Key Takeaways
- Florida has no limit on security deposit amounts, but landlords must follow strict rules on storage, disclosures, and allowable deductions to remain compliant.
- Landlords may charge additional deposits or fees, including pet deposits, but must provide reasonable accommodations and cannot charge for assistance animals.
- Security deposits must be handled and returned according to specific timelines, with proper notices, accounting, and transfers, especially during property sales, to avoid legal penalties.
As a Florida rental property owner, you understand the importance of collecting a security deposit to protect your investment. These funds can cover unpaid rent or utilities, losses after abandonment, excessive cleaning costs, and repairs for damage beyond normal wear and tear.
However, the ability to collect and deduct from a security deposit comes with strict legal responsibilities. Florida law specifies how deposits must be stored, which deductions are allowed, and when they must be returned, and violations can carry serious penalties under Chapter 83, Part II of the Florida Statutes.
This guide from Spectrum Realty Services explains the key requirements of Florida’s security deposit laws to help you remain compliant and safeguard your property.
Maximum Limit
Does Florida law impose a limit on how much security deposits landlords can charge? Unlike some other states, there is none! You can charge as much or as little as you wish. Ideally, though, ask for a maximum limit of 1.5X the monthly rent.
Alternatively, you could also provide the resident with the option of paying a nonrefundable fee in lieu of the deposit. It can even be in installments as long as you agree upon it with the resident in writing.
If both you and the resident agree to the non-refundable fee option, then you must include certain disclosures in the lease. 
- The fee isn’t refundable after the resident moves out.
- It is optional, and the resident can opt to pay for the security deposit instead.
- The fee doesn’t absolve the resident from meeting their obligations. Such as, paying rent and utilities, or fixing damage exceeding normal wear and tear.
- The amount of the fee and when it becomes due.
Additional Pet Deposits
Can landlords in Florida collect a pet deposit in addition to the move-in security deposit? Absolutely! You can collect additional pet deposits, save for disabled residents with assistance animals.
If the resident has a service dog or an emotional support animal, you must provide them with reasonable accommodation and not charge them. This is a requirement under both the Americans with Disabilities Act (ADA) and the Federal Fair Housing Act (FHA).
Other reasonable accommodations that you may need to provide disabled residents with include the following.
- Assigning the resident an accessible parking space.
- Adjusting the rent payment schedule to match when they receive their income assistance benefits.
- Allowing the resident to transfer to a more mobility-friendly unit, which can be the ground floor unit.
Written Disclosure
Landlords who collect security deposits in Florida must provide residents with disclosures. In the written disclosure, you must mention the following:
- Where and how you’ll be keeping the resident’s security deposit.
- Whether any interest will be due on the resident’s security deposit.
Security Deposit Holdings
In Florida, landlords have three options when storing their residents’ security deposits. That is, in a non-interest-bearing account, an interest-bearing account, or by posting a surety bond.
If storing it in an interest-bearing account, you must credit the resident either 75% of the accrued interest or 5% annual interest.
If posting it as a surety bond, you must do so with a clerk of the circuit court in the county where your property is located. The bond must be in the amount of the security deposit plus advance rent or $50,000, whichever is less.
Sale of Rental Property
So, what happens after an occupied rental property changes hands in Florida? In such a case, the outgoing landlord must transfer the security deposit to the incoming landlord along with certain records. Such as, the amount of security deposit, any accrued interest, and the location of its storage.
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Security Deposit Deductions
In Florida, landlords can make certain security deposit deductions after the resident moves out. You can deduct the cost of things like:
- Unpaid rent.
- Unpaid utilities.
- Monetary damages resulting from lease violations.
- Excessive cleaning costs.
Security Deposit Returns
The timeframe for its return depends on whether there are deductions or not. If there are no deductions, you must return it to the resident within 15 days after moving out.
If there are deductions, you’ll have up to 30 days to do so. You must also send a written itemized statement to the resident’s last known address via certified mail.
Conclusion
Complying with Florida’s security deposit laws isn’t just good practice, it’s a legal requirement. Adhering to each rule helps you prevent disputes, protect your investment, and avoid costly litigation.
With this guide, you’re now equipped with a clear understanding of what is and isn’t allowed under Florida’s security deposit regulations.
Spectrum Realty Services offers comprehensive support for every aspect of property ownership, from leasing and management to sales. Contact us today to learn how we can help you operate confidently and successfully.
Disclaimer: Please note that the information provided in this blog is intended for general guidance and should not be considered as a replacement for professional legal advice. It is important to be aware that laws pertaining to property management may change, rendering this information outdated by the time you read it.