If you’re thinking about buying an investment property in Florida, you’ll want straightforward answers, not complicated legal theories.
At KEW Legal®, that’s exactly how we approach things. Our team helps investors make smart decisions by clearly explaining your options and focusing on what really matters, protecting your investment without wasting your time or money.
Key Takeaways:
- Florida’s property market stays strong in 2025, ideal for investors.
- Choosing an LLC and knowing local rules protects your investment.
- Smart financing choices boost your returns.
- Good property management makes remote investing simple.
Is Florida Still a Good Place to Invest in 2025?
Yes, Florida remains an attractive destination for real estate investment in 2025. Single-family home inventory is surging compared to 2024, marking a significant shift toward a buyer’s market.
Additionally, the state continues to benefit from strong population growth, with an annual increase of approximately 300,000 residents projected through 2028. This demographic trend, combined with no state income tax, sustains steady demand for housing.
2025 Housing Market Predictions
Analysts forecast steady (though slightly slower) growth in 2025. Expect stable home prices and consistent rental demand thanks to remote workers, retirees, and young renters. Market stability makes planning investment returns easier and less risky.
Best Florida Cities for ROI
Investors looking for high returns should focus on cities like Miami, Orlando, Tampa, and Jacksonville.
As reported by the Tampa School of Real Estate, Miami is expected to see a combined growth of 33% in home sales and price appreciation in 2025. Similarly, Orlando is projected to experience a 27.3% combined growth rate due to its booming tourism industry and growing tech sector. Jacksonville offers affordability and potential for long-term growth, with a predicted combined growth rate of 23.3%.
Legal Considerations Before Investing in Florida
Before investing in Florida, it’s smart to understand a few basic legal points. Knowing these upfront helps protect your property and profits, keeping things simple and stress-free as you move forward.
Choosing the Right Ownership Structure
Your first decision is picking how you’ll legally own your property. Each choice has pros and cons:
- LLC (Limited Liability Company): Most Real estate investors use LLCs. They’re simple, protect your personal assets if something goes wrong, and offer tax flexibility.
- Corporation: Typically not ideal for real estate due to complicated tax structures and extra paperwork.
- Individual Ownership: Simple, but risky. If someone sues, your personal savings or home could be at stake.
Tax Obligations
Florida’s tax environment remains favorable for investors. The state imposes no income tax on rental earnings. However, short-term rentals are subject to a 6% transient rental tax plus additional local taxes. Investors should also account for property taxes, which vary widely by county and can significantly impact profitability.
Short-Term Rental Rules (Airbnb Laws)
If you plan on renting short-term (Airbnb style), Florida cities each have different rules. Some places encourage rentals, while others restrict or ban them altogether. For example:
- Orlando: Short-term rentals are allowed in certain zones, clearly regulated.
- Miami: Heavier regulations, more complicated rules.
- Tampa: Balanced rules. Ideal for longer-term rentals with fewer restrictions.
7 Steps to Buying an Investment Property in Florida

Buying an investment property in Florida doesn’t need to be complicated. Here’s how to do it right and stay protected legally at every stage.
Step 1: Clarify Your Investment Goals
- Decide whether you’re aiming for short-term vacation rentals or stable long-term tenants.
- Choose your ownership structure (usually, an LLC works best).
- Factor in your preferred investment returns, property type, and location.
Step 2: Get Financing Pre-Approval
- Explore DSCR loans (they focus on rental income) or traditional investor mortgages.
- Carefully read loan terms, interest rates, and repayment conditions.
Step 3: Partner with a Local Real Estate Agent
- Choose an agent familiar with local neighborhoods, property values, and zoning rules.
- Let them guide your search to avoid legal or financial surprises later.
Step 4: Perform Thorough Due Diligence
- Hire a reliable attorney to assist in the completion of these matters.
- Verify zoning compliance (make sure your intended rental type is permitted).
- Review property title history for hidden issues or liens.
- Conduct comprehensive property inspections to avoid costly repairs or lawsuits.
Step 5: Negotiate and Make Your Offer Clearly
- Outline your offer clearly, including purchase price, contingencies, and timelines.
- Transparent terms prevent legal disputes later.
Step 6: Close Securely and Correctly
- Hire a reliable closing agent or title company to handle all paperwork.
- Review every document personally before signing to catch potential errors early.
Step 7: Arrange Property Management Early
- Decide how you’ll manage the property remotely, and consider hiring professionals.
- Clearly document management responsibilities to avoid confusion and disputes.
Avoid These Costly Legal Mistakes

Avoiding basic mistakes keeps your property profitable and trouble-free. Here’s what investors commonly overlook:
Neglecting Proper Entity Setup (LLC or Corporation)
Investors sometimes skip forming an LLC because it feels complicated or unnecessary. But if something goes wrong, a tenant sues or there’s an accident, your personal money, home, or savings could be at risk. Setting up an LLC is simple and affordable and protects you financially.
Ignoring Insurance Requirements and Liability Coverage
Relying only on basic homeowner’s insurance is risky. Make sure your policy covers:
- Rental property use explicitly.
- Liability for accidents and injuries on your property.
- Loss of rental income if something prevents tenants from living there temporarily.
Overlooking Local Zoning and Rental Laws
Local zoning rules and rental restrictions change often. Missing updates can lead to fines or even prevent you from renting your property. Always confirm:
- Short-term rental laws and permits.
- Property zoning compliance.
- HOA or community rental guidelines.
Florida Real Estate FAQs for Investment Property Owners
Q: Do I need an LLC to own rental property in Florida?
No, you’re not legally required to have an LLC, but it’s highly recommended. An LLC protects your personal assets if there’s a lawsuit or property issue, keeping your investments safer.
Q: What are Florida’s landlord-tenant laws like?
Florida landlord-tenant laws mostly favor tenants, especially around eviction procedures and property maintenance.
Q: How does Florida tax rental income for out-of-state investors?
Florida doesn’t have a state income tax, but you’ll owe federal taxes on your rental income. You also need to pay local property taxes, which vary by county, so factor these costs into your investment budget.
Invest in Florida with Confidence
Buying investment property doesn’t have to be complicated or stressful. At KEW Legal®, we simplify the legal side of real estate investing so you can focus on growing your wealth.
Ready to move forward with clarity and peace of mind? Reach out directly through our contact page and let’s make your Florida investment goals a reality.