Key Takeaways
Florida law doesn’t cap security deposit amounts, giving landlords flexibility when setting deposit requirements.
Landlords must properly store security deposits and provide tenants with written notice within 30 days of receipt.
Security deposits may only be used for valid expenses such as unpaid rent, damages beyond normal wear and tear, or lease violations.
Landlords must return deposits or send an itemized dedication notice within Florida’s required timelines to remain compliant with state law.
For landlords, a security deposit provides financial protection against tenant-related risks. It helps cover unpaid rent, damages, and move-out costs.
In Florida, these rules are governed mainly by Florida Statutes Section 83.49, which sets clear requirements on how deposits must be collected, stored, and managed properly.
Security deposits are standard in Florida rentals, but they come with strict legal requirements. Landlords must follow specific rules on storage, notice, deductions, and deadlines. Missing any step can affect your right to keep part or all of the deposit.
Alta Property Management Services put together this article to help landlords understand Florida security deposit rules and avoid costly mistakes.
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Guide to Florida Security Deposit Law
Florida Security Deposit Limit
Florida does not set a legal limit on how much a landlord can charge for a security deposit, according to landlord-tenant law. This gives landlords flexibility to set deposit amounts based on rental value, tenant risk, and property type.
Even though there is no cap, the amount should still be clearly stated in the lease agreement. Setting unusually high deposits may make it harder to attract tenants, but it is not restricted by law.
Nonrefundable Fees
Florida allows nonrefundable fees as long as they are clearly written in the lease. These fees are separate from security deposits and are not required to be returned at the end of the lease.
However, landlords must clearly label any nonrefundable charges. If the payment is not clearly identified, courts may treat it as a refundable deposit under Florida law. Security deposits must always follow statutory rules, regardless of lease language.
Storing a Tenant’s Deposit in Florida
Florida law gives landlords three main options for holding security deposits. Landlords can:
Place the deposit in a separate non-interest-bearing account in a Florida financial institution.
Place the deposit in a separate interest-bearing account and share interest with the tenant.
Post a surety bond with the county and hold the funds in a qualifying account.
If the deposit earns interest, the tenant must receive either 75 percent of the annual interest or 5 percent simple interest, depending on the account setup.
Landlords must also provide written notice within 30 days of receiving the deposit. This notice must explain where the deposit is held, whether it earns interest, and the terms of the account.
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Written Notice After Security Deposit Receipt
Florida law requires landlords to send written notice within 30 days after receiving the security deposit. This is a legal requirement under Florida Statutes Section 83.49.
The notice must include:
- The name and address of the financial institution holding the deposit.
- Whether the account is interest-bearing or not.
- The interest rate and payment terms if applicable.
- Any relevant conditions tied to the deposit or surety bond.
If the landlord fails to send this notice, it may limit how they can later claim deductions from the deposit.
Reasons to Withhold a Tenant’s Security Deposit in Florida
Landlords in Florida can withhold part or all of a security deposit only for valid reasons. Common allowed deductions include:
Unpaid rent or unpaid utilities stated in the lease.
Damage beyond normal wear and tear.
Cleaning costs needed to restore the unit to its original condition.
Costs related to lease violations or tenant negligence.
Normal wear and tear cannot be charged to the tenant. Proper documentation, such as move-in and move-out condition reports, is important to support deductions.
A Walk-Through Inspection
Florida law does not require landlords to perform a walk-through inspection before or after move-out. However, it is commonly used as a best practice.
If a walk-through is conducted, landlords should give reasonable written notice to the tenant, often 24 to 48 hours depending on lease terms. This allows both parties to review the property condition together and identify issues early.
Although optional, inspections help reduce disputes over deposit deductions and improve documentation quality.
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Security Deposit Refund in Florida
Florida law sets strict deadlines for handling security deposits after a tenant moves out. If the landlord plans to make a claim on the deposit, they must:
- Send written notice within 30 days after the tenant vacates.
- Deliver the notice by certified mail to the tenant’s last known address.
- Provide an itemized list of all deductions being claimed.
If the landlord does not intend to make any deductions, the full deposit must be returned within 15 days after the tenant moves out.
Once a claim notice is sent, the tenant has 15 days to object in writing. If there is no objection, the landlord may proceed with deductions as stated.
Change in Property Ownership
When a rental property is sold or transferred, Florida law gives the outgoing landlord two options for handling security deposits.
The first option is to return the tenant’s deposit after deducting any amounts that are legally allowed, before the transfer is completed. The landlord must also notify the incoming owner of this action.
The second option is to transfer the deposit to the new owner. If this happens, the outgoing landlord must provide the tenant with written notice that includes the new landlord’s name and contact information.
Once transferred, the new owner becomes responsible for handling the deposit according to Florida law.
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Conclusion
Florida security deposit law requires landlords to follow clear rules on deposit handling, storage, notices, deductions, inspections, refunds, and ownership transfers. Compliance depends on meeting legal deadlines and keeping accurate records of all tenant transactions.
Consult a qualified Florida attorney or a professional property management company. Alta Property Management Services helps landlords manage deposits correctly, stay compliant with Florida law, and reduce tenant disputes while protecting rental income.
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.