Key Takeaways
- Florida landlords must provide written notice within 30 days of receiving a deposit to inform the tenant exactly where their funds are stored and if the account earns interest.
- You must return the full deposit within 15 days of move-out if there are no claims or send a certified notice of intent to impose a claim within 30 days.
- Security deposits must be kept in a Florida banking institution or backed by a surety bond and can never be commingled with a landlord's personal funds.
Managing a rental property in the Sunshine State requires a firm grasp of the Florida Residential Landlord and Tenant Act. Among the various responsibilities a landlord faces, handling security deposits is perhaps the most critical for maintaining a profitable and dispute-free investment.
Let explore the details of Florida security deposit law with JGE Property Management to help you navigate your obligations with confidence.
An Overview of Security Deposit Law in Florida
Florida statute 83.49 primarily governs the regulations surrounding these funds. It explains procedural requirements, tenant rights, and landlord responsibilities. Below is a breakdown of the most essential features of the law.
Florida Security Deposit Limit
Florida does not impose any particular limit on the amount that landlords should charge as a security deposit. This means that landlords have the freedom to set the amount based on property type, anticipated risk, and market conditions. From observations, most landlords in Florida collect an equivalent of 1 to 2 months of rent.
Although landlords need to consider fair housing considerations and market competitiveness, higher deposits are not illegal.
However, your applicant pool may be reduced by excessively high security deposits. This will also attract closer scrutiny if disputes occur. Landlords are expected to comply with all regulations regarding deposit notifications and handling even when there is no cap on the amount.
Non-Refundable Fees in Florida
According to Florida law, landlords may only charge non-refundable fees if they clearly disclose them and have provisions for them in their lease agreements. Some common non-refundable fees include administrative charges, application fees, or pet fees that are explicitly labeled as non-refundable.
Unless the lease explicitly states otherwise and charges are properly characterized, security deposits are presumed to be refundable. Landlords may be exposed to legal issues if they mislabel security deposits as non-refundable. To prevent potential disputes and confusion, landlords should use simple and precise language in the lease and avoid mixing refundable deposits with non-refundable charges.
Keeping a Tenant’s Deposit in Florida
The law has specific and detailed policies concerning how landlords must store tenants’ security deposits. Landlords must choose one of these three legally permitted methods after collecting the funds:
- Non-interest-bearing bank account: This account must be situated in the state of Florida.
- Interest-bearing accounts: Interests may be paid to the landlord or the tenant. This must be specified in the lease agreement and is subject to statutory minimums if it is paid to the tenant.
- Surety bond: This must be posted with the clerk of the circuit court in the county where the property is located.
Where a surety bond is chosen, the landlord must pay tenants a 5% interest rate per year or as required by the statute. Landlords must never mix security deposits with their own personal money. If you are handling these funds as part of an eviction process, proper documentation of the storage method is vital.
Written Notices After the Receipt
According to Florida law, landlords must give tenants written notice within 30 days of collecting the security deposit. Disclosures to include in this notice include:
- Whether the deposit is held in a non-interest-bearing account or an interest-bearing account.
- The name and location of the financial institutions where the deposit is kept.
- Whether the deposit is kept under a surety bond.
- If the tenant has any entitlement to interests.
Landlords who fail to provide this notice within the specified time may be unable to make any deduction from the security deposit in the future. You may include this notice in the lease agreement or do it separately in another document.
Justifications to Withhold a Security Deposit
For some legitimate reasons, such as the following, landlords in Florida are allowed to withhold all or a portion of the security deposit:
- Damage beyond normal wear and tear.
- Nonpayment of rent.
- Cleaning expenses for restoring the unit to its previous condition.
- Costs for repairs performed due to damage done by the tenant.
- Other financial obligations specified in the lease.
Landlords are not permitted to withhold deposits for routine upgrades, pre-existing conditions, or ordinary wear and tear. If you are unsure about what counts as damage, consulting the Florida Fair Housing Act guidelines can provide clarity on tenant rights.
Florida Security Deposit Refund
There are strict deadlines for returning and accounting for deposits. Within 15 days after a tenant vacates, the landlord must refund the full deposit if no deductions are made. Where there are deductions, the landlord must provide a written notice of intent to impose a claim within 30 days of move-out.
This notice must be sent through certified mail and include an itemized list of deductions. It must also inform tenants about their rights to object within 15 days. For more details on the timeline, see our guide on Florida Security Deposit Refunds.
Change in the Ownership of Real Estate
When there is a change of ownership, Florida law outlines two options. Former landlords must either transfer the deposit to the new owner along with all required documents or return the deposit to the tenant minus any lawful deductions.
If the deposit is transferred, the former landlord must notify the tenant in writing about the transfer and the address of the new owner.
Final Thoughts
In Florida, the security deposit law maintains a balance between protecting the financial interests of the landlord and safeguarding the rights of the tenant. Landlords who understand and comply with these laws prevent disputes and protect their investments.
We recommend partnering with a knowledgeable local property management company like JGE Property Management for specific questions.
Legal Disclaimer: Please note that the information provided in this blog is intended for general guidance and should not be considered as a replacement for professional legal advice. It is important to be aware that laws pertaining to property management may change, rendering this information outdated by the time you read it.