Overview
Florida security deposit laws are governed by Florida Statutes § 83.49. Florida has unique requirements including multiple options for holding deposits, strict notice deadlines, and a tenant response process. While there's no limit on deposit amounts, landlords must follow specific procedures or risk forfeiting their right to make any claims. Security deposit management software helps track these critical deadlines.
Maximum Security Deposit
Florida has no statutory limit on security deposit amounts. Landlords may charge whatever they deem appropriate for their rental property.
However, some local cities and counties may impose their own limits, so always check local ordinances. In practice, most landlords charge one to two months' rent.
Return Timeline
Florida has a two-tier return deadline system under Florida Statutes § 83.49(3):
No Claim on Deposit: 15 Days
If the landlord does not intend to make any deductions, the full deposit (plus any required interest) must be returned within 15 days after the tenant vacates.
Claiming Deductions: 30 Days
If the landlord intends to claim any portion of the deposit, they must send written notice to the tenant within 30 days by certified mail to the tenant's last known address.
Critical: If the landlord fails to send this notice within 30 days, they forfeit the right to impose any claim on the deposit.
Interest Requirements
Florida gives landlords three options for holding security deposits (Florida Statutes § 83.49(1)):
Option 1: Non-Interest-Bearing Account
Hold the deposit in a separate non-interest-bearing account in a Florida banking institution. No interest is owed to the tenant. (Georgia takes a similar approach—see Georgia security deposit laws.)
Option 2: Interest-Bearing Account
Hold the deposit in an interest-bearing account in a Florida bank. The landlord must pay the tenant either:
- 75% of the annualized interest actually earned, OR
- 5% simple interest per year
Option 3: Surety Bond
Post a surety bond with the clerk of the circuit court. The landlord must pay 5% simple interest per year to the tenant.
Required Notice to Tenant
Within 30 days of receiving the deposit (or in the lease agreement), landlords must provide written notice including (Florida Statutes § 83.49(2)):
- The name and address of the bank where the deposit is held, OR that a surety bond has been posted
- Whether the tenant is entitled to interest on the deposit
- The rate of interest, if applicable
Tenant Response Process
When a landlord sends a claim notice, it must include specific language informing the tenant of their rights. The tenant then has 15 days to respond with an objection.
- If the tenant does not respond within 15 days, the landlord may deduct the claimed amount
- If the tenant objects, the landlord must either return the disputed amount or file a lawsuit within 30 days
Penalties for Non-Compliance
Florida's primary penalty is forfeiture—if a landlord fails to comply with notice requirements, they lose the right to make any claim against the deposit, regardless of actual damages.
Additional consequences may include:
- Liability for the full deposit amount plus interest
- Court costs and attorney's fees in disputes
- Potential bad faith claims if deposit is wrongfully withheld
Common Compliance Questions
Which notice method should I use—15 or 30 days?
Use the 30-day certified mail method if you plan to make any deductions. The 15-day option only applies when returning the full deposit with no deductions. Since you often don't know the unit's final condition at move-in, most property managers default to the 30-day notice to preserve flexibility.
What happens if the tenant objects to my deductions?
If the tenant disputes deductions in writing within 15 days of receiving your notice, you have 30 days to either return the disputed amount or file a lawsuit. During this period, you must hold the disputed funds—don't spend them. If you don't respond, the tenant can pursue the disputed amount in court with potential additional damages.
Do I have to pay interest on security deposits?
Only if you hold the deposit in an interest-bearing account (option 2 or 3). If you choose the non-interest-bearing account option and post the required surety bond, no interest is owed. Most smaller landlords choose this simpler approach. Document your chosen method and provide the required written notice to tenants.
Can I use a surety bond instead of holding actual deposits?
Yes, but carefully. You can post a surety bond equal to the total deposits you would hold, which frees up that cash. However, you must still follow all notice and return requirements as if you held actual deposits. The bond protects tenants if you fail to return deposits—it doesn't reduce your compliance obligations. See how Passive works to manage these complex requirements.