Can security deposit be higher than rent florida

Florida's security deposit laws, codified in § 83.49 of the Florida Statutes and rooted in the Florida State Constitution (effective March 3, 1845), provide a detailed framework for how deposits must be held, returned, and disputed. Under the Florida Residential Landlord and Tenant Act (effective since 1973), while there are limits on deposit amounts, the procedures for handling them are strict - and failure to comply can result in the landlord forfeiting the entire deposit.

Official Law Citation: The rules regulating the holding, amount, and return of residential security deposits are established in Florida Statutes Section 83.49Preview unavailable and Section 83.491Preview unavailable.

Statutory Limits

Florida law, as updated in 2025, limits the initial security deposit collected before occupancy to a maximum of one month's rent. If a security deposit is paid during the lease term, it must not exceed a specific percentage of one month's rent, as determined by recent legislation.

Holding Requirements

Landlords must hold security deposits in one of three ways:

1. Separate non-interest-bearing account in a Florida banking institution.
2. Interest-bearing account in a Florida banking institution - the landlord must pay the tenant either 75% of the annualized average interest rate or 5% simple interest per year, whichever the landlord chooses.
3. Surety bond posted with the clerk of the circuit court in the county where the dwelling unit is located - the bond must be for the total amount of the security deposits and advance rent held on behalf of the tenants or $50,000, whichever is less. The landlord must also pay the tenant 5% simple interest per year on the deposit.

Within 30 days of receiving the deposit, the landlord must notify the tenant in writing of the name and address of the bank where the deposit is held, whether the account is interest-bearing or non-interest-bearing, and the rate of interest if applicable. This notification requirement does not apply to landlords who rent fewer than five individual dwelling units.

Return Deadlines

Notice of Deductions

If the landlord intends to withhold any portion of the deposit, they must provide the tenant with written notice by certified mail to the tenant's last known mailing address within 30 days after the termination of the rental agreement containing:

• An itemized list of deductions.
• The specific amounts for each deduction.
• A statement that the tenant has 15 days to object in writing.

Tenant's Right to Object

The tenant has 15 days after receiving the landlord's notice to object in writing. If the tenant does not object within this period, the landlord may deduct the claimed amounts and remit the balance to the tenant within 30 days after the date of the notice.

Permitted Deductions Landlords may deduct for:

• Unpaid rent (including the last month's rent if not prepaid).
• Damage beyond normal wear and tear - the landlord must document the damage.
• Cleaning costs - only if the premises were left in a condition below what was agreed upon.
• Early termination charges - if specified in the lease.

Deductions for normal wear and tear are not permitted.

Forfeiture for Non-Compliance

If the landlord fails to return the deposit or send the required notice within the specified 30-day period, the landlord forfeits the right to impose any claim on the deposit and must return the full amount. Under § 83.49(3)(c), the prevailing party in an action to adjudicate the right to the security deposit is entitled to receive:

• The full deposit.
• Court costs and reasonable attorney's fees.

Security Deposit Alternatives (Effective 2023)

Florida now allows landlords to offer a non-refundable monthly fee as an alternative to a traditional security deposit. Key points:

• The landlord cannot require both a traditional security deposit and the monthly fee.
• Landlords may also permit tenants to pay a traditional security deposit in monthly installments.
• The tenant must be given the choice between the traditional deposit and the alternative.

How Landager Helps

Landager tracks lease terms, security deposit accounting, and deduction letter automation - making it easy to stay compliant with Florida regulations.

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