional” status for extra deductions.

Actionable Example

You buy a $450,000 Orlando triplex in June 2025, with $360,000 as the building basis and $30,000 in new appliances. Your deductions:

Standard : $13,091/year ($360,000 ÷ 27.5).
Section 179 : $20,000 for appliances (if qualifying).
Bonus : $2,000 (20% of remaining $10,000 renovation).
Total Year-One : $35,091, saving $8,773 at 25% tax rate—cash for upgrades or debt.

Why This Matters

Depreciation offsets high purchase prices and rising costs (e.g., 15% tax hikes in 2025), letting you compete with tenants’ emotional demands for modern rentals. Unlike homebuyers, your economic focus maximizes returns.

Start Now

By July 2025, consult a CPA to plan depreciation, especially Section 179 for new purchases .

More on this subject from tax attorney and real estate investor, Toby Mathis

* Grok contributed to this article

Florida Lease Law Changes for 2025

paul@flalandlord.com (Paul Howard) — Fri, 16 May 2025 16:40:44 GMT

Key Florida Lease Law Changes for 2025

Here are the most relevant changes to Florida Landlord Tenant Law:

Extended Notice Period for Month-to-Month Tenancy Termination :
Change : As of July 1, 2024, landlords must provide 30 days’ written notice (up from 15 days) to terminate a month-to-month tenancy.
Impact : This gives tenants more time to vacate, requiring landlords to plan terminations earlier. It’s critical for lease agreements to reflect this updated notice period to avoid legal disputes.
Security Deposit Alternatives :
Change : Florida now allows landlords to offer tenants the option to pay a nonrefundable monthly fee instead of a traditional security deposit.
Impact : This provides flexibility for tenants with upfront cost concerns but requires landlords to clearly outline terms in the lease to avoid disputes over repairs or damages at lease end. Landlords must still comply with Florida Statutes § 83.49 for handling traditional deposits (e.g., keeping them in a separate account and providing written notice of deductions).
Rent Increase Notice Requirements :
Change : While Florida has no statewide rent control, proposed laws in 2024 (effective by summer 2024 in some areas) require landlords to provide 30 days’ notice for rent increases on month-to-month leases. Some local ordinances, like Miami-Dade County’s, mandate 60 days’ notice for increases over 5%.
Impact : Lease agreements must specify notice periods for rent adjustments, especially for month-to-month tenancies, to ensure compliance. Fixed-term leases lock in rent until expiration unless the lease allows mid-term increases.
Anti-Squatting Law (HB 621) :
Change : Effective July 1, 2024, this law allows landlords to bypass traditional eviction processes for unauthorized occupants (squatters) by requesting sheriff intervention, streamlining property recovery. ( Click Here for Details )
Impact : Affects how landlords handle unauthorized tenants, requiring clear lease terms to distinguish lawful tenants from squatters.
Lease Renewal and Notice Periods :
Change : For lease renewals, landlords must provide 30-60 days’ notice (depending on lease terms) to inform tenants of new terms, rent increases, or non-renewal. Some leases may auto-renew as month-to-month if not addressed.
Impact : Lease agreements should clearly outline renewal procedures to avoid unintended month-to-month tenancies, which now require 30 days’ notice to terminate.
Local Ordinance Preemption :
Change : As of July 1, 2024, over 40 local ordinances (e.g., Orange County’s tenant bill of rights) were invalidated, replaced by statewide laws to ensure uniformity. Local rules conflicting with Florida Statutes § 83 are unenforceable.
Impact : Landlords must ensure leases align with state law, not outdated local rules, to avoid legal challenges.

Federal Fair Housing Law

paul@flalandlord.com (Paul Howard) — Tue, 25 Feb 2025 20:16:12 GMT

Fair Housing Law

Landlord Responsibilities

Federal fair housing laws in the United States, primarily governed by the Fair Housing Act ( FHA ) of 1968, aim to ensure equal access to housing and prohibit discrimination in housing-related activities. The FHA applies to most housing types, including rentals, sales, and financing, with limited exceptions (e.g., certain owner-occupied buildings with four or fewer units or single-family homes sold without a broker). Here’s a summary of the key points and landlord responsibilities:

Key Provisions of the Fair Housing Act

The FHA prohibits discrimination based on seven protected classes: race, color, religion, sex (including sexual orientation and gender identity, as clarified by recent interpretations), national origin, disability, and familial status (e.g., having children under 18). Discrimination includes refusing to rent or sell, setting different terms or conditions, providing unequal services, or falsely denying availability based on these characteristics.

Additional federal laws complement the FHA:

Civil Rights Act of 1866: Prohibits racial discrimination in all property transactions.
Americans with Disabilities Act (ADA): Applies to public areas of rental properties, requiring accessibility.
Section 504 of the Rehabilitation Act: Applies to federally funded housing, mandating accommodations for disabilities.

Landlord Responsibilities

Landlords must comply with these laws in their operations. Their key responsibilities include:

Non-Discrimination : Landlords cannot refuse to rent to someone, impose different lease terms, or evict tenants based on the protected classes. This extends to advertising—no ads can suggest a preference (e.g., "no kids" or "Christian tenants only").
Reasonable Accommodations: For tenants with disabilities, landlords must allow reasonable modifications (e.g., installing a ramp, often at the tenant’s expense) and make reasonable accommodations in rules or policies (e.g., waiving a no-pets policy for a service animal) unless it causes undue hardship or fundamentally alters the property’s purpose.
Equal Treatment: All tenants must receive the same level of services, maintenance, and access to amenities, regardless of their protected status.
Harassment Prevention: Landlords must address harassment (e.g., sexual harassment or racial intimidation) by other tenants or staff if they’re aware of it, as this can violate fair housing laws.
Compliance with Local Laws : Many states and cities have broader protections (e.g., against discrimination based on source of income, like Section 8 vouchers), which landlords must also follow.

Enforcement and Penalties

Violations can be reported to the U.S. Department of Housing and Urban Development (HUD) or pursued via private lawsuits. Penalties include fines, damages to victims, and court-ordered changes to policies. For example, HUD can investigate complaints, mediate, or refer cases to the Department of Justice.

In short, federal fair housing laws require landlords to treat all tenants and applicants fairly, accommodate disabilities within reason, and maintain a discrimination-free environment—balancing their business interests with legal and ethical obligations.

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Disclaimer: The source of this article is Grok AI. Florida Landlord Network is an independent, non-attorney service. We urge you to consult an attorney before relying on any publication, using any document or described procedure found herein. Florida Landlord Network is not licensed by the Florida Bar to practice law and is not authorized to give legal advice or tell you your legal rights. By using our website or any service or document produced and/or published by Florida Landlord Network, you indicate that you understand and agree to our Legal Disclaimer.

What is a Stipulation

paul@flalandlord.com (Paul Howard) — Mon, 24 Feb 2025 21:05:19 GMT

What is a Stipulation?

A stipulation is a formal, legally binding agreement between a landlord and a tenant that outlines specific terms or actions both parties must follow. It is often used to resolve disputes or address issues without going to court. Stipulations can cover various topics, such as:

Rent payment plans for tenants who are behind on rent.
Corrective actions for lease violations (e.g., noise complaints, unauthorized pets).
Agreements regarding property condition at move-in or move-out.

Once signed, both the landlord and tenant are legally obligated to adhere to the terms. If either party fails to comply, there can be legal consequences, such as eviction or fines, depending on the agreement.

When Should a Landlord Use a Stipulation?

A landlord should consider using a stipulation in the following situations:

Late Rent Payments:
If a tenant is behind on rent but shows a willingness to pay, a stipulation can outline a payment plan.
This allows the tenant to catch up over time while avoiding immediate eviction proceedings.
Lease Violations:
For minor violations (e.g., noise complaints, unauthorized pets), a stipulation can specify corrective actions the tenant must take within a set timeframe.
This gives the tenant a chance to comply and avoid penalties or eviction.
Avoiding Eviction:
A stipulation can serve as a "last chance" agreement, giving the tenant an opportunity to resolve issues before eviction proceedings begin.
Examples include paying overdue rent, removing unauthorized occupants, or repairing damages.
Court Settlements:
If a dispute has already escalated to court, a stipulation can be used to settle the case out of court.
This saves both parties time and legal expenses while resolving the issue amicably.
Property Condition Disputes:
A stipulation can document the condition of the property at move-in or move-out.
This can help prevent or resolve disagreements over security deposits or property damages.

Key Considerations for Landlords

Mutual Benefit:
Use a stipulation when both parties can benefit from resolving the issue amicably, such as preserving a good tenant relationship or avoiding costly legal proceedings.
Legal Enforceability:
Ensure the stipulation is clear, specific, and legally binding.
It’s advisable to have it reviewed or drafted by a legal professional to ensure enforceability in case of noncompliance.
Documentation:
Keep a signed copy of the stipulation for your records.
This may be needed if the tenant fails to comply and further action (e.g., court enforcement) is required.

Final Takeaway

A stipulation is a valuable tool for landlords seeking to resolve tenant issues without immediate legal action. It provides a structured, mutually agreed-upon solution while maintaining the landlord’s ability to enforce consequences if the tenant does not comply. Use it when you want to offer flexibility but still protect your rights and property. Always ensure the stipulation is legally sound to avoid complications down the road.

Click Here For Sample Form (or consult your attorney for appropriate form)

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Disclaimer : The source of this article is Grok AI. Florida Landlord Network is an independent, non-attorney service. We urge you to consult an attorney before relying on any publication, using any document or described procedure found herein. Florida Landlord Network is not licensed by the Florida Bar to practice law and is not authorized to give legal advice or tell you your legal rights. By using our website or any service or document produced and/or published by Florida Landlord Network, you indicate that you understand and agree to our Legal Disclaimer.

What is Waiver

paul@flalandlord.com (Paul Howard) — Mon, 17 Feb 2025 17:10:49 GMT

What is Waiver?

It is very common for landlords to overlook the fact that their tenant, contrary to the terms of the lease, habitually pays the rent late or makes partial payments. Neither of these practices are good but it could be worse than you think.

There is a term in law called Waiver. (Now, keep in mind, even though I am going to discuss a legal term, you must remember, I am not a lawyer, I can’t give you legal advice, and this email may be worth exactly what you paid for it).

That said, here is a definition of Waiver according to Attorney, Harry Heist ( Click Here For Complete Article )

Waiver occurs when a person relinquishes or surrenders his rights or privileges. It can be voluntary or involuntary. The “voluntary” waiver situation occurs when a person signs an agreement relinquishing his rights or privileges. Courts will generally uphold voluntary waiver agreements outside of the landlord/tenant context, if the agreement is very specific as to the nature of the rights being waived” by the parties. However, as you will see later in this article, waiver provisions in leases by no means assure you that resident cannot bring forward a “waiver’ claim. By contrast, the "involuntary” waiver scenario takes place when the law deems that you have lost your right to defend a legal action or sue to enforce your rights because of some prior action on your part.

In some cases, this could mean that a landlord may lose his right to demand payment, as described in the lease, if in the past he has accepted late or partial payments. This could give your tenant a defense if you try to evict him for delinquent payment. The defense being: “He let me pay late before, I thought it was OK.”

This could also be true of various “non-compliance” such as unauthorized persons living in the property, unauthorized animals, etc. If you learn about it and do nothing you might lose your right to demand the tenant cure the non-compliance.

A remedy may be this form titled “LATE OR PARTIAL RENT PAYMENT POLICY, WARNING AND NOTIFICATION”. It notifies the tenant that the provision of the lease which they have not kept (late rent payment, etc.) must be kept in the future. The form may help you avoid the defense described above.

Click Here For The Form

Sell or Refinance

paul@flalandlord.com (Paul Howard) — Mon, 03 Feb 2025 17:45:53 GMT

Don't Sell - Refinance!

Selling your rental property is the big payday you dreamed of when you bought the building years ago.

Alas, there is a lot more to selling than just finding a buyer. It’s expensive. You already know about real estate commissions, doc stamps, title insurance, legal fees, etc. But do you realize how much the IRS is going to take?

Depending on how long you've owned the property, Federal taxes can be a real gut punch! In fact, many investors regret selling after they see the tax bill.

Veteran real estate investors almost never sell their rental property. Instead they borrow against the equity, that's tax free cash, plus they get to keep the property (Asset Leveraging). Then, if they want to give up their landlord responsibilities, hire a management company.

It really is that simple. Below, we’ve laid out the elements which make up these transactions. Plus, there's a spreadsheet attached so you can run your own test cases.

Finally, here is a link ( Click Here ) to a YouTube video by ProPublica titled: “Buy, Borrow, Die". It’s a terrible title but they do a good job of laying out the pros and cons.

Read on.

SELLING RENTAL PROPERTY - The Costs

Real Estate Agent Fees

If you use a Real Estate Agent to sell, the commission is typically 3% to 6% of the selling price.

Closing Costs

Including title insurance, legal fees, escrow fees, transfer taxes, etc.

Capital Gains Tax

If the selling price exceeds the original purchase price you'll owe between 15% and 20% (depending on your tax bracket) Capital Gains Tax on the difference.

Depreciation Recapture

Each year IRS calculates depreciation of your residential rental property evenly over a period of 27.5 years. When you no longer own the property, through sale or loss, all of this Depreciation is "recaptured" and taxed at a rate of 25%.

Net Investment Income Tax (NITT)

If your family's adjusted gross income is greater than $250,000 in the year the property is sold, you must pay Net Investment Income Tax (NITT) which is currently 3.8% of the selling price.

Other Potential Costs

Like repairs needed to sell the property and mortgage payoff, etc.

REFINANCE & HOLD

(See Example Below)

Tax-Free Cash

By refinancing, you put the proceeds of the loan in your pocket. There are no taxes to pay for those dollars - Ever!

Continued Ownership:

When you refinance, you still own the property and collect rent just like before; and, given the certainty of inflation, these rents will appreciate and provide future income. Oh, and increasing rents means the value of the property continues to increase which means you may be able to refinance again in a few years. More tax-free cash!

Management:

If you don't want to be a landlord anymore, hire a Property Management Company to take on those demands. At around 10% of rents its a bargain!

Rental Income Can Pay Debt Service:

The net income from rentals is usually enough to pay the expenses of ongoing rental operations including the new mortgage.

Long-term

The property will continue to produce income in perpetuity.

Stepped-Up Basis at Death:

At your death, the property's tax basis is "stepped up" to its current market value. This means your heirs inherit the property at this new, higher basis which means, if they want, they can immediately sell and avoid capital gains tax and recaptured depreciation tax.

Example Analysis

Sell Rental Property Vs. Refinance and Maintain Ownership

OPTION 1 - SELL

ORIGIONAL BASIS

Original purchase Price Minus Land Value ..............$150,000

Improvements Over 20 Years.............................$ 15,000

Adjusted Basis (Purchase Price + Improvements).........$165,000

DEPRECIATION

Ownership Period....................................... 20 Yrs

Annual Depreciation ($165,000 divided by 27.5).........$ 6,000

Accumulated Depreciation ($6,000 x 20 yrs).............$120,000

ADJUSTED BASIS

Purchase + Improvements - Depreciation.................$ 45,000

TAX CALCULATION

Selling Price..........................................$300,000

Less Adjusted Basis....................................$ 45,000

Capital Gain (Sale Price Less Adjusted Basis)..........$255.000

ESTIMATED FEDERAL TAXES

Capital Gains (15%)....................................$ 38,250

Recaptured Depreciation (25% of Accum Depreciation)....$ 30,000

Total Estimated Federal Tax............................$ 68,250

Note: Net Investment Income Tax (NITT) is 3.8% of

selling price ($11,400) if your adjusted gross income

exceeds $250,000 in the year sold. Not included here.

ESTIMATED SELLING EXPENSES

Sales Commission (6%) .................................$ 18,000

Title Insurance........................................$ 2,250

Doc Stamps.............................................$ 2,100

Other Closing Costs....................................$ 1,000

Total Selling Expenses.................................$ 23,350

PROFIT

Proceeds from Sale.....................................$300,000

Less Selling Expenses..................................$ 23,350-

Less Estimated Federal Taxes...........................$ 68,250-

Total Expense & Tax....................................$ 91,600-

-------------------------------------------------------------------------

NET CASH AT SALE.......................................$208,400

-------------------------------------------------------------------------

OPTION 2 - Refinance & Hold

REFI

Tax Free Cash(Mortgage)(75% of Market Value)...........$225,000

CONTINUING OPERATIONS

RENTAL PROFIT & LOSS

Monthly Rent...........................................$ 2,100

Monthly loan payment (30 yrs @6.2%)....................$ 1,368-

Estimated Monthly Property Tax.........................$ 275-

Estimated Monthly Insurance Expense....................$ 170-

Estimated Monthly Vacancy Rate.........................$ 105-

Estimated Monthly Management Cost......................$ 250-

Estimated Monthly Maintenance Cost.....................$ 200-

Total Expense..........................................$ 2,368-

-------------------------------------------------------------------------

Net Monthly Cash Flow .................................$ 268-

-------------------------------------------------------------------------

CONCLUSION

In this example, you receive $208,400 after expenses and taxes when you sell the property. By refinancing, you receive $225,000 tax-free while retaining the property and receive net income from operations for the rest of your life with the likelihood of refinancing again as equity grows.

I am interested in your thoughts on this strategy. Please use the Feedback form below to comment.

Click For Selling Cost Calculator

Why Real Estate Investors Should Disregard Most Housing Stats

paul@flalandlord.com (Paul Howard) — Fri, 27 Sep 2024 13:50:54 GMT

Why Real Estate Investors
Should Disregard Most Housing Stats

Here is A U.S. Market Overview of Housing Dated September 2024:

Average U.S. home prices : Home prices dropped slightly in Q2 2024 to an average of $501,700, down from $519,700 at the end of Q1. -- Irrelevant to investors
30-year interest rates : As of September 16th, 30-year mortgage rates averaged 6.12%, down from 7.29% on the same day last year. -- Likely very relevant to investors
Median days on market: The median days on the market was 37 days, up six days year over year. Days on market is a good indicator of buyer demand. -- Irrelevant to investors
Homes sold above list price: In August 2024, 30.1% of homes in the U.S. sold above list price, down 6.1 percentage points year over year. -- Irrelevant to investors
Average starter home mortgage payment: Monthly housing payments for starter homes sold in July were $1,981, up 4.4% from a year ago. By definition, a starter home is a smaller, more affordable house, typically falling between the 5th and 35th percentiles in sale prices. -- Irrelevant to investors

Emotional Factors Drive Personal Residence Prices

Subjective Valuation Over Economic Calculations :
Comparable Sales as a Baseline : Real estate agents and appraisers rely on “comps” (recent sales of similar homes in the same area) to set listing prices or offers. For example, in Florida, a 3-bedroom, 2-bath home in a suburban neighborhood might sell for $350,000 based on comps, but this is just a starting point.
“Feel Good” Elements : Buyers often pay premiums for features that evoke emotional responses, like a renovated kitchen, a backyard with a pool, or proximity to good schools. Sellers may inflate prices based on their attachment to the home or perceived unique qualities (e.g., “we raised our kids here”). Studies from the National Association of Realtors (NAR) show 60% of buyers are willing to pay 5-10% above comps for homes with desirable aesthetics or lifestyle benefits.
Emotional Bidding : In competitive markets, bidding wars driven by fear of missing out (FOMO) can push prices 10-20% above asking. For instance, in 2024, Florida’s median home price rose to $435,000, partly due to emotional bidding in hot markets like Tampa and Orlando.

Limited Economic Calculations :
Unlike landlords, who analyze cash flow, cap rates, or ROI, most homebuyers don’t run detailed financial models. A 2023 Zillow survey found 70% of first-time buyers focus on monthly mortgage affordability rather than long-term investment potential.
Buyers often overlook maintenance costs, property taxes, or resale potential, prioritizing immediate needs (e.g., space for a growing family). Sellers may set prices based on what they “need” to move (e.g., to cover a new home purchase) rather than market fundamentals.
This leads to price volatility: NAR data shows personal residence sales in Florida fluctuate by ±8% year-over-year, compared to ±3% for investment properties, which are more tied to rental income and economic metrics.

Impact on Housing Statistics :
Median Sale Prices : Reported figures (e.g., $435,000 median in Florida, 2024) reflect emotional premiums, not just square footage or location. This skews perceptions of affordability for landlords, who may assume rental properties follow similar pricing logic.
Days on Market (DOM) : Emotion-driven sales can lead to faster or slower sales cycles. In 2025, Florida homes average 45 DOM, but “charm” factors like staging can cut this to 30 days, per Redfin.
Price-to-Income Ratios : Emotional buying pushes home prices to 5.5x median household income in Florida (vs. a sustainable 3x), inflating statistics and signaling overvaluation risks.

Contrast with Landlord Decision-Making

For landlords, buying or selling rental properties is a business decision, not a personal one:

Economic Metrics : Landlords calculate net operating income (NOI) , capitalization rates (cap rates) (e.g., 5-7% in Florida), and cash-on-cash return to justify purchase prices. For example, a $400,000 duplex generating $3,000/month in rent might be valued strictly on its 6% cap rate, not its curb appeal.
Market Data-Driven : Landlords rely on rental yield trends (e.g., Florida’s 4.5% average yield in 2025) and vacancy rates (6.5%) to set prices, using tools like CoStar or Rentometer, not comps alone.
Emotional Detachment : Unlike homeowners, landlords sell based on portfolio strategy (e.g., 1031 exchanges to defer taxes) or buy to meet tenant demand, not personal preferences.

This disconnect means housing statistics, which blend personal and investment sales, can mislead landlords. For instance, a reported 7% price increase in a county might reflect emotional homebuyer premiums, not rental property appreciation, affecting landlords’ acquisition strategies.

Here is One Method of Determining the Maximum Purchase Price of a Rental Based on ROI

Asking Price: .................................................................. $400,000

Number of rental units: .............................................................2
Monthly Gross Rent per unit: ...................................................$1,500

Estimated Income

Annualized Gross Rent: ........................................................$36,000
Estimated vacancy loss: .............................................................5%
Annualized vacancy loss: .......................................................$1,800
Adjusted Gross Income: ........................................................$34,200

Estimated Expenses

Management Fee (% of Adjusted Gross Income)........................................10%
Dollars: .................................................................$3,420
Maintenance Rate (% of Adjusted Gross Income)......................................5%
Dollars: .................................................................$1,800
Property Tax (% of Asking price)..................................................1.8%
Dollars...................................................................$7,200
Insurance ......................................................................$3,000
HOA Dues (See "Never buy a rental property if there is an HOA")..................$500
Total Expenses ................................................................$15,920

Net Income (Adjusted Gross Rent minus Total Expenses).........................$18,280
Return on Investment (Net Income divided by Purchase Price).......................4.6%

So, in this example, if the buyer wants a minimum of 6% ROI the offering price must be reduced accordingly.

This is why real estate investors are rarely affected by market gyrations. It does not matter what was the selling price of the property next door. The question is how much Net Income can the property will produce?

Security Deposits - What Are The Rules

paul@flalandlord.com (Paul Howard) — Sat, 29 Jun 2024 15:20:16 GMT

Security Deposits

What Are The Rules?

In Florida, the rules governing security deposits for residential leases are primarily found in the Florida Statutes, specifically Chapter 83, Part II. Here are some of the key points:

Handling of Security Deposits

Deposit Location and Notice:
Landlords must inform tenants in writing within 30 days of receiving the security deposit about where and how the deposit is being held (e.g., in a separate account, in an interest-bearing account, or in a non-interest-bearing account). This is usually done within the lease.
The landlord can not commingle Security Deposits (or Advanced Rent) with any other funds of the landlord;
Types of Accounts:
Non-Interest-Bearing Account: The deposit can be held in a separate non-interest-bearing account in a Florida banking institution.
Interest-Bearing Accoun t: The deposit can be held in an interest-bearing account in a Florida banking institution, with the tenant receiving interest.
Surety Bond: The landlord can post a surety bond with the county clerk where the rental property is located.
Interest on Deposits:
If held in an interest-bearing account, the tenant must be paid at least 75% of the annualized average interest rate or 5% per year, whichever the landlord chooses.

Return of Security Deposits

Time Frame for Return:
The landlord must return the security deposit within 15 days after the tenant vacates the premises if there are no deductions.
If there are deductions for damages, unpaid rent, or other reasons, the landlord has 30 days to provide the tenant with written notice of the intention to impose a claim on the deposit. Click Here For The Form
Written Notice:
The written notice must be sent by certified mail to the tenant’s last known address and must detail the amount of the deposit to be withheld and the reason(s) for the claim.
Tenant’s Response:
The tenant has 15 days to object in writing to the landlord’s claim. If the tenant does not respond, the landlord can deduct the stated amount and return any remaining balance to the tenant within 30 days after the initial notice period.

Disputes and Legal Action

If there is a dispute over the security deposit, either party can seek resolution through the courts. The prevailing party in such a dispute may be entitled to recover court costs and attorney’s fees.

Additional Considerations

Move-In/Move-Out Inspections: While not required by law, it is advisable for both landlords and tenants to conduct a move-in and move-out inspection and document the condition of the property to avoid disputes over the security deposit.
Itemized List of Damages: It is good practice for landlords to provide an itemized list of any damages and repairs deducted from the security deposit.

Landlord’s access to dwelling unit

paul@flalandlord.com (Paul Howard) — Fri, 28 Jun 2024 16:02:45 GMT

My Tenant Won’t Let Me Enter the Rental Property

What Are My Rights?

One of the most common questions we get at T HE F LORIDA L ANDLORD N ETWORK has to do with the rules regarding the landlords access to the rental AND what to do when the tenant will not permit access to the landlord or some agent of the landlord.

Chapter 83.53 of the Florida Statutes makes it clear that your tenant MAY NOT unreasonably withhold access to you or your agent(s). Such an action by your tenant is broadly termed a "non-compliance" which means it is a violation of the law and/or the terms of the lease.

Part 1 of The statute says:

The tenant shall not unreasonably withhold consent to the landlord to enter the dwelling unit from time to time in order to inspect the premises; make necessary or agreed repairs, decorations, alterations, or improvements; supply agreed services; or exhibit the dwelling unit to prospective or actual purchasers, mortgagees, tenants, workers, or contractors.

Part 2 of the statute says:

The landlord may enter the dwelling unit at any time for the protection or preservation of the premises. The landlord may enter the dwelling unit upon reasonable notice to the tenant and at a reasonable time for the purpose of repair of the premises. “Reasonable notice” for the purpose of repair is notice given at least 12 hours prior to the entry, and reasonable time for the purpose of repair shall be between the hours of 7:30 a.m. and 8:00 p.m. The landlord may enter the dwelling unit when necessary for the further purposes set forth in subsection (1) under any of the following circumstances:

(a) With the consent of the tenant;

(b) In case of emergency;

(d) If the tenant is absent from the premises for a period of time equal to one-half the time for periodic rental payments. If the rent is current and the tenant notifies the landlord of an intended absence, then the landlord may enter only with the consent of the tenant or for the protection or preservation of the premises.

Now, that could not be clearer. If your tenant tries to prevent access by you or any agent you employ they are in non-compliance and you should immediately enforce your rights using the remedy found in section 83.56(2) which is the "Seven Day Warning Notice with Right To Cure ( Click Here ).

This notice gives the tenant seven days to cure the problem. If they don't the lease is immediately terminated and they must vacate. If they don't leave you can evict for this infraction.

It goes on to say that if the non-compliance is cured but it reoccurs any time within the next twelve months, the lease is immediate terminated and the tenant must move. If they don't you can evict for this infraction.

So, What Is A "Waiver"

According to a local law library: Waiver occurs when a party voluntarily relinquishes or surrenders a known right or benefit under a contract. In the context of a contract provision, if one party fails to enforce a specific term or condition, they may be considered to have waived their right to enforce that provision later on. Waiver can be either explicit (clearly stated) or implicit (implied through actions or conduct).

So, if your tenant refuses to permit access to the property and you do nothing about it, you may loose the right to enforce that right in the future. Or, if your tenant has an unauthorized animal and you learn about it but do nothing you may loose the right to enforce your right to demand the animal be removed in the future.

Thus, it is wise practice to demand that your tenant cure any non-compliance as soon as you learn about it and to make that demand in writing using the Seven Day Warning Notice. Click Here For the Form

Service Animals

paul@flalandlord.com (Paul Howard) — Sat, 18 May 2024 18:20:19 GMT

What Is a Service Dog?

Courtesy: Forbes Advisor

There are three federal laws that regulate and define what a service dog is: The Americans with Disabilities Act, the Fair Housing Act and the Air Carrier Access Act.

Americans Disabilities Act

The Americans with Disabilities Act (ADA) defines service dogs as “trained to do work or perform tasks for people with disabilities”.

Under the ADA, individuals with a disability include someone with a physical or mental health impairment that limits their life.

“The dog must be trained to take a specific action when needed to assist the person with a disability,” says Nicole Ellis, a certified professional dog trainer with Rover. “For example, a person with diabetes may have a dog that is trained to alert him when his blood sugar reaches high or low levels.”

Under the ADA regulations, service dogs are allowed anywhere the general public is allowed. That includes state and local governments, businesses and nonprofit organizations that serve the public.

The service dog must be under the control of its handler at all times, meaning it must be harnessed, leashed, or tethered, unless the owner’s disability prevents them from using these types of restraints. In that case, the owner should have control of the service dog with voice or signal control.

As of 2011, only dogs are recognized as service animals under ADA regulations.

Fair Housing Act

The Fair Housing Act (FHA) , which governs housing rules and regulations, defines an assistance animal as one “that works, provides assistance, or performs tasks for the benefit of a person with a disability, or that provides emotional support that alleviates one or more identified effects of a person’s disability”.

The FHA requires landlords to make reasonable accommodations if someone with a disability requests to keep an assistance animal. Reasonable accommodation requests include allowing the service animal to live at a property that has a no-pets policy, or waiving pet deposits or monthly pet fees.

Air Carrier Access Act

The Air Carrier Access Act (ACAA) specifically prohibits discrimination of passengers on the basis of their disability, and details the airlines’ obligations.

The Act requires airlines to recognize dogs as service animals and take them on flights to, within and from the U.S.

The ACAA defines a service animal as a dog of any breed or type, that has been trained to perform tasks for an individual with disabilities, including physical, sensory, psychiatric, intellectual, or other mental disability.

What Type of Service Dogs Are There?

There are many different types of service dogs that are trained to help individuals with disabilities. Disabilities can range from physical and mental illness to allergies and psychiatric disorders.

Some of the most common disabilities that qualify for a service dog include:

Sensory disabilities, including being blind and deaf
Autism
Cerebral palsy
Parkinson’s disease
Muscular dystrophy
Spinal cord injury
Arthritis
Diabetes
Multiple sclerosis
Cancer
Depression and depressive disorders
Anxiety disorders and phobias
Bipolar disorders
Schizophrenia and psychotic disorders
Attention deficit hyperactivity disorder (ADHD)
Addiction, substance abuse and alcoholism
Post traumatic stress disorder (PTSD), other trauma and stress-related disorders
obsessive-compulsive disorder (OCD)

It’s important to remember that service dogs are working dogs and not pets.

Guide dogs

Guide dogs are sensory assistance dogs for the blind or visually impaired.

“A guide dog helps its handler negotiate the physical world, leading them around obstacles, stopping at curbs and steps, and waiting for traffic signals,” Ellis says.

Guide dogs are trained to independently assess situations for safety, which means if it receives a cue that is unsafe for its handler, the dog will disobey it. For example, the dog will refuse to step into the street if there is oncoming traffic.

Autism dogs

A service dog for autism has been trained to assist a person who has autism, helping them to be independent and carry out daily activities.

“These dogs are trained in tasks similar to those of service dogs for other sensory processing disorders,” Ellis says.

“However, autism service dogs also learn skills specific to autism, like behavior disruption to distract and disrupt repetitive behaviors or ‘meltdowns,’ [and] tethering to prevent and protect a child from wandering.”

Hearing dogs

Hearing dogs are trained to help people who are deaf or hard of hearing.

These dogs alert their partners to sounds like a smoke alarm, doorbell, alarm clock, ringing telephone, or a child crying. They do so by nudging with their nose or using their paw to alert their person.

Hearing dogs can also be taught American Sign Language for individuals who are non-verbal, according to Paws with a Cause, a nonprofit organization that trains service dogs.

Medical alert dogs

Medical alert service dogs are trained to sense the onset of a specific medical crisis before it happens.

“These dogs can detect subtle changes in a person’s odor, respiration and behavior that indicate the early stages of an event like an epileptic seizure, diabetes-related changes in blood sugar levels and crises related to psychiatric conditions,” Ellis says.

Mobility assistance dogs

Mobility assistance service dogs are trained to help individuals with mobility issues, including opening automatic doors, retrieving objects and serving as a brace for individuals with trouble balancing.

They can also help open and close doors, turn on and off lights and find help, if and when it’s needed.

By law, someone requesting a mobility service dog must have a developmental, physical, or psychiatric disability, according to K94life, a nonprofit organization that trains mobility assistance dogs.

Psychiatric dogs

Psychiatric service dogs are trained to provide support, comfort and protection to individuals with mental health disabilities, as well as help them with daily tasks.

These tasks can include things like grounding and reorienting a handler during an anxiety attack, conducting a room search for someone with PTSD and providing gentle touch or pressure to calm and comfort their handler.

PTSD dogs

PTSD service dogs are a subcategory of the psychiatric service dog that are trained specifically to help individuals who are living with PTSD.

“These dogs improve their handlers’ quality of life by alleviating their anxiety and distress,” Ellis says. “A PTSD dog will wake its handler from night terrors and nightmares, distract them from triggering stimuli, bring their medication to them on a regular schedule, and lead their handler to a safe place if they experience a panic or anxiety attack.”

Common Service Dog Breeds

There are a wide range of breeds that are best suited to being a service dog.

Most breeds chosen as service dogs have the following qualities and features:

The drive to work
A calm disposition
Innate intelligence
A friendly and loving disposition

“The most popular service dog breeds are labs, goldens, German shepherds, and poodles,” says Dr. Sara Ochoa, D.V.M., an associate veterinarian at The Animal Hospital of West Monroe, Louisiana. “Their trainability, intelligence, temperament and size make them well-suited for service work.”

Other popular breeds for service dogs include:

Boxers
Great Danes
Border collies
Bernese mountain dogs
Pomeranians
Portuguese water dogs

This list is not exhaustive and the ADA does not restrict the type of dog breed that can serve as a service animal.

Lynn Julian Crisci suffers from Ehlers Danlos Syndrome, and was left disabled after a stage accident in 2006. In 2013, she survived the 2013 Boston Marathon bombing. She lives with brain, neck and back injuries, as well as hearing loss and complex PTSD.

Her first medical alert service dog, Lil Stinker, is a white-coated, 5-pound Maltese. She chose a Maltese due to its size, calm demeanor, non-shedding coat and low maintenance costs.

“Because he alerts me, I’m aware my heart rate has rapidly elevated due to dysautonomia, and I must kneel or risk fainting,” Crisci says. “Because he calms me, I don’t have to take anxiety medications all day. Service dogs come in all shapes and sizes. Don’t judge a dog by its cover.”

How To Make My Dog a Service Dog

If you feel your dog matches all the qualities needed in a service dog, you will need to start with an assessment by a service dog trainer.

“A good trainer will help you assess and evaluate your dog for public access work,” Ellis says. “Service dog work is not for every dog, and that’s fine. It involves a lot of training beyond basic commands, as well as public access commands such as ignoring people, food, pets and being able to keep a calm focus on you in case of a medical alert.”

Ellis adds that often “less than 5% of dogs are cut out for service dog work, and many ‘wash-out’ during training.”

How To Make My Dog a Service Dog: Step-by-Step Process

Step 1: How To Qualify for a Service Dog

All service dogs are trained to do very specific tasks for their handlers, which means you’ll need to determine two things:

If your dog has the characteristics needed to become a service dog
If you are disabled by definition in the ADA

Your dog will have to undergo extensive temperament testing, says Jackie Carleen, a certified dog trainer who has worked with service dogs.

“The test introduces new sights, smells, textures, under footings and sounds, so that the evaluator may determine how comfortable a dog is in exploring new stimuli and whether they need extensive help from a handler to explore or if they are comfortable on their own,” Carleen says.

If the dog is comfortable on its own and checks in with the handler, they have a good baseline and temperament to become a service dog, Carleen says.

The dog must also have a clean health record and no current health issues, or they may be disqualified from becoming a service dog, Carleen adds.

Other important characteristics include:

The dog must be trained to perform a specific task directly related to the person’s disability.
The dog must be well-behaved and well-mannered.

Step 2: Service Dog Training

It’s important to note that the ADA doesn’t require service dogs to be trained by an official organization. Handlers are permitted to train their own dogs.

“I am the biggest proponent for training your own service dog,” Carleen says. “One of the wonderful things about training a service dog yourself is the bond that is created while training.”

Carleen adds that a relationship-based approach to training benefits every dog, since they are astute at reading their trainer’s body language, tone and pitch of voice, and mannerisms.

While working with a service dog organization is helpful because the employees and trainers are well-versed in the requirements, there can be challenges.

When a dog is trained through a special organization, it’s trained to a particular person and you will have to work with the dog to respond to a different person, which adds time to the training process.

“I would suggest someone train their own service dog and pay for a consultation or a couple training sessions from a trainer to help teach some fundamentals and help with any hiccups with progress along the way,” Carleen says.

The most critical thing to teach your service dog is the specific task or skill they will need to perform to help you with your disability.

Step 3: Public Access Certification Test (PACT)

The ADA does not require documentation or proof that the animal has been certified, trained, or licensed as a service dog in order for the dog and its handler to be allowed entry in public places. It also does not require any certification that the dog has passed any special tests.

However, some service dog organizations require handlers to complete public access training before the dog can be adopted. It’s best to check with the organization to see what the requirements are with regards to training.

If your dog undergoes the PACT, there are several training points it will evaluate, which can differ depending on the organization and where you are located.

These are the most common traits that public access tests will use to evaluate your dog:

The dog’s ability to safely cross a parking lot and halt for traffic
The owner’s ability to enter a public place without losing control of the dog
The dog’s ability to hold a sit-stay, or down-stay position, in a distracting situation, such as when a child approaches the dog or if food is dropped on the floor

Step 4: Service Dog Registration and Certification

While state and local governments can offer voluntary service dog registration programs, they cannot require registration or certification of service dogs, according to the ADA.

“There are individuals and organizations that sell service animal certification or registration documents online. These documents do not convey any rights under the ADA and the Department of Justice does not recognize them as proof that the dog is a service animal,” reads the ADA website .

In fact, it’s against the law for anyone to ask for documentation that the dog is registered, licensed or certified as a service animal.

What Is An Emotional Support Animal

paul@flalandlord.com (Paul Howard) — Sat, 18 May 2024 18:03:52 GMT

Emotional Support Animals

What Is an Emotional Support Animal (ESA)?

An emotional support animal (ESA) is any domesticated animal that provides a psychological and/or emotional benefit to its owner.

“If a person is about to spiral or head into a bad feeling, sometimes just holding the animal can calm them down,” Morrissette says. “Having that animal beside them can prevent them from going to a worse [mental] place.”

The capabilities of your ESA depend on how much you train them to better serve you. Many ESAs haven’t been trained at all—their mere presence is enough for someone to reap the psychological benefits.

What’s an ESA Letter?

An ESA letter is the only legally accepted way to prove that your pet is an emotional support animal. You must retrieve the letter from a physician or licensed mental health professional, including a therapist, psychiatrist or psychologist. The letter confirms that you’re dealing with a diagnosed mental illness and that your pet is providing you with mental and/or emotional benefits.

However, there are several places where ESA letters aren’t accepted. This is because, unlike service dogs, emotional support animals aren’t protected under the Americans with Disabilities Act (ADA). It’s up to each individual business, such as restaurants and retail stores, to accept or deny your ESA.

How To Get an Emotional Support Animal

If you already live with an animal that benefits your mental health and are seeing a licensed mental health professional, you can ask them to write you an ESA letter to prove that it’s crucial to your well-being.

The process differs if you don’t currently have an animal and are looking to get one. You’ll want to select an animal that best suits your mental and emotional needs; most people select dogs. The next step will be to obtain an ESA letter from your licensed mental health professional.

Eligibility for ESA Animals

To qualify for an emotional support animal, you must be suffering from a diagnosed mental illness or disability, such as depression, anxiety or post-traumatic stress disorder. Your licensed mental health professional or doctor must recognize that your ESA provides you with a psychological and/or emotional benefit.

ESA Dogs vs. Service Dogs vs. Therapy Dogs

Emotional support animals and service animals are not technically considered pets. An ESA mostly offers comfort and companionship. According to the ADA, service animals must be dogs and are always trained to complete specific tasks that help their owners with their day-to-day activities.

“ Service dogs are almost like medicine with four legs and a tail because they’re needed to function daily,” explains Morrissette.

While emotional support dogs require an ESA letter for certain permissions, service dogs don’t have to be certified. It’s against the law for someone working at a business or government facility to ask for a service dog’s documentation. Service dogs are allowed almost anywhere, while entry for ESAs is up to the discretion of the establishment.

Therapy dogs are used for companionship and comfort just like ESAs, except they have undergone extensive training and socialization for this purpose. You may see them used in senior centers, schools, libraries and hospitals.

“A therapy dog has to have a very calm temperament…It needs to be well-trained, well-behaved, socialized and able to listen to instructions very well,” explains Morrissette.

Can Emotional Support Dogs Fly on Airlines?

Prior to 2021, emotional support animals were able to fly on airlines for free with their owner. But due to a change in the Air Carrier Access Act (ACAA), airlines are no longer required to accept ESAs. Emotional support dogs are only allowed in the cabin on most airlines if they meet the size requirements and the owner pays the pet fee..

If your ESA doesn’t meet the size requirements, it may have to fly in the plane’s cargo hold or it may not be allowed to fly at all.

Mental Health Benefits of Emotional Support Animals

There are myriad mental health benefits when it comes to emotional support animals.

Here are some of the ways ESA dogs can benefit your mental health:

Ease anxiety. “Just by looking at or petting [an ESA], it can bring you back to, ‘Alright, things are OK now.’ They can change your whole mindset emotionally when you get into a bad place,” explains Morrissette.
Alleviate symptoms of depression . “Someone can be depressed and then they walk through their door and there’s their dog looking at them. That can change their whole day,” Morrissette says.
Provide support for those with PTSD. Trauma can cause people to feel on edge, anxious and hypervigilant. A dog’s comfort can help relax these symptoms.
Offer companionship to those suffering from loneliness or grief. Someone who suffers from loneliness or is dealing with grief may benefit from having companionship through an ESA.
Reduce stress levels. Having a dog by your side can help you to let go of stress. In fact, dogs have been found to reduce physical symptoms of stress such as high blood pressure and an accelerated heart rate.

Suitable Pets for Emotional Support Animal Designation

Any domesticated animal can be an emotional support animal; however, the most popular by far is dogs. Some popular dog breeds for ESAs include golden retrievers , Labrador retrievers, Cavalier King Charles spaniels, poodles and Yorkshire terriers.

Other common ESA animals include cats, pigs, birds, rabbits and miniature horses.

Understanding the Legal Aspects of Emotional Support Dogs

The only legally accepted document that can prove you have an emotional support animal is an ESA letter.

Landlords may not deny you your right of living with your ESA, even if the home is listed as “no pets allowed.” Your right to live with your emotional support animal is protected under the Fair Housing Act.

Emotional support animals are not protected under the ADA or the ACAA. This means they are not considered essential service dogs and can be denied entry into any business or airline.

Pet Insurance for Emotional Support Pets

There is no special pet insurance for emotional support animals, but you’ll want to have your ESA equipped with the best pet insurance. Making sure that it's covered will provide you peace of mind for both your ESA and your wallet.

The Big Four

Thu, 07 Mar 2024 19:12:54 GMT

The Big Four

Tenants who have a bad rental history or a criminal history need a place to live just like everyone else. These characters know they can’t rent from large, well managed apartment communities because they check references. So, who are they looking for? They are looking for a nice, private landlord who thinks he’s is a good judge of character.

Would you like to avoid these characters? It’s simple. Just remember the “Big Four”: Income to rent ratio, Criminal, Rental, and, Credit History.

First, it’s important to have the right mindset when considering a new rental applicant. Think of it as granting a huge loan to a total stranger with little or no collateral; and, the only information you have is from the applicant himself.

1. Income to rent ratio

This is the first question to ask because if they don't make enough money there is no reason to continue with the interview. Rent and utilities should be less than one third of the total family income after taxes. Verify income the same way your banker did when you financed the property: get a pay stub or the last three months of bank statements. If they don’t have deposits at least equal to their stated income you should find out why.

2. Criminal History

Here's a great question to address this often sensitive area: "Have you ever been in the back seat of a Police car"? It's up to you to establish your policy here. Do it and stick to it. A common company policy regarding criminal history is: no felony convictions in the past seven years and no sexual offenses ever. It is frightening how many landlords skip right past this and in the process rent to potentially dangerous people. Think about this: every dangerous criminal who is not in jail is renting a place to live. Do you want one in your home?

3. Rental History

Who knows better what your experience is likely to be with the potential renter than the previous landlord. Honestly, why not ask every previous landlord about their experience with the applicant? The phone call is free and you have thousands of dollars at stake! Here’s a good tip. Check the Property Appraiser’s website to verify the name of the owner. Does it match the name the applicant gave you?

4. Credit History

This can be difficult to nail down as a written policy because credit history has subjective factors which go beyond the credit score. How has he treated previous Creditors? Do you want to be the next Creditor added to his Credit Report? In general credit history should reflect appropriate care and concern for all financial obligations.

So, if you get all green lights to the Big Four, pull out the lease, collect the rent, security deposit, and application fees but don't give them the keys. Then verify everything. It's simple. We call it "Trust but verify".

###

Paul Howard is President of The Florida Landlord Network.
You can contact him via email at: Paul@FlaLandlord.com
or visit the website at: www.FlaLandlord.Com.

Squatters

paul@flalandlord.com (Paul Howard) — Fri, 23 Feb 2024 15:46:19 GMT

Squatters!

By: Paul Howard

Our eviction business has seen a sizeable increase in the number of squatters moving into empty rental units. The stories are similar. The landlord discovers strangers have taken up residency in their rental home. Naturally, they are angry and worried. Will they become violent? Will they destroy the house? How do I get them out?

Often, the landlord will call the police to report the intruders hoping an officer will thrown them out, only to learn the cops can’t do anything. They say its a civil matter.

What You Can Do

Florida Statutes § 82.035 offers landlords a way to remove unauthorized occupants, like squatters, from their rental property. As a non-lawyer, I understand the statute to mean that if someone is living in your property without permission, you can submit a sworn affidavit to law enforcement, who may remove them immediately. The challenge can be finding an Officer willing to act on it.

Keep in mind, forcing someone out of a home is a very big deal. So, it's easy to understand why the police are cautious in such cases because a mistake could lead to big legal trouble for them. Despite your affidavit, many officers will avoid the risk and suggest going to court for a formal eviction. Fortunately, evicting squatters through the courts is usually a simple task and can take several weeks; and, there are many notable exceptions. Here are just a few:

Here is the Statute: Chapter 82 of the Florida Statues offers a remedy to the problem of squatters taking over your property. Here is part of that statue (to see the entire statute Click Here ).

82.035 Remedy for unlawful detention by a transient occupant of residential property; recovery of transient occupant’s personal belongings.—

(1) As used in this section, the term “transient occupant” means a person whose residency in real property intended for residential use has occurred for a brief length of time, is not pursuant to a lease, and whose occupancy was intended as transient in nature.

(a) Factors that establish that a person is a transient occupant include, but are not limited to:

1. The person does not have an ownership interest, financial interest, or leasehold interest in the property entitling him or her to occupancy of the property.

2. The person does not have any property utility subscriptions.

3. The person cannot produce documentation, correspondence, or identification cards sent or issued by a government agency, including, but not limited to, the Department of Highway Safety and Motor Vehicles or the supervisor of elections, which show that the person used the property address as an address of record with the agency within the previous 12 months.

4. The person pays minimal or no rent for his or her stay at the property.

5. The person does not have a designated space of his or her own, such as a room, at the property.

6. The person has minimal, if any, personal belongings at the property.

7. The person has an apparent permanent residence elsewhere.

(b) Minor contributions made for the purchase of household goods, or minor contributions towards other household expenses, do not establish residency.

(2) A transient occupant unlawfully detains a residential property if the transient occupant remains in occupancy of the residential property after the party entitled to possession of the property has directed the transient occupant to leave. A transient occupancy terminates when a transient occupant begins to reside elsewhere, surrenders the key to the dwelling, or leaves the dwelling when directed by a law enforcement officer in receipt of an affidavit under subsection

the party entitled to possession, or a court. A transient occupancy is not extended by the presence of personal belongings of a former transient occupant.

(3) Any law enforcement officer may, upon receipt of a sworn affidavit of the party entitled to possession that a person who is a transient occupant is unlawfully detaining residential property, direct a transient occupant to surrender possession of residential property. The sworn affidavit must set forth the facts, including the applicable factors listed in paragraph (1)(a), which establish that a transient occupant is unlawfully detaining residential property. (Emphasis added)

Get Prepared

Rather than wait to see if someone would do this to me, I got prepared in advance. First, I downloaded this affidavit ( Click Here ) keeping it close in case I need it . Then if I find squatters in my rental, I will complete the affidavit and go to the Property Appraiser's database and print the Property Record Card, which will show that I am the owner of the property. (If you own the property in an LLC or Corp, go to Sunbiz ( https://dos.fl.gov/sunbiz/search/ ) and print out the record card to show who owns the LLC or Corp and finally, I will print out the page from the Jacksonville Sheriffs Office titled: Unauthorized Occupants (Squatters) ( Click Here ).

Then, I will call the Sheriff and present these documents to the Deputy and ask him to force out the occupants. If he or she isn't comfortable with that, I will hold my tongue. They have a lot to loose if they get this wrong.

So, if this happens, I will deliver a notice of "Unlawful Occupation" and three days later, I will file eviction in Court and after the Court signs the Final Judgment I will obtain a Writ of Possession. This time the Sheriff WILL boot out the occupant and I get my house back.

One more thing, given that we all have ten million new neighbors (illegal immigrants) living in America, it is probably prudent for you to check on your vacant properties very regularly.

###

Back to Asking The Sheriff Remove Squatters

The following is from the Jacksonville Sheriff's Office website ( Click Here ) The procedure is a state law so every Florida sheriff should honor these procedures.

Unauthorized Occupants (Squatters)

Effective Monday, July 1, 2024, section 82.036 of Florida State Statute has been created to provide a limited alternative remedy to remove unauthorized persons from residential real property. If you are the owner or authorized agent of residential property, and the property is unlawfully occupied by persons who are refusing to vacate, you can request the Jacksonville Sheriff’s Office to remove the unauthorized persons from the property. In order for the Jacksonville Sheriff’s Office to enforce F.S.S. 82.036, ALL of the following conditions must be met:

The requesting person is the property owner or authorized agent of the property owner.
The real property that is being occupied includes a residential dwelling.
An unauthorized person or persons have unlawfully entered and remain or continue to reside on the property owner's property.
The real property was not open to members of the public at the time the unauthorized person or persons entered.
The property owner has directed the unauthorized person to leave the property.
The unauthorized person or persons are not current or former tenants pursuant to a written or oral rental agreement authorized by the property owner.
The unauthorized person or persons are not immediate family members of the property owner.
There is no pending litigation related to the real property between the property owner and any known unauthorized person.

As the owner or authorized agent, you must complete a Complaint to Remove Persons Unlawfully Occupying Residential Real Estate Property (P-0886) . This form must be completed in its entirety with the required supporting documentation of a copy of a government issued identification attached, and for authorized agents, a power of attorney or other legal documents evidencing authority to act on the property owner’s behalf. This form is completed under penalty of perjury.

Once the form is completed, the owner or authorized agent is instructed to call JSO's non-emergency number, 904.630.0500.

###

* Special Notice: Paul Howard and The Florida Landlord Network are an independent, non-attorney service. We urge you to consult an attorney before using any document or described procedure found herein. Neither are licensed by the Florida Bar to practice law and are not authorized to give legal advice or tell you your legal rights. By using our website or any service or document produced and/or published by us, you indicate that you understand and agree to our Legal Disclaimer.

Why Would You Give The Keys To Just Anyone?

paul@flalandlord.com (Paul Howard) — Tue, 13 Feb 2024 14:51:05 GMT

Why Would You Give The Keys To Just Anyone?

Veteran real estate investors know you make money when you buy the property. The meaning, of course, is if you pay too much for the property, or your due diligence is sloppy, it’s going to cost you.

Successful landlords know you make money in the rental business when you select your tenant. If you fail to do your due diligence it can cost you thousands. So, why is it that most landlords – I mean the vast majority – do little or nothing to verify the information given to them by rental applicants?

Think of a former tenant who cost you plenty. Now, go back to the day of the rental interview. Knowing what you know now, would throwing $500.00 in the trash be a better investment than renting to that person? If yes, then what is the lesson?

The most frequent excuse for skipping effective tenant screening is: “I’m a good judge of character.” Here is what I have learned: The worst tenants are the best liars.

Take the case of landlord Tom. Not long ago, Tom interviewed a man named Elliott who wanted to rent one of his homes. The two hit it off right away. Elliott told Tom how he’d lost his job last year and his wife left him for another man soon after. Despite all of his troubles, today he has a good job and is back in church where he should have been all along.

Tom was so impressed with Elliott’s situation that he wanted to be a help. Elliott got the keys to the house the same day and Tom was delighted to have a tenant with strong morals and a good work ethic.

Tom knew he should verify Elliott’s background, just to be sure. The application indicated that Elliott had lived at only one other home in Florida during the past 5 years. The question: “have you ever been arrested?” was checked “No”. Tom asked that we do the usual background checks.

Most tenants don’t know that we can obtain their residential history. Elliott’s report indicated he’d been living in Georgia for some time. His Florida criminal record was clean but we told Tom he should check Georgia. He swallowed hard and said OK.

The twelve pages of criminal history which followed included things like two separate 5 year prison terms, extortion, felony domestic battery and grand larceny.

The short version of a long and dangerous story is it took Tom two months to get Elliott out of the rental. Tom never received a penny from Elliott other than the first month’s rent and a small deposit. Worse, Elliott’s attitude changed from angel to demon as soon as Tom told him why he had to move. Tom was scared. Eventually, a Judge said Elliott had to go and today he is renting from another landlord who gave Elliott’s the keys without verifying his story. I hope it isn’t you.

Obviously, Tom could have avoided this mess if he had verified Elliott’s application before giving him the keys. However, effective tenant screening begins long before the application. No matter how you advertise your rental property the purpose of the ad is to make the telephone ring and effective tenant screening begins with that phone call.

(You should follow a well crafted script every time someone inquires about your rental. View a sample Click Here )

Tenants who have a bad rental history or a criminal history need a place to live just like everyone else. These characters know they can’t rent from large, well managed apartment communities because they always check references. So, who are they looking for? They are looking for a nice couple with a cute home to rent.

These guys know how to carefully listen during the phone call. Not only are they a good judge of character but they have nothing to loose. If you discover their past they just move on to the next guy.

There’s another reason to use a script. While landlords are afraid they will get stuck with a bad tenant, good tenants are afraid they will get stuck with a bad landlord. They too will listen carefully to you during the telephone conversation. They like to hear the voice of a strong manager who checks references. When the bad guy hears it he ends the conversation and calls the next landlord. When the good guy hears it he hopes he’s found a good landlord.

Would you like to avoid bad tenants? The first telephone conversation is your first line of defense. If the bad guys detected that you are a good manager and they won’t bother to call you back. That’s because they are looking for a landlord who thinks he’s is a good judge of character.

Charging Section 8 Tenant Extra Rent Is A Crime

paul@flalandlord.com (Paul Howard) — Wed, 13 Dec 2023 19:20:59 GMT

Landlord Overcharging Section 8 Tenant Fraud Scheme

The U.S. Department of Housing and Urban Development (HUD) Housing Choice Voucher Program (Section 8 housing) is the Federal Government's major program for assisting very low income families, the elderly, and the disabled to afford decent, safe, and sanitary housing in the private market. The voucher program helps eligible HUD beneficiaries by covering a portion of their rental costs each month.

Section 8 vouchers are administered locally by public housing agencies (PHAs) who receive Federal funding from HUD to administer the voucher program. A Housing Assistance Payments Contract (HAP contract) between the landlord or owner and the PHA establishes the “total rent” received by the landlord or owner, which consists of:

The monthly housing assistance payments by the PHA to the owner.
The portion of rent paid by the tenant directly to the owner.

Landlords are prohibited from requiring tenants to pay rent in excess of what is authorized by

HAP contracts.
The Landlord may not demand or accept any rent from the tenant in excess of the contracted amount and must immediately return any excess rent payment to the tenant. Further, the Landlord may not charge HUD-assisted tenants higher rents for Section 8 funded units than they charge to other tenants in units that are not funded with Section 8 vouchers.

Landlords cannot change the rent without obtaining approval from the local housing authority and cannot avoid Federal rent limits by making side deals with tenants.

Additional Fees or Charges
Section 8 landlords may require additional side payments from tenants above the rents stated in the lease or reported to the housing authority as a condition of leasing, however, nonpayment of any such additional charges is not grounds for termination of tenancy.

These additional payment demands may include rental charges for:

Washers and dryers
Renter’s insurance
Parking (covered and uncovered)
Garage rental
Storage space rental
Month-to-month lease fees
Pest and bedbug control
Internet and cable service
Any meals or supportive services or furniture which may be provided by the owner
any items customarily included in rent to owner in the locality, or provided at no additional cost to unsubsidized tenants in the premises.

Threatening to evict tenants or in fact evicting tenants for failure to pay any of these additional charges is illegal . Deducting any unpaid additional charges from tenants’ security deposits is also prohibited.

Improperly requiring tenants to pay rent in excess of what is authorized by the applicable HAP contract is a potential criminal or civil violation of the law.

Report suspected fraud to the HUD Office of Inspector General Hotline at 1-800-347-3735 or

visit our website at, https://www.hudoig.gov/hotline.

Tenant Screening Tips Every Property Manager Must Know

paul@flalandlord.com (Paul Howard) — Wed, 06 Dec 2023 17:57:30 GMT

Tenant Screening

Tips Every Property Manager Must Know

Tenant Screening is without a doubt, one of the most critical steps in the property management process. A thorough and meticulous screening process can mean the difference between a smooth tenancy and a rental nightmare. Here are five essential tips every property manager must know:

Set Clear Rental Criteria: Before starting the screening process, outline clear criteria for what you expect from your tenants. Whether it’s specific credit score range, income level or rental history, being transparent about your expectations can deter unqualified applicants from the start. The rental criteria should be listed on any rental listings. Click Here for Rental Application

Detailed Rental Application: Your rental application should capture details like employment history, past residences and credit history. It’s beneficial to understand why a tenant left a previous rental, which can be a precursor to potential issues. Click Here for Rental Application

Conduct a Thorough Background Check: Florida Landlord Network's integrated background check feature dives deep into an applicant’s history, unveiling criminal records, past evictions and more. Knowing your tenant’s past ensures a safe environment for your property and neighboring tenants. Property managers and landlords can screen applicants on their background within minutes and swiftly make a decision. Click Here For Tenant Screening

Don’t Skip the Credit Check: A tenant’s financial responsibility is vital. A credit check will give you a glimpse into their payment history and financial commitments. Tenants with a history of late payments or substantial debt might pose a risk in terms of consistent rent payments.

Verify Employment and Income: A stable job often indicates a tenant’s ability to meet their monthly obligations.

While tenant screening serves as a strategic approach to safeguarding your property investments, having the right tools in place can amplify its effectiveness.

Fair Housing - Disabilities

paul@flalandlord.com (Paul Howard) — Fri, 10 Nov 2023 15:33:57 GMT

Fair Housing: Persons with Disabilities

What are Reasonable Accommodations?
Source

Title VIII of the Civil Rights Act is the Fair Housing Act. The intent of the Fair Housing Act is to ban discrimination on the basis of race, color, sex, religion, national origin and disability in most housing transactions. Families with children are also protected. The Act requires landlords to make "reasonable accommodations" for persons with Disabilities.

The Act defines a Reasonable Accommodation:

A change, exception, adaptation or modification to a policy, program or service that allows a person with a disability to use and enjoy a dwelling. The term also applies to public and common use spaces.

The Fair Housing Act requires owners and landlords to make reasonable accommodations if the accommodation may be necessary to ensure that a person with a disability has equal opportunity to use and enjoy the dwelling.

What are some examples of Reasonable Accommodations?

Allowing a person with a disability to mail their rent instead of delivering it to the office;
Assigning a parking space closest to the exit or unit to tenants with mobility disabilities;
Allowing persons with disabilities to keep service or other assistance animals, despite a general "no pets" policy;
Not counting a home health aide, therapist, nurse, etc. as an additional tenant or guest;
Allowing a tenant to move to a more suitable unit when one becomes available; and
Releasing a tenant with disabilities, who must move because of his/her disability, from lease requirements.

A reasonable modification is a physical change made to a tenant or owner’s living space or to a common area that is necessary to ensure that the tenant or owner who has a disability has full enjoyment of the dwelling or space. Modifications are usually made at the tenant's expense, except in the case of federally funded housing.

The Fair Housing Act requires owners and landlords to allow the reasonable modification of a living spaces as well as some common areas if the modification may be necessary to ensure that a person with a disability has full enjoyment of the premises.

What are some examples of Reasonable Modifications?

Building ramps over steps to allow wheelchair access
Installing lever door openers instead of knob openers
Widening door openings by installing swing-away hinges or wider pocket doors
Installing grab bars and hand rails
Installing wheelchair accessible shower stalls
Changing tub faucets to an off-set location
Removing under-the-sink cupboards in bathrooms
Lowering light switches

Funds may be often available to assist individuals to pay for modifications. Check with both your area Center for Independent Living and your city and county government to request financial assistance paying for a modification.

Source

Business Strategies: Land Trusts

paul@flalandlord.com (Paul Howard) — Sun, 29 Oct 2023 19:46:54 GMT

7 Super Powers of Land Trusts in Real Estate Asset Protection

At The Florida Landlord Network we regularly see real estate investors (landlords) get so caught up in the 50 & 100 dollar a day decisions they loose sight of the fact that they are quickly building a substantial Net Worth. Now, you've got to manage the daily operations; but, don't let that excuse keep your from learning how to build maximum Net Worth. That is what matters at retirement.

This video is the first of a series called: Business Strategies designed to encourage you to consider these simple steps:

Educate yourself (watching this video counts)

Get some Professional help: A competent tax attorney/CPA, etc.

Develop a Plan to build maximum Net Worth.

Cost Segregation is just one easy and perfectly legal tax strategy that I'll bet you are not utilizing. In this video, Real Estate Investor and Tax Attorney Toby Mathis explains how to take maximum advantage of the various depreciation schedules available to investors that almost no one utilizes.

Study & do!

Land Trusts, or real property holding companies, are excellent tools for investors to use when purchasing investment properties. In this video, we will discuss the powers land trusts offer for real estate asset protection.

Due to their many advantages and offers to real estate investors, they are a popular choice when it comes to entity structuring.

We will begin with the basics of land trusts, such as the roles played by the trustee, guarantor, and beneficiary. These are but three of the many key variables to mind when utilizing land trusts.

"Any time you have a trust, you'll have these players (Trustee, Grantor, Beneficiary). There's always three of them."1:10

And as the title suggests, there are seven, count them, seven points we want to go over that emphasize the abilities that land trusts have.

Please enjoy our content that will take you through the powers that come with using a land trust. If you have any questions, be sure to leave them in the comments.

Avoid Fair-Housing Complaints

paul@flalandlord.com (Paul Howard) — Mon, 23 Oct 2023 08:34:47 GMT

Fair-Housing Law

Be Aware of Secret "Testers"

Did you know the federal government invests hundreds of thousands of dollars each year in efforts to catch landlords who may, intentionally or accidentally, violate Fair Housing laws?

Click on the image above to watch a brief public service announcement about the “testers” funded by the federal government. These undercover agents pose as rental applicants to identify landlords potentially violating Fair Housing Law—an approach that can feel unsettling!

In addition to funding tester programs, the government also allocates tens of thousands annually to encourage applicants and tenants to file Fair Housing complaints if they believe they have experienced discrimination. While there’s nothing inherently wrong with encouraging reporting, keep in mind that intent is not required to violate the law. Even accidental discrimination can result in a violation.

Avoiding Fair Housing complaints and lawsuits should be a top priority for landlords. Even if you are ultimately found innocent, the financial burden of a legal defense could be overwhelming.

Tips to Avoid Trouble

Develop and Follow a Written Company Policy

Under Fair Housing Law (42 U.S. Code §§ 3601-3619), it’s essential to establish clear, pre-defined, and objective screening criteria for tenant selection. A written policy should outline these guidelines and be given to every rental applicant along with the rental application. Editor’s Note: Check our forms section under New Tenant Forms for a sample rental application with a sample company policy.

At a minimum, your policy should include:

Income Requirements
Criminal History
Rental History
Credit History
Maximum Occupancy Standards

Each criterion should be explicit. For example, recent updates have made criminal history a potential protected category, but it’s not an absolute safeguard.

You can choose not to rent to individuals with criminal convictions involving bodily injury or property damage. For example, your policy might state: “No felony convictions involving bodily injury or property damage within the past 7 years, no misdemeanor convictions within the past 2 years, and no rental eligibility for those with sexual offenses.”

Additional Policy Elements

Consider also adding policies on pets, smoking, or other specific conditions, provided these do not conflict with legal standards. Apply these rules equally to all applicants.

Understand and Follow Your Policies Consistently

Everyone involved with tenant interactions must adhere to Fair Housing laws, including property owners, landlords, managers, real estate agents, and their employees. As the property owner, you are legally accountable for any discriminatory actions by your employees, including harassment.

By implementing and consistently following these practices, you can reduce the risk of Fair Housing complaints and ensure a fair and equitable rental process.

What To Do When Your Tenant Moves Out

paul@flalandlord.com (Paul Howard) — Mon, 23 Oct 2023 08:25:14 GMT

What To Do When Your

Tenant Moves Out

Your tenant has moved out. While your priority is to clean and paint and do all of the other things necessary to get the unit rented as soon as possible, there are a number of things which good business practice suggests -- and some which State law demands.

Note: There are a number of documents to which this article refers. All of them are available at this website by clicking on the appropriate link in the article.

First! Is the Unit Really Empty/Abandoned?

The electric is off, the water is off, the unit is filthy and filled with trash, empty beer cans, some clothes, piled up unclaimed mail, and the neighbor tells you that they saw the tenant pack up and leave last week. Is the unit abandoned? Can you take possession of the unit and get it ready for the new tenant? Not if you want to follow the law and protect yourself from liability! Click Here to read a very important article written by Michael Geo. F. Davis, Attorney at Law, on the subject of “Abandonment”.

Document The Money

Document very carefully all of the money you believe your former tenant owes you. This includes rent, late fees, NSF checks, expenses which were supposed to be reimbursed but weren't, other expenses such as eviction costs, etc.

Document Damage and Losses Carefully list the individual repairs to the rental unit for which you believe your former tenant is responsible. Be sure to include the cost for each item. Remember, the tenant is obligated to return the rental unit to you in substantially the same condition it was in when they originally took occupancy, minus "normal wear & tear".

Create and Invoice:

Create a proper invoice and list each of the expenses. These should be expenses which you have incurred, for which you have paid receipts. This constitutes your final bill to the tenant unless you find hidden damage later or if the tenant moved prior to the end of the lease and the unit remains vacant. Important Cavate: You can not charge the tenant for your own labor unless it is specified in the lease.

Security Deposit

Florida statues are very specific regarding the return of your tenant's security deposit and any claims you intend to impose against it. There are no exceptions!. The rules are the same for tenants who move out under good conditions and those who don’t, including eviction. Also, keep in mind this notice deals with the Security Deposit only! It is does not necessarily constitute the final bill to the tenant.

Here is part of the statute which specifies the landlord's responsibility for the security deposit upon the tenant's vacating the premises:

Florida Statutes Section 83.49 (3)(a)

Upon the vacating of the premises for termination of the lease, if the landlord does not intend to impose a claim on the security deposit, the landlord shall have 15 days to return the security deposit together with interest if otherwise required, or the landlord shall have 30 days to give the tenant written notice by certified mail to the tenant's last known mailing address of his intention to impose a claim on the deposit and the reason for imposing the claim.

What is "last known mailing address"?

The usual last known mailing address is the address of the premises or the address to which you have been sending correspondence to the tenant while the tenant was living on the premises or any other address that the tenant has given you to send correspondence to the tenant by mail.

Return all of the security deposit

If you intend to return all of tenant's Security Deposit you must do so within 15 days of the tenant vacating the premises. You may hand deliver it or mail it, via Certified Mail to the tenant's last known address.

Notice of Intention to Impose Claim Against Security Deposit

If you intend to impose a claim of any amount against the tenant's security deposit you must send a very specific letter to the tenant's last known address within 30 days upon the tenant vacating the premises.

This letter must be sent via Certified Mail and we recommend "Return Receipt Requested". If you fail to send this letter within 30 days your tenant may demand -- and you will have to pay -- the full amount of the security deposit, plus potentially attorney fees and court cost, regardless of any other debts your tenant may owe to you. Send the letter! ( Click Here to Download the Letter )

Abandoned Personal Property

Florida statues are clear regarding your tenant’s personal property. If anything is left behind the property owner has certain responsibilities based upon the value of the personal property.

Florida Statutes Section 715.104

1. When personal property remains on the premises after a tenancy has terminated or expired and the premises have been vacated by the tenant, through eviction or otherwise, the landlord shall give written notice to such tenant and to any other person the landlord reasonably believes to be the owner of the property.

2.The notice shall describe the property in a manner reasonably adequate to permit the owner of the property to identify it. The notice may describe all or a portion of the property, but the limitation of liability provided by s. 715.11 does not protect the landlord from any liability arising from the disposition of property not described in the notice, except that a trunk, valise, box, or other container which is locked, fastened, or tied in a manner which deters immediate access to its contents may be described as such without describing its contents. The notice shall advise the person to be notified that reasonable costs of storage may be charged before the property is returned, and the notice shall state where the property may be claimed and the date before which the claim must be made. The date specified in the notice shall be a date not fewer than 10 days after the notice is personally delivered or, if mailed, not fewer than 15 days after the notice is deposited in the mail.

3. The notice shall be personally delivered or sent by first-class mail, postage prepaid, to the person to be notified at her or his last known address and, if there is reason to believe that the notice sent to that address will not be received by that person, also delivered or sent to such other address, if any, known to the landlord where such person may reasonably be expected to receive the notice. Therefore, if the tenant left personal property and you estimate the total value to be less than $500.00, send "Notice of Right To Reclaim Abandoned Property - Value less than $500.00".

If the tenant left personal property and you estimate the total value to be more than $500.00, send "Notice of Right to Reclaim Abandoned Property - Value in excess of $500.00" and then very carefully read the following:

Florida Statutes Section 715.107 -- Storage of abandoned property

The personal property described in the notice either shall be left on the vacated premises or be stored by the landlord in a place of safekeeping until the landlord either releases the property pursuant to s. 715.108 or disposes of the property pursuant to s. 715.109. The landlord shall exercise reasonable care in storing the property, but she or he is not liable to the tenant or any other owner for any loss unless caused by the landlord's deliberate or negligent act. Click Here To Dow nload The Letter.

Debt Collections

If your former tenant refuses to pay your invoice for damage, etc., the next step is to decide how to try to collect. You have a few options: However, before you take a single step to collect any debt, please carefully read this article about the Federal Fair Debt Collections Practices Act . It's important!

Small Claims

Attorney, Harry Anthony Heist has written an excellent article on the subject of Small Claims Court. He is writing to Professional Property Managers and Owners and Manages of apartment communities. The content applies to private landlords as well. C lick Here For Arti cle

Since it is clear from Attorney Heist's article that taking your former tenant to Court may be a dubious effort, you may find that a Collections Agency is perfect for the job.

Collection Agency: A company who's purpose is to collect debt on behalf of other people and business. Most such agencies, after agreeing to accept the task, will take a number of steps to try to collect some or all of the money owed to you. Among other things they should: Perform a skip-trace to learn the whereabouts of the debtor. Write one or more collection letters to the debtor demanding payment. They should report the debt to the three major credit agencies. This is important this will alert the world that your former tenant owes you money. If they try to finance a major purchase, such as a car or a home, the lender may require them to pay their debt to you before they will lend.

In any case, Collection Agency is usually your first step in trying collect the debt. There should be no upfront cost to you from the agency. They are compensated by retaining usually 50% of any money collected. After working the case, if they fell you have a chance in Court they may recommend Small Claims court. Remember, they are the experts at collecting debt and they don't get paid unless they do.

That's it.

Remember to Document your claims, satisfy the law regarding your tenant's security deposit and personal property, and take every legal and effective step possible to collect any money your tenant owes you.

Debt Collection

paul@flalandlord.com (Paul Howard) — Mon, 23 Oct 2023 08:19:46 GMT

DEBT COLLECTION

Your tenant left your rental apartment trashed, damaged and owing you money! Your tenant lied and took advantage of you. He may have skipped or you may have evicted him. In either case, he damaged your rental and cost you money! What do you do?

First , set your emotions aside and spend a few minutes getting your ducks lined up. Organize your ex-tenants file. Whether you own one unit or a thousand; whether you manage your rentals full time or part time, you are running a business. Any successful business keeps well organized, complete records.

Keep copies of all receipts required to repair the unit, legal fees, unpaid rent, etc. Complete a move out inspection checklist, preferably with the tenant, if possible. Both of you sign it. The move out inspection will help you document the condition of your unit and the debt he owes you. If you are not completing move in inspection checklists now, begin doing so with you next move in. This important step is often left out “because I didn’t have time”. Take the time. There is no excuse for not having a complete move in inspection signed by you and the tenant.

An emotionally charged issue with some landlords is charging through the lease. He signed a twelve month lease and skipped or was evicted after only six months. Does he owe you for the remaining six months? The short answer is no, not yet. In many states, if you can not re-rent the unit before the end of the lease he will owe you the lost rent. But, he does not owe you the rent until the rent is actually due. Only charge him now for lost rent, as of the date of the move out statement. If you wish, you may update the amount he owes each month until the unit is re-rented or the lease expires. Discuss this issue with your attorney.

Your lease includes termination and or no notice fees? I often hear, “It is in my lease, he has to pay it.” The thinking here is that if it is in the lease it is binding. This is not necessarily true. Termination and no notice fees may be legal in your state, and your tenant may be held responsible for them. With various state laws and recent case law I highly recommend you have your lease periodically reviewed by an attorney to make sure you are complying with current law. If legal in your state, termination and no notice fees may be a great way to calculate all charges at the time of move out, without having to add future rent as it comes due. Again, talk with your attorney about this.

Take pictures. A digital camera is important to your business. Move in pictures are nice to have; move out pictures are a must have. The checklist and pictures not only help document the condition of the unit, they may be helpful later if the tenant gets creative with his description of the condition when he moved in and when he moved out.

Keep a log of all communications you have with your tenant, especially any communication regarding him moving or paying his rent. If you do not have a log, begin using one immediately for all your present and future tenants.

Once you have your records together , complete a move out statement. Most likely your management software will do this for you. The move out statement should include the names of everyone who signed the lease, the unit address, move in/move out dates and a break down of the charges. If a deposit was placed on the unit you will show the deposit subtracted from the total due. Florida law is explicit on this point. If you intend to impose a claim against the Security Deposit you must mail a special letter titled: "Notice of Intention to Impose Claim Against Security Deposit" within 30 days of the tenant's move out. (Click Here to Download the letter) It must be sent via Certified Mail to the tenant's last known address, which very often is your rental. Failure to do this will give your debtor the upper hand, and you may be required to repay his deposit even though he actually owes you money! Keep your certified mail receipt with your records. You may need proof that you complied with the law. If the letter is returned un-received, keep it in the file also.

A word of caution here : Some landlords are tempted to pile on, and exaggerate the charges. While emotionally tempting, it will do you no good in the end, and it is not legal. Being fair and reasonable in your charges will greatly increase your chances of recovering the debt.

Now that you have your documents organized, and have mailed the move out statement, do not just put the file away somewhere and forget it. The money you are owed is an asset. I can not tell you how many times I have heard the comment, ”That bum will never pay his bill!” If you have a crystal ball that tells you he won’t pay his bill, maybe you should have put it to use before he moved in. I can tell you with confidence that this way if thinking is costing landlords millions of dollars a year in lost profit.

With little effort on your part you may collect all or part of what you are owed.

###

Paul Howard is the Founder & President of The Florida Landlord Network
He may be reached via email at: Paul@FlaLandLord.Com
Website: www.FlaLandLord.Com

Bed Bugs - Yikes!

paul@flalandlord.com (Paul Howard) — Mon, 23 Oct 2023 08:13:51 GMT

Bed Bugs. Yikes!

With bed bugs, there isn't a single, standard way that the exterminator you hire will deal with them. It used to be that everyone used DDT, but that isn't an option anymore. Unlike other pests, bed bugs were nearly gone in the United States until the last decade or so. Because of this, there isn't really a "standard" treatment (such as bait for ants or termites, medicine for fleas, etc.).

By: John Sims,
Former President of Florida Pest Management

Treatment generally involves a lengthy inspection of your home, focusing on the bedroom. The exterminator will want to find all the places that they are hiding, and will use various insecticides - sprays, dusts, and aerosols are the usual methods. Baiting does not work on bedbugs.

Click For Video

I've got an exterminator coming - how can I get ready?

The biggest thing you can do to help out is to CLEAN. The exterminator is going to be searching around for them, and they can hide in tiny little cracks. If you've got junk thrown all over the place, it's going to be very hard for them to do their job. Get all the linens off the bed and wash them in hot water - it needs to get over 120 degrees Fahrenheit. Take any clothes you've had laying around in your bedroom and do the same thing (it's a good idea to do them in a separate load from the linens). Even if you can't wash something, you may be able to put it in the dryer, which can often kill them off just as well.

Don't move stuff around your house - bed bugs will hide in things other than the bed. So if you take an item from the bedroom, you might just be spreading them, and making the job harder. You can take it outside - if the current temperature is very hot or very cold, leaving infested items outside will sometimes kill them off. This method is very uncertain, though, and I'm not sure I'd risk it - you could end up having the pest control company clear your house, and then just bringing back in a couple that survived. Be aware that cold usually takes about two weeks to do the job. If you are going to move something, bag it up or wrap it before taking it outside. That makes it less likely that the bugs will flee while you're carrying it.

Vacuuming can be helpful, too, because it gets rid of the eggs and some of the bugs. You need to scrape things with the extension repeatedly, rather than just run it over the carpet. Focus on corners and edges. Take the bag immediately outside of the house. If you have a bagless vacuum, I would skip this step. Also make sure to ask the pest control specialist whether you should vacuum after they've left. Sometimes this is counterproductive - they'll put down a dust, and you just vacuum it right back up.

How do I know if I have bed bugs?

This is a tough one. It can be hard to tell if you've got them or not, because they are pretty small, only come out for very short periods, and because they are pretty good at hiding . First off, you should look for some key signs.

Waste - Bed bugs create a lot of waste, and that is harder to hide than they are. It can consist of dark spots on your mattress (which can be blood, feces, etc.) or of shed skins, eggs, dead bed bugs, etc. You may find it inside your mattress, in the box springs, or in the linens. It looks like this:
Bites - You should be seeing little r d bites on you without really knowing why. People rarely catch bed bugs in the act - they come out when you are asleep, and only bite for a short period. Also, like many bugs, you cannot feel the bite until a few minutes after it happens. The bites are very hard to identify - most doctors actually can't tell you for sure what they're from just by looking at them.
Hiding places - Look in all the key spots where they could hide. This means the mattress and around it, folds in the linens, curtains, and nearby furniture. Look for the waste or dark spots. You probably won't see live ones, but they look like little mini-cockroaches.
Catch them in the act - Keep a flashlight by your bed, and turn it on about an hour before dawn and watch the sheets closely for movement. Bed bugs usually bite around then, but if you get up or move too much they will go back into hiding. This can be hard to do - if you've only got a few of them, they only need to come out once a week or so anyway, so you might get unlucky and not see any, even though you have them.
Carpet tape - This is a great way to do it. Get some double-sided carpet tape (it's tape designed to keep rugs stuck to the floor) and lay out strips around your bed, and on the sides of the mattress but where you won't run into it when you sleep. Leave it out for a few days. If you've got bedbugs, it's likely that at least a couple of them will get stuck on it.

Did I get bed bugs because I didn't keep my house clean?

No. This is an urban legend - people tend to think that bed bugs are attracted to people with poor hygiene or houses that are left in a mess. It doesn't matter how spotless your place is. An infestation can occur anywhere, and cleaning up won't help prevent them.

The important thing to remember here is a warning for travelers. It doesn't matter how fancy your hotel is, or how clean it looks - bed bugs aren't attracted to dirt, they want peo ple. There's obviously some correlation - a run-down hotel is less likely to pay to get them removed. But you can't just look at a place and tell that it's safe. And no matter how much you clean your own house, you won't get rid of them. They can hide in tiny crevices of your furniture or other belongings, and they'll keep after you until you get them treated.

Bed Bug Basics

So what are bed bugs, anyway?

Everyone has heard of them. They're essentially little bugs that are nocturnal and feed off human blood. There are actually a lot of different kinds, including some that feed off certain types of animals like chickens, but the ones most people are worried about live mainly off humans. They usually live inside of mattresses, where they have convenient access to a food source - you. They crawl out just before dawn and bite you, sucking out blood for about five minutes. You don't feel anything until after the bed bug is already safely back in its home.

They will usually bite once a week or so, and they can actually live for a long time without feeding - usually six months, but sometimes over a year.

Bed bugs can infest all kinds of different places in your bedroom. Most often they're in the mattress - in the seams, the box springs, or sometimes the linens. However, they can really be anywhere near where people sleep - furniture within crawling distance, carpet, books, phones - they've been found in all kinds of random things, because they don't create a nest, they just hide somewhere.

Bed bugs used to be nearly completely eliminated in the United States, Canada, and Western Europe - largely because of certain chemicals used against roaches. In recent years, however, there have been rising levels of infestations because these chemicals have been banned or restricted in most Western countries. Bed bugs have also begun to develop immunity to many of the pesticides that are still legal to use, making them much harder to kill.

Can bed bugs hurt me?

No, they aren't actually dangerous. However, the bites are annoying and they can cause skin irritation and rashes, especially if you've got a lot of them in the mattress. So it's always a good idea to get rid of them - because each bug can lay four or five eggs a day, leading to a pretty big batch of them if you leave things alone.

How did I get bed bugs in my house?

Lots of people who find that they have bedbugs wonder where the heck they got them from. There are a couple of common ways you can get an infestation:

Living in an apartment. Bed bugs often live or crawl in the spaces in between walls as well, and if your neighbors have them, you could as well. That also can make it harder for you to permanently get rid of them, since you've got a potential source until your neighbors take care of their own infestation.
Travel . Many hotels have infestations. With international travel, this is even more likely. Bed bugs will often crawl into your luggage and get carried back into your home, and all it takes is one to get an infestation started there, too.
Clothing . Sometimes they could get into your house by crawling onto your clothes randomly - but this is actually pretty rare.
Used furniture or clothing . This is more common - if you buy used clothes or used furniture, sometimes there can be bed bugs in them (they don't just live in beds, but anywhere near where people sleep). If you bought something used and bring it into your house, that could be where you picked up your own set of bugs.
Your occupation. If you regularly go into other people's houses for some reason, you could easily bring bed bugs back with you that way. If you're the cable guy, a plumber, or anybody who goes into other people's houses, you're at risk.
Guests . If someone stays at your house, they could bring them over with them. One big source of this is students coming home for the holidays - the dorm rooms could easily pick up an infestation given how many people are coming in and out all the time from all over.
Wild animals . This is a kind of rare way people have gotten them, but sometimes people have had animals get into their house for a short period and bring them in with them. Birds and bats are the most common offenders.

The exterminator isn't coming for days - what can I do to keep until then?

It may take awhile for you to get your bed bug problem taken care of. Even if you get the pest control guy in the next day, it can take a long time to finally get rid of the infestation, and you don't want to be bitten in the meantime. Here's what you should do:

Get a mattress cover. These will lock any that are in your mattress (the main hiding place) in there. That alone will cut down on the bites.
Wash all your sheets regularly. If you can wash your pillows, do that too. If you can't, then get a pillow cover (they're discussed on the mattress cover page).
Get some double-sided tape. Make a little barrier all the way around the side of your mattress. This is essentially a bed bug trap - if they try to crawl up the side, they'll get stuck. . Make it at least a couple of strips wide - and make sure it's above any zipper, etc. on the mattress cover. Anything that crawls on the tape can also be useful to help the exterminator identify them. To do this, you can't have any sheets or anything hanging over it - wherever the tape is, there can't be a way for them to crawl up. If it connects to the headboards, etc., then you need to put tape there, too - basically you want an unbroken barrier of tape as much as possible.

These things alone will cut down on your bites a ton. They won't kill off the infestation. You have to have an exterminator to do that. But whatever you do, don't panic. Don't toss all your furniture, don't go sleep in another room or at someone else's house (you'll spread them) - basically, don't do much else until you've consulted with an exterminator.

###

John Sims is the former President of Florida Pest Management .

John is an expert on the subject of pest control and specializes in pest problems in rental property.

He is also a landlord, prolific author and speaker.

He may be reached at: johnsimsgm@gmail.com

Landlords must inform applicants of rights regarding consumer reports.

paul@flalandlord.com (Paul Howard) — Tue, 10 Oct 2023 14:44:26 GMT

A Warning To Landlords!

Remember Landlords: You have an obligation to inform rental applicants of their rights regarding consumer reports.

Recently, The United States Department of Housing and Urban Development, the Federal Housing Finance Agency, and the United States Department of Agriculture (that's three separate Federal Agencies - It must be important!) are reminding landlords of their obligation to inform tenants and prospective tenants of their rights with respect to use information from a consumer report, like a rental background check. The Fair Credit Reporting Act requires landlords to tell the tenant of their decision and how the tenant can contact the company that created the background check. This obligation, known as the adverse action notice requirement, applies to any action against a tenant based on information from the background check, including denying a rental application, increasing the rent charged or security deposit amount, or requiring a co-signer. As the agencies state, providing this information in writing is the best way to ensure that tenants get the information they need, and for landlords to demonstrate they are meeting their legal obligations (emphasis added). Source

Today, as I read this article, -- which included contributions from no less than three separate Federal Agencies -- I froze as I realized this looks like a subtle warning from the Federal Government of possible increased scrutiny, investigations, and consumer education activities.

Landlords need to be aware of their legal obligations under the Fair Credit Reporting Act (FCRA), and Fair Housing Act (FHA). The FHA bans discrimination based on certain "protected classes". These include Race, Color, Religion, Sex, Disability, Family Status, and National Origin. The FCRA deals with consumers rights concerning their credit reports.

In case you missed it: This week it was announced that certain Florida consumer groups have been given grants totaling more than $850,000 to help pay for testers ( Click to see Video ) and other activities to, in some cases, secretly investigate your rental property operation.

The following guide focuses on the FCRA and covers the essentials you need to understand in order to correctly protect the rights of your customers and protect yourself from serious and often painful scrutiny from various Federal Agencies.

ALWAYS use a telephone script. ( Click Here ) This means ALWAYS say the same thing to everyone. Every conversation should be essentially the same. You should prepare your telephone pitch well in advance, in writing, memorized, and executed the same way every time.

One of the biggest mistakes you can make with a rental applicant is to say different things to different people. This can easily be interpreted as discrimination – even if you don’t have any intention to discriminate.

Also, if the Federal Government punishes you for such misdeeds, your next phone call will likely be from an attorney representing the aggrieved applicant. Since the Feds will by this time have declared you guilty, you don’t have a chance in a civil case. So, you may face heavy civil liability for which you may not have insurance coverage. Remember, their intention is to punish. This is not just a simple civil fine.

ALWAYS advise your rental applicant of your resident selection criteria . The easiest way to do this is by including your written policy in the Rental Application ( Click Here ) . Your policy should include:

Application Requirements
Total Household Income Requirements
Credit Reporting
Rental History
Criminal History
Pets Policy
Tobacco Policy
Occupancy Requirements

ALWAYS document your work when researching the history of a potential rental applicant . This means you should take notes of all interviews with the applicant, whether on the phone or in person. Save all emails and text messages. Carefully document phone conversations with other landlords; and avoid making notes directly on Credit Reports, etc.

It is very easy to document these things by making quick notes using a word or text processor and save them with the applicants other documents, etc.

ALWAYS provide the Applicant with the Adverse Action information.

The Applicant will experience an “Adverse Action” under FCRA if any of the following occur:

You decline to rent to the applicant.
You increase the rent amount above that which was advertised.
You increase the security deposit.
Yo u require a co-signer.
There may be others.

If you use the Tenant Screening system provided by Florida Landlord Network, the Adverse Action steps are a part of that process and very simple to implement. At it’s heart, you are required to advise the applicant in writing the reason(s) for the Adverse Action and the source of any information used to come to that decision. This is done with a particular letter sent to the applicant by U.S. Mail.

The moral to this story is we need to be very wise business men and women as we grow and manage our rental businesses. Our obligations to the consumers we serve and the various Federal Agencies which have jurisdiction over some of our activities must be taken very seriously.

A relatively small investment of your time, should be all it takes to be sure that you never discriminate in any way – intentionally or unintentionally.

Additional Resources:

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Special Notice : Florida Landlord Network is an independent, non-attorney service.
We urge you to consult an attorney before using any document or described procedure found herein.
Florida Landlord Network is not licensed by the Florida Bar to practice law and is not authorized
to give legal advice or tell you your legal rights.
By using our website or any service or document produced and/or published by Florida Landlord Network,
you indicate that you understand and agree to our Legal Disclaimer.

Trash or Treasure?

paul@flalandlord.com (Paul Howard) — Sun, 08 Oct 2023 09:29:20 GMT

Abandoned Personal Property : Trash or Treasure?

Nearly every tenant leaves stuff behind when they vacate, most of the time it’s just a big pile of junk. Trash or treasure, the law says it’s not yours and you have an obligation to respect your former tenant’s personal property.

According to 715.104 of The Florida Statues, when your tenant leaves personal property on the premises after the tenancy has ended and he has vacated, you must give written notice to the tenant and to any other person you reasonably believe to be the owner of the property. ( See a sample letter here )

The notice should adequately describe the property so the owner can identify it. While your notice may describe all or a portion of the property, you may loose some of your limitation of liability if you do not fully describe all of the property. An exception is made for things like locked trunks and containers. In this case you can describe them as such without describing its contents.

The notice should advise the tenant where he can claim the property and how long he has before you dispose of it. You must give him at least 10 days if the notice is personally delivered and at least 15 days if the notice is mailed. Mail the notice by first-class mail to last known address of the tenant. Yes, that is usually the property he rented from you. That is OK. If the letter is returned undeliverable just place it the tenant’s file.

WHAT’S IT WORTH?

If you believe the property is worth less than $500.00 your notice should include the following paragraph:

"Because this property is believed to be worth less than $500,
it may be kept, sold, or destroyed without further notice if you fail to reclaim it

within the time indicated above."

Clear enough. After 15 days and no contact by the owner, the property may be kept, sold or destroyed. If the value exceeds $500.00 and your job is far more difficult. In this case insert the following paragraph into the notice. Pay close attention to what it says. This is your responsibility for the property.

"If you fail to reclaim the property, it will be sold at a public sale
after notice of the sale has been given by publication.
You have the right to bid on the property at this sale.
After the property is sold and the costs of storage, advertising, and sale are deducted,
the remaining money will be paid over to the county.
You may claim the remaining money at any time
within 1 year after the county receives the money."

So, these are easy rules to follow except in cases where the property has value in excess of $500.00. If you don’t follow these rules you may be liable to the tenant for actual and consequential damages or 3 months' rent, whichever is greater, and costs, including attorney's fees. Think what that might mean if the tenant claimed that locked trunk contained a dozen Rolex watches. Why take a chance? Send the letter.

EVICTION

Disposition of your tenant’s personal property is a bit easier during an eviction. When the sheriff executes the writ of possession the landlord is to remove any personal property found on the premises and put it at the property line. According to 83.62(2) , neither the sheriff nor the landlord is liable to the tenant or any other party for the loss, destruction, or damage to the property after it has been removed.

While it’s true that nearly every tenant leaves stuff behind when they vacate, most of the time it’s just a big pile of junk. Trash or treasure, the law is clear about your obligations. The rules are easy to follow. If you do it right you are insulated from liability. If you take a shortcut, some day a former tenant could feast on you because of your haste. If you are wise you will send the letter.

###

Paul Howard is the President of The Florida Landlord Network
He may be reached via email at: Paul@FlaLandLord.Com
Website: www.FlaLand L ord.Com

Disclaimer : Nothing contained on this website constitutes tax, legal, insurance or investment advice, nor does it constitute a solicitation or an offer to buy or sell any security or other financial instrument. AAOA recommends you consult with a financial advisor, tax specialist, attorney or other specialist who is able to properly advise you.

Is The Unit Really Abandoned?

paul@flalandlord.com (Paul Howard) — Sun, 08 Oct 2023 09:15:26 GMT

Is The Unit Really Abandoned?

By : Harry Heist, Attorney at Law

The 3 ways to legally gain possession of a rental unit are surrender, eviction or abandonment . When it comes to determining whether a unit is abandoned, we have to ignore logic, common sense and intuition and look solely to the law. FS 83.59 states “ When the tenant has abandoned the dwelling unit. In the absence of actual knowledge of abandonment, it shall be presumed that the tenant has abandoned the dwelling unit if he is absent from the premises for a period of time and equal to one-half the time for periodic rental payments. However, this presumption shall not apply if the rent is current or the tenant has notified the landlord, in writing, of an intended absence”

Basically this means that the appearance of the unit, the fact that the electric was off or a neighbor’s observations are all irrelevant. We just have to ask some simple questions:

Were the tenants (all tenants!) absent for 15 days?
Is the rent unpaid?
Did the tenants tell us in writing that they were coming back?

These are the legal requirements of abandonment. Failure to follow this can result in costly lawsuits in which the judge will be sympathetic to the tenant because you failed to follow the law. The burden of proof imposed on the wronged tenant is extremely low, and the tenant can easily fabricate the alleged missing contents of the unit, resulting in a large judgment and liability to pay the tenant’s attorneys fees, which could be substantial. When a property manager “jumps the gun” and takes possession too soon, many attorneys will readily take a case like this on a contingency fee basis, making it easy for the tenant to have access to the legal system. The tenant can sue for the lock out prohibited practices and of course the claimed value of the items he or she claims are missing. The property manager could face other serious consequences in court, including criminal charges, charges of wrongful eviction, conversion, and liability for anything the tenant claimed was in the unit!!

In some cases, the property manager has knowledge that the tenant is gone, but someone else is living in the unit. Is this person a squatter or trespasser? You would think so, but if this person states that he is in there with the permission of the tenant or is renting from the tenant, it does not matter whether the original tenant is gone. The unit is simply NOT abandoned. Some property managers attempt to call the police when an unknown person is remaining in the unit, but usually the police will state to the property manager that it is a “civil matter” and tell you that you must evict the person. Calling the police is always worth a try, because the person in the unit may in fact be a trespasser or squatter completely unknown to the original tenant and if so will often readily leave.

In the event you accidentally take possession too soon and the tenant returns, try to calm the tenant, call your attorney immediately, and get the tenant to write down what he or she says is missing and the approximate value. If you have only changed the locks and have not removed any belongings, you

will need to let the tenant back in, regardless of how much money, if any, the tenant owes you. After this you can proceed with the normal route of eviction after proper notice, or possibly the tenant will surrender the premises.

Remember that A UNIT IS LEGALLY ABANDONED UNDER FLORIDA LAW IF ALL OF THE FOLLOWING IS IN PLACE:

NO ONE HAS BEEN IN THE RENTAL UNIT FOR A FULL 15 DAYS AND YOU CAN PROVE IT.
THE RENT IS UNPAID.
NO TENANT OR OCCUPANT HAS GIVEN YOU ANY NOTICE, VERBAL OR WRITTEN STATING THAT THEY ARE GOING TO PAY THE RENT OR COME BACK AT A LATER TIME.

If you have followed the aforementioned 3 standards of abandonment, you will probably be safe in taking possession. We recommend that you take pictures or videotape each room of the rental unit prior to taking possession. Training your staff, especially maintenance staff, is crucial to avoiding mistakes in taking possession. Lastly if a unit is chock full of personal belongings and other items and you are baffled as to

why a person would up and leave all these items behind, we strongly recommend that you give notice if you have not done so already and file an eviction as this will be your absolute safest route. The tenant could be in jail or have been Baker Acted to a mental facility and the last thing you need is to deal with that tenant when he or she gets out and finds out that you have taken full possession of the unit. If you are ever unsure,

always give your attorney a call to get an opinion on the matte

Harry Anthony Heist, Attorney at Law, Harry Anthony Heist has been an attorney since 1989 and is the founding partner of the Law Offices of Heist, Weisse & Lucrezi, P.A. (www.evict.com) Attorney Heist trains thousands of property managers each year and writes legal articles appearing in a number of trade publications.

Fair Housing: Hoarding

paul@flalandlord.com (Paul Howard) — Sat, 07 Oct 2023 19:19:58 GMT

Fair Housing: Carefull! Hoarding Is a "Protected Class" Under Fair Housing Act

People with a hoarding disability are protected by Fair Housing laws and are entitled to reasonable accommodations.

People with disabilities face particular challenges when it comes to housing and have special protections under fair housing law. Disabilities include both physical and mental impairments. It may not always be obvious that someone has a disability, which can make complying with fair housing law in this area a little tricky.

In order for people with disabilities to fully enjoy their homes in your community, it may be necessary for you to make changes to community rules, policies, procedures, services, or physical structures. These changes are called reasonable accommodations and modifications.

Hoarding is a mental disability

Hoarding is a mental disability you may encounter as you work on a property. People who suffer from hoarding are protected under fair housing law and are entitled to reasonable accommodations in the same way people with other mental or physical disabilities are.

In general, you should not initiate conversations with residents with disabilities about what accommodations they may need. Instead, you should wait for them to make a request. Hoarding is a little different because it is a case where you may need to initiate discussions with the resident because the situation is dangerous or unsanitary and must be addressed.

Here are some tips to help you work with people with hoarding disabilities in a way that complies with fair housing law.

Make sure you and all employees understand that hoarding is a disability

Do not immediately begin the eviction process. People with a hoarding disability are protected by fair housing laws and are entitled to the same care and consideration you would give people with other types of disabilities.

The most common accommodation, for a person with hoarding disorder, is the written plan of action.

Document the condition of the hoarder’s home . Using a standard assessment such as those provided by the Institute for Challenging Disorganization or the International OCD Foundation can help you do an objective evaluation. Make sure to note specific lease and code violations. Use caution and be aware of potential threats to health and safety.
Involve your legal counsel. You will need to understand what state and local laws apply to your specific situation, and how to apply them appropriately. Do not overlook the importance of getting good legal guidance when working with hoarding situations.
Give the resident a chance to rectify the situation . If the resident agrees to clean their home and/or seek help, develop a written plan of action. For a person with hoarding disorder, the most common accommodation is the written plan of action, which gives the resident a chance to rectify the situation at a pace that is conducive with long-term success.

Depending on state and local laws, you may be able to proceed with an eviction if the resident is hoarding animals, explosives, blocking emergency exits, or directly damaging the apartment home. Again, be sure to consult your legal counsel before proceeding with an eviction, as this can be a complicated issue to navigate with residents.

Hoarding is a mental health problem

Mental health experts say that about 15 million Americans suffer from the mental health problem of hoarding. Some interesting facts about hoarders:

They make up 2-5% of the population;
Anyone can be a hoarder – men, women, and even children as young as 13;
Elderly women are the most likely hoarders;
Hoarders are not lazy, nasty or defiant;
The behavior usually has occurred for a long time and there is no quick fix;
Hoarders are usually very intelligent;
Hoarders may have a mental disability and must be given the opportunity for a reasonable accommodation, even if they do not specifically request one;
The accommodation may be in the form of more time to bring the dwelling unit up to code before termination of the lease agreement;
Early intervention is the best plan; and
Trying to solve the problem without the individual’s cooperation will usually make the problem worse.

Credit: Ellen Clark of Grace Hill

Tenant Screening: Telephone Script

paul@flalandlord.com (Paul Howard) — Sat, 07 Oct 2023 19:13:12 GMT

Tenant Screening - Why Use a Telephone Script?

Benefits:

To stay in control of the conversation. This is a business call. Treat it that way.
To make sure everything you say is accurate with no hint of any kind of discrimination.
To do a little preliminary tenant screening
To send a strong signal that you are a good manager and that you will conduct a through background check before renting.
To keep the conversation brief but thorough presenting a professional demeanor.

Remember: Callers with a track record of broken leases, evictions, criminal history, etc. carefully listen to every word. They are less likely to call you back if they learn you are a good manager and that you will do a through background check including credit history, rental history, criminal history and demand proof of sufficient income.

Also remember : The best tenants are just as fearful they will end up with a bad landlord as you are of a bad tenant. Good tenants like to hear your professional, through, business like tone. They want to hear you say you will conduct a background check.

The Script

Answer the phone using your business name:

John Doe Properties, this is John

I'm calling about the home you have for rent.

Yes mam

Quiet! Listen but don't comment on what they say next. Then begin your questions:

Yes, mam, is this for yourself?

Meaning, are you calling for yourself or on behalf of someone else? In other words, am I speaking with the decision maker? If she says yes move to the next question. If she says no, find out who will she's calling for. Don't make a judgment or even respond just remember the information.

When do you plan to move?

She may say something like "at the end of the month" or "as soon as possible. So respond with the following:

Is that when you lease is up where you live now?

Make a mental note the answer but don't respond.

How many people will be living there?

She will probably respond with a number like 2 or 6. This may disqualify the caller. For example, if you are renting a 3 bedroom home and your company policy permits up to 6 persons -- but you learn there are 10 persons in this family, you should let the person know and bring the call to a courteous end. Otherwise respond with:

And, finally, do you have any pets?

If yes, What Kind? Here you should refer exactly to your company policy regarding pets.

If she says "A dog"

Ask: What Kind?

If she says "Just a mut" or "a Mix", say: Yes mam. What are the breads?

This could be a deal killer so you can save both of you a lot of time by finding out the type of animal. If your company policy forbids that type there is no reason to continue the phone conversation.

Next, give an abbreviated description of the property and transition in to a subtle outline of your requirements.

This is a very nice 3 bedroom home located in Historic Riverside. It rents for $750.00 and the Security Deposit usually starts at $1,100.00. That's if you have a good credit history, good rental history, no serious criminal history and sufficient income. Do you expect a problem in any of these areas ?

Pause. Silence. Receive any answers without judgment.

If there are any yes answers:

Do you mind telling me more about that?

Make a mental note of the answers.

OK. Now, where do you work?

Answer

How often do you get paid?

Answer

And how much is your check each (week, month, etc.)

If the total net monthly income is less than 3 times the amount of the rent ask:

Do you have any income beside this?

If no, say:
Ok, the minimum net income required to qualify for this home is $3,300.00 per month. Will you please call us back when your income changes? Thank you. Done!

If no yes answers to the questions and there is sufficient income:

Great! Could I give you the address and directions?

Now, don't laugh. This next question can save lots of time. You'll be amazed.

Do you have a pen?

It's amazing home many callers are not prepared to write.

The address is 1234 Riverside Ave. To get there take xxx to xxx, etc.

If you prefer to arrange a meeting, change the text accordingly.

Complete the call with a much more detailed description of the property with heavy emphasis on features and benefits. Write this out -- at least 4 or 5 sentences -- come on! Sell this beautiful home you have for rent!

End with:

Please go by and look at it and then a call me back so we can get started. Okay!?

The entire conversation should take around 2 minutes and you say essentially the same thing to everyone who calls. That's critical in this new era of increased education and interest in Fair Housing violations. Remember under Fair Housing laws you do not have to have the "intent to discriminate" to be guilty of housing discrimination and that can be a very, very expensive mistake.

Tenant Screening: Criminal History

paul@flalandlord.com (Paul Howard) — Sat, 07 Oct 2023 19:02:53 GMT

Tenant Screening Policy - Criminal History

FAIR HOUSING ACT - Expanded

In April of 2016, the Department of Housing and Urban Development (HUD) issued Guidance on how criminal conviction screening policy could violate the FHA under disparate impact theory . The HUD Guidance notes that racial disparities in incarcerations rates will result in certain races, like African Americans, being denied housing more often than other races because of criminal screening policies. The HUD Guidance requires housing providers to support their uses of background tests with “substantial, legitimate, nondiscriminatory interests” such as the safety of residents, employees, and property.

Policies and Practices - Recommended Best Practices

To address a point of first concern, the HUD Guidance does not ban housing providers from conducting criminal screenings on applicants. It simply outlines HUD’s position on how disparate impact lawsuits could proceed against housing providers that do not have justified criminal screening policies that address legitimate concerns in the housing context. Additionally, as discussed in detail in Part II.B, the recent HUD Guidance does not carry the force of law. Nevertheless, generally abiding by its recommendations is a best practice for avoiding exposure to lawsuits and the associated costs. Below is a summary of the recommended best practices based on the recent HUD Guidance as well as other legal authorities and experience.

Have a Policy : Develop a written policy that clearly states the legitimate concerns of the housing provider that justify the screening, including how many years back the screening will go, the types of crimes that will pose the highest amount of concern, and why they do.

Determine Legitimate Interests : Engage in thoughtful deliberations about what are the “substantial, legitimate, nondiscriminatory” interests that motivate the need for criminal screening. Concerns about the health and safety of residents and employees as well as the safety of the property will be significant concerns. Record these concerns in writing the policy and tie them to how the screening is structured.

No Automatic Conviction Exclusions : Do not have a policy that automatically excludes any and all individuals just because of a prior criminal conviction.

Ignore Arrests: Do not have a policy that factors the existence of a prior arrest into consideration for denying an applicant.

Apply Policy Equally and Consistently: Apply the background check and policy to each and every applicant consistently. Do not make subjective determinations to only apply screenings to certain individuals, which would only result in exposure to claims of inconsistent and discriminatory treatment.

Individually Assess Records and Conduct : If pending criminal charges or arrests are considered at all, only look at the underlying conduct to determine if it is inconsistent with the legitimate concerns expressed in the policy. Likewise, for actual convictions, if you decide to have individual screening on every denial, individually assess the nature and severity of the offense, as well as when it occurred and the underlying facts giving rise to it to determine if it provides a basis for exclusion under the screening policy. Consider mitigating factors and evidence of rehabilitation through statements or documentation put forward by the applicant.

Narrowly Tailor Inquiries : When asking applicants questions about their criminal convictions, limit questions to those related to legitimate interests and concerns as stated in the

screening policy

Train Staff: Provide detailed training to local management and staff to know how to communicate the policy and effectively apply it in a consistent and unbiased manner. Document Continues

Business Strategies: Entities

paul@flalandlord.com (Paul Howard) — Sat, 07 Oct 2023 15:43:16 GMT

Best Entity Real Estate Investing : LLC, Land Trust or Corp?

This video is the part of a series called: "Business Strategies" designed to encourage you to consider these simple steps:

Educate yourself (watching this video counts)
Get some Professional help: A competent tax attorney/CPA, etc.
Develop a Plan to build maximum Net Worth.

Study & do!

If you're in real estate, you better be dealing with somebody who actually owns real estate and understands the nuances, otherwise, they're gonna read out of a book or they're gonna readout of a case and they're gonna try to tell you to do something that may not be practical at that time, 'cause it is fluid, it moves around.

20 years ago you could close a commercial property in your individual name. You can't do that anymore after the big fiasco in 2008, they don't want to be exposed to your personal stuff, and so almost always if you're dealing with a commercial property you're gonna be closing an LLC.

This is absolutely the case 'cause if you have the financing they will not even do financing any more for the individual. You'll be a guarantor, but they'll almost always make it be an entity. So this is really important because little distinctions like that can have a major impact on your planning.

Tenant Screening: Consumer Reports

paul@flalandlord.com (Paul Howard) — Fri, 22 Sep 2023 15:15:01 GMT

Federal Regulations - Using Consumer Reports

As a landlord – or property manager or other housing provider – you evaluate housing applications or decide whether to renew a current tenant’s lease. You might decide to run a tenant background check using a company that compiles background information. These tenant background checks can include a variety of information, such as rental and eviction history, credit history, or criminal records.

Tenant background check reports are consumer reports. When you use consumer reports to make tenant decisions, you must comply with the Fair Credit Reporting Act (FCRA). The Federal Trade Commission (FTC) enforces the FCRA.

FCRA Basics

You must take certain steps before you can get a consumer report and after you take an adverse action based on that report.

What is a Consumer Report?

Consumer reporting agencies (CRAs) prepare consumer reports for other businesses, including landlords. A consumer report may contain information such as a person’s credit characteristics, rental history, or criminal history. These reports are covered by the FCRA. Examples of these reports include:

A credit report from a credit bureau, such as Trans Union, Experian, and Equifax or an affiliated company;
A report from a tenant screening company that describes the applicant’s rental history based on reports from previous landlords or housing court records;
A report from a background check company that describes the applicant’s criminal history;
A report from a tenant screening company that describes the applicant’s rental history and criminal history, and also includes a credit report;
A risk score or recommendation from a tenant screening company about the applicant based on criteria you’ve selected; and
A report from a reference checking service that contacts previous landlords, employers, or other parties listed on the rental application on behalf of the rental property owner.

What is an Adverse Action?

An adverse action is any action by a landlord that is unfavorable to the interests of a rental applicant or tenant. Examples of common adverse actions by landlords include:

Denying the application;
Requiring a co-signer on the lease;
Requiring a deposit that would not be required for another applicant;
Requiring a larger deposit than might be required for another applicant; and
Charging a higher amount for rent than for another applicant.

Complying with the FCRA

Before You Get a Consumer Report

You can only get a consumer report if you have a permissible purpose. Landlords may get consumer reports on applicants and tenants who apply to rent housing or renew a lease. You may also get written permission from applicants or tenants to show that you have a permissible purpose.

You must certify to the company from which you are getting the consumer report that you will use the report only for housing purposes. You may not use the consumer report for another purpose.

It’s also a good idea to review other applicable federal and state laws related to screening tenants. For example, a blanket policy of refusing to rent to anyone with a criminal record may violate the Fair Housing Act.

After You Take an Adverse Action

If you reject an applicant, increase the rent or deposit, require a co-signer, or take any other adverse action based partly or completely on information in a consumer report, you must give the applicant or tenant a notice of that fact in writing, electronically, or orally.

An adverse action notice tells people about their rights to see information being reported about them and to dispute inaccurate information. The notice must include:

the name, address, and phone number of the CRA that supplied the report;
a statement that the CRA that supplied the report did not make the decision to take the unfavorable action and can't give specific reasons for it; and
a notice of the person’s right to dispute the accuracy or completeness of any information the CRA furnished, and to get a free report from the CRA if the person asks for it within 60 days.

The adverse action notice is required even if information in the consumer report wasn’t the primary reason for the decision. Even if the information in the report played only a small part in the overall decision, you must notify the applicant or tenant.

While oral adverse action notices are allowed under the FCRA, written notices are the best practice and benefit both you and the applicant or tenant. Written notices allow you to provide proof of FCRA compliance. Written notices also better enable applicants and tenants to assert their rights to request a copy of the report from the CRA and to dispute any errors in the report.

If you use a credit score in deciding to take an adverse action against an applicant or tenant, you have additional obligations. You must give the applicant or tenant written or electronic notice that includes the credit score, a description of the score (its source, the date it was created, and the range of scores under that credit model), and the key factors that adversely affected the credit score, listed in the order of their importance based on their effect on the credit score.

Take the case of . . .

You order a consumer report from a CRA. Information in the report leads to further investigation of the applicant. You deny the rental application because of that investigation. You must give the applicant an adverse action notice because the information in the report prompted the adverse action in this case.
A person with a bankruptcy on their credit report applies for an apartment. Rather than deny the application, you offer to rent the apartment but require a security deposit that is double the normal amount. You must give the applicant an adverse action notice because the credit report influenced your decision to require a higher security deposit from the applicant.
You hire a reference checking service to verify information included on a rental application. Because the service reports that the applicant does not work for the employer listed on the application, you deny the rental application. You must give the applicant an adverse action notice. The report is a consumer report from a CRA (the agency checking the references provided by the consumer on the application), and its report influenced your decision to deny the application.
You make it a practice to approve an application if the applicant shows an adequate income or has a favorable credit report. Because an applicant has an inadequate income and a bad credit report, you deny their application. You must give the applicant an adverse action notice because the credit report influenced the denial, even though income was another factor.
You order an applicant’s criminal history report from a CRA. Because the report shows that the applicant has a felony conviction, you deny the rental application. You must give the applicant an adverse action notice because the report is a consumer report and it influenced your decision to deny the application.

Additional Requirements for Investigative Reports

Landlords who use “investigative reports” – reports based on personal interviews concerning a person’s character, general reputation, personal characteristics, and lifestyle – have additional obligations under the FCRA. These obligations include giving written notice that you may request or have requested an investigative consumer report and giving a statement that the person has a right to request additional disclosures and a summary of the scope and substance of the report. (See 15 U.S.C. section 1681d(a), (b)).

Disposing of Consumer Reports

When you’re done using a consumer report, you must securely dispose of the report and any information you gathered from it. That can include burning, pulverizing, or shredding paper documents and disposing of electronic information so that it can't be read or reconstructed. For more information, see Disposing of Consumer Report Information? Rule Tells How .

If You Report Information to a Consumer Reporting Agency

If you report information, like late rent payments or evictions, to a CRA, you have legal obligations under the FCRA and the FCRA’s Furnisher Rule. For more information, see Consumer Reports: What Information Furnishers Need to Know .

For More Information

Find specific FCRA information on:

Getting consumer reports (see Section 604(a)(3)(F), 15 U.S.C. § 1681b(a)(3)(F), and Section 604(f), 15 U.S.C. § 1681b(f));
Taking an adverse action (see Section 615(a), 15 U.S.C. § 1681m(a));
Using investigative consumer reports (see Section 606, 15 U.S.C. § 1681d).

July 2023

Lead-Based Paint: Disclosure Rules

paul@flalandlord.com (Paul Howard) — Fri, 22 Sep 2023 15:02:51 GMT

Lead-Based Paint

Disclosure Rules

Lead, once considered a versatile and valuable material, has since revealed its darker side, posing significant health risks to individuals exposed to it.

However, as its widespread use grew, so did concerns about the health risks associated with lead exposure. Early health studies began revealing the detrimental effects of lead on the human body, leading to growing public awareness.

Several lead poisoning outbreaks occurred in the mid-20th century, raising alarm bells about the dangers of lead exposure. Notable incidents include a lead poisoning outbreak in a Massachusetts town in the 1940s due to lead-contaminated milk. Later there was a lead poisoning crisis in Flint, Michigan, which brought national attention to lead in drinking water.

The mounting evidence of lead's detrimental effects prompted the implementation of the first lead regulations. Some of these include:

In 1971, the Occupational Safety and Health Administration (OSHA) established standards to protect workers from lead exposure.
In 1978, the Consumer Product Safety Commission (CPSC) banned the use of lead-based paint in residential properties.

As concern about lead exposure persisted, the Environmental Protection Agency (EPA) stepped in to play a significant role in lead regulations. In 1992, the EPA passed the Lead-Based Paint Hazard Reduction Act, targeting lead-based paint in residential properties built before 1978. The act required the disclosure of known lead-based paint and lead hazards in rental and sale transactions.

What is Required?

Before ratification of a contract for housing sale or lease, sellers and landlords must:

Give an EPA-approved information pamphlet on identifying and controlling lead-based paint hazards ("Protect Your Family From Lead In Your Home" pamphlet, currently available in English, Spanish, Vietnamese, Russian, Arabic, Somali). Click Here For Form
Disclose any known information concerning lead-based paint or lead-based paint hazards. The seller or landlord must also disclose information such as the location of the lead-based paint and/or lead-based paint hazards, and the condition of the painted surfaces.
Provide any records and reports on lead-based paint and/or lead-based paint hazards which are available to the seller or landlord (for multi-unit buildings, this requirement includes records and reports concerning common areas and other units, when such information was obtained as a result of a building-wide evaluation).
Include an attachment to the contract or lease (or language inserted in the lease itself) which includes a Lead Warning Statement and confirms that the seller or landlord has complied with all notification requirements. This attachment is to be provided in the same language used in the rest of the contract. Sellers or landlords, and agents, as well as homebuyers or tenants, must sign and date the attachment.
Sellers must provide homebuyers a 10-day period to conduct a paint inspection or risk assessment for lead-based paint or lead-based paint hazards. Parties may mutually agree, in writing, to lengthen or shorten the time period for inspection. Homebuyers may waive this inspection opportunity.

Types of Housing Covered?

Most private housing, public housing, Federally owned housing, and housing receiving Federal assistance are affected by this rule.

Effective Dates

The regulations became effective on September 6, 1996 for transactions involving owners of more than 4 residential dwellings and on December 6, 1996 for transactions involving owners of 1 to 4 residential dwellings.

Recordkeeping

Sellers and lessors must retain a copy of the disclosures for no less than three years from the date of sale or the date the leasing period begins.

What Can You Do?

If you did not receive the Disclosure of Information on Lead-Based Paint and/or Lead-Based Paint Hazards form when you bought or leased pre-1978 housing, contact 1-800-424-LEAD (5323).

Click Here For EPA Lead-Based Paint Disclosure Form
Click Here for EPA Lead-Based Paint Bro chure (English)
Click Here for EPA Lead-Based Paint Brochure (Spanish)

Fair Housing: Disabilities

paul@flalandlord.com (Paul Howard) — Fri, 22 Sep 2023 14:29:51 GMT

American's with Disabilities

JOINT STATEMENT OF
THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
AND THE DEPARTMENT OF JUSTICE REASONABLE ACCOMMODATIONS UNDER THE FAIR HOUSING ACT

Introduction

The Department of Justice ("DOJ") and the Department of Housing and Urban Development ("HUD") are jointly responsible for enforcing the federal Fair Housing Act (1) (the "Act"), which prohibits discrimination in housing on the basis of race, color, religion, sex, national origin, familial status, and disability. (2) One type of disability discrimination prohibited by the Act is the refusal to make reasonable accommodations in rules, policies, practices, or services when such accommodations may be necessary to afford a person with a disability the equal opportunity to use and enjoy a dwelling. (3) HUD and DOJ frequently respond to complaints alleging that housing providers have violated the Act by refusing reasonable accommodations to persons with disabilities. This Statement provides technical assistance regarding the rights and obligations of persons with disabilities and housing providers under the Act relating to reasonable accommodations. (4)

Questions and Answers

1. What types of discrimination against persons with disabilities does the Act prohibit?

The Act prohibits housing providers from discriminating against applicants or residents because of their disability or the disability of anyone associated with them (5) and from treating persons with disabilities less favorably than others because of their disability. The Act also makes it unlawful for any person to refuse "to make reasonable accommodations in rules, policies, practices, or services, when such accommodations may be necessary to afford ... person(s) [with disabilities] equal opportunity to use and enjoy a dwelling." (6) The Act also prohibits housing providers from refusing residency to persons with disabilities, or placing conditions on their residency, because those persons may require reasonable accommodations. In addition, in certain circumstances, the Act requires that housing providers allow residents to make reasonable structural modifications to units and public/common areas in a dwelling when those modifications may be necessary for a person with a disability to have full enjoyment of a dwelling. (7) With certain limited exceptions (see response to question 2 below), the Act applies to privately and publicly owned housing, including housing subsidized by the federal government or rented through the use of Section 8 voucher assistance.

2. Who must comply with the Fair Housing Act's reasonable accommodation requirements?

Any person or entity engaging in prohibited conduct - i.e., refusing to make reasonable accommodations in rules, policies, practices, or services, when such accommodations may be necessary to afford a person with a disability an equal opportunity to use and enjoy a dwelling - may be held liable unless they fall within an exception to the Act's coverage. Courts have applied the Act to individuals, corporations, associations and others involved in the provision of housing and residential lending, including property owners, housing managers, homeowners and condominium associations, lenders, real estate agents, and brokerage services. Courts have also applied the Act to state and local governments, most often in the context of exclusionary zoning or other land-use decisions. See e.g., City of Edmonds v. Oxford House, Inc., 514 U.S. 725, 729 (1995); Project Life v. Glendening, 139 F. Supp. 703, 710 (D. Md. 2001), aff'd 2002 WL 2012545 (4th Cir. 2002). Under specific exceptions to the Fair Housing Act, the reasonable accommodation requirements of the Act do not apply to a private individual owner who sells his own home so long as he (1) does not own more than three single-family homes; (2) does not use a real estate agent and does not employ any discriminatory advertising or notices; (3) has not engaged in a similar sale of a home within a 24-month period; and (4) is not in the business of selling or renting dwellings. The reasonable accommodation requirements of the Fair Housing Act also do not apply to owner-occupied buildings that have four or fewer dwelling units.

3. Who qualifies as a person with a disability under the Act?

The Act defines a person with a disability to include (1) individuals with a physical or mental impairment that substantially limits one or more major life activities; (2) individuals who are regarded as having such an impairment; and (3) individuals with a record of such an impairment.

The term "physical or mental impairment" includes, but is not limited to, such diseases and conditions as orthopedic, visual, speech and hearing impairments, cerebral palsy, autism, epilepsy, muscular dystrophy, multiple sclerosis, cancer, heart disease, diabetes, Human Immunodeficiency Virus infection, mental retardation, emotional illness, drug addiction (other than addiction caused by current, illegal use of a controlled substance) and alcoholism.

The term "substantially limits" suggests that the limitation is "significant" or "to a large degree."

The term "major life activity" means those activities that are of central importance to daily life, such as seeing, hearing, walking, breathing, performing manual tasks, caring for one's self, learning, and speaking. (8) This list of major life activities is not exhaustive. See e.g., Bragdon v. Abbott, 524 U.S. 624, 691-92 (1998)(holding that for certain individuals reproduction is a major life activity).

4. Does the Act protect juvenile offenders, sex offenders, persons who illegally use controlled substances, and persons with disabilities who pose a significant danger to others?

No, juvenile offenders and sex offenders, by virtue of that status, are not persons with disabilities protected by the Act. Similarly, while the Act does protect persons who are recovering from substance abuse, it does not protect persons who are currently engaging in the current illegal use of controlled substances. (9)

Additionally, the Act does not protect an individual with a disability whose tenancy would constitute a "direct threat" to the health or safety of other individuals or result in substantial physical damage to the property of others unless the threat can be eliminated or significantly reduced by reasonable accommodation.

5. How can a housing provider determine if an individual poses a direct threat?

The Act does not allow for exclusion of individuals based upon fear, speculation, or stereotype about a particular disability or persons with disabilities in general. A determination that an individual poses a direct threat must rely on an individualized assessment that is based on reliable objective evidence (e.g., current conduct, or a recent history of overt acts). The assessment must consider:

(1) the nature, duration, and severity of the risk of injury;

(2) the probability that injury will actually occur; and
(3) whether there are any reasonable accommodations that will eliminate the direct threat.

Consequently, in evaluating a recent history of overt acts, a provider must take into account whether the individual has received intervening treatment or medication that has eliminated the direct threat (i.e., a significant risk of substantial harm). In such a situation, the provider may request that the individual document how the circumstances have changed so that he no longer poses a direct threat. A provider may also obtain satisfactory assurances that the individual will not pose a direct threat during the tenancy. The housing provider must have reliable, objective evidence that a person with a disability poses a direct threat before excluding him from housing on that basis.

Example 1 : A housing provider requires all persons applying to rent an apartment to complete an application that includes information on the applicant's current place of residence. On her application to rent an apartment, a woman notes that she currently resides in Cambridge House. The manager of the apartment complex knows that Cambridge House is a group home for women receiving treatment for alcoholism. Based solely on that information and his personal belief that alcoholics are likely to cause disturbances and damage property, the manager rejects the applicant. The rejection is unlawful because it is based on a generalized stereotype related to a disability rather than an individualized assessment of any threat to other persons or the property of others based on reliable, objective evidence about the applicant's recent past conduct. The housing provider may not treat this applicant differently than other applicants based on his subjective perceptions of the potential problems posed by her alcoholism by requiring additional documents, imposing different lease terms, or requiring a higher security deposit. However, the manager could have checked this applicant's references to the same extent and in the same manner as he would have checked any other applicant's references. If such a reference check revealed objective evidence showing that this applicant had posed a direct threat to persons or property in the recent past and the direct threat had not been eliminated, the manager could then have rejected the applicant based on direct threat.

Example 2 : James X, a tenant at the Shady Oaks apartment complex, is arrested for threatening his neighbor while brandishing a baseball bat. The Shady Oaks' lease agreement contains a term prohibiting tenants from threatening violence against other residents. Shady Oaks' rental manager investigates the incident and learns that James X threatened the other resident with physical violence and had to be physically restrained by other neighbors to keep him from acting on his threat. Following Shady Oaks' standard practice of strictly enforcing its "no threats" policy, the Shady Oaks rental manager issues James X a 30-day notice to quit, which is the first step in the eviction process. James X's attorney contacts Shady Oaks' rental manager and explains that James X has a psychiatric disability that causes him to be physically violent when he stops taking his prescribed medication. Suggesting that his client will not pose a direct threat to others if proper safeguards are taken, the attorney requests that the rental manager grant James X an exception to the "no threats" policy as a reasonable accommodation based on James X's disability. The Shady Oaks rental manager need only grant the reasonable accommodation if James X's attorney can provide satisfactory assurance that James X will receive appropriate counseling and periodic medication monitoring so that he will no longer pose a direct threat during his tenancy. After consulting with James X, the attorney responds that James X is unwilling to receive counseling or submit to any type of periodic monitoring to ensure that he takes his prescribed medication. The rental manager may go forward with the eviction proceeding, since James X continues to pose a direct threat to the health or safety of other residents.

6. What is a "reasonable accommodation" for purposes of the Act?

A "reasonable accommodation" is a change, exception, or adjustment to a rule, policy, practice, or service that may be necessary for a person with a disability to have an equal opportunity to use and enjoy a dwelling, including public and common use spaces. Since rules, policies, practices, and services may have a different effect on persons with disabilities than on other persons, treating persons with disabilities exactly the same as others will sometimes deny them an equal opportunity to use and enjoy a dwelling. The Act makes it unlawful to refuse to make reasonable accommodations to rules, policies, practices, or services when such accommodations may be necessary to afford persons with disabilities an equal opportunity to use and enjoy a dwelling.

To show that a requested accommodation may be necessary, there must be an identifiable relationship, or nexus, between the requested accommodation and the individual's disability.

Example 1 : A housing provider has a policy of providing unassigned parking spaces to residents. A resident with a mobility impairment, who is substantially limited in her ability to walk, requests an assigned accessible parking space close to the entrance to her unit as a reasonable accommodation. There are available parking spaces near the entrance to her unit that are accessible, but those spaces are available to all residents on a first come, first served basis. The provider must make an exception to its policy of not providing assigned parking spaces to accommodate this resident.

Example 2 : A housing provider has a policy of requiring tenants to come to the rental office in person to pay their rent. A tenant has a mental disability that makes her afraid to leave her unit. Because of her disability, she requests that she be permitted to have a friend mail her rent payment to the rental office as a reasonable accommodation. The provider must make an exception to its payment policy to accommodate this tenant.

Example 3: A housing provider has a "no pets" policy. A tenant who is deaf requests that the provider allow him to keep a dog in his unit as a reasonable accommodation. The tenant explains that the dog is an assistance animal that will alert him to several sounds, including knocks at the door, sounding of the smoke detector, the telephone ringing, and cars coming into the driveway. The housing provider must make an exception to its "no pets" policy to accommodate this tenant.

7. Are there any instances when a provider can deny a request for a reasonable accommodation without violating the Act?

Yes. A housing provider can deny a request for a reasonable accommodation if the request was not made by or on behalf of a person with a disability or if there is no disability-related need for the accommodation. In addition, a request for a reasonable accommodation may be denied if providing the accommodation is not reasonable - i.e., if it would impose an undue financial and administrative burden on the housing provider or it would fundamentally alter the nature of the provider's operations. The determination of undue financial and administrative burden must be made on a case-by-case basis involving various factors, such as the cost of the requested accommodation, the financial resources of the provider, the benefits that the accommodation would provide to the requester, and the availability of alternative accommodations that would effectively meet the requester's disability-related needs.

When a housing provider refuses a requested accommodation because it is not reasonable, the provider should discuss with the requester whether there is an alternative accommodation that would effectively address the requester's disability-related needs without a fundamental alteration to the provider's operations and without imposing an undue financial and administrative burden. If an alternative accommodation would effectively meet the requester's disability-related needs and is reasonable, the provider must grant it. An interactive process in which the housing provider and the requester discuss the requester's disability-related need for the requested accommodation and possible alternative accommodations is helpful to all concerned because it often results in an effective accommodation for the requester that does not pose an undue financial and administrative burden for the provider.

Example: As a result of a disability, a tenant is physically unable to open the dumpster placed in the parking lot by his housing provider for trash collection. The tenant requests that the housing provider send a maintenance staff person to his apartment on a daily basis to collect his trash and take it to the dumpster. Because the housing development is a small operation with limited financial resources and the maintenance staff are on site only twice per week, it may be an undue financial and administrative burden for the housing provider to grant the requested daily trash pick-up service. Accordingly, the requested accommodation may not be reasonable. If the housing provider denies the requested accommodation as unreasonable, the housing provider should discuss with the tenant whether reasonable accommodations could be provided to meet the tenant's disability-related needs - for instance, placing an open trash collection can in a location that is readily accessible to the tenant so the tenant can dispose of his own trash and the provider's maintenance staff can then transfer the trash to the dumpster when they are on site. Such an accommodation would not involve a fundamental alteration of the provider's operations and would involve little financial and administrative burden for the provider while accommodating the tenant's disability-related needs.

There may be instances where a provider believes that, while the accommodation requested by an individual is reasonable, there is an alternative accommodation that would be equally effective in meeting the individual's disability-related needs. In such a circumstance, the provider should discuss with the individual if she is willing to accept the alternative accommodation. However, providers should be aware that persons with disabilities typically have the most accurate knowledge about the functional limitations posed by their disability, and an individual is not obligated to accept an alternative accommodation suggested by the provider if she believes it will not meet her needs and her preferred accommodation is reasonable.

8. What is a "fundamental alteration"?

A "fundamental alteration" is a modification that alters the essential nature of a provider's operations.

Example: A tenant has a severe mobility impairment that substantially limits his ability to walk. He asks his housing provider to transport him to the grocery store and assist him with his grocery shopping as a reasonable accommodation to his disability. The provider does not provide any transportation or shopping services for its tenants, so granting this request would require a fundamental alteration in the nature of the provider's operations. The request can be denied, but the provider should discuss with the requester whether there is any alternative accommodation that would effectively meet the requester's disability-related needs without fundamentally altering the nature of its operations, such as reducing the tenant's need to walk long distances by altering its parking policy to allow a volunteer from a local community service organization to park her car close to the tenant's unit so she can transport the tenant to the grocery store and assist him with his shopping.

9. What happens if providing a requested accommodation involves some costs on the part of the housing provider?

Courts have ruled that the Act may require a housing provider to grant a reasonable accommodation that involves costs, so long as the reasonable accommodation does not pose an undue financial and administrative burden and the requested accommodation does not constitute a fundamental alteration of the provider's operations. The financial resources of the provider, the cost of the reasonable accommodation, the benefits to the requester of the requested accommodation, and the availability of other, less expensive alternative accommodations that would effectively meet the applicant or resident's disability-related needs must be considered in determining whether a requested accommodation poses an undue financial and administrative burden.

10. What happens if no agreement can be reached through the interactive process?

A failure to reach an agreement on an accommodation request is in effect a decision by the provider not to grant the requested accommodation. If the individual who was denied an accommodation files a Fair Housing Act complaint to challenge that decision, then the agency or court receiving the complaint will review the evidence in light of applicable law and decide if the housing provider violated that law. For more information about the complaint process, see question 19 below.

11. May a housing provider charge an extra fee or require an additional deposit from applicants or residents with disabilities as a condition of granting a reasonable accommodation?

No. Housing providers may not require persons with disabilities to pay extra fees or deposits as a condition of receiving a reasonable accommodation.

Example 1: A man who is substantially limited in his ability to walk uses a motorized scooter for mobility purposes. He applies to live in an assisted living facility that has a policy prohibiting the use of motorized vehicles in buildings and elsewhere on the premises. It would be a reasonable accommodation for the facility to make an exception to this policy to permit the man to use his motorized scooter on the premises for mobility purposes. Since allowing the man to use his scooter in the buildings and elsewhere on the premises is a reasonable accommodation, the facility may not condition his use of the scooter on payment of a fee or deposit or on a requirement that he obtain liability insurance relating to the use of the scooter. However, since the Fair Housing Act does not protect any person with a disability who poses a direct threat to the person or property of others, the man must operate his motorized scooter in a responsible manner that does not pose a significant risk to the safety of other persons and does not cause damage to other persons' property. If the individual's use of the scooter causes damage to his unit or the common areas, the housing provider may charge him for the cost of repairing the damage (or deduct it from the standard security deposit imposed on all tenants), if it is the provider's practice to assess tenants for any damage they cause to the premises.

Example 2: Because of his disability, an applicant with a hearing impairment needs to keep an assistance animal in his unit as a reasonable accommodation. The housing provider may not require the applicant to pay a fee or a security deposit as a condition of allowing the applicant to keep the assistance animal. However, if a tenant's assistance animal causes damage to the applicant's unit or the common areas of the dwelling, the housing provider may charge the tenant for the cost of repairing the damage (or deduct it from the standard security deposit imposed on all tenants), if it is the provider's practice to assess tenants for any damage they cause to the premises.

12. When and how should an individual request an accommodation?

Under the Act, a resident or an applicant for housing makes a reasonable accommodation request whenever she makes clear to the housing provider that she is requesting an exception, change, or adjustment to a rule, policy, practice, or service because of her disability. She should explain what type of accommodation she is requesting and, if the need for the accommodation is not readily apparent or not known to the provider, explain the relationship between the requested accommodation and her disability.

An applicant or resident is not entitled to receive a reasonable accommodation unless she requests one. However, the Fair Housing Act does not require that a request be made in a particular manner or at a particular time. A person with a disability need not personally make the reasonable accommodation request; the request can be made by a family member or someone else who is acting on her behalf. An individual making a reasonable accommodation request does not need to mention the Act or use the words "reasonable accommodation." However, the requester must make the request in a manner that a reasonable person would understand to be a request for an exception, change, or adjustment to a rule, policy, practice, or service because of a disability.

Although a reasonable accommodation request can be made orally or in writing, it is usually helpful for both the resident and the housing provider if the request is made in writing. This will help prevent misunderstandings regarding what is being requested, or whether the request was made. To facilitate the processing and consideration of the request, residents or prospective residents may wish to check with a housing provider in advance to determine if the provider has a preference regarding the manner in which the request is made. However, housing providers must give appropriate consideration to reasonable accommodation requests even if the requester makes the request orally or does not use the provider's preferred forms or procedures for making such requests.

Example: A tenant in a large apartment building makes an oral request that she be assigned a mailbox in a location that she can easily access because of a physical disability that limits her ability to reach and bend. The provider would prefer that the tenant make the accommodation request on a pre-printed form, but the tenant fails to complete the form. The provider must consider the reasonable accommodation request even though the tenant would not use the provider's designated form.

13. Must a housing provider adopt formal procedures for processing requests for a reasonable accommodation?

No. The Act does not require that a housing provider adopt any formal procedures for reasonable accommodation requests. However, having formal procedures may aid individuals with disabilities in making requests for reasonable accommodations and may aid housing providers in assessing those requests so that there are no misunderstandings as to the nature of the request, and, in the event of later disputes, provide records to show that the requests received proper consideration.

A provider may not refuse a request, however, because the individual making the request did not follow any formal procedures that the provider has adopted. If a provider adopts formal procedures for processing reasonable accommodation requests, the provider should ensure that the procedures, including any forms used, do not seek information that is not necessary to evaluate if a reasonable accommodation may be needed to afford a person with a disability equal opportunity to use and enjoy a dwelling. See Questions 16 - 18, which discuss the disability-related information that a provider may and may not request for the purposes of evaluating a reasonable accommodation request.

14. Is a housing provider obligated to provide a reasonable accommodation to a resident or applicant if an accommodation has not been requested?

No. A housing provider is only obligated to provide a reasonable accommodation to a resident or applicant if a request for the accommodation has been made. A provider has notice that a reasonable accommodation request has been made if a person, her family member, or someone acting on her behalf requests a change, exception, or adjustment to a rule, policy, practice, or service because of a disability, even if the words "reasonable accommodation" are not used as part of the request.

15. What if a housing provider fails to act promptly on a reasonable accommodation request?

A provider has an obligation to provide prompt responses to reasonable accommodation requests. An undue delay in responding to a reasonable accommodation request may be deemed to be a failure to provide a reasonable accommodation.

16. What inquiries, if any, may a housing provider make of current or potential residents regarding the existence of a disability when they have not asked for an accommodation?

Under the Fair Housing Act, it is usually unlawful for a housing provider to

(1) ask if an applicant for a dwelling has a disability or if a person intending to reside in a dwelling or anyone associated with an applicant or resident has a disability, or

(2) ask about the nature or severity of such persons' disabilities. Housing providers may, however, make the following inquiries, provided these inquiries are made of all applicants, including those with and without disabilities:

An inquiry into an applicant's ability to meet the requirements of tenancy;
An inquiry to determine if an applicant is a current illegal abuser or addict of a controlled substance;
An inquiry to determine if an applicant qualifies for a dwelling legally available only to persons with a disability or to persons with a particular type of disability; and
An inquiry to determine if an applicant qualifies for housing that is legally available on a priority basis to persons with disabilities or to persons with a particular disability.

Example 1: A housing provider offers accessible units to persons with disabilities needing the features of these units on a priority basis. The provider may ask applicants if they have a disability and if, in light of their disability, they will benefit from the features of the units. However, the provider may not ask applicants if they have other types of physical or mental impairments. If the applicant's disability and the need for the accessible features are not readily apparent, the provider may request reliable information/documentation of the disability-related need for an accessible unit.

Example 2: A housing provider operates housing that is legally limited to persons with chronic mental illness. The provider may ask applicants for information needed to determine if they have a mental disability that would qualify them for the housing. However, in this circumstance, the provider may not ask applicants if they have other types of physical or mental impairments. If it is not readily apparent that an applicant has a chronic mental disability, the provider may request reliable information/documentation of the mental disability needed to qualify for the housing.

In some instances, a provider may also request certain information about an applicant's or a resident's disability if the applicant or resident requests a reasonable accommodation. See Questions 17 and 18 below.

17. What kinds of information, if any, may a housing provider request from a person with an obvious or known disability who is requesting a reasonable accommodation?

A provider is entitled to obtain information that is necessary to evaluate if a requested reasonable accommodation may be necessary because of a disability. If a person's disability is obvious, or otherwise known to the provider, and if the need for the requested accommodation is also readily apparent or known, then the provider may not request any additional information about the requester's disability or the disability-related need for the accommodation.

If the requester's disability is known or readily apparent to the provider, but the need for the accommodation is not readily apparent or known, the provider may request only information that is necessary to evaluate the disability-related need for the accommodation.

Example 1 : An applicant with an obvious mobility impairment who regularly uses a walker to move around asks her housing provider to assign her a parking space near the entrance to the building instead of a space located in another part of the parking lot. Since the physical disability (i.e., difficulty walking) and the disability-related need for the requested accommodation are both readily apparent, the provider may not require the applicant to provide any additional information about her disability or the need for the requested accommodation.

Example 2 : A rental applicant who uses a wheelchair advises a housing provider that he wishes to keep an assistance dog in his unit even though the provider has a "no pets" policy. The applicant's disability is readily apparent but the need for an assistance animal is not obvious to the provider. The housing provider may ask the applicant to provide information about the disability-related need for the dog.

Example 3 : An applicant with an obvious vision impairment requests that the leasing agent provide assistance to her in filling out the rental application form as a reasonable accommodation because of her disability. The housing provider may not require the applicant to document the existence of her vision impairment.

18. If a disability is not obvious, what kinds of information may a housing provider request from the person with a disability in support of a requested accommodation?

A housing provider may not ordinarily inquire as to the nature and severity of an individual's disability (see Answer 16, above). However, in response to a request for a reasonable accommodation, a housing provider may request reliable disability-related information that

(1) is necessary to verify that the person meets the Act's definition of disability (i.e., has a physical or mental impairment that substantially limits one or more major life activities),

(2) describes the needed accommodation, and

(3) shows the relationship between the person's disability and the need for the requested accommodation.

Depending on the individual's circumstances, information verifying that the person meets the Act's definition of disability can usually be provided by the individual himself or herself (e.g., proof that an individual under 65 years of age receives Supplemental Security Income or Social Security Disability Insurance benefits (10) or a credible statement by the individual). A doctor or other medical professional, a peer support group, a non-medical service agency, or a reliable third party who is in a position to know about the individual's disability may also provide verification of a disability. In most cases, an individual's medical records or detailed information about the nature of a person's disability is not necessary for this inquiry.

Once a housing provider has established that a person meets the Act's definition of disability, the provider's request for documentation should seek only the information that is necessary to evaluate if the reasonable accommodation is needed because of a disability. Such information must be kept confidential and must not be shared with other persons unless they need the information to make or assess a decision to grant or deny a reasonable accommodation request or unless disclosure is required by law (e.g., a court-issued subpoena requiring disclosure).

19. If a person believes she has been unlawfully denied a reasonable accommodation, what should that person do if she wishes to challenge that denial under the Act?

When a person with a disability believes that she has been subjected to a discriminatory housing practice, including a provider's wrongful denial of a request for reasonable accommodation, she may file a complaint with HUD within one year after the alleged denial or may file a lawsuit in federal district court within two years of the alleged denial. If a complaint is filed with HUD, HUD will investigate the complaint at no cost to the person with a disability.

There are several ways that a person may file a complaint with HUD:

By placing a toll-free call to 1-800-669-9777 or TTY 1-800-927-9275;
By completing the "on-line" complaint form available on the HUD internet site: www.hud.gov; or
By mailing a completed complaint form or letter to:
Office of Fair Housing and Equal Opportunity
Department of Housing & Urban Development
451 Seventh Street, S.W., Room 5204
Washington, DC 20410-2000

Upon request, HUD will provide printed materials in alternate formats (large print, audio tapes, or Braille) and provide complainants with assistance in reading and completing forms.

The Civil Rights Division of the Justice Department brings lawsuits in federal courts across the country to end discriminatory practices and to seek monetary and other relief for individuals whose rights under the Fair Housing Act have been violated. The Civil Rights Division initiates lawsuits when it has reason to believe that a person or entity is involved in a "pattern or practice" of discrimination or when there has been a denial of rights to a group of persons that raises an issue of general public importance. The Division also participates as amicus curiae in federal court cases that raise important legal questions involving the application and/or interpretation of the Act. To alert the Justice Department to matters involving a pattern or practice of discrimination, matters involving the denial of rights to groups of persons, or lawsuits raising issues that may be appropriate for amicus participation, contact:

U.S. Department of Justice
Civil Rights Division
Housing and Civil Enforcement Section - G St.
950 Pennsylvania Avenue, N.W.
Washington, DC 20530

For more information on the types of housing discrimination cases handled by the Civil Rights Division, please refer to the Housing and Civil Enforcement Section's website at /crt/about/hce/ .

A HUD or Department of Justice decision not to proceed with a Fair Housing Act matter does not foreclose private plaintiffs from pursuing a private lawsuit. However, litigation can be an expensive, time-consuming, and uncertain process for all parties. HUD and the Department of Justice encourage parties to Fair Housing Act disputes to explore all reasonable alternatives to litigation, including alternative dispute resolution procedures, such as mediation. HUD attempts to conciliate all Fair Housing Act complaints. In addition, it is the Department of Justice's policy to offer prospective defendants the opportunity to engage in pre-suit settlement negotiations, except in the most unusual circumstances.

_____________________________________________________________________________

The Fair Housing Act is codified at 42 U.S.C. §§ 3601 - 3619.
The Act uses the term "handicap" instead of the term "disability." Both terms have the same legal meaning. See Bragdon v. Abbott, 524 U.S. 624, 631 (1998) (noting that definition of "disability" in the Americans with Disabilities Act is drawn almost verbatim "from the definition of 'handicap' contained in the Fair Housing Amendments Act of 1988"). This document uses the term "disability," which is more generally accepted.
42 U.S.C. § 3604(f)(3)(B).
Housing providers that receive federal financial assistance are also subject to the requirements of Section 504 of the Rehabilitation Act of l973. 29 U.S.C. § 794. Section 504, and its implementing regulations at 24 C.F.R. Part 8, prohibit discrimination based on disability and require recipients of federal financial assistance to provide reasonable accommodations to applicants and residents with disabilities. Although Section 504 imposes greater obligations than the Fair Housing Act, (e.g., providing and paying for reasonable accommodations that involve structural modifications to units or public and common areas), the principles discussed in this Statement regarding reasonable accommodation under the Fair Housing Act generally apply to requests for reasonable accommodations to rules, policies, practices, and services under Section 504. See U.S. Department of Housing and Urban Development, Office of Public and Indian Housing, Notice PIH 2002-01(HA) and "Section 504: Frequently Asked Questions"
The Fair Housing Act's protection against disability discrimination covers not only home seekers with disabilities but also buyers and renters without disabilities who live or are associated with individuals with disabilities 42 U.S.C. § 3604(f)(1)(B), 42 U.S.C. § 3604(f)(1)(C), 42 U.S.C. § 3604(f)(2)(B), 42 U.S.C. § (f)(2)(C). See also H.R. Rep. 100-711 - 24 (reprinted in 1988 U.S.C.A.N. 2173, 2184-85) ("The Committee intends these provisions to prohibit not only discrimination against the primary purchaser or named lessee, but also to prohibit denials of housing opportunities to applicants because they have children, parents, friends, spouses, roommates, patients, subtenants or other associates who have disabilities."). Accord: Preamble to Proposed HUD Rules Implementing the Fair Housing Act, 53 Fed. Reg. 45001 (Nov. 7, 1988) (citing House Report).
42 U.S.C. § 3604(f)(3)(B). HUD regulations pertaining to reasonable accommodations may be found at 24 C.F.R. § 100.204.
This Statement does not address the principles relating to reasonable modifications. For further information see the HUD regulations at 24 C.F.R. § 100.203. This statement also does not address the additional requirements imposed on recipients of Federal financial assistance pursuant to Section 504, as explained in the Introduction.
The Supreme Court has questioned but has not yet ruled on whether "working" is to be considered a major life activity. See Toyota Motor Mfg, Kentucky, Inc. v. Williams, 122 S. Ct. 681, 692, 693 (2002). If it is a major activity, the Court has noted that a claimant would be required to show an inability to work in a "broad range of jobs" rather than a specific job. See Sutton v. United Airlines, Inc., 527 U.S. 470, 492 (1999).
See, e.g., United States v. Southern Management Corp., 955 F.2d 914, 919 (4th Cir. 1992) (discussing exclusion in 42 U.S.C. § 3602(h) for "current, illegal use of or addiction to a controlled substance")
Persons who meet the definition of disability for purposes of receiving Supplemental Security Income ("SSI") or Social Security Disability Insurance ("SSDI") benefits in most cases meet the definition of disability under the Fair Housing Act, although the converse may not be true. See e.g., Cleveland v. Policy Management Systems Corp., 526 U.S. 795, 797 (1999) (noting that SSDI provides benefits to a person with a disability so severe that she is unable to do her previous work and cannot engage in any other kind of substantial gainful work whereas a person pursuing an action for disability discrimination under the Americans with Disabilities Act may state a claim that "with a reasonable accommodation" she could perform the essential functions of the job).

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Managing Rental Property

The CARES Act 3-Day Notice Requirement. Now What?

Why It’s Still Causing Confusion—and Controversy

The Origin: A Pandemic-Era Protection That Never Expired

The Confusion: Federal Agencies Step Back

The Critical Reality: The Law Still Exists

In practical terms:

The Industry Response: A Push to End It

Real-World Impact: A Legal Trap for Landlords

Where Things Stand Now

Bottom Line

What Smart Landlords Are Watching in 2026

Florida Rental Market Indices:

What Smart Landlords Are Watching in 2026

Vacancy Rates Are Rising

Rent Growth Has Slowed—or Reversed

Occupancy Remains Stable—But Softer

Affordability Is a Long-Term Strength

Supply Is Driving the Market

What This Means for Landlords

Bottom Line

New Supply from Accidental Landlords Is Cooling Rent Growth

Oregon Moves To Expand Tenant Privacy Laws

Oregon To Expand Tenant Privacy Laws

What Landlords Need to Know

What the Bill Does

Real Financial Penalties

Builds on Existing Law

Why This Is Happening

The Bigger Picture for Landlords

Practical Takeaway

Florida landlords aren’t dealing with this type of law—yet.

What Florida Landlords Should Do Now

HUD Proposes Major Changes to Eviction Rules and Housing Assistance

Faster Eviction Timelines

Work Requirements for Housing Assistance

Under the proposal:

The programs potentially affected include:

Term Limits on Housing Assistance

Public Comment Period

A Significant Shift in Housing Policy

What It Means for Landlords

Jacksonville Considers Rental Property Registry

What Local Landlords Need to Know

What Is a Rental Property Registry?

Why Supporters Want the Registry

Why Landlords Are Watching Closely

Current Status of the Proposal

What Happens Next?

What Jacksonville Landlords Should Do

Accidental Landlords on the Rise as Housing Market Adjusts

Unsold Homes Are Entering the Rental Market

Sellers Face a Different Housing Market

Florida Among the Areas Seeing More Accidental Landlords

However, condos have seen the fastest growth in accidental landlords compared with the past several years.

What This Means for the Rental Market

A Sign of a Changing Market

FTC Getting Into Rental Regulation?

What Landlords Need to Know About New Federal Rules

The FTC’s Early Rulemaking Process

Why Regulators Are Interested in Rental Fees

Earlier FTC Action in Other Industries

Property-Management Software Also Under Scrutiny

What This Could Mean for Florida Landlords

Florida Law Already Regulates Certain Fees

Local Governments Are Watching Rental Fees

Advertising and Pricing Transparency

Practical Advice for Florida Landlords

The Bottom Line

Editor’s Note

What Landlord Insurance Often Leaves Out for Short-Term Rentals

What Landlord Insurance Often Leaves Out for Short-Term Rentals

When you transition a long-term rental to short-term your insurance may fall woefully short

Are Banks Heading Back To Looser Lending Standards?

Are Banks Heading Back To Looser Lending Standards?

Recent moves from U.S. financial regulators suggest banks could play a larger role in mortgage lending again -- Potentially making loans easier and more affordable for qualified borrowers.

﻿ Why This Matters for Borrowers

If these reforms move forward:

When Tenants Weaponize Code Enforcement, HOAs, and Complaints

When Tenants Weaponize

Are Banks Heading Back To
Looser Lending Standards?

Why This Matters for Borrowers

Fair-Housing Mythbusters:
ESA Denial, from Apartments to Dorms