Security Deposits in Florida Real Estate
When a person decides to rent a property in Florida, they not only have to pay rent but also a security deposit. A security deposit is often a source of conflict, as these amounts can often be very high (as much as two months’ rent) and in many cases, the tenant never gets their deposit returned, even after meeting all the conditions upon moving out.
Security deposits are not just extra money in a landlord’s pocket. They do have a good purpose: to protect landlords in case tenants breach their lease or rental agreement. It is a financial deposit made in advance of a tenant moving in to protect against damage to the property once they do move in. Sometimes it is also called “last month’s rent” or a “damage deposit.”
No matter whether you’re a tenant or landlord, you need to understand how security deposits work and what steps to take to protect yourself.
What Landlords Need to Know
Florida law does not place a cap on how much a landlord can charge for a security deposit. However, most landlords typically require an amount equal to one and a half to two months’ rent.
Landlords in Florida have three options for holding a tenant’s security deposit. They can:
- Post a surety bond.
- Placing the deposit in an interest-bearing account, with interest paid to the tenant annually and at lease end.
- Use a non-interest-bearing account.
Within 30 days of receiving the deposit, landlords must provide tenants with written notice that includes:
- The name and address of the financial institution holding the deposit.
- How the deposit is being stored (separately or commingled with other deposits).
- The interest rate, if applicable.
If the deposit’s location or handling terms change, the landlord must notify the tenant in writing within 30 days.
Can a Landlord Keep a Security Deposit?
To receive a full refund of their security deposit, tenants must comply with all terms of the lease agreement. If they don’t, the landlord is legally allowed to withhold part or even all of the deposit. Common reasons a landlord may retain some or all of the deposit include:
- Unpaid utilities. If a tenant leaves without paying their utility bills, the landlord can deduct the amount owed from the deposit.
- Excessive cleaning costs. While normal cleaning is the landlord’s responsibility, deposits can be used if the unit requires deep or unusually extensive cleaning.
- Property damage. Significant damage beyond normal wear and tear, such as broken windows, damaged vanities, or cracked countertops, can justify a deduction.
- Unpaid rent. Failing to pay rent is a lease violation and allows the landlord to apply the deposit toward the unpaid balance.
- Breaking the lease. Ending the lease early without proper notice or justification may result in loss of the deposit.
Seek Legal Help
Laws regarding security deposits can be tricky. What can landlords charge and what can tenants get back once they move out?
Whether you are a tenant or a landlord who needs assistance with a security deposit, Fort Lauderdale security deposit lawyer Edward J. Jennings, P.A can assist you. Schedule a consultation by filling out the online form or calling 954-764-4330.
Source:
managecentralfloridaproperty.com/florida-security-deposit-laws.html#:~:text=In%20regards%20to%20security%20deposits,of%20Florida’s%20security%20deposit%20laws.
