Does Weekly Rentals Of Property While Away On Business Forfeit Homestead Protection?

The owner of a Florida homestead takes a one-year work assignment in another state. He rents a house in the other state for work. He decides to rent his Florida homestead as much as possible to help carry the mortgage. The house is in a vacation area, and the best rental opportunities are weekly rentals to people on vacation. Vacation rental are primarily during the summer months. The house will not be rented during most of the winter. The person hopes to return to the Florida house after his year assignment, but his return is not guaranteed by his employer. He asks whether he will retain homestead protection during his absence under these facts.

Florida residents lose homestead protection when they demonstrate their intent to abandon the homestead as their primary residence. In general, rental of a prior homestead indicates the intent to abandon the property as a residence and convert the property to an investment. When a property owner rents a property on a weekly basis he has the right to terminate rental immediately and reoccupy the property almost without notice. As long as this homeowner retains indices of Florida residency, such as his drivers license, I think that his rental to weekly vacationers does not prove he intends to permanently abandon the property as his residence nor convert the property to a rental investment. Also, a yearly work assignment in a different state does not amount to a permanent move to the other state. Without further evidence, I would advise this person that he retains homestead protection.

posted by Jonathan Alper, asset protection and bankruptcy attorney, Orlando, Florida