Overview
Since July 1, 2023, Florida landlords have been able to offer tenants a nonrefundable monthly fee as an alternative to a traditional security deposit under Florida Statute 83.491. The fee applies to leases entered into or renewed on or after that date, is entirely optional for landlords to offer, and doesn't cap what a tenant could owe for unpaid rent or damage beyond normal wear and tear at move-out. Landlords must notify tenants of any amounts owed within 30 days of the tenancy ending, and must wait an additional 15 days after that notice before filing an insurance claim to recover losses. The law remains in effect as written, with no fee cap and no significant amendments since it passed.
What HB 133 (Now Florida Statute 83.491) Actually Does
Signed into law in 2023 as House Bill 133 and now codified as Florida Statute 83.491, this law lets landlords offer tenants the choice to pay a monthly fee instead of a traditional security deposit. It applies to rental agreements entered into or renewed on or after July 1, 2023. Landlords are not required to offer this option, and tenants aren't required to choose it — where offered, tenants can choose between the fee and a standard deposit, or ask to pay the security deposit in monthly installments instead.
Key Points for Tenants
- It's a choice, not a mandate: The fee is an alternative to a security deposit, not a replacement requirement. You can decline it and pay a traditional deposit instead.
- Written disclosure required: If you opt for the fee, the landlord must give you a written disclosure stating the fee is non-refundable, doesn't cover any damage or unpaid rent, and that any insurance the landlord buys with it doesn't insure you.
- You still owe for damage and unpaid rent: Paying the fee doesn't reduce your obligations under the lease. You're still responsible for rent, other fees, and any damage beyond normal wear and tear.
- You can switch at any time: You're allowed to terminate the fee agreement and switch to paying the security deposit specified in your lease instead, at any point during the tenancy.
- No fee cap: Unlike security deposits, there's no statutory limit on how much a landlord can charge for this fee, and it can be increased during the lease unless your agreement says otherwise.
- 30-day notice after move-out: The landlord has 30 days after your tenancy ends to notify you of any amounts owed for unpaid rent, fees, or damage. They must wait 15 more days after that notice before filing an insurance claim to recover those costs.
- Can't be used to deny your application: A landlord can't use your choice between the fee and a deposit as a factor in approving or denying your rental application.
Review the written agreement carefully, and don't hesitate to ask the landlord or a legal professional to clarify anything before choosing the fee over a traditional deposit.
Key Points for Landlords
- Optional, not required: You can choose whether to offer this option at all.
- Written agreement required: If a tenant opts in, you need a signed written agreement that meets the statute's disclosure requirements.
- Required disclosures: The agreement must state that the fee is non-refundable, doesn't relieve the tenant of any obligations, and that any insurance you purchase with it doesn't cover the tenant.
- 30-day post-tenancy notice: You must notify the tenant of any amounts owed within 30 days after the tenancy ends.
- 15-day insurance waiting period: You can't file an insurance claim to recover unpaid rent or damage costs until at least 15 days after sending that notice.
- Consistency across tenants: If you offer this option to one tenant, you generally must offer it to all new tenants renting a unit on the same premises, with limited exceptions.
- Can't factor into approval decisions: A tenant's choice between the fee and a deposit can't be used as grounds for approving or denying their application.
Familiarize yourself with the full statute and consult a real estate attorney to make sure your agreement complies before offering this option.
Why This Law Exists
Rising rental costs in Florida have made it harder for renters to come up with the equivalent of one to two months' rent upfront for a security deposit. Supporters of the law argue the fee option gives renters more flexibility to secure housing without that upfront burden, particularly helpful for tenants who can't accumulate the full deposit amount at once.
The Main Concern With This Option
Because there's no cap on the fee amount, and because the fee isn't refundable or designed to function like insurance against damage, tenants who choose it are still on the hook for the full cost of any damage beyond normal wear and tear or unpaid rent at move-out — without the deposit acting as a cushion. Fees can also be increased during the tenancy unless the agreement specifies otherwise, something a traditional deposit doesn't allow once it's collected.
