Effective July 1, 2010 Florida law says that if a condominium or homeowner is delinquent in payments to their association and has a tenant living in their unit, the association can demand that the tenant make rental payments directly to the association. If after making a written demand that rental payments be made to the association the tenant fails to pay, the association may issue notces and sue for eviction.

It is important for renters to understand that if they receive this type of letter from the association where they are living that it may not be a hoax and they should take action in order to avoid eviction. Consultation with a real estate attorney is recommended. At a minimum the tenant should contact both their landlord and the association to gain a better understanding of the situation. It is always recommended to get these exchanges in writing, so in the case of phone conversations summarize the call in a letter and send it to whoever you speak with to memorialize the call.

Landlords may still ask renters to make payments directly to them despite the associations' demands to the contrary. This has the potential to put tenants in a difficult position, but the new statute is clear that tenants who act in good faith in response to a written demand from an association are immune from any claim from the unit owner. The new statute also says that renters must be given credit by their landlord for payments made to the association. For this reason it is important for tenants to document their rental payments. The new statute requires that, upon request, associations provide tenants with written receipts for payments made, and it is a good idea for any tenant making rental payments to the association to request these receipts.

In addition to notifying the tenant, the association must also send written notice to the unit owner that there is a demand for the tenant to make payments to the association. This demand for rental payments is continuing in nature so tenants should not stop paying the association until they are released by the association or they dscontinue their tenancy.

The new laws, known as Senate Bill 1196 (SB 1196), aim to prevent situations where owners are collecting rent from tenants, but refuse to pay association dues. The down economy has had a huge impact on condo and communty associations. As owners struggle with unemployment and foreclosure they often stop making payments to their associations. Associations must then decide between depleting monetary reserves or raising dues for paying owners in order to keep up with expenses. Both scenarios have potential disadvantages. If dues are raised, the association may lose more paying owners, but without a monetary cushion, associations facing any major unforeseen expense may be in trouble. The new legislation aims to give associations additional tools to generate revenue to avoid these scenarios.