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Florida Real Estate - Why Incompetent Florida Landlords Ruin it for Everyone

By Michael Letcher

Republish: EasyPublish™ Published: 30Nov2008 Word count: 770 Viewed: 592 time(s) Get Free Content For Your Site

As a Florida landlord I have several homes currently for rent in the South Florida real estate market.

Everyday, I receive phone calls from Florida tenants inquiring about one of the homes for rent. With each new phone conversation, prospective tenant provide shocking revelations about how clueless some Florida real estate investors are when they purchase a Florida rental home but don't have the background or experience to rent the home to others as a landlord.

Here are some of the sloppy and unethical business practices used by Florida landlords in today's troubled Florida real estate market:

Collecting advance rent and security deposits while concealing the fact that their Florida rental home is in foreclosure - leaving the tenant without any deposit money to use on another home

Offering below market rent to attract Florida tenants with full knowledge that they intend to let the home slip into foreclosure

Combining security deposits and advance rent in their own personal bank account

Not collecting any security deposit

Failing to pay their Florida property taxes on time

Allowing trampolines, above ground swimming pools, and vicious dogs on the property - dramatically increasing their liability for risks that might not be covered by Florida home insurance

Not having enough or the wrong kind of Florida landlord insurance

Last but not least, not maintaining their Florida rental home

With all of this going on, it is no wonder that Florida tenants seem to have the edge over their Florida landlord when a dispute with their lease arises and the case is heard by a judge in court. If you were a judge and a case landed in your court where a Florida landlord had failed on one or more of the above, wouldn't you tend to side with the Florida tenant and delay or deny a request to evict that person?

So what can you do as a Florida landlord to protect yourself in today's volatile Florida real estate market?

Here's how smart Florida landlords manage their rental homes:

Always collect a security deposit equal to at least two months rent. In most Florida counties it will take almost two months to evict a tenant that is behind on the rent. The additional month of security will give you a financial cushion to cover both the time it takes to evict plus leave you with some extra cash to cover damage to your Florida rental home. Keep tenant security deposits and advance rent in a separate non-interest bearing bank account

Let current and prospective Florida tenants know if you fall behind on your mortgage payments for any reason. A sheriff showing up at your Florida rental home demanding that your tenants collect their belongings and be out of the house in 15 minutes is not the way your tenant should find out that your rental home is being foreclosed on.

Whether you are paying your Florida property taxes directly or into escrow, make sure they are paid by November 30th each year to get the maximum discount. If you are paying the taxes from escrow, call your Florida mortgage company and make sure they have the bill and have scheduled it for on-time payment.

Talk to a Florida home insurance agent about the right kind of insurance to have on your Florida rental home. Usually a rental home will require dwelling fire or Florida landlord insurance.

Put at least $300,000 worth of liability coverage on your Florida dwelling fire insurance policy. Require your tenant to carry Florida renters insurance with another $300,000 worth of liability coverage. That will put a total of $600,000 between a lawsuit and your personal assets.

If your Florida insurance policy prohibits certain high risk activities such as trampolines, spell them out clearly in your lease.

Put all maintenance and rental home safety instructions in writing for your Florida tenant. Give your tenants a written manual on how to operate everything in your Florida rental home.

Document and respond immediately to all maintenance requests. If you can't fix the item promptly, send your tenant written updates on the status of the item and when you expect the repair to be completed.

Finally every Florida landlord should read and follow Chapter 83 of the Florida Statutes which govern landlord and tenant relationships in Florida.

As the weak Florida real estate market continues, smart Florida landlords will follow these guidelines - not just to protect themselves in case they ever have to appear in court, but because it is the right thing to do.

Don't be one of those rental home investors that give all Florida landlords a bad name!

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