Many residential rental agreements or lease agreements require a security deposit. Usually a month’s rent, a security deposit is a dollar amount that’s collected by the landlord to protect against property damage due to a tenant’s negligence or carelessness.
When it comes to Florida's security deposit laws both tenants and landlords have certain basic rights. These rights are specified under Florida landlord-tenant law. A housing provider must comply with these laws when handling the security deposit.
The Security Deposit laws don’t limit the amount a landlord can charge a tenant for a security deposit. However, the amount should be reasonable.
Florida security deposit law can, however, set the cap on the amount a landlord can ask.
Florida law states that a landlord can store tenants security deposits in three different ways. First, Florida landlords can post a surety bond for the amount of security deposit. A surety can be used as an alternative to a security deposit.
A surety bond, similar to a security deposit, is a form of insurance that provides a contractual promise. That is, the bond company stands ready to compensate the landlord up to the limits of the bond if the tenant fails to abide by the written lease agreement terms .
Tenant surety bond premiums typically cost a tenant about 10% to 20% of the security deposits. The landlord must also pay the tenant 5% interest annually on the bond according to local security deposit law.
Second, in Florida, landlords can place the security deposit in a non interest bearing account. Landlords aren’t allowed to commingle funds, so the account must be separate from the property owners person funds. Also, unless the funds are due, you shouldn’t use any part of the security deposits.
Third, a landlord may also place a renter’s security deposit in an interest-accruing bank account. Interest earned annually must be paid to the renter when the lease agreement term expires. A landlord can pay it in two ways. One, by crediting it back to the tenant in the form of rent. Or two, paying it directly to the tenant.
It’s mandatory for property owners to do so under the Florida security deposit laws. After its receipt, a landlord must notify the tenant, in writing, of its receipt within thirty days. In the written notice, the landlord must state:
The initial written notice can be delivered in person or can be sent via certified mail to the tenant.
Moreover, if any of these terms are changed, it’s the landlord’s responsibility to inform the renter in writing within one month.
There are instances where a landlord may make deductions from the renter’s security deposit. Common reasons include:
Damage caused by the tenant’s negligence or carelessness isn’t the landlord’s responsibility. Examples of damage that a Florida landlord has a right to deduct from the security deposit include:
No. It isn’t required in Florida. However, in other states like California and Arizona, this process is required. A walkthrough inspection is when both the tenant and the landlord go through the rental to assess its condition.
Renters must vacate the rental premises in the same way they found it when they moved in. Otherwise, the landlord has a right to make deductions to the security deposit.
If the landlord intends to impose a claim on the deposit, the landlord has 30 days to give the tenant written notice specifying the reasons. The notice, using exact language found in Florida Statutes, must list the damages as well as the charges.
The deductions are automatically forfeited if the landlord fails to do this. If the renter doesn’t object to the deductions, the landlord must send the remaining deposit within 30 days after initial notice.
However, if the landlord doesn’t intend to impose a claim on the security deposit, he or she has 15 days to return the deposit back to the tenant.
In the event of property ownership changes, the landlord is required to notify the tenant of the changes in writing. The landlord must also transfer the security deposits to the new landlord. Once this is done, the new landlord assumes all responsibilities under the existing lease or rental agreement.
Now that you have a general understanding Florida's security deposit law you'll be better prepared to protect your investment property.
This overview of security deposit laws in Florida is only meant to be informational. For specific questions, please consult a qualified Florida attorney. For help with your Tampa, Florida property management needs contact us today!
