How Florida’s New Rental Laws in 2025 Impact Orlando Landlords
Over the last year, some new rental laws have gone into effect in Florida, impacting the way landlords in Orlando lease, manage, and maintain their homes.
Florida is a reasonably landlord-friendly state, and during last year’s legislative session, the state made it more difficult for cities and municipalities to pass laws that may provide more tenant protections than the state already allows. For example, Florida’s Orange County implemented a tenant bill of rights. However, that’s no longer valid because a new law passed by the state says that no local law can conflict with state laws. Tampa’s laws are now null and void because of state mandates.
Essentially, state law overrides anything a city or a county tries to do.
That’s not all that’s happening in the landlord and tenant legal realm in 2025. Here’s a summary of what’s new and worth brushing up on if you rent out properties in Orlando and the surrounding areas.
State Laws Precede Local Laws in 2025
At its core, this law limits the ability of local governments to pass ordinances or regulations that alter the existing landlord-tenant framework established by the state. Before the law was enacted, cities and counties across Florida had the power to create rental laws that suited their unique housing markets and tenant needs. For example, some local governments had passed ordinances that addressed issues like rent, eviction protections, or requirements for more stringent maintenance of rental properties.
However, with the passage of this new law, local ordinances perceived to conflict with state statutes on issues such as rent control, tenant protections, and eviction processes are now prohibited. The law aims to standardize landlord-tenant regulations across the state, ensuring that the same rules govern landlords and tenants in all regions of Florida.
For landlords, this law provides a degree of uniformity and predictability. They no longer have to navigate a patchwork of different local regulations, which could vary widely from one municipality to another. This means landlords must only comply with state laws and won’t have to adjust their operations based on the sometimes conflicting requirements set by individual cities or counties.
- Why the Law Was Enacted
Supporters of the law, including the governor, argue that the state government is best positioned to establish a cohesive set of rules for landlords and tenants. They contend that local ordinances could confuse both parties, making it harder for landlords to manage their properties and for tenants to understand their rights and obligations. Proponents believe Florida will have a more consistent and predictable rental market by eliminating local regulations that differ from state law.
Additionally, some lawmakers point to the increasing number of rental properties and argue that a uniform set of rules will encourage investment in housing, potentially helping to ease the state’s affordable housing crisis. The law also limits local governments’ ability to impose burdensome regulations that some argue could discourage property development.
- Criticism and Concerns
However, not everyone is pleased. Tenant advocacy groups have expressed concerns that the law could undermine the ability of local governments to address specific housing issues in their communities. For instance, in areas with skyrocketing rents, cities might want to introduce policies to curb rent increases or extend eviction timelines to give tenants more time to find alternative housing. The new law now precludes these local initiatives, potentially leaving renters with fewer protections.
Critics also argue that this legislation could exacerbate the housing affordability crisis in Florida, as it may limit local governments’ ability to act in the best interest of residents facing economic hardship.
As Florida navigates this new landscape, it remains to be seen how landlords, tenants, and local governments will adapt to the changes. While the law brings greater uniformity to rental regulations, it also limits local flexibility in responding to the unique challenges faced by different communities. For tenants, especially in high-cost areas, the impact of this law may continue to evolve, and its long-term consequences for housing affordability in the state are yet to be fully understood.
Security Deposits or Monthly Fees: Landlords Can Decide
In a move that could be transformative in the Orlando rental market, Florida has passed a new law allowing landlords to collect monthly fees as an alternative to traditional security deposits. This legislative change aims to provide more flexibility and financial relief to renters while offering landlords a new way to secure their rental properties.
The law, which applies to all lease agreements from 2024 forward, allows landlords to charge renters a monthly fee instead of requiring a hefty upfront security deposit. Traditionally, a security deposit is a one-time, lump-sum payment made at the start of the lease, often amounting to one or two months’ rent.
Under the new law, landlords can now offer renters the option to pay a smaller, non-refundable monthly fee instead. This fee can be added to the monthly rent or broken out separately. The idea behind this change is to make it easier for renters to move into a new property without the financial burden of a significant upfront cost. For many, the high cost of security deposits has been a barrier to securing rental housing, especially in a market where rents are on the rise.
The alternative monthly fee system functions similarly to insurance. The fee is non-refundable and aims to mitigate the risk landlords face in case of property damage or unpaid rent. However, unlike a traditional security deposit, the landlord does not hold this fee in an escrow account. Instead, it is an income stream that the landlord can use to cover expenses related to the property.
This monthly fee must be clearly stated in the lease agreement, and tenants must be fully aware of the terms before signing. Additionally, the law stipulates that the total amount of the fee cannot exceed a certain percentage of the monthly rent, typically around 10%. This ensures that the charge remains manageable for renters and does not become an excessive financial burden.
One key advantage of this new law for renters is the reduction in the financial strain typically associated with securing rental housing. In many rental markets, security deposits can range from $500 to $3,000 or more, depending on the property’s price. This upfront cost has been prohibitive for many renters, particularly those living paycheck to paycheck or those without a substantial savings cushion.
Think carefully before you switch from a traditional security deposit to a monthly fee agreement. While this might work for some situations, it could leave you at a loss if your tenant breaks the lease or stops paying rent.
Although the new law provides benefits, there are potential drawbacks for both renters and landlords. The monthly fee is non-refundable for renters, which means they will not see any of that money returned at the end of their lease, even if the property is in perfect condition. This could discourage renters from taking care of the property as thoroughly as they might with a refundable deposit.
For landlords, the challenge will be determining the right monthly fee amount without discouraging tenants from signing the lease. The fee must remain affordable, and there is always the risk that some tenants will pay a higher deposit instead of opting for the monthly payment.
Month-to-Month Tenancies and Notice Periods
Florida amended the Residential Landlord and Tenant Act to extend the notice period required to terminate month-to-month tenancies. Previously, either party could end such a tenancy with at least 15 days’ notice before the end of a monthly period. The new law mandates a minimum of 30 days’ written notice prior to the end of any monthly period to terminate a month-to-month tenancy. This change necessitates more strategic planning from landlords regarding tenancy terminations, marking a significant shift in the landlord-tenant dynamic.
We have always encouraged owners to avoid those month-to-month tenancies and to have tenants sign a new lease agreement at the end of their initial term, even if it’s for a shorter period. If you have tenants who rent your property without a written lease and only on a month-to-month basis, make sure you’re aware of the new notice periods. This could be a potentially easy mistake to make.
This is an overview of new legal norms. Orlando landlords also need to consider and comply with fair housing laws, security deposit regulations, habitability standards, and eviction protocols. While the laws are often being changed, the essential components of the Landlord and Tenant Act remain in place and enforced.
It’s easy to make a legal mistake. Protect yourself and your property by working with an Orlando property management expert like us.
Contact us at Homevest Management, Inc. for all your Orlando property management needs. We serve Central Florida, including Winter Garden, Doctor Phillips, Baldwin Park, Winter Springs, and Windermere.
