Security deposits are a crucial part of rental agreements in Florida, helping landlords cover potential damages while ensuring tenants meet their lease obligations. While Florida law does not impose a statutory limit on security deposits, landlords must follow strict guidelines for handling these funds.
1. No Maximum Limit on Security Deposits
Unlike some states that cap security deposits at one- or two-months’ rent, Florida does not set a legal limit. Landlords can determine the deposit amount based on their rental policies, but it should be reasonable to avoid deterring potential tenants.
2. Escrow Account Requirement
Florida law mandates that security deposits must be kept in a separate escrow account. Landlords cannot mix deposit funds with personal or business accounts. They have three options for holding deposits:
- A non-interest-bearing account in a Florida-based financial institution
- An interest-bearing account, where tenants receive a portion of the interest earned
- A surety bond, secured through a licensed bonding company
3. Written Notice to Tenants
Landlords must provide tenants with written notice within 30 days of receiving the security deposit. This notice should include:
- The type of account holding the deposit
- The financial institution’s name and address
- Whether the deposit will accrue interest
4. Returning Security Deposits
When a tenant moves out, landlords must return the deposit within 15 days if there are no deductions. If deductions are made for damages or unpaid rent, landlords must send a written notice within 30 days, detailing the amount withheld and the reasons for the deductions.
Final Thoughts
Understanding Florida’s security deposit laws helps both landlords and tenants avoid disputes. Proper handling ensures compliance with state regulations while maintaining trust in rental agreements.
Bottom Line
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