Florida Security Deposit Laws

Landlords charge security deposits to protect themselves against potential losses as a result of non-payment of rent, damage to property, lease breaches, and related fees. For tenants, these deposits act as an incentive for them to take good care of the property so they can get their deposit back in full.

However, it's important to note that Florida's security deposit is governed by specific laws outlined in Fla. Stat. § 83.49. Failing to comply with the provisions of this statute can result in disputes and costly litigation. That's why it is essential for both landlords and tenants to understand their rights and responsibilities.

This article will cover everything landlords need to know about security deposits in Florida, from the maximum allowable amounts to security deposit returns. Additionally, we will address common questions about Florida security deposit laws at the end of this article.

Florida Security Deposit Law: Overview

• Maximum Security Deposit Fee: Florida law does not impose a statutory limit on the amount landlords can charge for security deposits. Typically, deposits range from one to two months' rent.
• Pet Deposits: Allowed for tenants with pets, service animals are exempted.
• Collecting Security Deposits: Landlords can collect security deposits at the beginning of a tenancy. 
• Deductions from Security Deposit: Landlords can deduct from the security deposit for unpaid rent, damages beyond normal wear and tear, and fees specified in the rental agreement.
• Return Timeline: Landlords must return the security deposit within 15 days if no deductions are made. If deductions are necessary, they must provide written notice within 30 days.
• Contesting Deposit Deductions: The tenant has 15 days from the date they receive the notice of deposit deductions to contest the claim.
• Holding Deposits: Security deposits must be held in a separate account—either interest-bearing or non-interest-bearing—or secured by a surety bond.
• Interest on Deposits: Florida law does not require landlords to pay interest on security deposits unless specified in the lease agreement.
• Tax Implications: Security deposits are not subject to tax when collected or retained by the landlord. However, landlords are expected to accurately track these transactions for tax reporting purposes. 

Maximum Security Deposit Amount In Florida

Maximum Security Deposit Fee

Florida doesn't have a statutory limit on the amount a landlord can charge for a security deposit, allowing flexibility based on individual rental agreements. Typically, landlords may request a deposit ranging from one to two months' rent as a standard practice to cover potential damages or unpaid rent.

Pet Deposits

Florida security deposit law allows landlords to charge an extra deposit for tenants with pets. However, there's an exemption for tenants with service animals. Regardless, the tenant would be liable for any damages caused by the service animal.

Collecting Security Deposits in Florida

According to Florida security deposit law, landlords are allowed to collect a security deposit at the start of a tenancy. However, you have the option to either collect and manage these fees manually or automate the process using an electronic transfer system like Landlord Studio.

Landlord Studio provides an effective way to manage security deposits in Florida, enhancing compliance and organization. This property management software streamlines online deposit collection, organizes transaction records, and securely stores important documents, such as receipts and inspection reports. 

It's always beneficial for landlords to conduct move-in inspections before collecting the security deposit. This practice will help you assess and document the property's condition at the beginning of the tenancy, helping to minimize disputes over damages in the future.

What Can A Landlord Deduct From a Security Deposit? 

Under Florida law, landlords have specific rights regarding what they can deduct from a security deposit upon the termination of a lease. 

Here are the key deductions that landlords may legally make:

• Unpaid Rent: One of the most common deductions from a security deposit is for any unpaid rent. If a tenant fails to pay rent for any month during their lease term, the landlord can deduct the amount owed directly from the security deposit.
• Fees Stated in the Rental Agreement: Landlords may also deduct fees that are explicitly outlined in the rental agreement. This could include charges such as an early lease termination fee if the tenant decides to break their lease before its natural expiration.
• Cost of Repairs Beyond Normal Wear and Tear: While normal wear and tear is expected in any rental property, landlords can deduct costs associated with repairing damage that exceeds this threshold. For example, if a tenant causes significant damage to walls or fixtures, the landlord has the right to recover repair costs from the security deposit.
• Monetary Damages Due to Lease Breaches: If a tenant breaches any terms of the lease agreement, resulting in financial loss for the landlord, those costs can also be deducted from the security deposit. This could include damages related to unauthorized pets or other violations that lead to additional expenses.
• Withholding Payments: It's important to note that landlords may withhold payments from the security deposit when they become due, even if part of that deposit was initially designated as advanced rent. This ensures that landlords can cover any outstanding debts owed by the tenant.

How Long Does a Landlord Have to Return a Deposit in Florida

According to Fla. Stat. § 83.49 (2), landlords have 15 days for a security deposit in Florida if there are no deductions after the tenant vacates. If deductions are intended, landlords must provide written notice within 30 days detailing these deductions. 

Failure to adhere to the security deposit return timeline does not incur specific penalties; however, tenants can sue for its return. If successful, they may recover court costs and attorney fees, while landlords may seek expenses if they win the case.

Holding Security Deposits and Paying Interest In Florida

Following Fla. Stat. § 83.49 (1), landlords have three options for managing security deposits:

• Interest-bearing Bank Account: Landlords can keep deposits in an interest-bearing account, where they must credit tenants with either 75% of the interest or 5% simple interest annually. This account is exclusively for security deposits.
• Non-interest Bearing Account: Deposits may also be held in a non-interest-bearing account, which can only be used for security deposits.
• Security Bond or Surety Bond: Alternatively, landlords can post a security bond with a licensed surety company, ensuring they pay tenants 5% simple annual interest on the deposit.

Landlords are required to inform tenants, in writing, within 30 days of receiving the deposit about how and where it is held, including whether it is interest-bearing, non-interest-bearing, or backed by a surety bond.

Taxes and Security Deposit Deductions

According to Florida Sales Tax Attorney 12A-1.061, security deposits are not subject to tax when collected, or when retained at the end of the rental period, by the owner. However, if part of a deposit is kept to cover unpaid rent, it would generally be considered rental income at that point and considered taxable income.

It's important for landlords to accurately track financial transactions and report related income on tax returns. Using software like Landlord Studio can simplify this process, making it easier to manage security deposits and ensure compliance with tax regulations.

Security Deposit Laws in Florida: Final Words

To ensure a smooth rental experience, both landlords and tenants need to understand Florida's security deposit laws. 

As a recap, landlords have the flexibility to set security deposit amounts, typically ranging from one to two months' rent. It is crucial for landlords to manage these deposits properly, including timely deductions for unpaid rent or damages and returning deposits within the required timelines. 

Following these laws not only helps prevent disputes but also ensures compliance with state regulations, ultimately contributing to a positive rental relationship.

Florida Landlord Tenant Laws

• Florida Landlord Tenant Laws: Overview
• Florida Rent Increase Laws: How Much Can You Raise The Rent?
• Florida Eviction Laws
• Florida Tenant Screening Laws
• A Guide To Florida Rental Applications
• A Guide To Florida Lease Agreements [+Free Template]

Florida Security Deposit Laws: FAQs

Can a Tenant Use the Security Deposit as Last Month's Rent?

Typically, tenants cannot use their security deposit as last month’s rent unless both parties agree to this arrangement in writing. It's important to have clear language in the lease agreement around this point.

Is a Walk-Through Inspection Necessary?

While it is common practice for landlords and tenants to conduct a walk-through inspection to identify any unauthorized alterations or damages, it is not a legal requirement in Florida.

What Reasons Can a Landlord Have for Withholding a Tenant's Security Deposit?

Landlords can retain a tenant's security deposit for several reasons, including unpaid rent, excessive damage to the property, or breach of lease terms.

What Happens to the Tenant's Security Deposit When Property Ownership Changes?

In the event of a change in property ownership, the landlord is required to transfer the security deposit and any accrued interest to the new owner. A receipt for this transfer must be provided, after which the previous landlord is no longer liable for the tenant's security deposit.