Florida Security Deposit Law

Florida Laws Regulating Security Deposits

Like most other aspects of renting property, Florida landlord-tenant law governs the rules for handling security deposits. Since each state manages its own landlord-tenant laws, Florida landlords must understand the federal, state, and local guidelines for collecting, handling, and returning security deposits.

Florida’s primary law regulating security deposits is Florida Statute § 83.49. While this law protects both landlords and tenants when handling funds used as security deposits, it’s a good idea to clearly outline how landlords will handle the deposit within the lease agreement.

Tenants have certain protections in Florida regarding security deposits. For example, if landlords fail to provide proper notice within the required timeframe when deducting funds from the security deposit, tenants may be entitled to the full amount of the deposit, regardless of any damage to the unit.

Maximum Security Deposit Amount

Maximum amount: Florida does not limit how much a landlord can collect for a security deposit, but most landlords typically charge one or two months’ rent. Doing so allows landlords flexibility while ensuring they remain competitive in hot rental markets.

While the type of property (furnished or unfurnished) may matter in some states, it does not impact the amount a landlord can collect for a security deposit in Florida. However, some landlords may charge more to account for potential wear and tear on furnishings.

Additionally, the length of the lease or the number of properties a landlord owns does not affect the amount they can collect.

Pet deposits: Florida does not set a legal limit on the amount a landlord can collect for a pet deposit. However, landlords cannot charge a pet fee or pet deposit for service animals or emotional support animals (ESAs), as they are not considered “pets” (Florida Statute § 413.08).

Penalties: Since Florida does not set a state-mandated maximum for security deposits, landlords face no penalties for charging more than typical.

Handling Damage Deposits

Florida landlords must follow all applicable state and federal laws when charging a security deposit, ensuring the deposit is stored and handled legally.

Security deposit storage: Florida landlords must store the security deposit in a Florida-based financial institution. The landlord cannot mix personal funds with the deposit if the funds are in an interest-bearing account. Also, landlords must provide the name and address of the Florida bank holding the funds, the amount of interest collected, and whether the account is interest-bearing.

Interest-bearing account: Landlords are not required to hold security deposits in an interest-bearing account, but if it is, the landlord must inform the tenant of the interest percentage. If they do hold the deposit in an interest-bearing account, the landlord must pay the tenant either 75% of the annualized average interest or 5% per year of simple interest.

Receipt: If the landlord operates five or more units, or the deposit is held in an interest-bearing account, the landlord must provide the tenant with a receipt within 30 days. The receipt must clearly state where the deposit is held and the amount of interest accumulated.

Documentation: Florida law does not explicitly require a move-in checklist, though utilizing one is considered a best practice, especially when accepting a security deposit. A move-in checklist documents the property’s condition when the landlord hands the keys over, allowing them to compare it to the condition when the tenant moves out. Doing so can play a key role in determining how much (if any) a landlord should deduct from the security deposit after the lease ends.

Ownership transfer: If the landlord sells a property while a tenant’s lease is in progress, they must transfer the security deposit to the new owner, who must keep the funds separate from their personal funds (Florida Statute § 83.49(7)).

Deductions

Florida security deposit law outlines when a landlord can deduct funds from the security deposit after the tenant has vacated the property. Generally, deductions are allowed only to cover legitimate losses, not normal wear and tear.

While Florida landlords cannot deduct from the security deposit for normal wear and tear, they can deduct for the following:

Damage to the property (or furnishings) beyond normal wear and tear: This could include holes in the wall, broken windows, damage to flooring, or damaged or missing fixtures.

Excessive cleaning costs: If the tenant leaves behind excessive trash, grime, or waste, the landlord may deduct the cost of remediation from the security deposit.

Unpaid rent: If the tenant leaves the property at the end of their lease term but is still behind on rent payments, the landlord may deduct from the security deposit to cover those payments. Landlords who use TurboTenant to collect rent online can easily track late rent payments directly from the landlord dashboard.

Property abandonment: If the tenant breaks the lease without a legally qualifying reason, the landlord can use funds from the deposit to cover rent payments until the unit is re-rented.

Unpaid utilities: Depending on the lease agreement, the tenant may be responsible for utility payments during their tenancy. If the tenant leaves the unit without paying what they owe according to the lease, the landlord can deduct funds from the security deposit to cover those payments.

Smoking damage: Even in units where smoking is allowed, if a tenant leaves the unit smelling like smoke, yellowing walls, or burn marks related to smoking, the landlord may deduct funds from the deposit.

While there are many situations where the landlord can retain money from the security deposit, there are instances where it’s not allowed, which include:

Normal wear-and-tear: Landlords cannot deduct funds for minor issues, such as painting, routine carpet cleaning, replacing light bulbs, and minor touch-ups.

Upgrades or improvements: Landlords may make routine or quality-of-life improvements to a rental unit between tenants, but they cannot use security deposit funds to finance these upgrades.

Damage caused by natural disasters: Unless the tenant is negligent, the property owner or insurance claims must cover damage caused by natural disasters, not the tenant.

Costs not in the lease: Anything not covered under Florida law and not explicitly mentioned in the lease cannot be paid for by funds from the deposit.

Return Timeline

Florida security deposit law dictates how a landlord must return a tenant’s security deposit. Failing to comply with these laws can result in forfeiting the right to deduct or keep any portion of the funds and may lead to lawsuit liability for the property owner.

Timeframe: Florida law states that if the landlord does not intend to retain any portion of the security deposit for the allowed reasons listed above, they must return the money within 15 days of the tenant moving out.

If the landlord intends to retain money, they have 30 days to provide written notice to the tenant, including a list of the repairs needed and their costs. If the tenant does not dispute these charges, the landlord must return the remainder within 30 days of sending the notice.

Deduction tracking: When withholding funds from the security deposit, landlords must provide the tenant with a detailed, written, itemized list that includes:

• A breakdown of each charge (e.g., “hole in living room wall” or “hardwood floor repair”) along with the cost to repair
• A brief explanation of each deduction
• Copies of estimates, invoices, or receipts for the actual repairs; this helps in case the tenant disputes the charges at the time of the deduction or later on

Itemized deduction notification: The landlord should notify the tenant of their intent to deduct funds from the deposit in a trackable way that leaves a clear paper trail, which can be helpful if either party disputes the charges.

Typically, landlords send the notification of intent to deduct funds via certified mail. Doing so ensures the landlord receives confirmation that the tenant has received the notice, as the United States Postal Service tracks certified mail. Hand-delivering the notice is not advisable, as it could lead to claims by the tenant that they never received it.

Landlords should return the deposit (whether within the initial 15-day window or after deductions) as a check by mail or as a direct deposit into the tenant’s bank account. While it is legal to return the deposit in cash, this method does not leave a clear paper trail and is generally not recommended.

Penalties: If the landlord does not follow state law by failing to notify the tenant properly of their intent to deduct funds, deducts funds for reasons not allowed under Florida landlord-tenant law, or does not return the deposit within the required timeframe, the tenant may be entitled to:

• The landlord must return the full security deposit to the tenant, even if valid deductions were made
• Court costs and attorney’s fees if the tenant sues the landlord and wins
• A potential small claims court judgment against the landlord

Handling Disputes

Whether you follow the law or not, disputes between a tenant and landlord can arise at any time. The best way to avoid disputes or protect yourself if they do arise is to document everything at every stage of a tenancy.

Move-in/move-out checklist: According to Florida security deposit law, a move-in or move-out checklist is not mandatory. However, ensuring both the tenant and landlord agree on the property’s condition when the lease is signed is a great way to protect yourself if the tenant disputes a security deposit deduction.

Move-in checklists can collect:

• Detailed photos and videos of each room or important feature of the property
• Detailed written descriptions of the property, including its present condition

Tenant challenge: If a tenant objects to the landlord’s list of itemized deductions, the tenant can respond before the landlord makes the deductions and challenge their validity. If you have a move-in checklist, compare the previous and current conditions and use that evidence to show the tenant what repairs are needed.

It’s crucial to respond to the tenant’s challenge promptly and professionally, relying on your photos and checklist. If necessary, negotiate a partial refund to avoid legal escalation, but be careful to avoid retaliatory behavior or threats, as the tenant could use them against you in court. Documenting everything will protect you in any landlord-tenant dispute.