Florida Security Deposit Law
Security Deposit Rules and Regulation for Residential Leases
It is always a good idea to require a security deposit when renting our your Florida property. The security deposit helps protect you from potential damage, eviction and vacancy costs. It is best practice to require one month's rent as a security deposit, however there is no limit to what you can charge.
Holding of Tenant Security Deposit
You have three choices of where to store the security deposit.
- Non-Interest Bearing Account: The security deposit can be held in a non-interest bearing bank account in the state of Florida. The landlord must not commingle this money with any other funds or use the money before it is due to them.
- Interest Bearing Account: If the landlord chooses to place the security deposit into an interest bearing Florida bank account, they are required to pay the tenant interest accumulated on the account annually and at the end of the lease term. The interest can be paid directly to the tenant or can be credited back in the form of rent.
The landlord must not commingle the money or use prior to it actually being due them. Also, if the tenant breaks their lease, no interest is due.
- Surety Bond:The landlord can post a surety bond for the amount of the security deposit, or $50,000, whichever is less. The landlord must also pay the tenant five percent interest annually on the bond.