Why the Florida math broke

Insurance is the first half. Premiums across Florida have risen substantially, and a non-owner-occupied rental is not a carrier's preferred risk. Roof age, prior claims, and a four-point inspection all bear on whether a policy is even available, let alone affordable.

The second half is assessment. A homesteaded house has its assessed value capped at 3 percent a year or CPI, whichever is lower. A rental has a separate cap of 10 percent, applying to non-school levies. Over a decade of rising values that gap compounds into a very different tax bill for two similar houses on the same street.

Sell occupied, vacant, or mid-turnover

  • Occupied with a paying tenant, mid-lease or month-to-month
  • Occupied with a tenant in arrears, or with an eviction filed
  • Vacant and stripped between tenants
  • Half-renovated, with the work stopped
  • Condos in buildings with special assessments or rental restrictions
  • Duplexes, triplexes, fourplexes, and small multifamily
  • Several properties closed together
  • Snowbird rentals and seasonal properties owned from out of state

What we look at on a Florida rental

Condition and location drive the number, but the lease matters too: rent against market, term and renewal dates, payment history, deposit accounting and which account holds it, and whether the tenancy is subsidised. In Florida the lease and the deposit both transfer at closing, so an occupied sale needs no eviction.

For a condo we also look at the association: reserves, the milestone inspection and structural integrity reserve study, any special assessment, delinquency rates, and rental restrictions. A building with an unfunded major repair cannot be financed, which is why so many Florida condo rentals are cash sales.

Before you sign anything

Florida has no state income tax, so there is no state capital gains tax on the sale. Federal rules still apply, including depreciation recapture on a rental — which surprises owners who budgeted only for capital gains.

If a 1031 exchange is part of the plan, the qualified intermediary has to be in place before closing rather than arranged afterwards. That is a CPA conversation and it is cheaper to have it first.

Frequently asked questions

Can I sell a Florida rental with a tenant in place?

Yes. The lease and the security deposit transfer to the buyer at closing and the tenancy continues.

Why has my rental's tax bill risen faster than my neighbour's?

Because Save Our Homes caps a homestead at 3 percent or CPI, while non-homestead property has a looser 10 percent cap.

Do I have to do a make-ready before selling?

No. We buy mid-turnover, stripped, or fully occupied.

Can I sell several Florida rentals at once?

Yes. A single closing across multiple addresses is common and usually simpler.

Is there state capital gains tax in Florida?

No state income tax, so no state capital gains tax. Federal capital gains and depreciation recapture still apply — ask a CPA.

This page is general information about selling property in Florida, not legal, tax, or financial advice. Laws change and every situation is different, so talk with a qualified Florida professional about yours.