Florida Security Deposit Laws (2025): Amounts, Deadlines, and Deductions
- José R. Hernández
- Oct 16
- 6 min read
Handling a tenant's security deposit is one of the most regulated aspects of being a landlord in Florida. What might seem like a simple transaction is governed by specific rules laid out in Florida Statute § 83.49. A misstep in this process can lead to forfeiting your right to make claims, facing financial penalties, and damaging your professional reputation.
For property investors and landlords, mastering these regulations is key to protecting your assets and maintaining compliant, efficient operations. This guide breaks down Florida's security deposit laws for 2025, providing clear steps on holding funds, making deductions, and meeting critical deadlines to help you manage your portfolio with confidence.
How Much Can You Collect for a Security Deposit?
Florida law does not set a specific cap on the amount you can charge for a security deposit. However, the amount must be "reasonable." The market standard is typically one to two months' rent. Charging an excessive amount could be challenged in court and may deter high-quality tenants from applying.
It's also important to apply your security deposit policy consistently to all applicants to avoid any appearance of discrimination under Fair Housing laws.
Holding the Deposit: Your 3 Legal Options
Once you collect a security deposit, you cannot simply place it in your personal bank account. Florida Statute § 83.49 requires you to hold the funds in one of three ways:
Separate Non-Interest-Bearing Account: Hold the money in a separate account in a Florida banking institution for the benefit of the tenant. You cannot commingle these funds with your own money.
Separate Interest-Bearing Account: Hold the money in a separate, interest-bearing account in a Florida banking institution. You must pay the tenant the interest earned annually and at the end of the lease, typically at a rate of 75% of the annualized average interest rate or 5% simple interest per year, at your discretion.
Surety Bond: Post a surety bond with the clerk of the circuit court in the county where the property is located. The bond must be for the total amount of the security deposits you hold or $50,000, whichever is less. You must also pay the tenant 5% simple interest per year on their deposit.
The most common and straightforward method for most landlords is the separate non-interest-bearing account.
Critical First Step: The 30-Day Written Notice
Within 30 days of receiving the security deposit, you must provide the tenant with a written notice. This notice is mandatory and must include:
The name and address of the bank where the deposit is held.
Whether the funds are in a separate account or commingled.
The interest rate, if any.
This disclosure must be included in the lease agreement or given to the tenant in a separate written document.
Common Mistake to Avoid: Failing to send this 30-day notice is a frequent error. This oversight can lead to disputes and complicate your ability to claim on the deposit later.
Returning the Deposit: Timelines and Procedures
The process for returning a security deposit is time-sensitive and depends on whether you plan to make deductions.
Scenario 1: No Claim on the Deposit
If you do not intend to make any claim for damages, you have 15 days from the date the tenant vacates the property to return the full security deposit.
Scenario 2: Making a Claim on the Deposit
If you plan to deduct for damages, unpaid rent, or other lease violations, you must send a written notice of your intent to impose a claim to the tenant.
Deadline: This notice must be sent via certified mail within 30 days of the tenant vacating the property.
Content: The notice must clearly itemize the deductions, explaining the specific reasons and dollar amounts for each claim (e.g., "Repainting living room wall due to crayon marks - $150").
Tenant's Response: After receiving your notice, the tenant has 15 days to object to the deductions in writing. If they do not object within this timeframe, you may deduct the claimed amount and must return the remainder of the deposit to them within 30 days of your initial notice. If the tenant does object, you may need to resolve the dispute through negotiation or small claims court.
Checklist for Security Deposit Timelines:
[ ] Within 30 Days of Receipt: Send written notice of how the deposit is held.
[ ] Within 15 Days of Move-Out: Return the full deposit if no claim is made.
[ ] Within 30 Days of Move-Out: Send itemized deduction notice via certified mail if making a claim.
What You Can (and Cannot) Deduct
Deductions from a security deposit are limited to actual financial losses you incurred due to the tenant's actions. The key is distinguishing between "ordinary wear and tear" and actual "damage."
Allowable Deductions:
Unpaid rent and late fees as specified in the lease.
Costs to repair damages beyond normal wear and tear (e.g., large holes in walls, broken tiles, pet stains on the carpet).
Cleaning costs required to restore the unit to its pre-rental condition (e.g., if it was left excessively dirty).
Costs to replace missing items like keys, garage door openers, or fixtures.
Non-Allowable Deductions (Ordinary Wear and Tear):
Minor scuffs or marks on walls.
Faded paint or sun-faded curtains.
Gently worn carpets with no major stains.
Loose grout in bathroom tiles or worn appliance finishes.
Routine cleaning between tenants.
Best Practice: The Move-Out Inspection
To support any claims, a thorough move-out inspection is essential.
Use a Checklist: Document the property's condition using the same checklist you used during the move-in inspection.
Take Photos and Videos: Visual evidence is powerful. Capture clear pictures and videos of any damages you plan to deduct.
Invite the Tenant: Offer the tenant the opportunity to be present during the inspection. This transparency can help prevent disputes.
Penalties for Non-Compliance
Failing to follow Florida's security deposit laws can have significant financial consequences. If a landlord fails to meet the notice requirements (either the 30-day initial notice or the 30-day claim notice), they may forfeit their right to claim any portion of the security deposit.
In a lawsuit, if a court finds a landlord wrongfully withheld the deposit, the landlord could be ordered to return the full amount and pay the tenant's court costs and reasonable attorney's fees.
Handling Deposits During a Sale or Management Change
If you sell the property or change management companies, the security deposits must be transferred to the new owner or manager. You are then relieved of liability, but the new owner assumes all responsibility for complying with Florida's security deposit laws. It is crucial to document this transfer clearly in the sale or management agreement.
Protect Your Investment with Expert Knowledge
Florida's security deposit laws are designed to be fair to both landlords and tenants, but they demand strict compliance from property owners. By understanding the rules for holding funds, meeting deadlines, and making proper deductions, you can protect your investment and avoid unnecessary legal conflicts.
Managing these details across a growing portfolio can become complex. If you have questions about handling a security deposit or find yourself in a dispute, getting expert advice is a smart move.
Don't navigate complex landlord-tenant laws alone. Visit Don Asher Management today to speak with an expert who can provide the guidance and support you need to ensure compliance and maximize your returns.
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