Defining a Short Term Lease in the State of Florida
A short term lease in the state of Florida is simply a residential tenancy governed by Florida Statutes chapter 83, Part 2, Landlord and Tenant Act: Residential Tenancies (the "Short Term Rental Act"). The Short-Term Rental Act governs residential tenancies in Florida where the actual period of occupancy is seven months or less .
Note that the existing section of the Short-Term Rental Act for defining a short term lease was prepared prior to the advent of modern technology and the vast availability of commercial short term rental marketplaces such as Airbnb, Flipkey, HomeAway, TravelMob, Roomorama, Turnkey, VRBO, and the like. As such the statute defines a short term tenancy only as "occupancy for a period of determinable duration which is less than 1 year".
Please note also that while the Short Term Rental Act governs tenancies of less than a year, there are other statutes governing commercial tenancies with occupancy shorter than one year.
Essential Elements of a Florida Short Term Lease
In a Florida short term lease, the key components to include are the term of the lease (when the lease and concession period starts to when it ends), the rent, security deposits, tenant obligations (including whether pets are permitted (with pet fees and deposits if any) and the damage deposit, and the resolution of disputes and collection of unpaid rent. In some areas, if the property is within the coastal construction control line, an acknowledgement that the owner is responsible for damages to the property caused by erosion may also be necessary.
The Term. Commonly, most short term leases provide that the duration will run from either 1-7 days for the property being rented. However, more accommodations have gone to short term rental agreements for up to 30 days. The issue with a contract for along term than 30 days is that it may be considered a long term lease governed by Florida’s landlord/tenant act and provide the tenant rights to terminate the lease prior to the end of the term in certain situations such as military deployment. See the sections on Florida’s Landlord/Tenant Act.
Florida Statutory Requirements. Per Chapter 509 of the Florida Statutes, in addition to the essentials listed above, if the owner/property owner is renting 2 or more units, then there are additional required provisions that should be included in the lease agreement including the failure to pay the lease amount. Should the tenant fail to comply with the lease the owner can provide a notice of noncompliance with the rent obligation (which should provide the tenant 5 days to pay the rent owed or face termination of the lease agreement. Or, if the tenant fails to comply with the purpose of the lease, the owner can provide the tenant with a notice of noncompliance with the terms of the lease. Should the tenant not cure the issue within the required time frame, the owner may terminate the agreement. Importantly, should the owner choose to terminate the agreement, the owner will then be allowed to dispose of any of tenant property left behind on the premises and charge the tenant for the cost of such removal.
Legal Specifications for Short Term Leases in Florida
Florida does not have any statutes that specifically regulate short term lease or rental agreements. That said, Florida law does require all contracts to be in writing if the agreement is for a time period of longer than one year. Florida codified this requirement in the Statute of Frauds. See Fla. Stat. § 725.01. If any portion of a rental agreement is for longer than one year, such as a one-year lease followed by an additional six-month extension, the entire agreement must be written and signed by all parties.
Florida also has a number of laws that deal with landlord-tenant relations that apply regardless of how long the parties plan to stay in their arrangement. These laws are found in Florida Statutes Chapter 83. They encompass everything from the procedure for terminating tenancy, to the maintenance duties of the landlord, to the rights of the tenant. These laws will apply regardless of how long the parties plan to enter into their arrangement. Although the law does not require the rental agreement to be in writing, it is highly recommended that you put your agreement in writing. Having a written agreement is especially important for short term leases and agreements because they can and often do change from week to week. Having all parties sign a written agreement avoids one party claiming that a different price agreement was made for the next week’s stay.
Pros and Cons of Short Term Leases for Both Parties
For landlords, short term lease agreements offer a level of flexibility that other agreements do not provide. These agreements are typically more suited to landlords with properties that do not generate a lot of consistent traffic. In such an environment, it may not be cost-effective to maintain a long-term arrangement with a tenant. Florida short term lease agreements can also be beneficial to landlords by simplifying their process of business in certain ways. Because leases are typically executed for short periods of time, landlords do not have to commit themselves to long-term contracts or plan their finances for the months or years to come. Florida short term lease agreements also benefit landlords in that they’re required to provide only a minimal level of investment for renting. Instead, landlords can decide to gain only what is needed to meet their property obligations as they deem fit. Meanwhile, short term Florida lease agreements give tenants the advantage of having greater flexibility when renting a property. Tenants have more freedom to move between different properties when they are not bound by long-term lease agreements. Tenants are also able to execute their plans for a property without investing too much if they are able to keep their tenancy at less than a year.
Common Mistakes to Beware of in Florida Short Term Leases
Florida short term rental agreements are fraught with potential pitfalls that can mean disaster for a landlord if not caught before a lease is signed. Among them are:
Failure to appropriately define the subject property. A short term rental exemption only applies to individual dwelling units such as an apartment/condo or single-family home. The owner of the property must occupy the unit for more than six months of the year (and typically with a household, in most locales). An entire community, hotel, boat or bridge may be rented, however, on a temporary basis.
It is not unusual for commercial areas to fall within the boundaries of an area that has a short-term rental restriction so long as the property is residentially zoned. If a small vacation rental exists within plats of land zoned for another purpose, the tenant may be breaking the law if he/she doesn’t get express permission from the local authority to rent the property as a short-term rental.
Requiring guests to have their rental agreement notarized. A notarized lease agreement doesn’t provide the right to stay in the rental; it simply shows proof that the agreement has been entered into. It does not supersede local ordinances or zoning regulations. It’s also unnecessary since most states do not require notarization in order to make an agreement or contract enforceable.
Not clearly defining "course of dealing." This is the term used to describe how an agreement should be interpreted. In a Florida vacation lease situation, this means that homeowners and guests should carefully review the terms of the agreement to ensure they reflect the intentions of both parties . Using the same form time after time with different tenants can cause the particulars to be misinterpreted or misapplied. Fill-in-the-blank forms should reflect the special circumstances of each situation when it comes to issues like security deposit refunds, late fees, damages, compensation in the event of early termination, etc.
Leaving out important signatures and initials. Florida requires both the landlord and tenant to each acknowledge whether or not an association resides in the property (when subject property is located within a homeowners association). The association must also be advised of any re-leases or renewals of the property’s term.
Ambiguous cancellation policies. Because hotel stays are sometimes canceled through an online booking service, there are laws about how those cancellations should be handled. But there is nothing similar in place for vacation rentals. Be clear about what will happen in case of cancellation for both the landlord and the tenant.
Not providing information about community-specific noise, parking, pet, pool and grilling restrictions. Florida short term rentals may not be subjected to same restrictions as hotel tenants. Guests should be advised whether they can have visitors and whether the property is located in a gated community.
Renting without following all of the steps in the Florida short term rental law process. Changing the name of an agreement or inserting special provisions does not exempt a Florida short-term agreement from all of the requirements of the law.
How to Write a Short Term Lease Agreement
When it comes to safeguarding your property, your best bet is to draft a comprehensive lease that protects your rights and your property. A Florida short term lease agreement is a standard lease used for rentals of 12 months or less (also referred to as a tenancy at will). A lease is a legally binding agreement that protects both the landlord and the tenant.
A Florida short term lease agreement should contain the following:
Details on how your rental business operates: Owners have different policies and requirements and expect different behaviors from their tenants. When a tenant shows an interest in your property, they need to review your short term lease agreement to be sure they feel comfortable with the terms and conditions.
Landlord obligations: The landlord needs to be specific about when rent is due, how rent is paid, who is responsible for repairs and maintenance, and what happens if the tenant pays rent late. Be sure to include rules for parking, pets, trash removal, laundry facility, pool /hot tub, use of recreational facilities, and landscaping. If your property is part of an HOA, be sure to include HOA fees and other policies.
Tenant obligations: A common problem with tenancy at will agreements is that both the landlord and tenant have a tendency to take their roles for granted, which can lead to disputes. Adding clear guidelines makes it clear what each party is responsible for so there are no surprises at the end of the tenancy. Details on the property, like appliances, lawn care and maintenance, and utility responsibilities, should all be included in the tenant’s obligations.
At the end of your Florida short term lease agreement, the document should be signed and dated with space for the landlord and at least two witnesses. Although it’s not necessary here in Florida, you can have your lease agreement notarized for an additional fee. Of course, you also need to keep your Florida short term lease agreement in a safe place so that you have access to it if any disputes should arise.
Considerations for Termination and Renewal
Tenant remains subject to the rental obligation and may be held responsible throughout the notice period for payment of rent. Not ordinarily required to mitigate damage. For example, if a lease is for 12 months and the tenant gives written notice of termination after the first month, the tenant would generally be given 11 months’ rent in addition to any unpaid rent up to that point.
The use and enforceability of termination clauses in Florida short term lease agreements is complex and may vary between counties or circuits, and notably in counties like Miami-Dade and Broward.
In very general terms, a lessor may wish to consider including a termination clause stating that either party may terminate the agreement with notice of thirty days or sixty days. The clauses may be accelerated when there’s a default, or at a party’s respective election in accordance with the specific terms and conditions of the clause . The clause will generally explain how written notice is to be given, and by what method (including e-mail and other electronic method).
In Florida, a tenancy may be terminated promptly at any time if specified in the lease and/or applicable law. Generally, lessors of residential property commonly elect to ground a termination on default, but this is not the only ground and lessors may wish to consult counsel regarding preference of ground.
In view of current Florida case law, it may be wise to consider including an express right for a party to recover reasonable attorney’s fees in enforcing any provisions of the agreement including its termination.
There’s no requirement that a tenancy be renewed, except for commercial tenancies, and the commercial agreement may specify how it may be renewed.
A lessor may wish to consider including an automatic renewal provision in some cases and, if included, it may specify how notice is given and what the notice requirements are – usually mimicking the termination procedure.