Tom, a Florida landlord, thought he was making a safe decision to rent his townhouse to his old college buddy, Mark. Tom figured that renting to a friend would mean honesty, easy communication, and peace of mind.

At first, everything went smoothly. Mark moved in without paying a security deposit (Tom figured he could trust him). Mark paid rent on time for the first two months, but then Mark started making excuses: his paycheck was “late,” or unexpected bills had come up. Tom didn’t press him and didn’t charge late fees, thinking it wasn’t worth straining the relationship.

By month six, Mark hadn’t paid full rent in three months and was thousands of dollars in arrears. On top of that, neighbors complained about loud parties at the home. When Tom went to inspect the property, he discovered leaking pipes in the bathroom that had gone unreported for weeks or months. Mold had already spread through the drywall, causing thousands in damage.

Things got worse when Tom tried to communicate with Mark about the problems, but Mark stopped responding altogether and fell behind on rent even more. Tom finally had to file an eviction, but because he had been inconsistent with rent collection and had accepted partial payments, Mark’s attorney argued that Tom had waived his right to enforce the lease without giving the required notice prior to filing the eviction. The case dragged on for months. Eventually, Mark was evicted but not before costing Tom thousands in legal fees.

When Mark vacated, Tom was left with a damaged townhouse, no security deposit to offset damages, and a severed friendship. What started as an arrangement of trust ended in financial loss, legal headaches, and a broken relationship.

This article provides landlords with guidance how to structure and manage a “friendly” tenancy professionally to avoid legal liability, financial losses, and personal fallout.

1. Application and Screening Process

Never skip the application process, even if the person is your sibling, cousin, or childhood friend. Make sure you use an objective residence selection criteria. Require them to complete a rental application like any other applicant. Require the applicant to provide you with:

• Proof of income (pay stubs, bank statements, tax returns)
• Verification of employment
• Government-issued ID
• Previous landlord contact information
• Consent to run credit and background checks

If the applicant qualifies to rent the home, send the applicant a formal Offer to Lease that provides the terms and conditions to become a tenant. Once the applicant accepts your offer to lease, prepare the lease agreement for signature.

Tip: Applying your screening process uniformly helps avoid Fair Housing Act claims. Favoring someone you know while denying a stranger with similar qualifications can be used as evidence of discrimination or inconsistency.

2. Security Deposit

Trust does not pay for damage to your property. Require:

• a sufficient security deposit at move-in (or in installments if agreed in writing), and
• a detailed lease provision explaining deposit use and refund procedures

The “Fee In Lieu” Alternative: If offering a Fee in Lieu of Security Deposit (FILSD) under F.S. 83.491, make sure the tenant qualifies and that you comply with the notice and recordkeeping requirements imposed by the statute. If FILSD is chosen, incorporate a lease addendum that governs this situation.

Do not do this: “Because it was my cousin, I didn’t collect a deposit.” After she moved out with unpaid rent and pet damage, the landlord had no financial leverage or funds to offset the loss.

3. Move-In Conditions

Photos and documentation are essential to preserving evidence and avoiding disputes about property conditions. Prior to the move-in date, do a walk-through of the property and take date-stamped photos or videos of all aspects of the property, interior and exterior, including:

• walls, floors, ceilings
• appliances and fixtures
• bathrooms and kitchens
• exterior, yard, garage

Test the functions of the home prior to the move-in date, including:

• faucets and sink stops
• bath/showers and drainage
• toilets
• light switches
• locks and windows

Landlord Tip: Have the tenant sign a Move-In Inspection Form and keep it for your records. This acknowledgment from the tenant about the property conditions prevents disputes later about pre-existing conditions.

4. Attorney Drafted Lease

Do not rely on a generic lease templates or verbal agreement. Use a landlord attorney prepared lease. Aside from the standard terms typically seen in lease agreements, the lease should provide for important tenant obligations, such as maintenance obligations, use of the premises, prohibited conduct, occupant limits, reporting of defects, mitigation, lease violations beyond the minimum requirements under F.S. 83.52, lease violation fees, etc.

Don’t miss this! The lease agreement is the most important document in the tenancy relationship. Without a solid written lease, you may not be able to enforce good landlord practices to protect yourself and key provisions like late fees or lease termination conditions.

Landlord Tip: Avoid a lease term that exceeds a year. While it may appear to be a good thing to have a lengthy lease term, it can cause significant problems for the landlord when the lease needs to be terminated.

5. Periodic Inspections

Do not rely on trust to protect your asset. Perform property inspections:

• Every 3–6 months (or more often if justified)
• With proper written notice under F.S. 83.53 (12-hour advance notice)
• Document with photos and written findings

In between your inspection, you can also request the tenant complete a Tenant Self-Inspection Form (and your lease can provide for their obligation to comply).

Example: A landlord who rented to her niece discovered major water damage caused by an unreported leak, but only after the lease ended and mold had set in. Routine inspections could have prevented a $20,000 repair.

6. Reporting of Maintenance Issues

In the lease agreement, the tenant should be required to report damage or maintenance problems in writing and promptly. The lease should:

• Obligate the tenant to report leaks, pests, broken fixtures, etc.
• Include a failure-to-report clause waiving claims for damages resulting from delay

F.S. 83.52 provides that the tenants must keep the premises clean and sanitary and use fixtures reasonably, but these requirements are very basic and do not give landlords much enforcement mechanism, which is why landlords need a well-drafted lease agreement. Landlords may become liable for unreported issues that worsen over time if not properly addressed.

7. Timely Landlord Repairs

Do not let the relationship delay repairs. Respond as you would with any other tenant. Document when the request was made and how/when you responded.

Under F.S. 83.51(1), landlords must maintain the premises in good repair and comply with building, housing, and health codes. Failure to do so may allow a tenant to withhold rent or terminate the lease under F.S. 83.56(1) and can be a defense to an eviction for non-payment of rent under F.S. 83.60.

That said, for single family or duplex housing, pursuant to F.S. 83.51(1)(b), the landlord can alter certain obligations in the written lease agreement. Having a lease agreement that imposes and clarifies certain (normally more minor) maintenance obligations on the tenant will help relieve the landlord from disagreements about maintenance during the tenancy.

Trap: “I thought she was fine waiting a few weeks.” That delay could be treated as a statutory violation. The more serious the report, the more due diligence required to assess and address the situation.

8. Enforce Rent Deadlines

Routinely accepting late rent without enforcing late fees or providing a Notice to Pay can result in legal waiver of your right to charge late fees or even waive your right to terminate the lease; or may require you to deliver notice of not accepting any further late fees to reinstate your rights under the lease.

Under F.S. 83.56(5)(a), if a landlord accepts rent with actual knowledge of a lease violation, they waive their right to evict for that violation unless it is continuing in nature.

Landlord Tip: If you want to preserve your right to evict or collect late fees, enforce rent terms timely and consistently.

9. Require Insurance

One of the most overlooked protections for landlords is ensuring proper insurance coverage exists, not only for the landlord’s property but also for the tenant’s liability and personal belongings.

Landlord Should Always Carry a Dwelling Policy. As a landlord, you should carry a landlord dwelling insurance policy (not a homeowner’s policy) that covers damage to the structure, liability claims, and loss of rental income. Ensure the policy covers perils such as fire, wind, and water intrusion.

Require Tenants to Obtain Liability Insurance. Many landlords now require tenants to obtain liability coverage—usually between $100,000 and $300,000—naming the landlord as an “interested party.” This protects the landlord if the tenant causes fire, water damage, or injury to others. Use a lease addendum to require the tenant to obtain liability insurance.

Require/Suggest Tenants to Obtain Renter Insurance. Similar to a liability policy protecting the landlord, a Renter policy will help protect the tenant for any damage to the tenant’s property in a “covered peril”. This can help to avoid disputes in the event some property condition causes damage to the tenant’s property during the tenancy.

Landlord Tip: Include a provision in the lease requiring proof of liability insurance as a condition of tenancy. Verify the policy annually and document compliance.

10. Move-Out Inspection

When the lease ends, promptly:

• Document all move-out conditions using a checklist to ensure completeness
• Walk through the property with the move-in photos and the Move-In Form
• Take new photos to compare condition
• Keep all receipt and invoices for expenses of repairing damaged property
• Keep the contact information of any vendors used to repair or assess damages

Florida Statute: Security deposit claims notice must be made by certified mail the tenant’s last known address (or email pursuant to F.S. 83.505) within 30 days of the lease ending pursuant to F.S. 83.49(3) or 83.491.

You cannot lawfully deduct unless you have proof that the damage occurred during the tenancy and is beyond normal wear and tear (except for damages that are otherwise defined and specified in the lease).

Always make a claim on the deposit at the termination of the lease when the tenant has caused damages or owes you money under the lease agreement. If no deposit claim is intended to be made, deliver the deposit money to the tenant within 15 days of termination of the lease.

Landlord Tip: the lease agreement cannot force a “forfeiture” of the deposit upon a tenant breach. You must make a claim on the deposit.

Final Thought

Landlords often lose more money—and relationships—when they mix business with personal trust. Renting to a friend or family member may start with goodwill, but when legal disputes arise, the courts will enforce the lease and the law. Personal history cannot override statutory obligations. The best way to protect your friendship and your property is to treat the tenant like any other — with documentation, professionalism, and lawful procedures.