Important Do’s and Don’ts of Being a DIY Landlord

There are many benefits to owning an investment property in Central Florida, which boasts a strong rental market. Because our community is so attractive to renters, many local residents are deciding to take the plunge and purchase their first investment property or keep a previous personal or family home and turn it into a rental.

Once you have decided to rent out your property, you must weigh whether to self-manage as a do-it-yourself landlord or hire a property manager to do the work for you. There are pros and cons for both options, and they vary with each situation. If you opt to go the DIY landlord route, there are several key points to keep in mind as you embark on this new journey.

• The most important thing to do before renting out your property is to educate yourself. Start by becoming familiar with Florida Statute Chapter 83, which governs landlord/tenant relationships. In addition, review any applicable local laws.
• When you are getting your property ready for the rental market, you must let go of all your sentimental attachment to it. Attachment out, money in! The home or condo is now a source of income and needs to be viewed in that manner. If you can’t emotionally detach from the property, sell it and use the funds to buy a rental property that doesn’t carry a personal attachment.
• Be cautious about this potential pitfall: renting to a friend or family member. If you do choose to enter into a business relationship with family or friends, make sure boundaries and expectations are clear to all parties from the beginning, and strictly adhere to the rules that have been set. Don’t allow friends and family to pay their rent late, make partial payments, or not pay late fees. This is a dangerous practice. That’s because once a bad precedent has been set and you have shown a pattern of accepting partial payments or late rent with no fees, then evicting that tenant can become extremely difficult. It is best to avoid renting to friends and family to reduce the potential for avoidable conflict and stress.
• Make sure you have a lease agreement that is compliant with Florida laws. Avoid downloading something generic from the internet and instead have an attorney draw up or review an agreement. A good lease is worth the legal fees.
• If your property is in a community with a homeowners or condo association, make sure you are knowledgeable about all rules pertaining to renting. There are communities that require board approval of all tenants, and if you allow someone to move in without getting the necessary approval, the association can force you to evict the tenant. That can lead to a tenant suing you for negligence.
• Furthermore, always provide your tenants with the most current regulations of the community and point out any especially important rules they must follow, such as no street parking. Self-managing your property is a big undertaking, so be sure to do your homework, have realistic expectations, and have a trusted attorney in reach to help navigate any issues. By following these suggestions, you’ll be well on your way to success as a DIY landlord.

Jessica Hall Speak is the Broker and Owner of Flarent, Inc., a Casselberry-based residential property management company that was started by her parents in 1991. She has been in the business for more than 20 years, serving as acting broker for the past six years.