2023 Florida Legislative Session: Changes Impacting Multifamily Investors
Following the 2023 Florida legislative session, several bills impacting multifamily investors have passed or are on their way to the Governor’s desk for signature. We cover the main impacts to our investors here.
Rent Control
Local governments are prohibited from passing rent control. Previously, the Florida Statutes permitted rent control in the case of an "existing housing emergency".
Part of the Live Local Act, this provision provides clarity that rent control is off the table in Florida at a time when a few local governments were considering it. A welcome relief for landlords.
The Live Local Act itself is one of the most impactful pieces of housing legislation passed in Florida in decades. The bill is mostly concerned with expanding the Affordable housing supply in large new construction projects and has less of an impact on small multifamily properties. If you’re interested in reading more on the Live Local Act, this is the best summary I’ve found:
https://www.jdsupra.com/legalnews/florida-s-live-local-act-6465940/
Security Deposits
Bill HB 133 gives landlords the option (not requirement) to charge a nonrefundable monthly fee in lieu of security deposit. I covered this in more depth in a recent video I posted on LinkedIn. More alternatives to security deposits is a good thing in my view, especially in a climate where tenants have trouble coming up with move-in monies.
Liability for Acts of a Third Party in a Multifamily Property
HB 837 can be thought of as a ‘safe harbor’ in which multifamily owners are protected from liability for criminal acts committed on their property as long as they substantially implement certain security measures. These measures include:
Security camera system at entry and exit points, which records and maintains as retrievable video footage for at least 30 days
Dusk until dawn lighting in parking lots, walkways, laundry rooms, common areas, and porches
At least a one-inch deadbolt on unit doors
A locking device on windows, exterior sliding doors and other doors not used for community purposes
Locked gates with key or fob access for pool fence areas
Peephole or door viewer on unit doors that do not include windows
By January 1, 2025, compliance with a Crime Prevention Through Environmental Design (CPTED) design assessment and crime deterrence/safety training for current employees.
Conclusion
Rent control squashed, security deposit alternatives are codified into law, and landlord liability is reduced by following the provisions of HB 837. Taken together, it’s a good day for Florida landlords.