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An emerging body of case law is expanding the way the courts treat illegal or unethical actions by a debt collector on behalf of a creditor. Landlords who enlist the services of debt collectors or debt collection services need to be aware of these changes in order to avoid potential litigation down the line.

In the past, creditors like landlords would never be held liable in lawsuits against the debt collector as they were not, themselves, considered to be debt collectors under the Fair Debt Collection Practices Act (FDCPA). Instead, the debt collector would be held solely responsible for any actions that violate the FDCPA.

Two recent cases have altered these definitions and are exposing creditors to future liability by considering creditors to be vicariously liable for the actions of a third-party debt collector’s actions simply because of the existence of an agreement between the two parties. These agreements can include a servicing agreement, a collection agreement, or even an engagement agreement that enlists the debt collector to carry out the debt collection on behalf of the creditor.

In the case of McAdory v. M.N.S. & Associates, LLC, No. 18-35923 (9th Cir. 2020), the Plaintiff claimed the debt collector violated multiple aspects of the FDCPA in collecting a debt. To summarize the details of the case, a debt collector (DNF) purchased an original debt from Kay Jewelers. DNF then outsourced the debt by selling it to a separate collector, M.N.S.

The court found the M.N.S. subsequently violated the FDCPA, but, in doing so, the panel upheld the allegation that DNF was responsible for the actions of M.N.S. as DNF did not need to directly interact with the debtor in order to qualify as a debt collector under U.S. Code § 1692a. This is because the collection of the debt is the “principal purpose” of the business.

While DNF claimed they did not have traditional legal “control” over M.N.F. in this case, the court ruled that the existence of an agreement between the two parties implied the presence of control.

This is a significant shift in the application of the FDCPA and multiple subsequent cases have followed this precedent in order to litigate cases against creditors who outsource debt collection. If you are a landlord who uses third-party debt collection services or sells debt to debt collection agencies, you must be aware of their practices in order to protect yourself. Work with debt collectors you trust and don’t simply rely on them to follow FDCPA.  Additionally, you should analyze your agreement with the debt collector to ensure that the debt collector will indemnify and defend you for liability associated with the debt collector’s actions.  You may also want to consider whether a modification of your insurance policy is necessary to protect you from these types of lawsuits.  

Being direct and transparent about your desire to follow the law properly could prevent you from being held vicariously liable for the improper actions of the third-party debt collector. If you find yourself in the middle of litigation regarding debt collection practices, the team at Atlas Law is here to help. Contact your Florida landlord’s advocate today.

In less than four months, the Sunshine State will once again be in the throes of hurricane season. Landlords need to be on high alert for any property damages resulting from these destructive storms. High winds can cause devastation, but the biggest threat to commercial and residential properties is flooding.

Water in buildings commonly causes wood rot, drywall deterioration, and mold infestations. Mold infestations can cause health problems for even otherwise-healthy people. In these situations, tenants often assert their rights to encourage landlords to make repairs they believe are necessary.

What Does Florida Law Say About Making Repairs?

Broadly speaking, state law requires landlords to maintain properties for tenants and ensure they remain habitable. If a tenant believes a property has become “wholly untenantable,” they can put the landlord on a ticking clock to make the necessary repairs. The tenant may send a notice to their landlord alleging certain repairs need to be made in order to render the property usable again. 

If the landlord does not respond to the notice within seven days, tenants may be able to withhold rent or even terminate the lease by moving out. In the latter situation, tenants will not be liable for any future rent.

According to Chapter 83 of the Florida Statutes, landlords have 20 days to actually repair the issue making the property untenantable. Tenants may exercise the same rights described in the above paragraph to help effectuate the repairs in the mandated time frame.

An important note here is that these provisions only apply to damages that actually fall under a landlord’s purview. The two parties sometimes come to a different agreement in leases. And, landlords are usually not responsible for repairing damages that were ultimately caused by tenants. However, repairs for hurricane-caused damages are almost always the responsibility of Florida landlords.

Our Recommendations for Florida Landlords

After a hurricane has passed through areas where you own properties, we strongly encourage you to visit each one of them as soon as you are able. Seven days is an extremely short amount of time to respond to your tenants, and it sometimes takes nearly that long for the tenant’s notice to get to you in the first place.

In an ideal situation, you will be in constant communication with your tenants so they can give you a phone call as soon as they see property damage. Having a good relationship with your tenants may allow you some more flexibility and allow you to operate outside the rigid timelines offered by state law.

Don’t be afraid to hire a contractor for mold remediation, either. Mold can start growing as soon as 24 hours after water damage takes hold indoors. Too many landlords simply treat water leaks and neglect to address mold issues, which can cause huge problems later on.

Above all, it’s important to be proactive after a hurricane or major storm strikes your area. Even if you are not sure that your properties have sustained damage, it’s well worth it to see the conditions with your own eyes.

Atlas Law stands with Florida landlords in a wide variety of situations that require legal counsel. We work with both residential and commercial landlords to ensure their rights and revenue streams are protected. Contact our team today for personalized and effective representation.

Right now is a challenging time for landlords. While business might seem to be good on your end, it’s important to be aware of potential challenges to what you’ve put your hard work into. In recent months, we’ve talked about the cancel rent movement and the potential of “testers” targeting landlords over affordable housing programs like Section 8. The latter is becoming more and more prevalent and has now crossed from testers to actual renters suing over these issues in Broward County.

Last year, a case moved through the Circuit Court of the 17th Judicial Circuit for Broward County revolving around a fair housing organization testing whether landlords are discriminating over sources of income. Case CACE21009252 eventually ended in an agreement between the Plaintiff and Defendant, but the courts allowed this case to proceed to expose landlords to new challenges. In another case, a tenant claimed their application was denied purely because of Section 8 despite other factors present that would lead to the denial of most or all other applicants.

Ultimately, the risk doesn’t just revolve around court cases in Broward County or even Florida. The major risk to your business is what happens if the local courts rule that you did indeed violate § Sec. 16½-35.7 of the Broward County ordinances. If this happens, the tenant can take that decision and move forward with a federal discrimination case. This immediately exposes you to significant liability in federal courts because you start with the assumption of guilt based on the previous decision.

The reality is if counties get litigious this will mean far more landlords will be receiving notices of discrimination claims and cases. More and more people with bad intentions will take advantage of what’s supposed to be a voluntary program to file lawsuits. Waiting to see how this plays out could eventually cost you significantly – and even shut down your business.

What you need to do sooner rather than later is speak with an attorney. This problem is no longer hypothetical, and an attorney with experience both at the county level and federal level can help protect what you’ve worked so hard to build. The team here at Atlas Law will always advocate for Florida landlords and defend the right to operate a business. Contact our experienced team of attorneys immediately if you receive a notice that you’re being accused of discrimination over Section 8 or another income source.

As we near 2023, we’re learning that the booming housing market of early 2022 and all of 2021 is behind us. With interest rates rising, more families are deciding to sit out on the housing market and instead deferring to renting or other alternatives. So, if you’re trying to sell your home and not having any luck – should you consider renting? Here’s why that may not be the worst idea.

You Don’t Have to “Concede”

The first move for many sellers in a buyer’s market is to make serious concessions on the home they’re selling. This can include lowering the price, offering to do additional work to the home, including additional amenities, and more. This is less than ideal because you may end up feeling like you’re not getting out what you put into the home.

As a landlord, you don’t have to make these concessions. Instead, you will be able to look at the market and set a rental price that matches the value of your property on a monthly basis. This allows you to recoup all of the monthly mortgage payments and then some. That money can then be put into your own home or other needs. You can always put the home back on the market at a future date and get the value you actually want out of your property.

Steady Second-Source of Income

Everybody is about the “side hustle” these days. It’s popular to have a second income stream, and rental income is maybe the best example of this. You will want to be an attentive and accessible landlord (unless you hire a property management company to handle your property), but otherwise, you won’t have to put nearly as much effort into your side hustle as those who are working two-to-six hours a night in the rideshare industry trying to make ends meet.

There are numerous families who are actually able to pay for their own homes through the income they receive from rental properties, and while this may be your first rental property, you may learn a lot in the process and decide to become an investor with multiple rental properties in the future.

A Diminished Housing Market Means More Potential Tenants

You already tried to sell your home and have decided now is not the time to sell a home because there simply aren’t enough buyers for your liking. So, what are those people doing? They’re renting! This means you will have a wider customer base to choose from than you would in a booming housing market.

At Atlas Law, we are landlord advocates. We believe you deserve fair and respectful representation. Contact our firm if you’ve decided to become a Florida landlord.

Evictions are never an easy process. Ultimately, you are dealing with someone who has done something to warrant an extreme action that removes them from your property through legal action. These decisions can weigh heavily on a landlord/property owner and are often met with a strong reaction.

One such reaction is when a tenant simply refuses to vacate the property. Upfront, you’re dealing with a tenant who warranted eviction in the first place so there’s already been some issue that brought you to this moment. It’s important to go about this process properly before taking the next steps that involve law enforcement.

Find a Mutual Agreement With the Tenant

Evictions are a last resort. These actions require a provable reason and cannot violate the Fair Housing Act (we covered exceptions recently. When you take these steps, you’ll need to get a summons from the county the tenant is in and then the tenant will be given time to respond.

If the tenant decided to contest the eviction then they won’t have to vacate until a judgment is handed down one way or the other. During this time, or even after, you may consider finding mutually agreeable terms with the tenant. Consider possibilities such as:

• Allowing them to stay and pay rent for a determined period of time
• Settling any unpaid rent at a lower amount
• Filing a “Seven Day Notice to Cure” which gives the tenant seven days to remedy any issues at the property

If you’ve already reached the decision to evict then it’s unlikely any of these options will suffice, but these are steps to consider before the eviction process begins or to negotiate while the eviction is being contested.

Getting the Authorities Involved

Short of a mutual agreement that settles the situation, you may need to get law enforcement involved. You do not have the right to forcibly remove a tenant nor are you permitted to turn off utilities or remove locks from the doors. Anything that puts the tenant at immediate risk can be considered a liability that you’re responsible for.

Once you’ve received an eviction judgment from the courts, it will be up to law enforcement to see the tenant out. The process will be relatively straightforward: the tenant will be given a date that they must be out of the property by. If the tenant is not out by that date then law enforcement officers will come to the property and remove the tenant.

Nobody wants it to get to this point. It’s often an ugly situation and tensions with law enforcement can create worse problems than you started with. If you have a problem tenant or need help navigating the eviction process, contact Atlas Law.

Florida landlords know the time and effort that goes into the upkeep of rental properties. It’s a year-round effort, both when tenants are renting the properties and when the properties are vacant. In an ideal world, the gap between tenants would remain short to keep the cash flow coming instead of missing out on rent payments.

It can be beneficial to have a small gap between tenants, however, so you have the opportunity to make sure the property is in order. This not only allows you to ensure tenant satisfaction but it can also alleviate some of your work, as well. It’s important to take advantage of the time you have in between tenants – here are some tasks you should consider when you’ve got an opportunity.

Deep cleaning and repairs

A portion of this list is the typical steps any landlord will take in between tenants, but it’s worth noting regardless. This is obviously necessary to make sure the property is ready for the next tenant, but it also protects you should legal situations arise either now or in the future.

When you deep clean and repair any issues within the property it draws a line between past and future tenants. This way should you discover significant damage now or later then you’ll know definitively who the responsible tenant is.

Inspect all plumbing fixtures

One of the most expensive fixes for any landlord will be plumbing issues. These can arise quickly and create serious liability should the plumbing issue do significant damage not only to your property but also to any other connected properties or rooms.

An inspection of the plumbing should go beyond just checking that all toilets are clean and working and that all faucets are operating as normal. A professional plumber can do a thorough review of all plumbing fixtures, taking a proactive approach to any future problems.

Change the locks/codes or rekey the property

The dream tenant is one who is considerate of the property and on time with all payments. However, even the perfect tenant doesn’t mean you should skip this step.

Future tenants should be able to rest assured knowing there are no safety risks in their homes. Even if they’re renting, the property is meant to be a safe haven for them.

If there are physical keys then it’s easy for tenants to make duplicates and there’s no way of knowing definitively that a tenant didn’t keep a key or two for themselves. Many modern locks are code-based and can be updated by simply changing the code. Whatever process you must take it’s worth taking the time to protect your property and your tenants.

Return the security deposit on time

We started this list with an obvious step and we’ll wrap it up with another one. It’s important to know what Florida law says about security deposits.

If you have done a thorough inspection and have no claims against the former tenant’s security deposit then you have 15 days to return the money. If you do have a claim, then you have 30 days from the date the tenant vacated to notify them by certified mail. If the tenant does not dispute this claim then you have 15 days from the date the tenant received the notice to return the deposit.

If your tenant disputes the claim in court and wins then you will be responsible for court and attorney fees. If the tenant disputes the claim in court and loses then they will be responsible for your court and attorney fees and will receive the deposit minus the claim you filed against it.

Each of these steps will set you up to avoid issues in the future. It’s important to use the time in between tenants to make sure the property doesn’t have lingering issues and won’t have issues when future tenants move in. If you find that there are major issues during this time and need an attorney to defend your hard work and your property, contact Atlas Law. We advocate for Florida landlords and their right to earn an honest living.

Right now, landlords are facing heavy criticism and being forced into agreements or circumstances against their wishes because of mounting political pressure to provide housing. We recently wrote about the cancel rent/rent control movements which expect landlords across the country to forgive millions in past-due rent along with limiting the rental value landlords can place on properties. These movements likely aren’t going to just go away as a legitimate need for affordable housing continues, but should all landlords be forced into unfavorable agreements? This goes against most fair market practices in our country – so maybe it’s time for a Landlord Bill of Rights in Florida?

Tenant Bill of Rights

We’re seeing certain regions implement a “Tenant Bill of Rights.” Miami-Dade County recently implemented one, which includes:

• Allowing tenants to deduct costs of neglected repairs from their rent
• Banning landlords from asking about prior evictions
• Establishing an office for housing advocacy
• Requiring landlords to notify tenants of any ownership changes
• Protecting tenants from retaliation when they seek government help against their landlord
• Requiring landlords to give 60-day notice when rent is increased by more than 5%

Most of these new rules are reasonable and shouldn’t have too large of an impact on the landlord-tenant relationship, though there’s plenty of reason to be concerned about bad actors attempting to take advantage of the changes.

Landlord Bill of Rights

So, with changes heavily favoring tenants what would a Landlord Bill of Rights look like? There are no current regulations for such a bill. It’s not just about the lack of a bill of rights, however. Some landlords are being forced to accept Section 8 despite the administrative code specifically stating the program is VOLUNTARY. There’s nothing voluntary about requiring landlords to accept these vouchers and claiming they are a form of “Source of Income” discrimination.

“Testers” have recently been attempting to trap landlords and housing offices into exposing themselves to liability by seeing if they’re in violation of certain codes and programs. A Landlord Bill of Rights would protect against calls like this and other issues.

Florida already has several laws and regulations supporting landlords, and it’d make sense to include them in a Bill of Rights to reaffirm those regulations. They include:

• Holding “holdover” tenants who are no longer legally permitted to stay in a property liable for double the rental price
• Filing criminal or civil charges against a tenant who damages the landlord’s property
• Allowing landlords access to tenant funds deposited into the court’s registry when the landlord is facing personal hardship due to the loss of rental income

Florida landlords are in need of these protections and others to prevent voluntary programs from being involuntary, require tenants to cover missed rent and/or vacate immediately, ensure tenants don’t skirt certain regulations through flimsy excuses, and more.

Right now, the best avenue to protect yourself from predatory tenants who are trying to take advantage of public and political messaging against your livelihood is to talk to an attorney. Atlas Law is a landlord’s advocate with experience protecting and reaffirming the rights of Florida landlords. Contact our offices today.

When politicians push for and pass new legislation, it can be hard to keep up with every little detail embedded in the hundreds of pages of documents. The Infrastructure Act passed by congress in 2021 is a great example of this, and one of the details many people missed has a major impact on landlords across the country. Landlords need to be aware of the Affordable Connectivity Program (ACP) and how it impacts their properties.

What the program does

Essentially, the ACP allows qualifying low-income households to get a $30 reduction on their monthly internet bill for high-speed internet. Congress deems high-speed internet to be a necessity in the modern world and is opening a gateway to allow more families access to the services. This won’t impact many landlords as most tenants need to go directly through their internet service provider to sign up and pay their internet bills.

Low-income households who qualify and already have an ongoing contract with an internet service provider still qualify. This means active contracts can be altered to reflect the new $30 reduction on the monthly bill. So, what does that mean for landlords?

Who it impacts

As we mentioned above, landlords whose tenants go through internet service providers on their own likely won’t have to worry about the program. Florida landlords who have bulk cable agreements, however, need to be aware of this. That’s because the ACP prevents landlords with bulk cable agreements from forcing qualifying low-income tenants to pay full fees, even if the tenants are already under a lease agreement that states the total monthly payment.

Options for landlords with bulk agreements

Landlords who have these agreements have two options essentially:

• Fulfill the $30 discount from the previously agreed price under the bulk agreement; or
• Allow qualifying tenants to forego the monthly fee and seek their own internet services to which they would apply the $30 discount

If you go with the first option, the internet service provider that you have a bulk agreement with will need to file for reimbursement from the government for the loss. The program is meant to prevent anyone from taking a loss on bulk agreements already in place, but it’s important for you and the provider to document which households are taking the discount and how much reimbursement is owed.

If you choose the second option, you run the risk of taking a loss on each qualifying household for the bulk agreement.

At Atlas Law, we advocate for landlords in Florida and want to make sure you have the tools and information to run your business. It’s important to stay up-to-date on changes like this that impact your tenants and your bottom line. If you need a law firm that is willing to stand by you and keep you in the loop on important changes to the law, contact Atlas Law today.

As a landlord, it’s important to take steps to protect your own property and preserve your long-term financial stability. For some, this could include restricting the type, number, breed, and size of animals permitted on your properties.

Many landlords ban pets entirely because of the potential liability issues. Liability arises when the animal cause damage to the property, injures another tenant or exhibits behavioral issues that put others at risk. However, regardless of your restrictions, it’s common for tenants to claim an animal is an Emotional Support Animal (commonly referred to as an ESA). When done legally, landlords are left with few options to prevent the animal from living and staying on the premises. However, many tenants abuse this angle and attempt to go through illegitimate channels to “register” an animal to get around restrictions, fees, and insurance costs.

It’s important to prepare for these conversations because tens of thousands of animals have been “registered” on illegitimate websites that provide no real valid documentation of an emotional support animal. To understand how those conversations will go, it’s important to first understand how the law applies when someone LEGALLY registered their animal.

Legitimate emotional support animal registrations

Landlords are limited when a tenant provides valid proof of an emotional support registration. Tenants are protected by the Fair Housing Act which prevents discrimination against tenants for a disability. The Fair Housing Act provides this protection for people who genuinely have a diagnosis that is stabilized, improved, or assisted in some fashion by the presence of an animal. These registrations can only come from qualified medical professionals and do not need to provide a specific diagnosis and instead can just give general information confirming the need for one.

Animals do NOT need to have any sort of official training to qualify as emotional support animals. This means the registered animal very well may exceed any weight restrictions you’ve implemented or even be a breed you’ve banned from your property due to insurance reasons.

When a tenant legally registers their animal you are not permitted to raise rent, charge additional fees, or attempt to evict the tenant. The only time a landlord may take action against a tenant is when a registered animal causes damage to the property, injured another tenant, or exhibits threatening behaviors that place risk upon other tenants.

Illegitimate emotional support animal registrations

Where things get tricky is when a tenant claims they’ve registered their animal but have actually just paid any number of websites to send them a fake letter. These are growing in popularity, with some services saying they’ve received more than 200,000 requests in a single year.

Unfortunately, the law isn’t cracking down on these fake registrations, leaving it up to landlords to sift through what’s real and what’s fake. What’s important to understand is you have no duty to expose your property or your other tenants to risk by an animal that’s not legally registered as an emotional support animal. 

These fake registrations expose you to unnecessary liability, but it’s a tricky situation to navigate. Your best bet is to contact your attorney before approaching the tenant to enforce the terms of the lease. Your attorney should be able to review any claimed documentation of the ESA registration and confirm whether or not it follows the legal standards in place.

At Atlas Law, we know your rights and will always be a landlord’s advocate. If you’re ever confronted with what you believe to be a fake registration or need help exploring your options, contact our team.