This post was last updated on 1/13/2025.
Security deposits are an essential aspect of the property manager-resident relationship in Florida. They serve as financial protection for property managers while ensuring residents uphold their rental agreements. However, understanding the laws governing these deposits is crucial for avoiding disputes and ensuring compliance.
In this blog, we’ll cover:
A note on language: Here at Second Nature, we prefer to use the terms "resident" and “residency” rather than “tenant” and “tenancy,” in order to emphasize the relationship building element of property management work. However, there may be instances where terms such as "tenant" are used for legal purposes within documents or communications related to security deposit laws.
Disclaimer: This is not legal advice. Any information contained in this blog is provided for informational purposes only and should not be construed as legal advice on any matter. This is especially true given that laws change on a regular basis. You should review specific security deposit laws for your state in detail to make sure you have the most up-to-date information available, and consult with your local counsel for applicability to your property.
Security deposits are like life jackets. You hope you’ll never have to use it, but when you do, you’ll be glad it’s there.
Unfortunately, no matter how thorough your screening process is, you may end up with a resident who makes questionable choices. And when those choices cause damage to your property you’ll be thankful for your security deposit.
Imagine Brad and Tyler, two roommates who moved from Miami to Gainesville. Missing the ocean but not wanting to drive all the way to the beach, they decide to recreate the summer vibes in their rental home. They break out the beach chairs, ask Alexa to play some Beach Boys, and fill up a kiddie pool in the living room to dip their toes into. But when it springs a leak, the carpet gets soaked through and the subfloor is damaged. Now you have to do some serious renovations, and it’s going to cost you. But since there is a security deposit, that expense may come out of their security deposit.
Florida’s security deposit laws, primarily found under Florida Statutes Section 83.49, in addition to other statutes under landlord and tenant law, outline the rights and obligations of property managers and residents concerning the handling, refund, and permissible deductions of security deposits.
Below is a breakdown of the key areas covered under these regulations.
Florida’s deposit laws prioritize clarity and fairness in property manager-resident agreements. Key requirements include:
These laws protect residents from unfair practices and help property managers adhere to their professional obligations.
Unlike some states, Florida does not impose a statutory cap on the amount property managers can charge as a security deposit. Property managers are free to determine a reasonable amount (although public listings show that they typically charge one to two months’ rent). Prospective residents should be informed of the deposit amount before signing a lease in order to align expectations.
Property managers may offer a “fee” in lieu of security deposit, an alternative option for security deposits that has become more common with other states. Under Florida law (Fla. Stat. Sec. 83.491), property managers may offer this option through written notice to the tenant, providing the tenant the right to pay a security deposit instead.
Florida law (Fla. Stat. Sec. 83.49(1)) requires that security deposits be kept in a separate account to ensure they are not commingled with the property manager’s personal or business funds.
While Florida does not explicitly mandate a walk-through inspection before or after a resident’s occupancy, the duty to inspect and ensure the premises are safe is implied through the property manager's obligations under Florida law. Property managers who perform these inspections benefit from clearer documentation of property conditions. A move-in inspection with a signed checklist can establish a baseline, while a move-out inspection can help identify damages beyond normal wear and tear. Photos or videos taken during these inspections are useful for resolving disputes. Inspections can foster transparency and provide evidence to justify any deductions from the security deposit.
When deductions are taken from a security deposit, property managers are required to provide written notice to the resident (Fla. Stat. Sec. 83.49(3)(a)). This notice must include the exact amount deducted and the specific reasons for the deductions.
For example, deductions might include unpaid rent or costs for repairing damage beyond normal wear and tear. Property managers must deliver this notice to the resident within 30 days via certified mail to comply with Florida law. If the property manager does not intend to impose a claim of deductions from the security deposit, the property manager must return the security deposit, with interest if applicable, to the resident within 15 days of the resident’s surrender of the premises for termination of the lease.
Learn more: How to Write a Security Deposit Return Letter + Free Template
When deductions are taken from a security deposit, property managers must specify the reasons (Fla. Stat. Sec. 83.49(3)(a)), such as failure to pay rent or damages beyond normal wear and tear. Other deductions that may be allowed include:
Property managers cannot deduct for routine wear and tear (for example, minor scuffs on walls, faded paint, or wear on carpets from ordinary use).
Property managers must inform residents in writing within 30 days of receiving their security deposit (Fla. Stat. Sec. 83.49(2)). This notification must detail where the deposit is being held (such as in a non-interest-bearing account, an interest-bearing account, or a bond posted with the clerk of the circuit court).
Property managers may choose from the following deposit holding options (Fla. Stat. Sec. 83.49(1)):
Under Florida law, property managers must follow strict timeframes regarding security deposits (Fla. Stat. Sec. 83.49(3)(a)). If no deductions are made, the full deposit must be returned to the resident within 15 days of the lease’s termination. If deductions are necessary, the property manager must notify the resident in writing within 30 days, specifying the amount and reasons for withholding. The resident then has 15 days to contest the claim, in writing and sent to the property manager. Other requirements apply if a fee was collected by the property manager in lieu of a security deposit (Fla. Stat. Sec. 83.491).
Failing to adhere to these deadlines may jeopardize the property manager's right to make claims against the deposit.
Florida law does not mandate a specific form for the return of a tenant's security deposit. However, best practices include:
Whether the lease ended amicably or through an eviction, Florida landlords and property managers should maintain a record of the security deposit return, regardless of the method, including a receipt or confirmation of payment. This documentation protects both parties in case of disputes.
When a rental unit changes ownership, Florida law (Fla. Stat. Sec. 83.49(7)) requires the outgoing property manager to either:
Written notification of the transfer, including the new property manager’s contact information, must be sent to the resident. The new owner assumes all responsibilities for the security deposit once the transfer is complete.
Non-compliance with Florida’s security deposit regulations can result in severe consequences for property managers (Fla. Stat. Sec. 83.49(3)), including:
To avoid these risks, property managers should familiarize themselves with the law, document all actions, and maintain open communication with renters. Property managers should also consult with their local counsel for applicability of these laws to their property.
In April 2023, Florida HB 133 was passed into law, leading to the addition of Fla. Stat. Sec. 83.491, giving property managers the option to charge a monthly non-refundable fee instead of a security deposit. Such security deposit alternatives help reduce upfront costs for potential residents. Property managers looking to charge this type of monthly non-refundable fee should refer to the specific requirements under Fla. Stat. sec. 83.491 to ensure compliance.
Learn more: What is Security Deposit Insurance? Pros and Cons [+Best Providers]
While not explicitly required under Florida law, providing receipts for deducted expenses can prevent disputes and demonstrate good faith. Florida law does require property managers to provide an itemized list of deductions in the written notice to residents required when imposing a claim for damages upon the security deposit.
Residents are not automatically entitled to apply their security deposit toward their final rent payment. Unless the lease explicitly allows this, doing so may result in legal action.
Learn more about security deposit best practices:
Florida’s security deposit regulations aim to balance the rights and responsibilities of property managers and residents. By staying informed and following the appropriate procedures, both parties can navigate this aspect of the rental process with confidence.
At Second Nature, we aim to help you stay compliant, recognizing that compliance with property management laws safeguards your business and strengthens relationships with your residents.
Our approach centers on transforming the resident experience, a concept that has shaped every aspect of our company. The resident benefits package is a comprehensive solution designed for property management companies, offering cost savings for both you and your residents while prioritizing convenience and an exceptional resident experience.
Learn more about Second Nature’s Resident Benefits Package.
Legal Disclaimer: The information contained in this blog is provided for informational purposes only and shall not be construed as legal advice. The laws referenced in this blog are subject to change. Please consult with your local counsel for applicability to your property.