Over the years I have had friends and clients tell me they want to buy an investment property and rent it out. I have also practiced landlord-tenant law in New York, representing both landlords and tenants. New York has always been a relatively tenant-friendly placed, but lately, I tell my friends and clients to run away from any idea of being a landlord in New York. But Florida is an attractive place to be a landlord, especially now.
Favorable Landlord-Tenant Laws
Florida's landlord-tenant laws are far more landlord-friendly compared to New York's regulations. In Florida, landlords have more flexibility in setting lease terms and conditions, including rent increases and eviction processes. The eviction process in Florida is more efficient and streamlined, allowing landlords to swiftly address non-compliant tenants.
As an example, I recently represented a small landlord in Brooklyn, who despite best efforts, was stuck with a non-paying tenant for 3 years while the courts slow-walked through Covid and then failed to decide motions. In fact, the court still hasn't decided any long-ago-filed motions and thankfully, the tenant finally left on thier own.
Statutorily, Florida takes a no-nonsense approach. For example, when a tenant fails to pay rent, the Landlord need give only three days' notice and then can start an eviction proceeding, which will move quickly. In New York, the periods are longer for everything and the courts move in slow motion.
No Rent Control
Unlike New York, Florida does not have statewide rent control laws. This means landlords in Florida have the freedom to adjust rental rates based on market demand without stringent government-imposed restrictions. The absence of rent control fosters a more dynamic rental market, encouraging property owners to invest in maintaining and improving their rental properties.
Lower Taxes and Operating Costs
Florida boasts no state income tax, offering significant savings for landlords compared to the high tax burden in New York. Additionally, property taxes and operating costs tend to be lower in Florida, allowing landlords to maximize their profits. Lower expenses translate to higher net rental income, making Florida an attractive destination for property investment, while keeping rents more affordable for tenants.
Strong Demand for Rental Properties
Florida's booming population growth, coupled with its appeal as a vacation and retirement destination, creates a robust demand for rental properties. Cities like Miami, Orlando, and Tampa consistently attract tenants seeking both short-term and long-term rentals. In contrast, while New York City has a sizable rental market, the high cost of living and stringent regulations can deter potential landlords.
Climate and Lifestyle
Florida's year-round warm climate and abundance of recreational activities make it an enticing location for tenants. Whether it's enjoying the beaches, theme parks, or outdoor adventures, Florida offers a desirable lifestyle that attracts a diverse range of renters. In comparison, New York's colder climate and bustling urban environment may not appeal to everyone, potentially limiting the tenant pool for landlords.
In conclusion, choosing to be a landlord in Florida offers numerous advantages over New York. From favorable landlord-tenant laws to lower taxes and operating costs, Florida provides an environment conducive to successful property investment. The strong demand for rental properties and desirable lifestyle further enhance the appeal of being a landlord in the Sunshine State. While both states have their merits, Florida undoubtedly shines as the superior choice for landlords seeking financial prosperity and a rewarding rental experience. And you do not have to live in Florida to own, maintain, or rent your property.