Investing in a Rental Property: Should You Hire a Property Manager?

Purchasing a rental property can be a lucrative way to generate passive income and build long-term wealth. However, managing a rental property requires time, effort, and expertise. Many investors consider hiring a property manager to handle the daily operations, but is it the right choice for you? In this blog, we’ll explore the benefits of hiring a property manager, the costs associated with their services, the state of Florida’s rental market compared to the rest of the country, and whether outsourcing management makes financial sense for your investment.

What Does a Property Manager Do?

A property manager acts as the middleman between you and your tenants, handling all aspects of rental property management. Their responsibilities typically include:

• Marketing and Advertising:Listing the property, taking professional photos, conducting showings, and attracting quality tenants.
• Tenant Screening:Conducting background checks, credit reports, employment verification, and rental history reviews to find reliable tenants.
• Lease Agreements and Rent Collection:Drafting lease agreements, collecting rent payments, and handling late fees or evictions if necessary.
• Maintenance and Repairs:Coordinating routine maintenance, emergency repairs, and ensuring the property stays in excellent condition.
• Legal Compliance:Ensuring compliance with Florida rental laws, including eviction procedures, fair housing regulations, and lease agreements.
• Handling Tenant Relations:Addressing tenant complaints, enforcing lease terms, and managing move-ins/move-outs.

These services provide convenience and peace of mind, especially for landlords who don’t live near their rental property or prefer a hands-off investment approach.

What Is the Average Cost of Property Management in Florida?

Property management fees vary based on location, services offered, and the company’s reputation. However, in Florida, property management costs typically range between:

• 8% to 12% of the monthly rentfor ongoing management services.
• 50% to 100% of the first month’s rentfor tenant placement services (finding and screening tenants).
• Additional feesfor maintenance coordination, lease renewals, eviction services, and marketing.

For example, if your rental property generates $2,000 per month, a property manager charging 10% would take $200 per month for ongoing management. This cost is often worth it for investors who want passive income without the responsibilities of managing tenants and property maintenance.

How Does Florida’s Rental Market Compare to the Rest of the Country?

Florida’s rental market is one of the strongest in the U.S., driven by high demand, a growing population, and a robust job market. Here’s how it compares:

• High Rental Demand:Florida is a hotspot for both retirees and young professionals, creating strong demand for rental properties. Cities like Tampa, Miami, Orlando, and Jacksonville consistently see low vacancy rates.
• Rising Rental Prices:Florida has seen steady rental price increases, outpacing the national average in many areas due to high migration rates.
• Tourism & Short-Term Rentals:Florida is home to major tourist destinations, making short-term rentals (like Airbnb and VRBO) an attractive option for investors, especially in cities like Miami, Orlando, and Tampa.
• Favorable Tax Benefits:Florida has no state income tax, making it an appealing destination for both residents and investors compared to states with high property and income taxes.

Nationally, rental markets in states like California and New York have high rental prices but also stricter landlord regulations. Florida’s landlord-friendly laws and growing population make it a strong contender for rental property investment.

Does It Make Sense for You to Hire a Property Manager?

Hiring a property manager makes sense if:

✅ You own multiple rental properties and need help managing them efficiently.
✅ You live out of state and can’t handle on-site responsibilities.
✅ You don’t have time to deal with tenant issues, repairs, and lease agreements.
✅ You want to ensure legal compliance without navigating Florida’s landlord-tenant laws yourself.
✅ You’re interested in passive income and prefer a hands-off investment approach.

However, if you enjoy managing properties, have the time to oversee operations, and want to save on management fees, self-managing might be a better option.

Florida’s Landlord-Friendly Laws & Property Management Regulations

Florida is widely regarded as a landlord-friendly state, making it an attractive destination for real estate investors. Compared to other states, Florida’s laws favor property owners, providing more flexibility in managing rental properties, lease agreements, and eviction proceedings. Here’s what you need to know about landlord regulations in Florida:

1. No Statewide Rent Control

Unlike states such as California and New York, Florida does not have statewide rent control laws. This means landlords have the freedom to set rental prices based on market demand without government-imposed limits. However, some cities and counties may impose their own regulations, so it’s essential to stay updated on local ordinances.

2. Fast & Efficient Eviction Process

Florida has a relatively quick eviction process, making it easier for landlords to remove non-paying or problematic tenants. The process follows these key steps:

• 3-Day Notice to Pay Rent or Quit:If a tenant fails to pay rent, the landlord can issue a three-day notice demanding payment or vacating the property.
• 7-Day Notice for Lease Violations:If the tenant violates lease terms (such as damaging the property or unauthorized subleasing), the landlord can issue a seven-day notice to correct the issue or vacate.
• Uncontested Evictions:If the tenant does not respond, landlords can file for eviction in court, and the process usually takes 20–45 days, depending on court backlog.
• No “Right to Cure” for Repeat Offenders:If a tenant repeatedly violates lease terms, landlords can proceed with eviction without offering another chance to correct the issue.

This streamlined process makes Florida a favorable state for rental property owners compared to tenant-friendly states, where evictions can take months or even years.

3. Security Deposit Regulations

Florida allows landlords full discretion in setting security deposit amounts. However, they must comply with specific rules for handling and returning deposits:

• Security deposits must be held in a Florida bankand either kept in a separate non-interest or interest-bearing account.
• Landlords must notify tenants in writing within 30 daysof where the deposit is being held.
• After the lease ends, landlords have 15 days to return the full depositif there are no damages. If deductions are made, landlords must send a written notice within 30 days, itemizing the charges.
• Tenants have 15 days to disputeany deductions before the landlord can legally withhold the amount.

4. No Rent Withholding for Minor Repairs

In some states, tenants can legally withhold rent if the landlord fails to complete minor repairs. Florida does not allow rent withholding for minor issues. Tenants can only withhold rent if the issue affects the property’s habitability, such as major plumbing failures or lack of electricity.

5. Late Fees & Grace Periods

Florida does not impose a mandatory grace period for rent payments, meaning landlords can charge late fees immediately after the due date. However, late fees must be clearly stated in the lease agreement to be enforceable.

6. Lease Renewal & Termination Flexibility

Landlords in Florida have the right to refuse lease renewals without providing a reason, as long as they comply with proper notice periods:

• Month-to-Month Tenancies:Requires 15 days' notice before termination.
• Fixed-Term Leases (e.g., 1-Year Lease):Landlords are not required to provide advance notice unless the lease states otherwise.

This flexibility gives landlords control over tenant selection and property management without excessive legal hurdles.

7. Short-Term Rentals & Airbnb Regulations

Florida is a popular market for short-term rentals, with many cities allowing Airbnb and vacation rentals. However, local governments can impose restrictions such as:

• Zoning laws limiting short-term rental operations in certain areas.
• Licensing requirements (some cities require vacation rental permits).
• Occupancy limits or noise ordinances to prevent disturbances in residential neighborhoods.

Before purchasing a rental property for short-term use, investors should check city and county regulations to ensure compliance.

Why Florida’s Laws Benefit Rental Property Owners

Compared to other states, Florida’s landlord-friendly laws make it easier to manage properties, evict problem tenants, and maximize rental income. There are fewer restrictions on rent increases, lease terminations, and late fees, giving property owners more control over their investments.

Final Thoughts: Let’s Find the Right Investment for You

Deciding whether to hire a property manager depends on your investment goals, time commitment, and experience. If you’re considering purchasing a rental property in Florida, we’re here to help you find the best investment opportunities.

📩 Contact us today at Tatum@mkarealty.com to start your journey toward successful rental property ownership!