The Florida Residential Landlord and Tenant Act: security deposits and advance rent

Holding the funds in Florida

A security deposit secures lease performance; advance rent pays for a future rental period. Florida Statutes section 83.49(1) covers deposits and advance rent beyond the next immediate rental period. Choose a separate non-interest-bearing Florida account, a separate interest-bearing Florida account, or the statutory surety bond. The accounts benefit the tenants; funds cannot be commingled, pledged, or used before they are due.

An interest-bearing account requires at least 75% of the annualized average rate payable on the account or 5% yearly simple interest, at the landlord's election. The bond option requires 5% yearly simple interest. A county bond is the lesser of funds held or $50,000; qualifying operations in five or more counties may use a statewide bond capped at $250,000.

Disclosure and disbursement

For landlords renting five or more individual dwelling units, disclose in the lease or within 30 days after receipt the depository's name and address or bond, interest entitlement, and statutory disclosure. A change in holding method or location generally requires notice within 30 days after the change; a bank merger or name change alone does not. Missing this disclosure does not excuse rent. Advance rent becomes disbursable when its rental period begins, without notice.

After termination

After vacating for termination, a landlord making no claim returns the deposit and required interest within 15 days after termination. To claim against it, provide written notice within 30 days after termination, giving the reason and deduction. Section 83.49(3)(a) specifies certified mail to the last known mailing address or e-mail in accordance with section 83.505. The tenant has 15 days after receipt to object in writing. Missing the landlord's deadline forfeits a claim or setoff against the deposit; a damages action remains possible after returning it.

One qualification: absent different written lease terms, tenants leaving early or ending periodic tenancies must give at least 7 days' written notice by certified mail or personal delivery and a reachable address. Failure relieves the landlord of the claim-notice requirement, but does not itself waive deposit rights.

Transfers and alternative fees

On sale or a change of rental agent, transfer deposits, advance rent, earned interest, and accurate tenant account records. A fee in lieu of a deposit requires a written agreement. The tenant may switch to a deposit; paying the fee does not erase rent or damage liability or make the tenant insured under the landlord's coverage.