Security deposits are a big part of the rental process in Orlando. They give landlords a cushion in case tenants cause damage or skip out on rent. But Florida has clear rules on how much you can charge and when you have to return that money.
If you're a landlord, understanding these laws can help you avoid legal trouble. If you're a tenant, knowing your rights can save you from losing money unfairly.
This article will break it all down in simple terms.
How Much Can a Landlord Charge?
Florida law doesn’t set a hard limit on security deposits. That means in Orlando, you can charge whatever amount you think is fair. Most landlords stick to one to two months’ rent. Charging too much, though, can scare off good tenants. If your rent is $1,800, a $3,600 deposit might be too steep for many renters.
So what's smart? Look at your property. Consider its condition and location. Think about how often you’ve had to make repairs after tenants move out. Then set a deposit that covers potential damage but won’t keep quality tenants away.
Where Should the Deposit Go?
Once you collect the deposit, Florida law gives you three options:
- Keep it in a separate non-interest-bearing account.
- Keep it in a separate interest-bearing account and pay the interest to the tenant.
- Post a surety bond with the county clerk and hold the deposit yourself.
No matter what you choose, you must tell the tenant where the deposit is being held within 30 days. You also need to give this in writing. This part is often forgotten, but it’s legally required.
When Do You Have to Return It?
The clock starts ticking once the tenant moves out. In Florida, you have 15 days to return the full deposit if there are no claims. If you plan to deduct for damages, you must notify the tenant in writing within 30 days.
That notice must list each deduction and the reason. It must also include a note telling the tenant they have 15 days to dispute it. Send this notice by certified mail to the tenant’s last known address.
If you miss the deadline, you might lose the right to keep any part of the deposit, even if the tenant trashed the place.
What Can You Deduct?
You can’t just keep the deposit for any reason. It must be tied to real damage or unpaid rent. Normal wear and tear doesn’t count. That means you can’t charge for scuffed walls or worn carpet. But holes in the drywall or broken windows? That’s fair game.
Play It Smart with Security Deposits
Being a landlord in Orlando means understanding the rules and applying them effectively. A security deposit is more than just a formality. It protects your property and sets clear expectations with your tenants.
Charge a reasonable amount. Follow the proper steps when holding and returning the deposit. Stick to the deadlines. These simple actions can help you stay out of legal trouble and keep your rental business running smoothly.
Make Security Deposits One Less Thing to Worry About!
At Wilson Management Group, we know how important it is to handle security deposits the right way. We handle everything. That includes calculating fair amounts, meeting legal deadlines, and managing proper documentation. You stay protected and stress-free.
Call us today to learn how our full-service property management keeps your rental compliant and your tenants satisfied.
