The Florida Homestead Exemption deadline is quickly approaching for 2026, and questions about renting homesteaded properties always come up this time of year. One of the most common is: “Can I rent my property and still keep my homestead exemption?”
Like most things in law, the answer is, it depends.
What the Florida Homestead Exemption Does
Florida law provides a property tax break for homeowners who make their Florida property their permanent residence. Under Fla. Stat. §196.031, a person who owns and occupies their home as a permanent residence as of January 1 of the tax year is entitled to an exemption of up to $25,000 from the assessed value of the property.
This exemption helps reduce property taxes and, in some cases, provides creditor protection. But once a homeowner decides to rent out their property, the lines between “primary residence” and “rental property” start to blur.
The 30-Day Rule: When Renting Becomes “Abandonment”
Florida Statute §196.061(1) spells out what happens when a homesteaded property is rented. It says that renting all or substantially all of a home is considered an abandonment of homestead, which means the exemption could be lost.
However, the statute also gives homeowners a little flexibility:
“Abandonment of the homestead after January 1 of any year does not affect the homestead exemption for tax purposes for that particular year unless the property is rented for more than 30 days per calendar year for two consecutive years.”
In plain language, this means:
- If a homeowner rents their property for 30 days or less, they’re safe.
- If they do it again for more than 30 days in back-to-back years, they risk losing their exemption.
So, if a homeowner decides to rent out their home for a few weeks while away on vacation, no problem. But if they start running it as a regular short-term rental, that’s a different story.
Renting Part of the Property While Living There
Things get more nuanced when a homeowner continues living at the property but rents out a portion, like a guest suite, garage apartment, or even a spare bedroom.
In Furst v. Rebholz, 361 So.3d 293 (Fla. 2023), the Florida Supreme Court clarified that when a homeowner rents part of their property and gives the tenant exclusive use of that space, the exemption can be partially reduced to reflect the percentage rented.
For example, if a homeowner rents out 15% of their home, the exemption could be reduced by that same amount.
In short, the homestead exemption applies only to the portion of the property that remains the homeowner’s primary residence.
What Homeowners (and Realtors) Should Remember
To sum it up:
- Renting the entire home for 30 days or less: Still qualifies for the homestead exemption.
- Renting the entire home for more than 30 days in two straight years: The exemption is likely lost until the homeowner re-occupies the property.
- Renting out part of the home while still living there: Allowed, but the exemption will be reduced by the percentage rented.
Realtors who understand these distinctions can help clients avoid costly mistakes. A client planning to rent their home should always check how long they intend to rent, how often, and whether they’ll still be living there.
Final Thoughts
Florida’s homestead laws are designed to protect homeowners, not penalize them. But when rental income enters the equation, things can get complicated quickly.
If your clients are thinking about renting their Florida home and want to keep their homestead exemption, help them understand the limits before they make the leap. And when the details start to get tricky, partnering with a real estate attorney can ensure they stay compliant and keep their valuable exemption intact.
