When Contractors Fail to Perform on Florida Rental Properties: What Landlords Should Know
Maintaining a rental property is more than cosmetic — it is essential to protecting the value of the asset and keeping operations running smoothly. When a contractor fails to complete work properly, causes damage, or ignores the terms of an agreement, landlords can face costly delays and unexpected problems.
This guide explains common issues that arise between landlords and contractors and offers practical steps to help protect your property and minimize future disputes.
Common Problems Landlords Face With Contractors
Contractor issues can take many forms, including:
- Work not completed as promised
- Poor workmanship
- Project delays
- Damage to existing structures
- Subcontractors claiming non-payment
- Mechanics liens filed on the property
Any of these issues can disrupt a rental operation and create financial or legal complications if not addressed quickly.
Practical Steps Landlords Can Take When Work Goes Wrong
While every situation is different, landlords often benefit from following these general, non-legal steps:
1. Document Everything
Maintain clear records of:
- Written agreements
- Emails, texts, and payment history
- Photos and videos of defective or unfinished work
- Estimates from independent contractors evaluating the damage
Good documentation strengthens your position in any dispute.
2. Communicate Problems Clearly and in Writing
Notify the contractor promptly when issues arise. A written notice:
- Identifies specific problems
- Gives the contractor an opportunity to respond
- Helps avoid misunderstandings
- Creates a record of your efforts to resolve the matter
3. Avoid Making Final Payments Too Early
Landlords should ensure that:
- Work is complete
- Materials match what was agreed
- Visible defects are addressed
- Subcontractors have been paid (to help avoid future lien claims)
4. Consider Getting Independent Evaluations
A qualified third-party contractor can assess defects and estimate repair costs. This helps clarify the scope of the problem and the likely cost to fix it.
5. Seek Professional Guidance When Needed
If communications break down or damage is significant, speaking with an attorney experienced in real estate or construction disputes can help you understand your options and avoid costly mistakes.
Mechanics Liens: What Florida Landlords Should Understand
One of the most serious complications occurs when a contractor, subcontractor, or supplier files a mechanics lien on a rental property.
How Mechanics Liens Can Affect a Property
- A lien becomes part of the property’s public record
- It can block refinancing or sale
- It may lead to legal action if not addressed
- A landlord may face claims from subcontractors even if the general contractor was already paid
Ways Landlords Commonly Reduce Lien Risks
While circumstances vary, many landlords use the following protective measures:
- Lien waivers: Collect conditional lien waivers with each progress payment and unconditional waivers at final payment.
- Proof of payment: Require the general contractor to provide evidence they paid subcontractors and suppliers.
- Joint checks: Issue payments jointly to contractors and subcontractors on large projects.
- Clear payment schedules: Align payments with verified project milestones.
These practical steps help limit exposure to future lien claims.
Smart Contracting Practices for Landlords
Although requirements can differ based on the type of work and the contractor’s trade, landlords generally benefit from using detailed written contracts that include:
- Clear description of the work to be performed
- Materials and specifications
- Start and completion dates
- Payment schedule tied to progress
- Responsibility for obtaining permits
- Proof of appropriate insurance coverage
- Expectations regarding lien waivers
- Warranty terms
A well-written agreement provides clarity and sets expectations before work begins.
When to Get Help
Contractor disputes can escalate quickly and affect both the property and the landlord’s bottom line. When a project stalls, workmanship is defective, or a mechanics lien is filed, experienced legal guidance can help you understand the available options and next steps.
At Bernhardt Riley, our real estate litigation team assists landlords throughout Florida with:
- Contractor payment disputes
- Mechanics lien issues
- Defective work and construction damage claims
- Breach-of-contract matters
- Emergency lien complications
For assistance, contact our team at (727) 275-9575.
Landlord–Contractor Disputes: Frequently Asked Questions
Can a contractor or subcontractor file a lien on a rental property?
Yes. Contractors, subcontractors, and material suppliers may have lien rights if they performed work or supplied materials and were not paid. A lien can affect refinancing or sale until resolved.
What if the work on my rental property is poor quality?
Defective or incomplete work is a common issue. Document the problems thoroughly, obtain third-party repair estimates, and avoid making further payments until a plan is in place. A professional assessment can help determine next steps.
Do I need a written contract for rental property construction or repairs?
While written agreements are not legally required for every project, having a detailed written contract is strongly recommended. Clear terms help prevent misunderstandings and provide protection if problems arise.
What is a lien waiver, and why are they important?
A lien waiver is a document where a contractor or subcontractor acknowledges receiving payment and waives the right to file a lien for that payment. Collecting lien waivers at each stage helps reduce the risk of future lien claims.
Can I be affected if my contractor fails to pay subcontractors?
Yes. Even if you paid the general contractor, unpaid subcontractors may still be able to assert claims against the property. Using lien waivers, proof-of-payment requirements, and joint checks can help reduce this risk.
