Where Florida Landlords Should Store Tenant Security Deposits and Required Notice

Florida law, specifically Fla. Stat. Sec. 83.49 requires landlords to deposit tenant security deposits and advance rent paid, that is not for the next immediate rental period into either:

(a)  A separate non-interest-bearing account in a Florida bank for the benefit of the tenant(s).

Or

(b)  A separate interest-bearing account in a Florida bank for the benefit of the tenant(s), where tenant shall be entitled to collect at least 75% of the annual interest payable on the account or interest at a rate of 5 percent a year, simple interest, either choice in the discretion of the landlord.

Or

(c)   Post a surety bond, executed by the landlord with a surety company licensed in Florida as a surety, with the clerk of the circuit court in the county where the rental property is located, in the amount of the security deposit and advance rent.

The law requires that tenant security deposits held in bank accounts not be comingled with other funds.

The landlord, shall, in the lease agreement or within 30 days after receipt of a security deposit and/or advanced rent payment, give written notice to the tenant, either in person or by mail which includes disclosure of the advance rent or security deposit and provides the name and address of the bank location where the funds are deposited, whether the account is interest bearing and the rate and terms of interest (if applicable).

** FAILURE TO COMPLY MAY RESULT IN: (1) FORFEITURE OF THE RIGHT TO WITHHOLD ANY PART OF THE DEPOSIT & (2) TENANT MAY SUE FOR FULL RETURN OF DEPOSIT + COURT COSTS + ATTORNEY’S FEES

Landlord Best Practices

-       Open a separate escrow account only for security deposits

-       Do not mix security deposits and rental income

-       Document interest and notices carefully

-       Use a property management attorney or accountant to help with compliance

Do you have a client with a tricky landlord-tenant issue, needs a contract review, or other real estate legal matter? We’re here to help. Quick turnarounds and no surprises.

Contact Biazzo Law today at (703) 297-5777 or alyssa@biazzolaw.com to schedule a consultation today. www.biazzolaw.com 

** Information in this newsletter email should not be considered legal advice, nor does it form an attorney-client relationship

How does eviction work in Florida? How long does it take to evict a tenant in Florida? Florida eviction laws for landlords, Florida eviction process step by step, What are legal reasons to evict a tenant in Florida? How much does an eviction cost in Florida? Do I need a lawyer to evict a tenant in Florida? How to evict a tenant without a lease in Florida, Florida 3 day notice to pay or vacate, Florida eviction notice rules, Florida landlord security deposit laws, Florida landlord security deposit rules, Florida security deposit requirements, How long does a landlord have to return a security deposit in Florida? Can a landlord keep the security deposit in Florida? When does a landlord have to return a security deposit in Florida? Where is a landlord required to keep a security deposit? Where do landlords keep security deposits in Florida, Florida landlord tenant act security deposit, Florida Statute 83.49.