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Florida Security Deposit Laws

Florida Security Deposit Laws
By PG Group - Thursday, November 17, 2022
Florida landlords are allowed to collect security deposits from tenants. Collecting security deposits is advantageous for landlords. We have outlined a few uses and rules surrounding the Florida Security deposit. Under Florida security deposit law, landlords are entitled to collect security deposits from tenants as long as they follow the set of rules mandated by the law.  We also recommend reading up on the Florida Fair Housing Act to make sure this process is done in accordance with the law. These rules are created in order to protect the interests of all parties involved. As a landlord, it’s critical to understand the security deposit law in Florida to avoid any legal issues in the future.

  1. Security Deposit Limit

Most states set a maximum limit on how much money a landlord can require from a renter for the security deposit. In the state of Florida, however, the law does not limit the amount of security deposit landlords can charge from their tenants. Usually, Florida landlords charge up to two months’ rent as security deposit.  When deciding how much security deposit you will charge a tenant, it is important to keep in mind the average of the area. While there can be no limit to how much you can charge, some tenants may decide not to rent your unit if the deposit is too high. money in an envelope While the Sunshine State has no statute regarding the maximum limit of security deposit, Florida cities and counties may put a cap on the amount you can charge to renters. It’s important to check your local ordinances to ensure that you remain in compliance with the local law.

  1. Nonrefundable Fees 

In the state of Florida, there is no statute about nonrefundable fees. Florida landlords are allowed to charge a cleaning fee as long as this is clearly stated in the rental agreement. If the landlord did not include a provision in the rental agreement regarding cleaning fees, the landlord may not be able to deduct this fee from the security deposit.

  1. Storing a Tenants Deposit in Florida

Many states have rules regarding how landlords must store a tenant’s security deposit. In the state  of Florida, landlords are given three options for storing the security deposit:
  • Non-Interest Bearing Account: Landlords may choose to store the tenant’s security deposit in a non-interest bearing account in any bank in Florida. However, landlords should use this account exclusively for security deposits only.
  • Interest-Bearing Account: Florida landlords may also place the security deposit funds in a Florida bank account that earns interest. If the landlord chooses this option, the landlord is required to give the tenant either 75% of the interest earned on the account or 5% simple interest per year. Landlords should not use this bank account for other funds other than security deposits. 
a piggy bank sitting on paper money
  • Security Bond: Florida landlords also have the option to post a security bond from a licensed surety company. A 5% simple interest per year on the amount of the security deposit should be paid to the tenant. 

  1. Giving a Written Notice after Receiving the Security Deposit 

Under Florida security deposit law, landlords are required to provide a written notice within 30 days of receiving a security deposit. The written notice should include the following information:
  • The account depository’s name
  • Which bank account the security deposit funds will be held, whether in an account that earns interest or in a non-interest bearing account
  • If the security deposit is held in an interest-bearing account, the landlord must also include the rate and time of interest payments

  1. Legal Reasons to Withhold the Tenant’s Security Deposit

Under certain conditions, landlords are entitled, under the landlord tenant laws in Florida, to keep all or a portion of a tenant’s security deposit. In the state of Florida, the following are the allowable reasons that a landlord who requires a security deposit may keep it: 
  • Unpaid Rent: Landlords may deduct part of the security deposit as to cover unpaid rent. According to the eviction laws in Florida, this includes unpaid rent that results in an eviction. 
  • Cost of Repairs Due to Damage Caused by Florida Tenants’ Breach of Agreement: If the tenants did not uphold their duties and responsibilities as provisioned in the lease agreement, and their negligence or abusive behavior have caused damage on the property, landlords are allowed to deduct the cost of repair from the security deposit.
someone fixing a window with a drill
  • Cost of Repairs for Damage Beyond Normal Wear and Tear: If the property has deteriorated beyond what is considered normal wear and tear, the cost of repair of the excess damage may be deducted from the tenants’ security deposit.
  • Other Fees Agreed Upon in the Lease: Landlords may also deduct other fees that are included in the lease agreement, including, but not limited to, cleaning fee, pet fee, late payment fee, and early lease termination in Florida.
It’s important to note that, in accordance with Florida’s renters’ rights, the landlord cannot keep the deposit in order to cover issues that existed before the tenant moved into the property.

  1. A Walk-Through Inspection

In Florida, there is no statute that requires landlords to perform any inspections to check the property’s condition before the tenant moves out. 

  1. Security Deposit Refund in Florida

Tenants often want to know when must a landlord return a security deposit in Florida?  Florida landlords are given 15 days to return the full security deposits to tenants after the latter move out of the property.  However, if the landlord plans to make deductions from the security deposit, the landlord is mandated to provide the tenant with a written notice of deduction within 30 days after the tenant vacates the unit.

  1. Shift in the Owner of a Property

If the rental home is sold to a different owner during the term of the tenancy, the outgoing landlord is required to transfer the security deposits to the new owner. The new owner is now responsible to refund the security deposit to the tenants when the lease term ends. two people exchanging a security deposit  However, if the previous owner fails to transfer the security deposit to the new landlord, the former will not be relieved of his duties to return the security deposits to the tenants.

Hiring A Property Manager

If you have questions about security deposit laws in Florida, don’t hesitate to contact the experts at PG management. Our qualified team will be waiting for your call and excited to help you with all your property management needs.  This blog should not be used as a substitute for legal advice from a licensed attorney in your state. Laws change, and this post might not be updated at the time of your reading. Please contact us for any questions you have in regards to this content or any other aspect of your property management needs.

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