It is usually a given that rental properties will require a security deposit at the beginning of the lease agreement, but did you know that there are laws governing security deposits in Florida? These laws govern things like how security deposits should be stored, how they can be used, and how quickly they must be refunded. Dive into all the details below to learn everything you need to know about security deposits in Florida.
What Is A Security Deposit?
A security deposit is a sum of money paid by a tenant to a landlord at the beginning of a lease agreement. Its purpose is to protect the landlord in case of damage to the rental property, a tenant’s failure to pay rent, or other lease violations. The deposit acts as a financial safeguard, ensuring the property is returned in good condition. Typically, the amount required for a security deposit is equivalent to one to two months’ rent, though this can vary based on the property, landlord, or state laws. The deposit is usually refundable if no issues arise during the lease term.
Florida's 2024 Security Deposit Laws
Florida’s 2024 security deposit laws are outlined in Florida Statutes Section 83.49, which governs how landlords must handle tenant security deposits. Landlords are required to hold security deposits in one of three ways: in a non-interest-bearing account, in an interest-bearing account where the tenant receives interest, or post a surety bond. Landlords must inform tenants in the least agreement or in a separate writing via certified mail within 30 days of receiving the deposit, stating how and where the deposit is being held.
The law requires landlords to return the security deposit within 15 days after the tenant vacates the property, provided no deductions are made. If the landlord intends to make deductions for damages or unpaid rent payments, they must send an initial written notice within 30 days explaining the reasons for withholding the deposit. Tenants then have 15 days to dispute the claim.
Non-compliance with these requirements can result in penalties for landlords. If a landlord fails to provide proper notice or mishandles the deposit, they may forfeit their right to make deductions and could be required to return the full deposit. Tenants may also sue for damages and attorney’s fees if their deposit is wrongfully withheld. Both landlords and tenants should familiarize themselves with these laws to ensure proper handling of security deposits.
Allowable Deductions From The Security Deposit
In Florida, landlords may deduct certain expenses from a tenant’s security deposit, but only under specific circumstances. These deductions must comply with Florida Statutes Section 83.49 and be properly documented. Below are the allowable deductions:
Damages Beyond Normal Wear and Tear
Landlords can deduct costs for repairs if the tenant causes damage that exceeds normal wear and tear. This property damage may include items such as broken windows, large holes in the walls, or damaged flooring. Even though a guest may not always become a tenant, the security deposit may be used for damage caused by guests. Routine wear, like minor carpet fading, is not deductible.
— Unpaid Rent
Any outstanding rent at the time the tenant vacates the property can be deducted from the security deposit. This includes partial payments or full months of unpaid rent.
— Unpaid Utilities
If the tenant leaves unpaid utility bills for services like water, electricity, or gas, the landlord can deduct these amounts from the deposit.
— Cleaning Fees for Excessive Dirtiness
While normal cleaning between tenants is the landlord’s responsibility, a deduction may be made if the rental is left excessively dirty, requiring professional cleaning beyond routine tasks. Examples include stained carpets or significant buildup of grime.
— Key Replacement or Lost Items
Costs associated with replacing lost keys or other property-specific items that the tenant was responsible for, like garage openers or gate fobs, can also be deducted.
Landlords must notify tenants of any deductions within 30 days and return the remaining deposit within 15 days of notifying them.
Returning The Security Deposit
In Florida, landlords must return a tenant’s security deposit within 15 days after the tenant moves out, provided there are no deductions. If the landlord intends to make deductions for damages or unpaid rent, they must provide a written notice to the tenant within 30 days of move-out. This notice must include a detailed accounting of the deductions and reasons for withholding part or all of the deposit.
Tenants have the right to dispute these deductions. After receiving the notice, tenants have 15 days to object in writing. If the tenant objects and a dispute arises, the tenant and landlord may attempt to resolve the issue directly, or the tenant can pursue legal action, including filing a lawsuit in small claims court.
It should also be noted that a tenant should give the landlord written notice at least 7 days prior to vacating a rental in cases where they decide to perform an early lease termination. The tenant should also provide their forwarding address with the notification. Failure to do so could alleviate the landlord from their requirement to provide written notice of deductions.
If the landlord fails to follow the required timeline or mishandles the deposit, they may forfeit their right to make any deductions and be required to return the full deposit. Both parties should keep records to avoid disputes and ensure compliance with Florida’s security deposit laws.
Methods For Storing Security Deposits
In Florida, landlords have specific legal requirements for storing security deposits, governed by Florida Statutes Section 83.49. Landlords must inform tenants in writing within 30 days about how and where the deposit is held. Below are the allowable methods for storing security deposits in Florida.
— Non-Interest-Bearing Account
The most common method is to hold the deposit in a non-interest-bearing bank account in Florida. The landlord does not have to pay interest to the tenant in this case, but the deposit must remain untouched at the financial institution unless deductions are made for allowable reasons.
— Interest-Bearing Account
A landlord may choose to store the deposit in an interest-bearing account. If this method is selected, the tenant is entitled to receive 75% of the annual interest earned or a 5% simple interest rate per year, whichever is less. The remaining interest may be kept by the landlord.
— Surety Bond
Instead of placing the deposit in a bank account, the landlord may purchase a surety bond with a Florida-based insurer. This bond must be equal to the total amount of all security deposits held. In this case, tenants are entitled to 5% interest per year.
Each method ensures tenant protection, and landlords must handle these funds responsibly to avoid penalties.
Security Deposit Disputes & Remedies
Security deposit disputes in Florida often arise over deductions for damages, cleaning fees, or unpaid rent. Common disputes include disagreements over whether damage exceeds normal wear and tear, or if the landlord has unfairly charged for routine cleaning. Tenants may also dispute if proper notice of deductions was not given within the required 30 days.
To resolve disputes, tenants and landlords can first try to negotiate directly. If that fails, mediation is a less formal, third-party option that can help reach a mutual agreement. If no resolution is found, tenants can file a claim in small claims court, where they can recover the full deposit and potential damages.
If a landlord violates Florida’s security deposit laws, such as failing to return the deposit within the required 15 days or mishandling the funds, they may forfeit their right to make any deductions. Additionally, tenants may be entitled to damages, including legal fees, if the case proceeds to court.
Security Deposit Best Practices For Landlords
For landlords, following best practices for handling security deposits helps avoid disputes and ensures compliance with Florida law. First, ensure proper handling of the security deposit by storing it in a permitted account and providing the tenant with written notice of how it’s being held within 30 days of receiving it. Keep accurate records of the funds, including all deductions.
Conducting thorough move-in and move-out inspections is critical. Before the tenant moves in, document the condition of the rental unit with detailed notes and photos, and have the tenant sign off on the inspection report. This serves as a reference point for assessing damages when the tenant moves out.
At the end of the lease, perform a final inspection and document any damage beyond normal wear and tear. Providing the tenant with detailed documentation of any deductions helps avoid disputes and demonstrates transparency in handling the security deposit. Regular communication and clear expectations also help maintain a positive landlord-tenant relationship.
Security Deposit Best Practices For Tenants
For tenants, following security deposit best practices helps protect your rights and ensure you receive your deposit back in full. Start by carefully reading and understanding the lease agreement, particularly the security deposit provisions. Know what the landlord expects regarding the property’s condition and any specific rules about deposit deductions before your tenancy begins.
Before moving in, document the condition of the rental unit. Take detailed photos and notes of any pre-existing damage, such as scratches, stains, or worn-out areas. Share this documentation with the landlord to ensure you’re not held responsible for prior issues.
As the lease ends, request a walk-through inspection with the landlord. This gives you the opportunity to address any concerns they may have regarding potential deductions. If there are damages beyond normal wear and tear, you can repair them before moving out to avoid deductions. Following these steps ensures transparency and increases the likelihood of receiving your security deposit in full. Also, be sure you understand your tenant rights to help protect yourself.
Security Deposit Alternatives
In Florida, landlords and tenants may explore security deposit alternatives, which can offer flexibility but come with trade-offs.
— Non-Refundable Fee
A common alternative is a non-refundable fee, such as a move-in or cleaning fee. Some people may also refer to this fee as advance rent. Unlike a refundable deposit, this fee is not returned to the tenant at the end of the lease, regardless of the property’s condition. Non-refundable fees are typically smaller upfront payments but can leave tenants without recourse for getting money back.
— Security Deposit Insurance / Surety Bond
Another option is security deposit insurance or a surety bond. With these, tenants pay a smaller monthly or one-time premium instead of a large security deposit. The insurance or bond guarantees the landlord coverage for damages or unpaid rent. However, tenants do not get the premium back, and they may still be liable for paying for damages beyond what the insurance or bond covers.
Pros & Cons of Alternatives
- Pros: Lower upfront costs, making it easier for tenants to move in. Landlords get immediate protection against damage or unpaid rent without holding large sums of money.
- Cons: Tenants lose the opportunity to recover their money, as they would with a refundable deposit. For landlords, non-refundable fees may not fully cover damages, while surety bonds involve third parties, which could complicate claims.
Frequently Asked Questions
How soon does a landlord have to return a tenant's security deposit after they move out in Florida?
In Florida, a landlord has 15 days to return the tenant's security deposit after they move out if no deductions are made. If the landlord intends to deduct for damages or unpaid rent, they must notify the tenant in writing within 30 days of the move-out, detailing the reasons for withholding part or all of the deposit. The tenant then has 15 days to dispute the landlord’s claim for deductions. If no dispute arises, the remaining deposit must be returned within 30 days after the tenant receives the notice. Failure to comply can result in penalties for the landlord.
What are the penalties for a landlord who doesn't follow security deposit laws in Florida?
In Florida, if a landlord fails to follow security deposit laws, such as not returning the deposit within the required time frame or improperly withholding deductions, they may face significant penalties. The landlord may forfeit their right to make any deductions and be required to return the full deposit amount. Additionally, the tenant may be entitled to recover damages, including court costs and legal fees, if the case goes to court. Failure to comply with these regulations can also damage the landlord's reputation and lead to costly legal disputes, making it crucial for landlords to adhere to Florida’s security deposit laws.
Are there any exceptions or special cases regarding security deposits in Florida?
Yes, there are exceptions and special cases for security deposits in Florida. For vacation rentals or short-term leases (typically less than 6 months), security deposit rules may be less stringent. However, landlords and property management companies still need to follow basic requirements for handling and returning deposits. In roommate situations, if multiple tenants are on the lease, the security deposit is usually divided among the renters, but the landlord should clarify responsibilities in writing. For subsidized or public housing, such as those under HUD programs, specific rules may apply regarding deposit amounts and handling, often differing from standard rental agreements. Tenants should consult their lease agreements and local regulations for precise details.
Can a landlord increase the security deposit mid-lease in Florida?
Similar to the rent increase laws, a landlord generally cannot increase the security deposit mid-lease unless specified in the lease agreement. The security deposit amount is typically fixed for the duration of the lease. However, if a lease renewal or new lease agreement is signed, the landlord may set a higher security deposit for the new term. Any increase in the security deposit mid-lease would require tenant agreement and an amendment to the lease. It's essential for landlords to adhere to the terms outlined in the original lease and for tenants to review lease terms carefully to avoid unexpected changes. Even if property ownership changes during the term of the lease, the new owner is generally bound by the terms of the original agreement unless the lease specifies otherwise.
What is the statute of limitations for recovering an improperly withheld security deposit in Florida?
In Florida, the statute of limitations for recovering an improperly withheld security deposit is five years. This period starts from the date the tenant was supposed to receive the deposit or the date the tenant discovered the wrongful withholding. Tenants who believe their deposit was improperly withheld should act promptly to file a claim or take legal action within this time frame. Failure to do so may result in losing the right to recover the deposit or damages. It is best to consult with an experienced real estate attorney who understands Florida landlord-tenant law for legal advice to ensure timely and appropriate action.
WRITTEN BY
Luis Marrero
Partner, Incubate Property Management
Luis is a partner of Incubate Property Management, a lethal marketer, and real estate investor. With years of experience in real estate and a knack for digital marketing, Luis is all about making property management hassle-free. Outside of work, you’ll find him exploring Miami, attending Formula 1 races, and spending time with his Chihuahua, Cici.
Legal Disclaimer
The information provided in this blog is for general informational purposes only and does not constitute legal, financial, or professional advice. Incubate Property Management does not guarantee its accuracy and is not liable for any losses or damages.
