If you are a landlord or contractor or supplier who has provided services or materials on a rental property in Florida, you may be wondering who can place a mechanics lien on the property. The answer to this question is that anyone who has supplied goods or services to a property owner in Florida can place a mechanics lien on the property, as long as they meet the requirements outlined in Chapter 713 of the Florida Statutes. In this article, we will discuss who can place a mechanics lien on rental property in Florida, and what steps you need to take to protect your interests.
Who can place a mechanic’s lien in Florida?
Mechanics liens or contractors liens were created to help contractors and subcontractors get paid without having to sue the owner of the property. The work that the contractors did should permanently improve the property.
Florida statute §713.01(15) defines a permanent improvement as “any building, structure, construction, demolition, excavation, solid-waste removal, landscaping, or any part thereof existing, built, erected, placed, made, or done on land or other real property for its permanent benefit.”
This means that mechanics liens can be placed on both commercial and residential property, as well as vacant land. In order for a mechanics lien to be valid, the work that was performed must have been done with the permission of the property owner.
If you are a contractor or subcontractor who has not been paid for your work, you may be wondering how to place a mechanics lien on the property. The first step is to send a notice of intent to lien to the property owner and then record your lien. The lien must be recorded within 90 days of the last day that you performed work on the property.
The notice of intent to lien must contain certain information, including your name and address, the name and address of the property owner, a description of the work that was performed, and the amount that is owed.
Improvements over $2500 require a notice to be delivered to the owner along with a contract or other documentation that establishes the basis for the mechanic’s lien. This is the language of the notice:
“ACCORDING TO FLORIDA’S CONSTRUCTION LIEN LAW (SECTIONS 713.001-713.37, FLORIDA STATUTES), THOSE WHO WORK ON YOUR PROPERTY OR PROVIDE MATERIALS AND SERVICES AND ARE NOT PAID IN FULL HAVE A RIGHT TO ENFORCE THEIR CLAIM FOR PAYMENT AGAINST YOUR PROPERTY. THIS CLAIM IS KNOWN AS A CONSTRUCTION LIEN. IF YOUR CONTRACTOR OR A SUBCONTRACTOR FAILS TO PAY SUBCONTRACTORS, SUB-SUBCONTRACTORS, OR MATERIAL SUPPLIERS, THOSE PEOPLE WHO ARE OWED MONEY MAY LOOK TO YOUR PROPERTY FOR PAYMENT, EVEN IF YOU HAVE ALREADY PAID YOUR CONTRACTOR IN FULL. IF YOU FAIL TO PAY YOUR CONTRACTOR, YOUR CONTRACTOR MAY ALSO HAVE A LIEN ON YOUR PROPERTY. THIS MEANS IF A LIEN IS FILED YOUR PROPERTY COULD BE SOLD AGAINST YOUR WILL TO PAY FOR LABOR, MATERIALS, OR OTHER SERVICES THAT YOUR CONTRACTOR OR A SUBCONTRACTOR MAY HAVE FAILED TO PAY. TO PROTECT YOURSELF, YOU SHOULD STIPULATE IN THIS CONTRACT THAT BEFORE ANY PAYMENT IS MADE, YOUR CONTRACTOR IS REQUIRED TO PROVIDE YOU WITH A WRITTEN RELEASE OF LIEN FROM ANY PERSON OR COMPANY THAT HAS PROVIDED TO YOU A “NOTICE TO OWNER.” FLORIDA’S CONSTRUCTION LIEN LAW IS COMPLEX, AND IT IS RECOMMENDED THAT YOU CONSULT AN ATTORNEY.”
If the improvement of the property is under $2,500 and the vendors have been hired directly by the owner, no notice is required.
Can a cleaning company or landscaper place a lien on a property?
If you are a cleaning company or landscaper who has not been paid for your work, you may be able to place a mechanics lien on the property but only the work was part of the permanent improvement. For example, if the landscaping company installed the sod they can place a lien but not if they perform maintenance, like mowing the lawn.
The same applies to cleaning. If the cleaning was done as part of the initial construction, then it will likely qualify as a permanent improvement and a mechanics lien can be placed. However, if the cleaning is considered maintenance, then it does not qualify and a mechanics lien cannot be placed.
What if the property manager hires a contractor to do work on the property that is rented out?
The mechanics’ lien law in Florida does not distinguish between the owner and its agent. If a landlord hires a contractor to do work on a rental property, and the contractor is not paid, the contractor can place a mechanics lien on the property.
If a renter hires a contractor and does not pay, can the contractor file a lien?
In Florida, a mechanics lien may be filed against an improvement for work commissioned by a tenant, but only if such work is the result of an agreement between the owner and the tenant.
If the lease says that the lessor is not allowed to put a lien on the property for improvements made by the lessee, then the tenant needs to tell the contractor who is making the improvements. If the tenant doesn’t tell the contractor, then the contract is voidable.
If you want to be sure that the person who is doing work on your property cannot hold you responsible for any damages, make sure that you have a lease that specifically says they cannot. This document should be recorded in the official records of the county where your property is located before you record a notice of commencement for any improvements to the property.
If you are considering hiring a contractor to work on your property in Florida, it is important to understand the mechanic’s lien laws. These laws allow contractors to place a lien on your property if they are not paid for their work.
To protect yourself, you should make sure that your contract stipulates that your contractor must provide you with a release of lien from any person or company that they have hired to work on the property.
These are just some of the questions that you may have about mechanics liens on rental property in Florida. If you have any additional questions about your specific situation, please consult an attorney.
