Overview
Florida law (Chapter 83, Part II) doesn't cap how much a landlord can charge for a security deposit, but it does strictly control how that money must be held, disclosed, and returned. Landlords must keep the deposit in a Florida financial institution, separate from personal funds, and notify the tenant in writing where it's held within 30 days if they own five or more units. At move-out, a landlord has 15 days to return the deposit if no claim is made, or 30 days to send written notice of intent to claim against it — missing that window forfeits the right to keep any of it. Since 2023, Florida landlords also have the option to offer tenants a nonrefundable monthly fee instead of a traditional deposit, which works under different rules.
What Is a Security Deposit?
A security deposit is money a landlord collects from a tenant at lease signing or move-in to cover potential damage beyond normal wear and tear, or unpaid rent, during the tenancy. Florida Statute 83.43(14) defines it as "any moneys held by the landlord as security for the performance of the rental agreement, including, but not limited to, monetary damage to the landlord caused by the tenant's breach of lease prior to the expiration thereof."
How Much Can a Landlord Require?
Florida law doesn't set a maximum, but the amount should be reasonable and competitive for the market. In Miami, one month's rent is typical, though two months sometimes comes up:
- Some landlords or property managers require two months' security instead of first, last, and one month's deposit, to maximize what they can claim if damages come up.
- A condo association may require its own separate security deposit for common-area use, in addition to whatever the landlord collects.
Landlords also have the option, since 2023, to offer tenants a nonrefundable monthly fee in lieu of a security deposit under Florida Statute 83.491, which follows a different set of disclosure and notice rules.
Landlord Responsibilities When Holding a Deposit
- Separate account required: Hold the deposit in a separate account at a Florida financial institution, either non-interest-bearing or interest-bearing. Most Miami landlords keep it simple with a non-interest-bearing account.
- Interest requirement: If held in an interest-bearing account, pay the tenant at least 75% of the annualized average interest rate, or 5% simple interest per year, landlord's choice.
- No commingling: The deposit can't be mixed with other funds or used as collateral until it's actually due to the landlord. Advance rent collected for a future period must stay untouched until that period arrives.
- Surety bond alternative: A landlord can post a surety bond instead of holding funds in an account, paying 5% annual interest. This is uncommon in Miami.
- Interest due at lease end: Pay or credit any interest owed when the lease ends, unless the tenant wrongfully terminated early.
- Written notice for 5+ units: If you own five or more rental units, you must notify the tenant in writing within 30 days of receiving the deposit, stating where it's held, the interest rate (if any), and how interest will be paid. If you later change where or how you hold the funds, notify the tenant again within 30 days — no new notice is required if the change is simply a bank merger, name change, or ownership transfer of the same institution.
Even landlords who own fewer than five units may find it worth adopting this disclosure habit anyway, since it establishes a clean process that scales if the portfolio grows.
Returning the Deposit
- If there's no claim against the deposit, return it within 15 days of the lease ending.
- Get the tenant's new mailing address if possible; if not, mail to the rental property address, since many tenants set up USPS mail forwarding.
- Send the deposit via certified mail to create a tracked record of delivery.
Claiming Against the Deposit
- Notify the tenant in writing, by certified mail, within 30 days of lease termination, stating the amount and reason for the claim.
- If you can't get the tenant's new address, send notice to the rental property.
- The tenant then has 15 days to object in writing.
- Miss the 30-day notice window and you forfeit the right to claim against the deposit — though you can still separately sue for damages after returning the full deposit.
If the tenant doesn't object within 15 days, you may deduct the claimed amount and must send any remaining balance within 30 days of the claim notice. The tenant can still pursue damages in a separate suit even without objecting. If a tenant does object, involve a real estate attorney rather than trying to resolve a disputed claim informally — and see our guide to writing a compliant deposit return letter for the notice language itself.
