Renting out your Florida home can make sense if the expected rent covers your costs and you're ready for landlord responsibilities, but it can also affect your homestead exemption, insurance and taxes. Start with a realistic rental value, then check those three things. I'm Krystal, and here's how I help owners think it through.
How do I figure out my home's rental value?
Rental value comes from what similar homes nearby have actually rented for recently, adjusted for size, condition, updates, parking, pets policy and whether there's a pool or yard. I look at:
- Recently leased homes, not just asking rents online
- How long those homes took to rent
- Seasonal patterns, since some parts of Pinellas see seasonal demand
- What's included: lawn care, pool service, utilities, appliances
Once you have a rent estimate, compare it to your real costs: mortgage, insurance, taxes, HOA, maintenance, vacancy and management. A home that only breaks even on paper can lose money once repairs come up.
What happens to my homestead exemption if I rent it out?
Florida's homestead exemption is for your permanent residence. If you move out and rent the home, it may no longer qualify, and the property's taxable value could change. Rules on this are specific, so contact your county property appraiser (Pinellas owners can start at the Pinellas County Property Appraiser) before you sign a lease. The property appraiser decides. More in my Florida property tax exemptions guide.
What landlord basics do I need to know in Florida?
Florida's residential landlord-tenant law (Chapter 83 of the Florida Statutes) covers things like security deposits, notices and entry. A few basics:
- Use a written lease that fits Florida law. An attorney can review it.
- Follow fair housing laws in advertising and screening. Apply the same written criteria to every applicant.
- Handle deposits by the rules. Florida has specific requirements for holding and returning deposits.
- Switch your insurance to a landlord (dwelling) policy, and ask about liability coverage.
- Check HOA or condo rules, which may limit leasing or require approval.
- Short-term rentals may need state licensing, local registration and tourist taxes. Check your city and county rules first.
Should I manage it myself or hire a manager?
Self-managing can save the fee but takes time: showings, screening, rent collection, repairs and late-night calls. A licensed property manager handles those for a fee. If you live out of the area or you're relocating with the military, management is often worth pricing out.
What is a 1031 exchange, and does it apply to me?
A 1031 exchange lets an investor sell investment or business property and buy other like-kind property while deferring certain taxes, if strict rules are followed. Generally it applies to property held for investment, not your personal residence. Key rules the IRS describes include a 45-day window to identify replacement property and a 180-day window to complete the purchase, plus using a qualified intermediary. Read the IRS like-kind exchange tips, then talk to a CPA before you list.
If you lived in the home before renting it, there may be other tax rules about selling a former residence. That's another question for your CPA. I'm not a tax professional.
Is renting better than selling?
It depends on your numbers, your timeline and how you feel about being a landlord. Sometimes renting makes sense to keep a home you love or a loan you'd like to keep. Sometimes selling and moving on is simpler. I'll show you a rental value and a seller net sheet side by side; my guide to selling costs in Florida explains the net sheet. If you're thinking about growing a rental portfolio, my guide to house hacking for veterans covers multi-unit basics.
How do I get my home ready to rent?
A rental doesn't need to be fancy, but it does need to be safe, clean and working. Before listing it for rent, most owners:
- Service the A/C and replace filters
- Check smoke detectors, locks and the water heater
- Touch up paint and choose durable flooring where needed
- Take dated photos and video of every room for a move-in record
- Set up a simple system for rent collection and maintenance requests
- Gather appliance manuals and warranties for tenants
Good preparation tends to attract applicants who take care of the home, and a move-in record makes deposit conversations much easier later. If you're unsure which repairs are worth doing, I'm happy to walk the home with you and give my honest opinion.
Quick checklist
- Get a rental value based on recent leases nearby
- List every monthly and yearly cost honestly
- Call the property appraiser about your homestead exemption
- Switch to a landlord insurance policy
- Check HOA, condo and local rental rules
- Use a Florida-compliant written lease
- Decide on self-management or a licensed manager
- Ask a CPA about 1031 and former-residence tax rules
FAQ
Can I rent out my home if I have a mortgage?
Often, but check your loan terms. Some loans require you to live in the home for a period after purchase. Ask your servicer or lender.
Will renting my home raise my property taxes?
It may, because the homestead exemption is for a permanent residence. Ask your county property appraiser before you lease; they decide.
Can I do a 1031 exchange on my primary home?
Generally, 1031 exchanges are for investment or business property. Your CPA can explain how the rules apply to your situation.
How do I screen tenants fairly?
Use the same written criteria for everyone, such as income and rental history, and follow fair housing laws. A licensed property manager or attorney can help.
How fast can I find a tenant?
It depends on price, condition and season. I can't promise a timeline, but a well-priced, well-presented home tends to lease faster.
Find out what your home could rent for
Get my rental value and 1031 options or call or text me at (727) 291-7001. My assistant replies within about 60 seconds, day or night, and I personally handle every client.
Helpful sources: IRS: Like-kind exchanges · Pinellas County Property Appraiser
Krystal Crichlow | eXp Realty · Palm Harbor, FL · (727) 291-7001 · Equal Housing Opportunity
This article is general information, not legal, tax, lending or financial advice. Programs, rules and limits can change; confirm details with the agency, your lender, a CPA or an attorney.
Talk to a CPA about taxes and an attorney about leases.
