Florida Law Requires Certain Security Deposit Disclosures to Appear in a Tenant's Lease
When renting a property in Florida, both landlords and tenants should be aware of their rights and responsibilities concerning security deposits. Under Florida law, specifically Florida Statute § 83.49, landlords are required to make specific disclosures in the lease agreement related to the handling of security deposits. These disclosures are designed to provide transparency and protect both parties in the rental agreement.
1. Disclosure of the Security Deposit’s Location
One of the key disclosures a landlord must provide is the location and manner in which the security deposit will be held. Florida law gives landlords three options for holding a tenant's security deposit:
Non-interest-bearing account: The security deposit may be held in a non-interest-bearing account in a Florida bank or financial institution.
Interest-bearing account: The security deposit can be placed in an interest-bearing account in a Florida bank or financial institution. If the account earns interest, the tenant is entitled to receive either 75% of the annualized average interest rate or 5% simple interest per year, depending on which is higher.
Surety bond: A landlord can choose to post a surety bond with the clerk of the circuit court in the county where the rental property is located, in lieu of placing the deposit in a bank account. The bond must be for the total amount of the security deposits and advance rent held or $50,000, whichever is less.
The landlord is required to notify the tenant in writing within 30 days of receiving the security deposit, specifying which method is being used.
2. Disclosure of the Bank or Institution Where the Deposit is Held
If the landlord opts to hold the security deposit in a bank account, Florida law requires that the name and address of the bank or institution holding the deposit be disclosed in the written lease or in a separate written notice. This must also be provided to the tenant within 30 days of receiving the deposit.
