In short: hold the deposit in a separate Florida bank account or under a surety bond, return it within 15 days if you are keeping none of it, and send written notice of any claim within 30 days by certified mail. Miss the 30 day notice and you lose the right to claim against the deposit.
Holding the deposit
Florida gives landlords three ways to hold a security deposit or advance rent (section 83.49(1)):
| Option | What it means | Interest to the tenant |
|---|---|---|
| Separate account, no interest | The full amount in its own account at a Florida bank, not mixed with your money or used until it is owed to you | None |
| Separate account with interest | The same, in an interest bearing account | At least 75% of the account's average rate, or 5% a year simple interest, your choice |
| Surety bond | A bond with the clerk of the circuit court for the county, for the deposits held or $50,000, whichever is less | 5% a year simple interest |
Where interest is owed, pay it to the tenant or credit it against rent at least once a year.
Telling the tenant where it is held
Landlords with five or more units must tell the tenant in writing, in the lease or within 30 days of receiving the deposit, where it is held, whether interest is paid, and the statutory wording about deposits. Change the account later and the tenant must be told within 30 days. Landlords with fewer than five units are not required to give this notice, though it is good practice.
At move out
- Keeping nothing: return the deposit, with any interest owed, within 15 days of the tenant leaving
- Making a claim: within 30 days, send written notice of the amount and the reason for each claim, using wording substantially like the form in section 83.49(3)(a), by certified mail to the tenant's last known mailing address. Email is allowed only if you both signed a separate email notice addendum under section 83.505
- The tenant's reply: the tenant has 15 days from receiving the notice to object in writing. With no objection, deduct the claim and send the balance within 30 days of the notice
- If it goes to court: the winning side can recover court costs and a reasonable attorney fee
Claims should be for unpaid rent and damage beyond normal wear and tear. Our guide to wear and tear and damage has examples.
Fee instead of a deposit
For leases signed or renewed from July 1, 2023, you may offer tenants a monthly fee instead of a deposit (section 83.491). It has to be the tenant's choice, with a signed agreement and set disclosures, and the tenant can switch to a normal deposit at any time. The tenant still owes unpaid rent and damage beyond wear and tear, and you must tell them within 30 days of the tenancy ending what they owe.
Protecting your claim
- Use the same inspection form at move in and move out, with dated photos. Our free move out inspection form is built for this
- Ask for the tenant's forwarding address in writing before they leave
- Keep receipts for cleaning and repairs, so each claim has a cost behind it
- Book the turnover clean straight after the walkthrough, so the unit is rent ready while the claim runs
This guide is general information, not legal advice. Laws change, and your lease may add terms. For advice on your situation, speak to a Florida attorney or the Legal Aid Society of Palm Beach County.