Security deposits in Florida are regulated by Florida Statutes §§ 83.43, 83.48, and 83.49. Security deposit alternatives (“SDAs”) are regulated by Florida Statutes § 83.491. Certain municipalities may have local laws that supplement state regulations. To ensure full compliance, verify the regulations applicable in your area.

Florida: KEY POINTS AT A GLANCE

Deposit Cap: Not Specified 

Holding Requirements: Yes

Interest Required: Yes (if the deposit is held in an interest-bearing account)

Return Window: 15 days if no deductions; maximum of 60 days if deductions are made (30 days to provide notice of deductions to tenants + 15 days for tenants to dispute deductions + 30 days from the date of the notice of the landlord/property manager’s intent to charge to return any portion of the deposit remaining after deductions)

SDA Charge Window: 30 days

COLLECTION & HOLDING REQUIREMENTS

Deposit Cap: Florida law does not specify a maximum limit for security deposits. 

Holding Requirements: Security deposits must be held in either a separate (1) non-interest-bearing account or (2) interest-bearing account in a Florida financial institution for the benefit of the tenant and cannot be commingled with the landlord’s money.

Information Provided to Tenant: Landlords/property managers with more than 5 units must inform tenants about where their security deposit is held, either in the lease agreement or within 30 days of receiving (or moving) the deposit. 

‍Interest on Deposits: If the security deposit is held in an interest-bearing account, the tenant is entitled to receive interest at least once per year (as a payment or rent credit) of at least 75% of the annualized average interest earned on the account or 5% per year in simple interest. No interest is owed if the tenant wrongfully terminates the lease before the end of the term.

RETURN

‍Timeline: 

• No Deductions: Security deposits must be returned within 15 days of the tenant vacating the property.
• Deductions: The landlord/property manager has 30 days from the tenant vacating the property to provide written notice of their intent to make deductions from the security deposit. Once the tenant receives notice, the tenant has 15 days to dispute the deductions. If there is no dispute, the landlord must return any remaining portion of the security deposit remaining after deductions to the tenant within 30 days of the original notice of the landlord/property manager’s intent to charge. 

Documentation of Deductions: Landlords/property managers must provide tenants with written notice (via certified mail to the tenant’s last known address) of their intent to make deductions and the reason for imposing deductions in the form specified in Florida Statutes § 83.49(3)(a). If the tenant vacates or abandons the rental unit without 7 days' written notice (including providing an address where the tenant may be reached), the notice requirement does not apply.

Permissible Deductions: Not specified.

‍Penalties: Failure to provide notice of the security deposit’s location may result in the landlord/property manager being unable to make any deduction claims other than for unpaid rent. Tenants who sue their landlord/property manager and win may recover court costs and reasonable attorney’s fees.

SALE OF THE RENTAL PROPERTY 

Security deposits must be transferred to the new owner/agent, along with any earned interest and an accurate accounting of the amounts to be credited to each tenant.

SECURITY DEPOSIT ALTERNATIVE REQUIREMENTS 

Fee in Lieu of Security Deposit: Landlords/property managers may, in their discretion, offer tenants the option to pay a fee instead of a security deposit. 

Written Agreement: In order to pay a fee in lieu of a security deposit, tenants must sign a written agreement that includes:

• The amount of the fee.
• How and when the fee will be collected.
• The process and time frame for the tenant to pay the security deposit if they default on paying the fee.
• A clause stating that the agreement may be terminated if the tenant pays the security deposit.
• A disclosure in accordance with Florida Statutes § 84.491(4)(b).

Note: If the tenant ultimately pays the security deposit, any previous failure to pay the fee cannot impact their credit score.

Information Provided to Tenant: Landlords or property managers must inform tenants of the following:

• The tenant can terminate the fee arrangement at any time by paying the security deposit.
• The tenant has the option to pay the security deposit in monthly installments while enrolled in the fee program.
• Whether additional charges apply if the tenant chooses to pay the security deposit.
• The payment amounts required for each option the landlord offers.
• Whether the fee is nonrefundable (if applicable).
• The fee is only for securing occupancy and does not replace the security deposit.
• Paying the fee does not limit or change the tenant’s responsibility to pay rent and other fees.
• If the landlord uses part of the fee to purchase insurance:
  
  • The tenant is not insured or a beneficiary of the landlord’s policy.
  • The insurance does not limit or change the tenant’s obligations under the lease, including paying rent, fees, and the cost of repairs beyond normal wear and tear.

Payment of the Fee: The fee may be paid as a recurring monthly fee on the same date that rent is due or upon a schedule that the landlord and tenant choose, specified in the written agreement.

Charge Timeline: The landlord/property manager must notify the tenant of any charges to the security deposit alternative within 30 days of the tenant vacating the property. 

Permissible Charges: Landlords/property managers may charge the security deposit alternative for the following: 

• Nonpayment of rent
• Fees
• Damage caused by the tenant beyond normal wear and tear
• Other charges specified in the lease agreement