Florida law doesn’t limit the amount a landlord can charge as a security deposit. There are no restrictions on this front, but in the majority of cases, landlords will not charge more than two months’ rent as a security deposit. This approach is partly to minimize security deposit disputes that can arise from perceived excessive demands.
The property owner understands that demanding an excessive security deposit will cause tenants to look at other rental properties. A rent equivalent to one to two months is deemed sufficient to protect the landlord from damages, eviction, and vacancy, without limiting the interest of potential tenants in the property. This balance is crucial to maintaining a healthy relationship between landlords and tenants, reducing the likelihood of Security Deposit Disputes.
Why do landlords require a security deposit before signing a lease?
A security deposit compensates a landlord for losses caused by a tenant. For example, unpaid rents or damage to property beyond normal wear-and-tear.
These are some of the reasons that lenders ask tenants to provide a security deposit:
- Security deposits can be used to cover the cost of repairs for excessive property damage. Damages that are above the normal wear and tear of a property can be considered excessive. However, this is often a source of disagreement between landlords and tenants when it comes to reimbursing security deposits.
- Utility bills – Certain rental costs fall under the responsibility of the landlord, while other expenses are the tenant’s. If the tenant does not pay the utility costs, the landlord can deduct them from the security deposit.
- Rent income for a landlord can be lost through various means. If a tenant chooses to end their lease or abandons an apartment, for example. The security deposit will act as a cushion against any loss of income. Rent income can also be lost when repairs are required due to damage caused by a tenant.
- Cleaning costs are high: Most leases stipulate the conditions under which the tenant must vacate the property.
The landlord can deduct from the security deposit a portion to cover the cost of cleaning services if a tenant does not meet these requirements.
Florida’s Security Deposit Holdings
Florida landlords can choose from three different options when it comes to depositing security deposits into a bank account:
- The security deposit can be deposited in a Florida-based bank account that does not pay interest. This account can only be used to deposit security deposits.
- The money can also be kept in a Florida-based bank account that pays interest. In this case, the landlord will have to credit the tenant either with 75 percent of the interest on the account. Or 5% simple annual interest on the amount of the security deposit.
- Owners can choose to obtain a surety from a company that is authorized by the Circuit Court Office in the county where the unit is situated. Surety bonds can be posted for $50,000 or the amount of the security bond, whichever is less.
The owner is also required to pay 5% simple interest per year on the deposit. The condition is that the landlord must fulfill the obligations of the security deposit, such as holding, reporting, and returning.
Instead of posting bonds in each county, if the landlord rents in five or more counties he can post a bond at the Secretary of state for $250,000. This is the amount of the total security deposit held.
The owner must inform the tenant in writing how he will handle the security deposit if he rents more than five individual residential units.
The landlord has 30 calendar days after receiving the security deposit to decide on how to retain it and to inform the tenant of this information. The landlord may also decide to keep the security deposit and include the required written notice within the rental or lease agreement.
The written notice should be delivered in person or via mail, and include the following:
- The amount of the security deposit
- The name and address of the institution or bank where the deposit was made.
- A statement that states the bond was posted by the landlord under the rule
- Statement stating whether the tenant is entitled to interest on the security deposits
Change in Security Deposit Holding
The landlord has 30 days to inform the tenant of any changes made to the security deposit. The landlord can transfer the money to a different bank or account.
Returning security deposits in Florida
Timeline: The homeowner has 15 calendar days to refund the security bond if there are no deductions. The tenant must notify the landlord in writing if the landlord wishes to make any deductions.
Florida law does not penalize the landlord for failing to return the deposit on time. The occupant can sue the landlord if the landlord refuses or fails to return the security deposit. The tenant is entitled to receive the full damages and reasonable attorney’s fee if they win the lawsuit.
Varnell & Warwick is well-versed in helping Florida tenants recover their security deposits. If you believe your landlord has wrongfully kept your security deposit, contact us to discuss your options.
What If Any Deposits Have Been Deducted?
After the lease ends, landlords have 30 calendar days to inform the tenant of their intent to retain a portion. If the landlord fails to inform the tenant of his intention to keep a portion of the deposit in writing, he loses that right.
Florida Statutes recommends a clause such as this:
This is an notice that I intend to claim damages of $__________ on your security deposit due to________________. The Florida Statutes Section 83.49(3) requires that you receive this notice. You must object to the deduction of your security deposit in writing within 15 days after receiving this notice. If you do not object in writing to this deduction from your security deposit within 15 days of receiving this notice, then I may be allowed deduct my claim against your security deposit. Please send your dispute to the (Landlord’s address).
The written notice should be sent by registered mail to tenant’s home address. The tenant is required to provide a mailing address for the landlord. The landlord will not be obligated to notify the tenant in writing of the security deposit if they fail to do so. After receiving the notice, the occupant has 15 days to dispute the charges or claims.
Tenant does not object to the charges
The landlord will refund the remaining security deposit if the tenant doesn’t object. The written notice must be received within 30 days.
Loss of the Tenant’s right to written notice
The tenant must give the landlord at least seven-days written notice if there is no fixed lease period, or if it has a fixed lease term.
It is the tenant’s responsibility to ensure that a valid address is given by the landlord so they can be reached. The landlord is relieved of their obligation to notify the tenant in writing of any deductions made from the security deposit if the tenant fails to provide a valid postal address.
If the Tenant objects to the Claim
It could end up in court. Contact the Lopez Law Group if your landlord has refused to refund your security deposit in full or part or did not follow guidelines. We are often able resolve security deposit cases outside of court because litigation can be expensive.
What is the maximum amount that a landlord can deduct from my security deposit in Florida?
When a landlord deducts any other amount from the security deposit of the tenant, he must follow certain rules. In Florida, the following items can be deducted from your security deposit:
- Rent arrears
- Amount of money that the tenant has lost due to a breach of lease.
- Costs of repairs for damage that was not caused by normal wear.
- Early termination fees and other charges that may be deductible under the terms of a lease.
- Pets can cause damage or require repairs that are not covered by the landlord’s permission.
Damage vs. normal wear and tear
Damage is often at the heart of Security Deposit Disputes, resulting from a tenant’s negligence or misconduct during the tenancy. It directly affects the unit’s value, usability, and normal functioning. Examples of such damage include pet-related issues like heavily scratched carpet, damaged tiles, holes in walls, broken windows, or lost accessories, all of which are considered “damage” and can lead to disputes over security deposits.
Conversely, the term “normal wear and tear” is central to many Security Deposit Disputes. It refers to the natural degradation that occurs to the property when it is used as intended. This kind of deterioration is expected and cannot be penalized in security deposit deductions. It only occurs when there has been no neglect, negligence, mistake, abuse, or violence on the part of the tenant or those they bring with them.
Minor problems that often become points of contention in “Security Deposit Disputes” include aging or the inevitable deterioration of everyday life. Examples of wear and tear include wearing carpets, missing handles, faded walls and flooring, stained bathroom appliances, slightly damaged glasses, dirty grout, and mold. Distinguishing between “damage” and “normal wear and tear” is crucial in resolving Security Deposit Disputes fairly.
Can the tenant use their deposit to pay for previous month’s rent?
It is not common, but you can do it if the two parties sign an agreement in writing that the security deposit would be applied towards the rent due.
How can I prove that I did not cause the damage?
When you first move into your rental property, and then again when you leave it, take pictures or videos to document the condition of the home. The date-stamped pictures are evidence that the rental property is in good condition when you take it to court or deal with your landlord.
You don’t want to be held responsible for any problems that arise after you move out. Walk through the house together with your landlord and make a note of them. After you have moved all your belongings out of the house and it has been cleaned, take some pictures or recordings. It is costly to file a lawsuit.
Dispute Resolution
If you take a case to court, and the judge determines that your landlord has wrongfully refused to pay the security deposit to you, the court may order them to:
- Your security deposit will be refunded
- All court costs payable
- Attorney fees
This provision aims to give tenants the opportunity to use the legal system in order to resolve issues relating to security deposits , which they could not otherwise resolve. The deposit money, expenses, and attorney fees can all be held accountable for landlords who do not follow these policies.
If you are a landowner collecting an advance rent or safety loan, we encourage you to call us so that we can check your documents to ensure you are in compliance with the law. Varnell & Warwick can examine the case of landlords facing court action due to failure to return a deposit.
Contact us for an evaluation of your case if you believe that your landlord has wrongfully held your security deposit. We can help you recover your deposit. Varnell & Warwick is ready to assess your claim and fight for the money that you have rightfully deposited. Call us on 352-753-8600 today.
