Showing posts with label rent. Show all posts
Showing posts with label rent. Show all posts

Monday, January 26, 2015

eviction process

Evictions
Evictions are also covered by the Florida Residential Landlord and Tenant Act (FS § 83). Under this act, tenants can be evicted for failing to pay rent or failing to comply with requirements under the lease agreement, or obligations under 83.52, F.S.
The eviction process depends on the nature of the breach of the agreement. This is detailed in Section 83.56, F.S. Three-Day Notice
If a tenant fails to pay his or her rent, the landlord or property manager must serve the tenant with a written notice allowing three days business days, excluding Saturday, Sunday and legal holidays. Legal holidays for the purpose of this section shall be court-observed holidays only. If the tenant does not pay the rent or move, the property manager may take steps to evict the tenant. A three-day notice is given when the tenant is one or more day’s delinquent in his or her rent. Proper wording and delivery is required.


Seven-Day Notice
7-day notice to terminate:
A tenant can be evicted if he or she exhibited a lack of consideration for the rights and privacy of other tenants or for damage, destruction or misuse of the property.
7-day notice to cure:
A non-compliance, seven-day notice gives the tenant seven days to remedy a non-compliance, breach, or violation in his or her rental agreement. Should the same conduct occur again within 12 months of the first notice, eviction can be filed after a seven-day notice to terminate. A seven-day notice also applies to week-to-week tenancies.


Fifteen-Day Notice
This is used to terminate a month-to-month tenancy. Notices are not themselves evictions. If a tenant ignores the notice, the property manager then proceeds to a formal eviction action. The property manager may only file a formal eviction action for non-payment of rent and only if uncontested. If the eviction is for any other reason, or if the non-payment of rent eviction becomes contested, the landlord or landlord’s attorney must handle this process. This is where property managers get in trouble!
The notice is the landlord's request or formal demand that the tenant moves out. It is delivered to the tenant only and is not filed in court. If the tenant does not voluntarily move as requested by the notice, the landlord may file an eviction case in court. The eviction case is the landlord's request, or formal demand, made to the County Court. It asks the Court to evict the tenant. A Summons and Complaint is delivered to the tenant by a process server.


Tenant Response
If the court agrees with the property manager, the tenant will be notified in writing and have five days to respond in writing to the court.
If the tenant does not respond or a judgment is entered against the tenant, the clerk of the county court will issue a “Writ of Possession” to the sheriff who will notify the tenant that eviction will take place within 24 hours. If the tenant fails to vacate, the sheriff will establish a time to meet with the property manager and a specified number of people for removal of the personal property. See Table 1A below for an eviction flow map.Several Florida counties have additional burdens for either the landlord or the tenant, or both. Property managers should verify the requirements of the county before committing the property owner to an action.


In Florida, a property manager is allowed to file an eviction. Chapter 83.59 was amended giving managers this right in 1992; however, if the tenant files a response, the property manager must have the owner or attorney litigate the matter. If the property is not owned by an individual but by a corporation or LLC, an attorney may be required to proceed with the eviction.
A power of attorney does not grant a property manager the power to act as an attorney or eliminate the requirement to be an attorney if the property manager is going to represent someone other than himself or herself in a legal proceeding.Unless the property manager is a principal in the ownership of a property, he or she is prohibited from filing any lawsuit other than for a residential eviction for possession only.


When discussing the process of eviction with an owner, tenant or any other party to an agreement, real estate professionals must be careful to avoid the unauthorized practice of law. If a disagreement arises the property manager should be encouraging the owner they represent to seek out proper legal advice.
Let's consider this: What does the NAR Code of Ethics say about the unauthorized practice of law?







how much notice do i have to give my tenant to enter my property?

The 1993 legislature defined reasonable notice for entry for repairs purposes as 12 hour notice, and entry between the hours of 7:30 am and 8:00 pm.

Sunday, January 4, 2015

Can a loss generated from residential or commercial realty be used on the tax return of the investor?

Can a loss generated from residential or commercial realty be used on the tax return of the investor? This question is asked often because there is so much confusion as a result of the passive activity loss rules adopted by Congress in 1986. The answer is yes if the basic rules of the Tax Reform Act of 1986 are met. The tax law states that losses from real estate activities in which the investor does not materially participate can only be used to offset income from passive activities. In this unit we will investigate the concept of losses and the proper calculations for the transfer (sale) of property. At the conclusion of this unit the student will be able to; •restate the passive loss rules •discuss proper calculations for the transfer of property •identify IRS provisions affecting investor taxation debbiesmall.net

Wednesday, December 3, 2014

should you sell your home or rent it out? What are the tax ramifications?

Some homeowners who can’t sell their home may consider converting it to a rental rather than lowering the price or leaving it vacant. Remember, if a home has been used two out of the last five years as a primary residence, it may qualify for the homeowner’s exclusion of Section 121 of the tax code. This means any gain up to $500,000 for a married couple filing jointly or $250,000 for a single person may be excluded and exempt from tax. Therefore, the property could be rented for up to three years and still fall within the qualifying timeframe. If the property was rented for more than three years, it would no longer qualify for the exclusion. Example: Phil and Miranda are married homeowners who are looking at selling their home. If they sell, they would have a $300,000 long term capital gain. Since Phil and Miranda meet the requirements of the Section 121 exclusion, there is no tax due. However, if instead of immediately selling the house, they rent the home for more than three years and then sell they would lose the exclusion. This would mean a tax liability of $300,000 x 15% or $45,000 upon the sale of the property. If there is not much of a gain to be taxed, converting a primary residence to a rental property may be an appropriate strategy. Again, real estate licensees should encourage their customers to consult with tax experts to make an informed decision.