Florida Security Deposit Limits and Deadlines
When a tenant signs a leasing agreement, the landlord typically collects a certain amount of cash known as the security deposit. This is a fee that’s a required payment apart from the advance rent payment. The deposit is refundable, under the right conditions.
This article tackles Security Deposit Returns in Florida. Learning the basics of this law helps you and the tenant avoid common conflicts circling around security deposit returns. But before that, we must explore the purpose of a security deposit.
What’s the objective of collecting a security deposit in Florida?
Among the multiple reasons, Florida landlords benefit from collecting a security deposit since it can:
- Guard against property damage. It creates an incentive for renters to maintain the unit reasonably. Of course, the deduction must be exclusive to damages that occur outside of the normal wear and tear
- Make up for the income loss of the landlord when a tenant fails to pay the last months rent
- Protect the landlord when a tenant suddenly breaks the lease early. The landlord can use security deposits while looking for a new tenant and to cover expenses caused by the tenant
- Pay for utility bills that the tenants left when they moved out of the rental
- Compensate the landlord for the cleaning fee if the tenant left the unit in a messy condition
The security deposit is an acceptable refundable deposit across all US states. In Florida, these are the important points to remember about Security Deposit Returns:
Are there limits on how much a Florida landlord charges a renter for a security deposit?
No such limits exist in Florida for security deposits, but you can also check the city and county and municipal laws if there are capped limits from their end.
What is the standard time for the Florida landlord to return the renters’ security deposit once they moved out?
Under the security deposit law, a period of 15 to 30 days is given to the landlord in Florida to give back the deposit. If stored in an interest-bearing account as oppose to a non-interest-bearing account, the landlord must also return the amount made on interest. This is because the interest-bearing account is based on their deposit. This is in effect once the rental property is returned to the landlord’s possession: when the keys are back in the hands of the landlord and the tenant has left the rental unit. It’s a prerequisite that the landlord gives advance notice to the tenant if deductions are to be made.
What are other things that Florida landlords must observe when handling their renters' security deposits?
- Keep in mind that Florida landlords are required upon receipt of a security deposit to send a written notice to their renters within 30 days. This must contain information on where it will be stored, the name and address of the account depository, and the interest payment rate and time. If there are any changes to the information, then 30 days is again given to the landlord to provide a new notice to the tenant
- Landlords often will furnish their renters with a copy of Florida Statute Annotated section 83.49(3) in the leasing contract
- If the security deposit bears interest, then this must be paid annually and at the end of the tenancy. If tenants break the lease illegally, then no interest will be accorded to them
In Florida, is it required to have a walk-through inspection?
No, it’s not mandatory in Florida to conduct walk-through inspections for security deposit purposes.
What are the reasons permitted for a Florida landlord to keep a tenant’s security deposit?
Withholding a renter’s deposit is allowed for multiple reasons. Among them, for example, is a tenant’s failure to pay the rent. Another reason is discovering property damage that occurs that’s not categorized under normal wear and tear.
What are the ways that a Florida landlord can store the security deposit of a tenant?
There are 3 options granted to landlords on the security deposit storage prior to its return:
- Post a surety bond - this must be done in the county where the rental home is situated. The surety bond amount is either the security deposit amount or $50,000 (whichever is less) A 5% annual interest on the bond must also be paid to the tenant
- Deposit in an interest-bearing bank account. It’s mandatory that the landlord pays the interest to the tenant annually and at the end of the lease period
- Deposit in a non-interest-bearing bank account. It’s required that the landlord keeps the security deposit separate from other funds. It shall not be used before its time
How will a change in property ownership affect a tenant’s security deposit in Florida?
If changes occur and the rental home is sold, then it’s mandated that the landlord must transfer all the security deposits including the earned interest to the new owner, as per Florida landlord-tenant law.
The landlord must write a written request for the security deposit transfer. Once accomplished, the responsibility of keeping and returning security deposits will be under the new landlord/owner.
How can a Florida landlord return a tenant's security deposit?
The Security Deposit Law is clear that the landlord is tasked to return the security deposit within a prescribed period of 15 to 30 days once the tenant leaves the property. If no deductions are going to be made, 15 days is the allotted time for the return. This includes all the earned interest as well.
If deductions are going to be made, then the landlord must alert the tenant. This notice must be sent within 30 days of the tenancy once the lease expired. If the landlord is unable to satisfy this mandate, then the right to make deductions on the security deposit is forfeited.
The written notice must contain information on the landlord’s intention to retain a part or all of the security deposit. The tenant must also be told that 15 days is allotted as a contest period from the receipt of the letter. The tenant must provide written notice to contest it. The alert from the landlord must be delivered to the tenant via certified mail.
If it’s not contested, then the partial amount of the security deposit must be made within 30 days of the initial written notice. If there are objections by the tenant, they’re going to be settled in court.
Bottom Line
Returning the security deposit is incredibly important in order to adhere to the proper rental laws. However, there are many different timelines and conditions involved in this. If it seems overwhelming, consider hiring a professional property management company like Innovative Property Solutions. We can handle all security deposit concerns for you!
Note that this article must not be viewed as a substitute for legal advice. It’s recommended to seek legal advice from a licensed attorney in Florida or a property management company as laws frequently change or update.