Essential Information for Landlords

Protecting Your Property, Income, and Peace of Mind

Owning rental property is one of the most powerful ways to build long-term wealth and generate steady income—but it’s not without its risks. From unexpected tenant issues to legal liabilities and income disruptions, being a landlord requires more than just collecting rent. It takes smart planning, the right protections, and a clear understanding of your responsibilities. Whether you’re just starting out or managing multiple units, it’s important to structure your rental business in a way that protects your assets and keeps your cash flow secure. Based on real-world experiences with landlords in our market, we’ve put together this guide to help you stay informed, protected, and ahead of the curve.

Title Your Property Wisely: Use a Corporation or LLC

When purchasing rental property, it’s best to hold the title under a corporation or LLC rather than your personal name. Why? Liability.

If someone sues you personally—say, because of a car accident or other unrelated incident—and you own property in your name, that property becomes vulnerable. For example, if you’re sued for $1 million and your insurance only covers $100,000, your assets (including the rental property) can be pursued for the remainder.

However, if the property is titled under a corporation, only the corporation’s assets are at risk—not your personal ones.

Tip: If you own more than one rental, consider creating a separate corporation for each property. This prevents a lawsuit involving one property from endangering the others.

Insurance: Don't Go Without It

Even if you set up your properties under LLCs, insurance remains a non-negotiable layer of protection. Here’s what we recommend:

Liability Insurance

Covers accidents and injuries that occur on your rental property. It’s surprisingly affordable—about $900/year for $1 million in coverage.

Umbrella Insurance

Provides an extra layer of liability protection across all your assets—real estate, vehicles, boats, and more. It kicks in when your basic insurance limits are exhausted.

Renters Insurance

You can either require your tenants to carry renters' insurance or purchase it yourself. Renters insurance protects the tenant’s belongings from theft, fire, or flood and provides liability coverage if someone is injured in the unit.

Consider Rent Guarantee Insurance

No landlord wants to chase rent payments—or worse, go months without income. That’s where rent guarantee insurance comes in.

This policy covers your rent if a tenant defaults. It typically costs around 6% of the annual rent (for a $2,500/month unit, that’s about $1,800/year). Providers include Rent Rescue and Steady.

Handle Security Deposits Correctly

In Florida (and many other states), landlords must handle security deposits according to specific legal requirements:

Deposits must be held in a separate escrow account, not your personal bank account.
The account should be non-interest-bearing (unless otherwise specified).
You must notify the tenant in writing with details about the account.
If you want to make a claim against the deposit, you must follow the exact process laid out in Florida Statute §83.49—including specific deadlines and notices.

Failure to follow these rules can result in losing your right to keep any portion of the deposit, even if your claim is valid.

Final Thoughts

The rental market is shifting, and tenant protections are evolving quickly—especially in cities like ours. Now more than ever, landlords must be informed and proactive in protecting their investments.

From titling your property properly to making sure you’re covered by the right insurance; small steps today can prevent major headaches tomorrow.