Florida is set to experience significant legal changes next week as several new laws come into effect on October 1. These updates primarily impact the state’s housing market, introducing new disclosure requirements for landlords and sellers regarding flood damage, and simultaneously offering substantial tax relief for commercial leases. These measures aim to enhance transparency and affordability within the state’s real estate sector.
Key Takeaways
- New Florida law mandates flood damage disclosures for rental properties and home sales starting October 1.
- Commercial leases will see the elimination of state business rent tax and county surtax.
- These changes are designed to protect consumers and make Florida more business-friendly.
Enhanced Flood Disclosure Requirements
A new law, HB 1015, known as the Florida Rental Flood Disclosure Law, will require landlords to inform prospective tenants about any known flood damage to a property before a lease of one year or more is signed. This includes details on whether the property is in a FEMA flood zone, past flood damage during the landlord’s ownership, any flood insurance claims filed, and any flood-related assistance received for repairs. Failure to comply could allow tenants to terminate their lease and receive rent refunds if their personal property sustains substantial flood damage.
Similarly, home sellers will be obligated to disclose known flood damage, insurance claims, and disaster assistance received for the property to potential buyers. This initiative addresses the increasing threat of flooding due to climate change and aims to bridge the gap in flood insurance coverage, as only about a third of homes in Florida’s high-risk flood zones are currently insured.
Commercial Lease Tax Repeal
In a significant move for the commercial real estate market, Florida House Bill 7031 will eliminate both the State Business Rent Tax and the County Surtax on commercial leases, effective October 1, 2025. This repeal of Section 212.031 of the Florida Statutes will reduce occupancy costs for businesses leasing office, industrial, and retail spaces across the state. For decades, Florida has been the only state to impose sales tax on commercial lease payments, which often included base rent and additional charges passed through to tenants. While the state sales tax rate has decreased over time, its complete elimination, along with the county surtax, is expected to make Florida more attractive for businesses.
Implications for Landlords and Tenants
Both landlords and tenants are advised to review their lease agreements and billing practices in light of these changes. Landlords must cease collecting sales tax on commercial rent payments for periods on or after October 1, 2025, while continuing to collect it for rent incurred up to September 30, 2025. They should update their accounting systems and notify tenants of the tax reduction. Tenants should verify that sales tax is not applied to rent charges incurred from October 1 onwards and ensure their automatic payment systems are updated accordingly. Coordination between landlords and tenants is crucial for a smooth transition.
Sources
- Florida Housing Law to Change From October: What to Know, Newsweek.
- These Florida laws go into effect next week. Here’s what to know., Tampa Bay Times.
- Florida HB 7031 Becomes Effective Oct. 1, 2025 | Insights, Holland & Knight.