How Long Can You Rent Your House Out in Florida & Get Homestead Exemption?

How Long Can You Rent Your House Out in Florida & Get Homestead Exemption?

As in many states, municipalities and school districts in Florida levy property taxes to fund their operations. This tax is based on the value of a property. The more a property is worth, the more it is taxed. Under the Florida Constitution, Florida residents may claim a homestead exemption on their property. The exemption reduces taxes by reducing the taxable value of a property by $25,000.

Snowbirds

    Florida is famous for its snowbirds -- residents of northern states who drive south to escape harsh winters. They then drive north to escape brutal Florida summers. Snowbirds may be tempted to rent their property for a summer to bring in some extra cash. Under Florida law, renting an entire residence constitutes the abandonment of a homestead and the loss of the exemption. There is a big caveat to that rule.

Exception to the Rule

    Under Florida's rules, the value of a home is established on January 1. If a family rents a their homestead after January 1, they are able to keep their homestead exemption. They cannot use this exception for two consecutive years. Thus, snowbirds may rent their property every other year, for up to 364 days.

Qualifying for a Homestead

    Simply owning property in Florida does not qualify a family for a homestead exemption. Applicants must be residents of Florida, and they can only claim one residence as a homestead. Snowbirds who have property in two states with homestead provisions cannot claim the exemption in both states. Applications for the exemption must be filed by March 1 of a tax year.

Other Homestead Benefits

    Tax savings aren't the only benefits of a homestead exemption. The rate at which a property's value grows is capped under Florida law. Property assessments cannot increase by more than 3 percent each year, or the rate of inflation, whichever is less. New construction or additions are not eligible for this tax relief.


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