PROTECTING LANDLORDS FROM LIENS FOR TENANT IMPROVEMENTS

PROTECTING LANDLORDS FROM LIENS FOR TENANT IMPROVEMENTS

Lakeland property owners are reminded of crucial steps to protect themselves from mechanics' liens filed by contractors or suppliers for improvements ordered by tenants. This issue, while not new, can lead to significant financial burdens if not properly addressed.

Under Florida Statute 713.10, landlords can shield their property from such liens by including specific language in their lease agreements. This language must explicitly state that the landlord's interest in the property is not subject to liens for improvements made by the tenant. Furthermore, a certified copy of this lease provision, or a short form thereof, must be recorded in the public records of Polk County.

The Polk County Clerk of Courts office, located at 255 North Broadway Avenue in Bartow, handles these recordings. Property owners can visit during regular business hours to ensure their lease provisions are properly filed. This proactive measure is essential for landlords, whether they own a single commercial space on Main Street in historic downtown Lakeland or multiple rental units across Lakeland, to avoid unexpected liabilities.

Failing to record this notice can result in a contractor or supplier placing a lien on the property if a tenant defaults on payment for improvements. This could force the landlord to pay for work they did not authorize or directly benefit from, potentially leading to costly legal disputes and delays in property transactions.

Local legal experts advise all Lakeland landlords to review their current lease agreements and ensure they contain the necessary protective language. If not, they should consult with legal counsel to amend their leases and record the appropriate notice with the Clerk of Courts to safeguard their investments.