Florida Security Deposit Law

Posted: Jun 12, 2020
By: NatEvict
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Florida Security Deposit Law

It is always important to require tenants to put down a security deposit prior to move-in. It is equally as important to understand the security deposit laws that apply specifically to the state of Florida. In addition, the city or town where your property is located may have laws that differ slightly from the laws that apply to Florida as a whole, so you should always check with your local government to make sure you are adhering to the proper rules.

Is There a Security Deposit Limit in Florida?

In the state of Florida, there is no limit on the amount of security deposit you can charge. The more you charge, however, the more you are limiting your prospective tenant pool. There is really no need to charge more than one and a half or two months’ rent. This amount will help protect you against potential damage, eviction and vacancy costs.

How Must You Store the Security Deposit in Florida?

The state of Florida allows you a few different options when storing a tenant’s security deposit. You can do one of three things:

Non-Interest Bearing Account– The landlord has the option of placing the tenant’s security deposit in a non-interest bearing bank account in the state of Florida. The landlord must not commingle the money with any other funds or use any of the money before it is actually due to him or her.
Interest Bearing Account– The landlord has the option of placing the tenant’s security deposit in an interest bearing bank account in the state of Florida. The landlord is required to pay the tenant the interest accumulated on the account annually and at the end of the lease term. (The landlord can elect to pay the tenant at least 75% of the annualized interest or simple interest of 5%). The interest can be paid directly to the tenant or the interest can be credited back to the tenant in the form of rent. The landlord must not commingle the money with any other funds or use any of the money before it is actually due to him or her. If the tenant breaks their lease, no interest is due to the tenant.
Surety Bond– The landlord can post a surety bond for the amount of the security deposit, or $50,000, whichever is less. The surety bond must be posted in the county where the rental property is located. A surety bond is meant to protect the obligee if the principal does not fulfill their obligations. In this case, the tenant is the obligee and the landlord is the principal. The landlord must also pay the tenant five percent interest annually on the bond.

Is Written Notice Required After Receipt of the Security Deposit in Florida?

Yes. A landlord is required to notify the tenant in writing no more than 30 days after receipt of the security deposit. The notice shall state:

A. The name and address of the bank or institution where the security deposit is being held.
B. If the tenant’s funds are being kept separate or if they are being commingled with other funds for the benefit of the tenant
C. The interest rate at which the security deposit is being held (if it is being held in an interest bearing account)
D. This notice can be delivered by mail or in person.

In addition, if the landlord changes the location or the terms at which the security deposit is being held, he or she must again notify the tenant in writing within 30 days.

What Are Some Reasons You Can Keep a Tenant’s Security Deposit in Florida?

In Florida, landlords may be able to make deductions from the security deposit to cover unpaid rent, damage to the apartment in excess of normal wear and tear and other violations of the lease agreement.

Is a Walk Through Inspection Required in Florida?

No, in the state of Florida, a landlord is not required to do a walk through inspection prior to move out. Most States this is the Same. – BUT YOU SHOULD TAKE FULL PICTURES OF THE UNIT, DATE AND TIME STAMPED

WALK EACH ROOM AND TAKE NOTES, AND HAVE THE MOVE IN PICTURES READY TO SHOW THE CONDITION WHEN YOU MOVED IN IT WAS CLEAN AND AT TIMES BETTER THEN WHEN YOU MOVE OUT!

THE SECURITY IS NOT THE OWNERS OR LANDLORDS RIGHT TO KEEP

When Must You Return a Tenant’s Security Deposit in Florida?

If you plan to return the security deposit in full:

You must return the security deposit within 15 days of termination of lease along with any interest the tenant has earned on the security deposit.

If you plan to keep a portion of the security deposit:

You have 30 days from the termination of lease to notify the tenant in writing of your intention to keep a portion of their security deposit. You must:

A. Send this notice by certified mail to the address you have on file for the tenant. It is the tenant’s responsibility to provide you with a forwarding address. If they do not, the landlord is not required to provide them with written notice of the security deposit.
B. State your intention to keep a portion or all of the security deposit and list the reasons why
C. Inform the tenant they have 15 days from receipt of this letter to contest it, but they must contest it in writing.

The Florida Statute suggests using a statement similar to this one:

“This is a notice of my intention to impose a claim for damages in the amount of ___ upon your security deposit, due to___ . It is sent to you as required by s. 83.49(3), Florida Statutes. You are hereby notified that you must object in writing to this deduction from your security deposit within 15 days from the time you receive this notice or I will be authorized to deduct my claim from your security deposit. Your objection must be sent to (landlord’s address) .”

If you, the landlord, fail to notify the tenant in writing within 30 days, you automatically forfeit your right to keep any portion of the security deposit.

If the tenant does not object to your claim on the security deposit:

You can deduct the amount you had claimed and then return the remainder of the security deposit to the tenant within 30 days of your initial written notice.

If the tenant does object to your claim:

The matter could go to court. Whichever party wins will be entitled to the court awarded sum, plus will be allowed to recover court costs and attorney fees from the losing party.

What Happens to the Security Deposit If You Sell Your Property?

If you sell your rental property, it is your responsibility to transfer the security deposits and any interest earned to the new buyer. A written receipt must also be creating showing the amount that has been transferred. You will then be relieved of any responsibility for holding the money on the tenant’s behalf. If you did violate any security terms before the transfer, you will still be held responsible for those violations.

What is Florida’s Security Deposit Law?

For the original text of the rule garnering security deposits in Florida, please consult Statute 83.49 which refers to the deposit of money or advanced rent in residential tenancies.

Tags: Eviction Information, Florida Eviction Articles, Security Deposits

What Is a Landlord Walk Through Checklist. How do i make one?

Posted: Feb 06, 2020
By: NatEvict
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What Is a Landlord Walk Through Checklist?

A landlord walk through checklist is a guide that covers what to look for when surveying a rental unit. It should include information on the rental unit, questions and descriptions regarding the condition of each room and appliance, and lastly, leave space for additional comments. The right checklist can help even the most organized landlords and tenants streamline the walk through process and catch all of the details in a rental unit.

*Walk throughs are typically done before a tenant moves in and after they move out. In properties with leases longer than about six months, it is not uncommon to complete a walk through once or twice a year. This process ensures landlords are aware of any potential repairs, damage done to the unit, or lease violations on behalf of the tenant. While it is not necessary to frequently check on tenants, an annual or semi annual walk through helps landlords maintain the condition of their properties.

*We inform Landlords and Tenants to both do a walkthrough of the unit being rented, walk the entire rental use a checklist and mark off everything you see and take notes. We also suggest taking pictures of the before that will go along with the paper copy of the walkthrough form. Then both sign this form, make copies and now the Landlord has one for the rental file and the Tenant has one for later use!

NOTE: Upon move out these forms and key to condition – as such everything should be the same or better then when you moved in condition. This form will be used by both parties in any dispute over the Security Deposit.

What Should You Include on Your Landlord Walk Through Checklist?

The ideal walk through checklist for rental property owners and landlords should survey the entire unit, without leaving room for any guess work. A thorough checklist is crucial, particularly during move in and move out, because it allows you to note the existing property condition and any changes that have been made during tenancy. Further, a checklist may reveal the potential for upgrades or modifications that should be made to unit. That being said, here are a few items you should include in every walkthrough checklist:

Flooring: As you walk through the property, keep in mind the flooring in each room. Make sure there are no missing tiles, peeled up corners or broken floorboards in the unit. Each of these issues should be repaired right away to prevent further damage to the rental property.
Walls: Many property owners or landlords will repaint rental units between tenants; this not only fixes any scratches made by the last owner but it keeps units looking fresh and clean. Keep tabs on the status of walls before, during and after tenants occupy your property to make sure you know the right frequency to paint.
Smoke Detectors: No rental checklist for walk through is complete without checking the smoke and carbon monoxide detectors. Look for them placed throughout the unit, and test the alarms to ensure they are working.
Heating & Air Systems: This is the first thing you are likely to get a maintenance request for, if they aren’t in good condition that is. Review the heating and air units throughout the rental property and make sure they work as they should. Double check with a professional if you are unsure about anything.
Entry Way: Are there stairs leading up to the unit? What about a long path? Depending on the layout of your rental property, it could require certain safety features. Double check that all stairs have properly installed railings, and that all paths or outdoor areas are well lit when needed. This helps make sure your property is accessible to all tenants, and it’s a good chance to double check the curb appeal as well.
Kitchen Appliances: Always check the stove, oven, dishwasher, refrigerator and other appliances when doing a walkthrough. Make sure all appliances are working as they should, and be sure to check any vents and lights. It is crucial to catch and potential issues before they develop into more costly problems.
Doors & Locks: Some landlords will change out the locks between tenants, while others will only distribute “do not duplicate” keys to ensure they are given everything back. No matter which route you choose, double check all doors and locks with your tenants to see if everything is working as it should.
Light Fixtures: Turn all of the lights on and off as you walk through the unit to determine if each fixture is working as it should. While you may not be responsible for changing old bulbs while a tenant occupies the unit, it is a good touch to make sure each light is fresh when completing a move in walk through.

Landlord Walk Through Checklist:

It is a good idea to add a renter walk through checklist to your files, this way you have one available whenever you need it. By creating a system for the process, you can make sure property maintenance and tenant issues are handled efficiently and consistently.

Keep each completed checklist organized with the rest of your tenant paperwork, especially when it comes to move in walk through s. This will help you cross reference old notes, should any issues arise with the property.

If you are preparing for your next walk through, download our checklist today: You can copy the form below or download our form here

OTHER FORMS FOR LANDLORDS AND TENANTS CAN BE FOUND ON OUR LEGAL FORMS SECTION

Tags: LANDLORDS, Security Deposits, TENANTS

How to Protect Your Right to the Security Deposit

Posted: Jul 09, 2019
By: NatEvict
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How to Protect Your Right to the Security Deposit

As a landlord, you may be entitled to keep a portion of your tenant’s security deposit for reasons such as a breach of lease or damage caused to the apartment. However, if you do not follow your state, county, and city security deposit laws exactly, you may be forced to return the security deposit you are rightfully owed. Here are some steps to take to help you protect your right to the security deposit.

Put it in Writing

All information regarding the security deposit basics should be included as a provision in your lease agreement. It should include:

The amount of the security deposit received.
The fact that it is a refundable deposit if the tenant abides by all terms of the lease.
That it will be stored according to your state, county and/or city’s procedures for security deposits. For example; It will be placed in a separate interest-bearing bank account. The bank’s name is “X,” the bank’s address is “X,” and the interest rate is “X” percent.
You will also want to include reasons you, the landlord, may be legally allowed to keep a tenant’s security deposit, such as damage done to the property in excess of normal wear and tear and nonpayment of rent. Legal reasons you may be allowed to keep a tenant’s deposit will vary based on the state, county, and city where your rental property is located.

Take Pictures of the Property, Inside and Out, Before the Tenant Moves In

Print out the pictures. When the tenant moves in, have them sign and date the back of each picture to acknowledge the condition of the property upon move in.

Have a Move-In Walk-Through With the Tenant and Have Them Sign a Move in Checklist

In addition to having the tenant sign and date the pictures showing the condition of the property, you will want to walk the tenant through the property. Turn on the stove, open the freezer, open, close, and lock the windows, run the faucets, and flush the toilets.

Your move-in checklist should include the items in the apartment and their condition. Some examples would be:

Stove in working order
All outlet covers in place
All windows lock
Screens on all windows
Refrigerator in working order
Freezer in working order
Two smoke detectors
Two carbon monoxide detectors
Smoke detectors in working order
Carbon monoxide detectors in working order

As the tenant approves each item, place a checkmark next to it. Then have the tenant sign and date the bottom of the form acknowledging their agreement that the property is in good, habitable condition. If there are any known defects, such as a large scratch in the hardwood floor in the living room, they should be noted here.

Notify the tenant in writing after they move in

Notify the tenant in writing within “X” number of days of their move-in date (as determined by your state; usually between 14 and 30 days) of the name of the bank, the address of the bank, and the interest rate at which their security deposit is being held (if applicable in your state).

Notify the tenant of the annual interest accumulated on their security deposit (if applicable in your state).

Before the tenant moves out, give them a list of move-out procedures.

For example, they should remove all trash, leave the property broom swept clean and should return the keys to you, the property manager or the building superintendent.

Take Pictures of the Property After the Tenant Moves Out

Sign and date these pictures. Make a note of any damage done to the property.

Notify the Tenant in Writing After They Move Out

Send the tenant a letter within “X” amount of days of their move-out (as determined by your state law). Return the applicable amount of security deposit to the tenant. If you have kept any or the entire security deposit, you must give an itemized list of expenses explaining why you have kept the money. If the tenant has not provided you with a forwarding address within 30 days of move-out, you may not be legally obligated to return the security deposit.

Realize That Your Tenant Does Have the Ability to Contest Any Money You Have Kept

The tenant can file a claim in small claims court to try and recover the money. If you have not followed the laws of your state, county, or city exactly, they may be able to take back the security deposit, even if you were otherwise entitled to keep it. For example, in some states, if you did not notify a tenant in writing as to the bank name, address, and interest rate at which their security deposit was held, you may not be allowed to keep any money owed to you.

Tags: Eviction Information, Landlord Information, Security Deposits

Here’s some answers for the security deposit laws in Florida

Posted: Jul 09, 2019
By: NatEvict
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Here’s some answers for the security deposit laws in Florida

In Florida, many residential rental agreements or leases require a security deposit. Usually a month’s rent, a security deposit is a dollar amount that’s collected by the landlord to protect against property damage due to a tenant’s negligence or carelessness.

When it comes to security deposits, Florida landlords and tenants both have certain basic rights. These rights are specified under Florida landlord-tenant law. Landlords must comply with these laws when handling a tenant’s security deposit.

1. What amount can a landlord ask for a security deposit?

The Florida Security Deposit law doesn’t limit the amount a landlord can charge a tenant for a security deposit. However, the amount should be reasonable.

Local laws can, however, set the cap on the amount a landlord can ask.

2. How should landlords store a tenant’s security deposit in Florida?

Florida rental laws state that a landlord can store a renter’s security deposit in three different ways. First, landlords can post a surety bond for the amount of security deposit. A surety can be used as an alternative to a security deposit.

A surety bond, similar to a security deposit, is a form of insurance that provides a contractual promise. That is, the bond company stands ready to compensate the landlord up to the limits of the bond if the tenant fails to abide by the lease terms.

Tenant surety bond premiums typically cost a tenant about 10% to 20% of the deposit. The landlord must also pay the tenant 5% interest annually on the bond.

Second, in Florida, landlords can place a tenant’s security deposit in a non-interest bearing account. Landlords aren’t allowed to commingle fun ds. Also, unless the funds are due, landlords shouldn’t use any part of it.

Third, landlords may also place a renter’s security deposit in an interest-accruing bank account. Interest earned annually must be paid to the renter when the lease term expires. A landlord can pay it in two ways. One, by crediting it back to the tenant in the form of rent. Or two, paying it directly to the tenant.

3. Is a landlord required to give the tenant a written notice after receiving the security deposit?

It’s mandatory for landlords to do so under Florida security deposit law. After its receipt, a landlord must notify the tenant, in writing, of its receipt within thirty days. In the notice, the landlord must state:

The address of the banking institution; where the security deposit is being held.
If the funds are separately kept or are mixed with other funds.
If it’s being kept in an interest-bearing account and how much the interest rate is.

The notice can be delivered in person or can be sent via mail to the tenant.

Moreover, if any of these terms are changed, it’s the landlord’s responsibility to inform the renter in writing within one month.

4. What reason does the landlord have to keep all or a portion of the tenant’s security deposit in Florida?

There are instances where a landlord may make deductions from the renter’s security deposit. Common reasons include:

The renter made unauthorized repairs. For example, the tenant repainted the rental unit without getting the landlord’s approval.
The renter caused property damage. The damage must be in excess of wear and tear. Examples of wear and tear include:
Discoloration of furnishings and upholstery.
Scratches and marks on wooden furniture, worktops, door handles and other often used items and surfaces.
Painting and redecorating.
Damage caused to a property due to high winds.
Appliances that have broken down due to age.

Damage caused by the tenant’s negligence or carelessness isn’t the landlord’s responsibility. Examples of damage that a Florida landlord has a right to deduct from the tenant’s security deposit include:

Damaged electrical appliances by careless usage.
Broken bed frames, tables, curtain frames, chairs, and so on.
Pets damaging property or items.
Ruined carpets with stains or cigarette burns.
Damages caused by a party.
Broken windows caused by tenant or tenant’s guests.
Failure by the tenant to pay rent. Landlords can withhold a renter’s security deposit when the renter fails to make rental payments.
The landlord can also make deductions to a tenant’s security deposit when tenants fail to clean the rental unit especially when they are moving out.

5. Is a walkthrough inspection required under Florida landlord-tenant laws?

No. It isn’t required in Florida. However, in other states like California and Arizona, this process is required. A walkthrough inspection is when both the tenant and the landlord go through the rental unit to assess its condition.

Tenants must vacate the rental premises in the same way they found it when they moved in. Otherwise, the landlord has a right to make deductions to the tenant’s security deposit.

6. When should the landlord return the security deposit to the tenant once they move out?

If the landlord intends to impose a claim on the deposit, the landlord has 30 days to give the tenant a written notice specifying the reasons. The notice, using exact language found in Florida Statute, must list the damages as well as the charges.

The deductions are automatically forfeited if the landlord fails to do this. If the tenant doesn’t object to the deductions, the landlord must send the remaining deposit within 30 days after initial notice.

However, if the landlord doesn’t intend to impose a claim on the security deposit, he or she has 15 days to return the deposit back to the tenant.

7. What happens to the security deposit when property ownership changes?

In the event of property ownership changes, the landlord is required to notify the tenant of the changes in writing. The landlord must also transfer the security deposits to the new landlord. Once this is done, the new landlord assumes all responsibilities under the existing lease agreement.

Other Articles on Security Deposits: Read Protecting your Rights to your Security

This overview of security deposit laws in Florida is only meant to be informational. For specific questions, please consult a qualified Florida attorney. For help with your Florida Eviction needs contact us today!

Read the Florida Laws on Security Deposits: https://www.flsenate.gov/Laws/Statutes/2011/83.49

Tags: Eviction Information, Florida Eviction Articles, Landlord Information, Security Deposits, Tenant Information

Getting Back Your Security Deposit

Posted: Aug 01, 2016
By: NatEvict
Comments: 0

Moving up, moving out. You’ve been living in this dump since your second year of college, and now it’s time to go. The thing is, it’s not quite the same apartment as when you moved in. There are nail holes from where you hung all the Pink Floyd, Barbarella, and Saw movie posters. (And didn’t your landlord specificallysay “no holes in the wall”?) The carpet and floor are mottled with stains of various colors.

Oh, and one night you got really mad and punched a hole in the drywall. You covered it up with a poster, but the hole is still there. Although you don’t remember why you were so upset, the wall remembers your wrath. You could really use your deposit to help get you started in your new place. So, before you call your landlord, we bring you

Getting Back Your Security Deposit

That’s right, secrets. Secrets are exciting, intriguing. They make a boring subject like security deposits seem fun and interesting. Try to remember this as you read.

There’s a saying that “an ounce of prevention is worth a pound of The Cure”. I’m not sure what prevention has to do with Robert Smith, but the first two secrets I have for you fall into this category. Knowing or doing these when you move in will help you when you move out. The last three secrets fall into the Cure category — fixing stuff.

Continue reading →

Tags: Security Deposits