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Meta Description: Florida has seen shifts in legislation for security deposits. Here’s what you need to know.
In the sunny state of Florida, the exchange of a security deposit is a common prelude to the leasing dance between landlords and tenants. This upfront sum serves as a fiscal assurance of the tenant's commitment to maintaining the property's integrity and fulfilling the rent obligation as stipulated in the lease contract.
The rules governing these monetary assurances fall under the broader umbrella of Florida's landlord-tenant legislation. These laws are complex and ever-evolving, but here’s an overview of security deposit legislation in the Sunshine State.
Deposit Amounts: No Upper Limit, but Common Practices Prevail
The Florida statutes are silent on setting an upper ceiling for security deposits, granting landlords the leeway to request an amount they deem fit. Despite this absence of a cap, conventional practice has taken root, with landlords typically charging an amount that mirrors one and a half to two months of rent.
Safekeeping the Security: Options for Properties
Once a resident pays their security deposit to the property, three main pathways for its safekeeping typically unfold:
- The Surety Bond Route: The landlord may opt to post a surety bond for the total amount of the security deposits or $50,000, whichever is less, guaranteeing the sum through a bonding company.
- Interest-bearing Accounts: Depositing the funds in an interest-yielding account is another avenue. The interest accrued over the lease term is to be paid out to the tenant annually and upon lease termination.
- Non-interest Accounts: The simplest route involves placing the deposit in a non-interest-bearing account, straightforward yet devoid of any financial perk for the tenant.
The Security Deposit Alternative: Option to Offer
Chapter 83.491 now offers landlords the choice to provide tenants with the option to pay a nonrefundable fee instead of a security deposit, although it's not mandatory for landlords to do so. This alternative benefits tenants, particularly those with limited funds, by allowing them to pay a smaller fee upfront instead of a larger security deposit. For landlords, this option can reduce the administrative burden of managing security deposits and potentially generate more revenue over time. Tenants also have the flexibility to switch from paying the fee to paying a traditional security deposit at any point during the tenancy.
The Mandate of Written Notice: Key Information Provided
Upon receipt of the security deposit, Florida law mandates that landlords must dispatch a written notice to the tenant within 30 days. This notice must clearly outline the following:
- The name and address of the banking institution where the deposit resides.
- Details on whether the funds are mingled with other finances or segregated.
- The rate of interest accruing if the deposit is placed in an interest-bearing account.
A change in the storage location or terms requires the landlord to send a revised notice within 30 days of the change.
Property Inspections: Not Mandatory, but Wise
While Florida law doesn't necessitate a walk-through inspection before a resident vacates, an inspection is often in the best interest of both parties to document the property's condition and any deviations from its original state. During inspections, property teams look for damages beyond the reasonable "wear and tear," like:
- Absent door handles.
- Chips and burn marks on countertops.
- Shattered bathroom tiles.
- Stains on carpets and linoleum that go beyond everyday use.
- Unsanctioned paint jobs or drawings on the walls.
- Conditions for Withholding the Security Deposit
A property’s right to retain the security deposit or a portion of it is conditional based on the tenant's adherence to the lease terms. Instances warranting a property to retain a security deposit amount include:
- Unsettled Utilities: Tenants delinquent on utility payments may find such amounts deducted from their deposit.
- Cleaning Requirements: Although routine cleaning doesn't qualify for deductions, excessive filth or mess necessitating beyond-standard cleaning services may lead to deductions.
- Physical Damage: When property damage surpasses normal wear, the landlord may draw from the deposit to cover repairs.
- Failure to Pay Rent: Failure to pay rent justifies the retention of the equivalent amount from the security deposit.
- Lease Termination: Early lease termination by the tenant can result in the forfeiture of the deposit and potentially incur additional consequences.
Protocols for Deposit Return
Landlords have 15 days to return the security deposit with any accrued interest if no deductions are made. However, should there be deductions, the landlord must notify the tenant within 30 days with an itemized list of deductions. Missing this deadline forfeits the landlord's right to any deductions from the deposit.
Should the tenant dispute the deductions, the landlord may have to seek resolution in small claims court.
Implications of a Change in Property Ownership
A change in property ownership triggers one of two options for the current landlord regarding security deposits:
- Transfer to the New Owner: The landlord may transfer the deposits to the new owner, apprising the tenant of the new owner's details and the exact amounts transferred. The onus of the deposit then falls on the new landlord.
- Direct Return to Tenant: Alternatively, the landlord can return the deposits to the tenants directly, providing an itemized statement of deductions if applicable.
Closing Thoughts
In essence, the laws around security deposits in Florida foster a protective framework for rental transactions. They delineate clear guidelines for the holding, deduction, and return of deposits, setting the stage for straightforward tenancies and landlord engagements. Understanding these statutes is a pivotal step for both landlords and tenants in safeguarding their interests and ensuring a harmonious rental relationship.
