TL;DR
- No state cap: Florida law does not set a maximum security deposit amount.
- Deposit handling: Must be held in a Florida bank account (interest or non-interest bearing) or secured with a surety bond. Landlord must provide written notice within 30 days of receipt, specifying the holding method, bank name/address, and interest terms.
- Return timeline: Return the deposit within 15 days after lease ends if no deductions. If deductions are made, written notice (itemized, certified mail) must be given within 30 days.
- Tenant response: Tenant has 15 days to dispute written claims. Landlord must remit remaining balance no later than 30 days after claim notice if tenant does not object.
- Interest: If deposit is in an interest-bearing account, landlord must pay tenant either 75% of the annual interest or 5% simple interest annually.
- Penalties: Landlords who fail to follow notice, return, or documentation requirements forfeit their right to retain any portion of the deposit and may be liable for court costs and attorney’s fees.
Pro Tip: Digital deposit workflows and automated reminders make it easy to comply and avoid costly legal battles. See full setup: Florida Statutes § 83.49.
Introduction to Florida Security Deposit Law
Florida’s security deposit law governs the obligations of both landlord and tenant under a written rental agreement, providing a clear framework for how deposits must be stored, disclosed, returned, and if necessary, deducted.
These rules apply to security deposits and advance rent for any residential dwelling unit, with strict timelines and notice requirements enforced; failure to comply almost always benefits the tenant.
Keep in mind that without properly addressing security deposit disputes, property managers will face possible small claims legal proceedings usually costing 2-3x the deposit value and bad reviews, which Unamest calculates can cost a 150-unit portfolio up to 40,000 dollars in lost revenue opportunities.
Security Deposit Limits & Storage
- No set maximum deposit: Landlords decide, but competing in the market and lease terms may impose practical limits.
- Storage: Security deposits and advance rents must be placed in a deposit account at a financial institution located in Florida. The account may be either a non interest bearing account (separate from personal/business funds) or a separate interest bearing account, in which case the tenant is entitled to 75% of the interest earned or 5% simple interest. Alternatively, the landlord may post a surety bond with the county court, paying the tenant 5% annual interest.
- Bank and bond requirement: All deposit accounts and surety bonds must be held with a Florida-based financial institution; mixing funds is prohibited. These requirements apply to any individual or business entity acting as landlord.
- Written disclosure: Landlords must deliver written notice to the tenant within 30 days explaining where and how the deposit is stored, the bank or financial institution address, and whether interest is being paid.
- Transfer and receipt: Upon transfer of the deposit to a new owner or agent, a written receipt therefor must be provided to the tenant.
- Disbursement and procedures: Landlords must disburse security deposits and disburse advance rents according to the notice and settlement procedures contained in Florida statutes.
Returning Deposits & Claim Process
If the landlord wishes to withhold any portion of the security deposit (make a claim for damages, unpaid rent, or other breaches), the following applies:
The landlord must notify the tenant in writing (via certified mail) within 30 days after the lease ends, specifying the intent to keep part or all of the deposit. This notice must include an itemized list of deductions and the reasons for each.
If the landlord misses this deadline or fails to send a proper, itemized claim, they forfeit the right to retain any part of the deposit, regardless of the circumstances.
Tenant’s rights
Upon receiving the landlord’s claim, the tenant has 15 days to object in writing. If the tenant does not object, the landlord may deduct the stated amounts and must return the remaining balance within 30 days of the claim notice.
Allowable deductions
Florida law permits landlords to withhold deposit funds for:
- Unpaid rent
- Damages exceeding normal wear and tear
- Any other justified costs defined in the rental agreement
Security Deposit Documentation
All claims must be substantiated by clear, reasonable evidence (receipts, descriptions, photos when possible).
No claim
Deposit must be returned in full within 15 days of lease termination – Property managers should make compliance a priority when returning security deposits to avoid problems arising.
With claim
The Property Manager must provide the tenant with landlord’s notice in writing (via certified mail) within 30 days. The notice must state the landlord’s claim and intent to impose a claim on the tenant’s security deposit.
Such written notice must include an itemized list of deductions and be delivered in compliance with statutory requirements.
Tenant rights
If the tenant objects to the landlord’s claim, the tenant must do so by sending tenant written notice within 15 days of receiving such notice.
Final payment
If the tenant does not object within the next immediate rental period, the landlord must return the remaining deposit within 30 days of the initial claim notice if uncontested.
If the landlord fails to comply with notice requirements, the entire tenant’s security deposit must be returned.
Interest & Transfer of Security Deposit
- Interest owed: If deposit is held in an interest-bearing account, the landlord must collect interest at the annualized average interest rate and pay tenant interest as required by law—either 75% of the interest earned or 5% simple interest per year. Advance rent held and advance rents must be managed according to the same rules as security deposits held pursuant to Florida law.
- Change of account: If the holding method or location changes, the landlord must provide a new or additional notice to the tenant within 30 days.
- Transfer of deposits and rents: When a lease is renewed or the property is transferred, the security deposit carried forward and any advance rents must be transferred to the new owner or agent, and the tenant must be notified. Upon sale or transfer of the property, the landlord must transfer advance rents and security deposits to the new owner, following legal procedures and providing proper documentation and notice to the tenant.
Penalties for Mishandling Security Deposits
- Missed deadline or improper notice: If the landlord fails to comply with statutory requirements, the landlord shall forfeit all rights to retain any deposit, even if legitimate claims exist, and may be liable for attorney fees payable and or her court costs.The landlord can be forced to return the full deposit plus legal fees and costs. These penalties apply under all relevant Florida statutes pertaining to security deposits and advance rent.
- Legal actions: Tenants can file in small claims court for wrongful withholding. The court may award a reasonable fee to the prevailing party.
Rentable Solves Florida Rental Property Deposit Pain Points
Automated Account Setup
Rentable automates placing deposits in compliant Florida accounts or bonds, provides prewritten disclosures for tenants, and manages account interest distribution.
The system supports compliance for both designated rental agents and any business entity authorized to manage security deposits and advance rents. Rentable is designed to handle both new rental agreements and existing rental agreements, and can accommodate requirements under the National Housing Act if applicable.
Deadline Reminders & Claim Notices
Rentable’s system tracks all key deadlines, gives automatic reminders, and generates itemized notice letters with certified mail tracking for legal documentation. Claim notices are generated in substantially the following form required by law, including the landlord’s intent or her intention to impose a claim. The system provides additional notice solely when required by statute.
Simplified Refunds and Documentation
Move-outs are handled via checklist-driven workflows to document damages, calculate allowable deductions, and send out required notices or payments on time.
Rentable tracks all deposit money and deposit moneys in the tenant account, ensuring compliance with all landlord tenant relationship obligations and other landlord tenant relationship requirements.
Audit-Ready Compliance
Every transaction and communication is logged and exportable for audits, tenant requests, or legal proceedings, reducing risk for all property managers.
Key Takeaways
- Security deposit amounts are unlimited, but require careful storage, notice, and return procedures.
- Strict 15- and 30-day deadlines for return and claims.
- Interest owed on some deposits; tenant notifications are mandatory.
- Non-compliance can result in loss of deposit rights, tenant awards, and legal bills.
- Automated solutions streamline every step and guarantee compliance.
To learn more check out our security-law-by state page or book a demo with our team to get more infotmation.
Legal Reference
Disclaimer
This content is for information only. Always review Florida law and consult a local attorney for your unique situation.
