Rent Is Due on the First: Estate Planning Tips for Landlords With Rental Property Portfolios

Tenants will still expect a working air conditioner in August, whether or not their landlord is alive to arrange the repair. That simple reality is why rental property owners need a different kind of estate plan than most people. A portfolio of duplexes, condos, or single-family rentals is really a small business, and it needs someone ready to run it the moment you cannot. For landlords working with Palm Beach County estate planning attorneys, the goal is to keep rents flowing, tenants protected, and heirs out of avoidable disputes.

Why a Basic Will Often Falls Short

Rental properties titled in your individual name generally pass through probate. Under Florida Statutes § 733.608(1), the rents and income from a decedent’s non-homestead property become assets in the hands of the personal representative. That works on paper, but there can be a gap of weeks or months between your death and the court’s appointment of that person. During that window, someone still needs to collect rent, approve repairs, and answer the tenant who calls about a leaking water heater. If you own rentals in another state, your family may also face a second probate proceeding there.

Ownership and Authority Tools Worth Considering

Some landlords benefit from combining several strategies rather than relying on one document:

• Revocable living trust. A successor trustee can step in without waiting for a court appointment, which helps keep operations running without interruption.
• LLCs for the properties. Many owners hold rentals in one or more LLCs for liability reasons, then assign the membership interests to their trust. Retitling can raise lender and insurance questions, so it pays to check before changing ownership.
• Durable power of attorney. This document should clearly cover leasing, managing, refinancing, and selling real estate in case you become incapacitated rather than pass away. (Note, however, that a Durable Power of Attorney ceases to be effective upon the death of the individual who signed the document).
• An operations binder. Keep current leases, property manager contacts, insurance policies, deposit account details, and access codes in one place your fiduciary can find.

Don’t Overlook Tenant Security Deposits

This is where many plans quietly fail. Florida Statutes § 83.49(1) requires a landlord to either hold tenant security deposits in a separate Florida account without commingling them with the landlord’s other funds, or post a surety bond. When title to a rental transfers, § 83.49(7) requires that the deposits and any advance rent move to the new owner along with an accurate accounting for each tenant. The statute also creates a rebuttable presumption that the new owner received the deposit, limited to one month’s rent.

If records are scattered, a successor owner could face a presumption that it received deposits it never saw, though the statute limits that presumption to one month’s rent. Clear documentation now prevents disputes with tenants later.

Decide Who Will Actually Run Things

The most important choice may be the person, not the paperwork. A child who avoids confrontation may struggle with late-paying tenants. A professional trustee or property manager may be a better fit for a large portfolio. You can also leave written guidance on whether you would prefer properties to be held for income or sold, and how to divide them fairly among multiple heirs.

Could your current plan get through the first of the month without you? If you are not sure, Kitroser Lewis & Mighdoll would be happy to help you find out. Bring us a list of your properties and how each one is titled, and our Palm Beach County estate planning lawyers will help you build a plan that keeps your portfolio running smoothly for the people you care about.

Source:

flsenate.gov/Laws/Statutes/2025/733.608 https://www.flsenate.gov/Laws/Statutes/2025/83.49