BreakThru Realty

Relocating to Florida as a Real Estate Investor

Buying the home you will live in and the property that pays, under Florida’s rules

Some people moving to Florida are buying two things at once: a home to live in and a property to rent out, or a portfolio moving south along with them. That combination has rules of its own. This page covers the Florida-specific points a relocating investor should understand before buying, from condominium leasing limits to where homestead does and does not apply.

BreakThru Realty · Founder and Broker of Record: Tyson E. Sam, Florida License 3565210

Discuss Your Investment Plan

A Home to Live In and a Property That Pays

Buying your own home and an investment property in the same move is efficient, but the two purchases call for different analysis. Your home is judged on how you want to live; the rental is judged on rent, vacancy, expenses, insurance, association rules and resale. Financing differs as well, because loans on investment property generally carry different terms and down-payment requirements from those on a primary residence, so consult a mortgage lender before you set a budget for either. Order matters: buying your home first establishes where you live, while buying the rental first may let its income count toward the second purchase. Your agent helps you plan the sequence and analyzes each property on the terms that fit it.

Condo Declarations and Rental Restrictions

Many of the more affordable rentals in South Florida are condominiums, and the building’s governing documents decide whether you can rent the unit at all. Declarations and rules can set a minimum lease length, limit how many times a unit may be leased each year, bar leasing during an owner’s first year or two, require association approval of every tenant with an application fee, or cap the number of rented units in the building. Some buildings prohibit short-term rentals outright. Florida law also limits how certain new leasing restrictions apply to owners who bought before the change, which is one more reason to read the documents rather than rely on a listing remark. Your agent obtains the declaration, bylaws, rules and recent amendments during the review period.

  • Minimum lease terms and how often a unit may be leased
  • Waiting periods before a new owner may lease
  • Association approval of tenants and application fees
  • Caps on the number of rented units in the building
  • Outright bans on short-term or seasonal stays

Short-Term Rental Rules Vary by City

If you want to rent by the night or the week, the rules depend heavily on where the property sits. Florida requires vacation rentals to be licensed by the state, and short stays owe state and local transient rental taxes, but cities and counties set their own registration, inspection, parking, occupancy and zoning requirements, and many neighborhoods sit under association rules that bar short stays altogether. What is allowed in one city may be heavily restricted a few miles away. Before buying for short-term income, verify the rules with the city or county, read the association documents, and budget for cleaning, management and furnishing. Your agent helps you find the local requirements, but the city or county is the authority on them.

Florida Landlord-Tenant Basics

Florida’s residential landlord-tenant law sets out how a landlord must hold and return security deposits, what notices are required and how they must be delivered, the landlord’s duty to maintain the property, and the court process for removing a tenant who does not pay. Local ordinances can add requirements of their own, such as rental registration or additional notice rules in some cities and counties. None of it is complicated once you know it, but mistakes in deposit handling or notice can cost a landlord a case. Read the statute, or have a property manager or a Florida attorney walk you through it, before your first lease. If you would rather not manage the property yourself, a licensed property manager can handle tenants, repairs and rent collection.

Insuring a Rental Property

A rental needs a landlord policy rather than a homeowners policy, and the difference matters: landlord coverage addresses the building, your liability and loss of rental income, while tenants cover their own belongings with renters insurance, which many landlords require in the lease. Flood insurance is separate from both and, through the NFIP, usually carries a 30-day waiting period, so it cannot be bought the week a storm appears. Older homes often need a four-point inspection to be insured, and a wind-mitigation inspection can lower the premium. In a condominium, the association insures the building structure and you insure the unit’s interior. Get quotes during the inspection period and put the real figure into your return analysis before you commit.

Homestead Applies Only Where You Live

Homestead and the Save Our Homes cap cover a single property: the one you own and occupy as your permanent residence. A rental property does not qualify, so it is assessed without that protection and its tax bill will generally run higher than a comparable homestead. Budget for that when comparing properties, and do not assume the seller’s current tax bill will be yours after closing, because the seller may have held exemptions that end with the sale. If you own several properties in Florida, keep clear records showing which one is your residence. Your CPA or tax adviser can confirm how the rules apply to your particular holdings, and your agent will estimate taxes on each rental without homestead when you compare them.

A 1031 Exchange From Out-of-State Property

If you are selling investment property in another state, a like-kind exchange under Section 1031 of the Internal Revenue Code may let you defer tax on the gain by buying replacement investment property in Florida. Real property held for investment or business use can generally be exchanged for other such property across state lines, but the rules are strict: the proceeds must be held by a qualified intermediary rather than by you, replacement property must be identified and acquired within fixed deadlines, and the home you live in cannot be part of the exchange. Your former state may also track the deferred gain. Engage a qualified intermediary before the sale closes and have a CPA plan the exchange. Your agent works to the exchange’s timetable when searching.

How BreakThru Works With a Relocating Investor

Your agent treats both purchases as one plan. That begins with a frank conversation about goals, budget and how hands-on you want to be, then a search that runs your home and your investment property in parallel so the timelines fit together. For each rental candidate you receive the numbers that matter: comparable rents, association fees and leasing rules, estimated taxes without homestead, insurance quotes and likely maintenance. Where a property is multifamily, mixed-use or commercial, the brokerage’s commercial division can join the search. If you are selling elsewhere, BreakThru can introduce you to an agent there through a broker-to-broker referral. And your agent will tell you plainly when a property that looks good on paper does not fit what you need it to do.

Discuss Your Investment Plan

Where you are moving from, what you want the property to do, and the budget. A BreakThru agent replies within one business day.

Call or email the brokerage directly: (786) 914-1017 · sales@breakthrurealty.com

Questions People Ask Before Moving

Can I rent out a condo I buy in South Florida?
Only if the building’s declaration and rules allow it, and on their terms. Many buildings set minimum lease lengths, limit leases per year, require tenant approval, or make new owners wait before leasing. Read the declaration, bylaws, rules and recent amendments during your review period, before the contract becomes binding.
Are short-term rentals allowed in South Florida?
It depends on the city, the zoning and the association. Florida requires vacation rentals to be licensed by the state and short stays owe transient rental taxes, while cities and counties add their own registration and operating rules. Many associations prohibit short stays entirely. Verify locally before buying for short-term income.
Does a rental property get the Florida homestead exemption?
No. Only the home you own and occupy as your permanent residence can carry homestead and the Save Our Homes cap. A rental is assessed without them, so its taxes will generally be higher than a comparable homestead. Confirm how this applies to your properties with your tax adviser.
Can I do a 1031 exchange from another state into Florida?
Generally, yes: real property held for investment can be exchanged for investment property in another state. The rules are strict, the proceeds must go to a qualified intermediary, and deadlines are fixed. Arrange the intermediary before your sale closes and have a CPA plan the exchange.
What insurance does a Florida rental property need?
A landlord policy covering the building, liability and lost rent; separate flood insurance where the property warrants it, keeping in mind the usual 30-day NFIP waiting period; and, in a condominium, a unit-owner policy for the interior. Ask tenants to carry renters insurance. Get quotes before your inspection period ends.
Should I buy my own home or my rental property first?
It depends on your financing, your timeline and where your cash is coming from. Buying your home first settles where you live; buying the rental first may let its income support the next purchase. Consult a mortgage lender about how each order affects your loans, and your agent can plan the timing.

Moving to Florida

Moving From Another State

Relocation By Situation

Corporate Relocation & Partners

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