Quick Facts | Answer |
Maximum / Limit | No Limit |
Receipt Requirement | None |
Inventory Requirement | None |
Interest Requirement | None |
To learn about laws on security deposit returns in Florida, click here.
Maximum Security Deposit Allowed in Florida
There is no limit on how much a landlord can collect for a security deposit in Florida. While other states impose a maximum security deposit limit, such as one month’s rent, Florida does not.
Landlords can give tenants the option of paying a nonrefundable fee in installments instead of a security deposit. There is no limit to the amount of the fee, but it must be agreed upon by the landlord and tenant in writing.
If the landlord and tenant choose the nonrefundable fee in lieu of a security deposit, the lease agreement must include several disclosures including:
- That the fee is nonrefundable and optional and the tenant can pay a security deposit at any time to end the installment payments
- Whether any charges apply for the option to pay the nonrefundable fee
- That the fee does not limit or change the tenant’s obligation to pay rent, other bills, and the cost of damages excluding normal wear and tear
- That if the landlord uses the fee to purchase insurance, the tenant is not insured as a result
- A written disclosure in substantially the same format as Section 83.491(5)(b) (see the section in all caps)
- The amount and due date of the fee
Can Landlords Charge an Additional Pet Deposit in Florida?
Yes, landlords can collect an additional pet deposit in Florida, except for service dogs and emotional support animals.
How Much Rent Can a Landlord Collect Upfront in Florida?
There is no limit on the amount of rent that can be collected upfront in Florida. Many states have a limit on the amount of rent that can be collected at once, but Florida does not.
However, if rent is collected in advance beyond the immediate rental period, it must be handled in the same way as a security deposit.
Security Deposit Collections in Florida
When collecting a security deposit, landlords in Florida must provide a written disclosure to the tenant including:
- The name and address of the depository where the security deposit will be kept or whether there is a surety bond
- If the tenant is entitled to interest on their security deposit
- A word-for-word recital of the disclosure provided in Section 83.4(2)(d) of the Florida Statutes (see the section in all caps)
The written disclosure must be provided within 30 days after receiving the security deposit and can be included in the lease agreement or provided by hand delivery or mail. If the landlord fails to provide the written disclosure, they forfeit their right to make deductions from the security deposit.
Do Landlords Have to Provide a Receipt for the Security Deposit in Florida?
While landlords in Florida must provide a written disclosure to tenants containing information such as where the security deposit will be held, an additional receipt of the deposit is not required to be provided.
What Obligations Do Landlords Have to Establish the Condition at Move-in in Florida?
Florida law does not require landlords to document or establish the property’s condition at move-in. While other states legally require a written inventory of damages to be completed when collecting a security deposit, Florida does not.
Security Deposit Holdings in Florida
Landlords in Florida must hold security deposits in one of three places: a non-interest-bearing account, an interest-bearing account, or by posting a surety bond.
Option 1: Non-interest-bearing account. The landlord may place the security deposit in a Florida bank account that does not gain interest. The account must only be used for security deposits.
Option 2: Interest-bearing account. The landlord may place the security deposit in a Florida bank account that gains interest. The landlord must credit the tenant either 75% of the interest earned or 5% interest per year. The landlord can choose whichever amount they want, even though it may be the lower of the two choices. The account must only be used for security deposits.
Option 3: Surety bond. The landlord may post a surety bond with the clerk of the circuit court in the county where the property is located. The landlord must credit the tenant interest at a rate of 5% annually.
The bond must be executed by a company that is licensed in the state of Florida. The bond must be in the amount of the security deposit plus advance rent or $50,000, whichever is less.
However, if the landlord leases property in five or more counties, they may choose to post a bond with the office of the Secretary of State in the amount held for the tenants or $250,000, whichever is less.
If the landlord changes their manner of holding the deposit, they must notify the tenant in writing within 30 days, unless they lease four or fewer rental units.
Are Tenants Entitled to Interest on Their Security Deposit in Florida?
Landlords in Florida do owe interest on security deposits, but only if they’re held in an interest-bearing account or if a surety bond is posted. Landlords in Florida may choose to hold security deposits in a non-interest-bearing account, in which no interest would be due to the tenants.
If a tenant is entitled to interest on their security deposit, it must be either credited towards rent or paid to the tenant directly once per year. A tenant that wrongfully terminates their lease forfeits their right to their interest.
How Are Security Deposits Accounted for in Florida?
Security deposits are not considered taxable income when they are collected.
What Happens to a Security Deposit When the Property is Sold in Florida?
When a property is sold in Florida, the seller must transfer the security deposit along with an accurate record of the amount with interest, if any, to the new owner, who must handle it according to the same rules.
Whether the property is sold or not, landlords have 15 days after the lease ends to return the security deposit if there are no deductions and 60 days if there are deductions.
Sources
- 1 FL Stat § 83.49
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Whenever money is deposited or advanced by a tenant…as advance rent for other than the next immediate rental period, the landlord or the landlord’s agent shall…
Source Link - 2 FL Stat § 83.49
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The landlord shall, in the lease agreement or within 30 days after receipt of advance rent or a security deposit, give written notice to the tenant which includes disclosure of the advance rent or security deposit.
Source Link - 3 FL Stat § 83.49
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If the landlord fails to give the required notice within the 30-day period, he or she forfeits the right to impose a claim upon the security deposit and may not seek a setoff against the deposit but may file an action for damages after return of the deposit.
Source Link - 4 FL Stat § 83.49
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…the landlord or the landlord’s agent shall either…Hold the total amount of such money in a separate non-interest-bearing account in a Florida banking institution for the benefit of the tenant or tenants….
Source Link - 5 FL Stat § 83.49
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The landlord shall not commingle such moneys with any other funds…
Source Link - 6 FL Stat § 83.49
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…the landlord or the landlord’s agent shall either…Hold the total amount of such money in a separate interest-bearing account in a Florida banking institution for the benefit of the tenant or tenants…
Source Link - 7 FL Stat § 83.49
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…the tenant shall receive and collect interest in an amount of at least 75 percent of the annualized average interest rate payable on such account or interest at the rate of 5 percent per year, simple interest, whichever the landlord elects…
Source Link - 8 FL Stat § 83.49
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Post a surety bond…with the clerk of the circuit court in the county in which the dwelling unit is located…
Source Link - 9 FL Stat § 83.49
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In addition to posting the surety bond, the landlord shall pay to the tenant interest at the rate of 5 percent per year, simple interest.
Source Link - 10 FL Stat § 83.49
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…a surety bond, executed by the landlord as principal and a surety company authorized and licensed to do business in the state…
Source Link - 11 FL Stat § 83.49
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Post a surety bond…in the total amount of the security deposits and advance rent he or she holds on behalf of the tenants or $50,000, whichever is less.
Source Link - 12 FL Stat § 83.49
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A landlord, or the landlord’s agent, engaged in the renting of dwelling units in five or more counties…may, in lieu of posting a surety bond in each county, elect to post a surety bond…with the office of the Secretary of State. The bond shall be in the total amount of the security deposit or advance rent held on behalf of tenants or in the amount of $250,000, whichever is less.
Source Link - 13 FL Stat § 83.49
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…if the landlord changes the manner or location in which he or she is holding the advance rent or security deposit, he or she must notify the tenant within 30 days…
Source Link - 14 FL Stat § 83.49
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This subsection does not apply to any landlord who rents fewer than five individual dwelling units.
Source Link - 15 FL Stat § 83.49
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In those cases in which interest is required to be paid to the tenant, the landlord shall pay directly to the tenant, or credit against the current month’s rent, the interest due to the tenant at least once annually.
Source Link - 16 FL Stat § 83.49
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…no interest shall be due a tenant who wrongfully terminates his or her tenancy prior to the end of the rental term.
Source Link - 17 FL Stat § 83.49
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Upon the sale or transfer of title of the rental property…security deposits or advance rents…shall be transferred to the new owner or agent, together with any earned interest and with an accurate accounting showing the amounts to be credited to each tenant account.
Source Link