Although becoming a condo property manager is profitable, especially in Miami, landlords must follow numerous rules and regulations to avoid exorbitant fees and legal action against tenants or themselves. Here are six legal tips to consider to protect yourself and your rental business from noncompliance.

1. Know Your Rights and Obligations

Understanding your federal and state rights and obligations as a landlord is crucial to protecting yourself legally. You can refer to sections 83.40 to 83.683 of the Florida Statutes to read about what is and isn't allowed in lease agreements, your responsibilities for making the property habitable for everyone and tenants' rights, among other things.

Always refer to the Florida Senate website for the most current laws regarding landlord rights. For broader housing information, you can also turn to federal and legal resources. 

2. Understand Accessibility Laws

Tenants with disabilities are protected by various housing laws, including the Fair Housing Act (FHA). The FHA ensures tenants aren't discriminated against while renting or purchasing a home. Landlords also can't set different rental terms, charge higher monthly dues, harass tenants, delay repairs or evict tenants without adequate cause. 

As a property manager, you must adhere to the FHA and other federal and state discrimination laws or face legal consequences and fines. 

3. Purchase Proper Insurance Policies

Landlord insurance isn't required in Florida unless you have a mortgage mandating insurance in your loan terms. Regardless, experts recommend you take out a policy to protect the structure, lost rental income, and liability costs for injuries and damage. 

Liability coverage is among the most essential facets of landlord insurance. Suppose a hurricane or fire damages your property and injures a tenant. This type of coverage is somewhat inexpensive and will protect you financially and legally. 

On average, you might pay $2,860 annually for landlord insurance in Florida — the cost is about 25% higher than traditional homeowners insurance. However, it's well worth the price.

4. Conduct Thorough Tenant Screening

The screening process is critical to ensuring quality tenants at your condo property. Florida property managers may ask questions about tenants' line of work, income, how many occupants will live there, and whether they're pet owners or smokers. 

You can also ask about their rental history. Around 45% of 18-29-year-olds live at home with their families, so if potential tenants haven’t rented before, you may have to explain the rules and responsibilities of living in a shared building.

Landlords may also inquire about criminal history and run a background check on a potential renter to determine the risks. Of course, you must avoid discrimination and adhere to fair housing laws when considering criminal information. 

5. Review Security Deposit Regulations

Security deposits are standard in rental agreements. Landlords require them to protect their property from damage and cover unpaid rent and other legal costs. 

Florida Statute 83.49 gives you three options for handling security deposits or advanced rent from tenants. You can either hold the deposit in a non-interest-bearing account, place it in an interest-bearing account for the tenant to receive 75% of the annualized interest or post a surety bond with the court. 

Notify the tenants within 30 days of receiving the money, indicating your chosen option. Thirty days is also required if you change your holding method. 

6. Practice Fair Eviction 

Every cause for eviction is different. However, all landlords must carry out the process according to the rules outlined in the Florida Statutes. For instance, you must notify the tenant of their noncompliance in writing — this does not apply to nonpayment of rent.

Landlords must give the tenant seven days to correct their noncompliance, if applicable, before proceeding with an eviction. If the issue cannot be corrected or resolved due to intentional damage, misuse or disturbance, the tenant has seven days to vacate the premises.

If the tenant hasn't paid you their monthly rent charge, you must serve them a written notice, giving them three days — excluding weekends and holidays — for payment. If they don't comply, you can legally begin the eviction proceedings.

Avoid Legal Troubles by Following the Rules of Property Management

Falling into legal trouble could cost you a significant amount of money and damage your rental business's reputation. By being a lawful landlord, you can protect your units and tenants, making your property more enjoyable to live and operate.

Evelyn Long is a writer that specializes in housing market trends. She is also the founder of Renovated Magazine, where she writes essential resources for renters and homeowners. She has contributed to several other sites like the National Association of  Realtors and  Realty Executives.