Florida Security Deposit Rules — F.S. §83.49 Landlord Guide

Holding the security deposit — bank account requirements

F.S. §83.49(1) requires the landlord to hold the security deposit in one of three ways:

• Separate non-interest-bearing account — Deposit held in a Florida bank account separate from landlord's own funds. No interest required to be paid to tenant.
• Separate interest-bearing account — Deposit held in a Florida bank account earning interest. Landlord retains 75% of interest earned; remaining 25% goes to tenant.
• Surety bond — The landlord posts a surety bond for the deposit amount. Interest at 5% per annum must be paid annually to the tenant.

The account must be in a Florida bank (or a federally insured financial institution with a Florida branch). Holding the deposit in a Canadian bank account is not compliant with F.S. §83.49 and exposes you to significant legal risk.

Commingling the deposit with operating funds is permissible only under the surety bond method. For the bank account methods, the deposit must be kept separate and not used for any purpose until legally entitled.

The 30-day written notice requirement

Within 30 days of receiving the security deposit, the landlord must notify the tenant in writing of:

• The name and address of the financial institution where the deposit is held
• Whether the deposit is in an interest-bearing or non-interest-bearing account
• The landlord's surety bond information (if applicable)

This notice must be sent to the tenant's last known mailing address. The notice may be included in the lease itself if the required information is specified at lease signing. Failure to provide this notice within 30 days does not automatically void the lease, but it does potentially entitle the tenant to the entire deposit at the end of tenancy, regardless of any actual damage.

Returning the deposit after move-out

After the tenant vacates, the landlord has two options:

• Return within 15 days — If no deductions are to be made, the entire deposit (plus any required interest) must be returned within 15 days of the tenant's departure or the end of the lease term, whichever is later.
• Send notice of deductions within 30 days — If deductions will be made, the landlord must send a written notice within 30 days itemizing each deduction and stating the dollar amount. The notice must be sent by certified mail to the tenant's last known address.

The 30-day notice must state: "This is a notice of my intention to impose a claim for damages in the amount of [$X] upon your security deposit, due to [specific reason]. It is sent to you as required by s. 83.49(3), Florida Statutes. You are hereby notified that you must object in writing to this deduction from your security deposit within 15 days from the time you receive this notice or I will be authorized to deduct my claim from your security deposit. Your objection must be sent to [landlord address]."

This precise statutory language (or substantially similar language) is required. Failure to use it, or missing the 30-day window, forfeits all deductions.

Permissible deductions from the security deposit

Deductions may only be made for:

• Unpaid rent — Any rent owed at move-out
• Damage beyond normal wear and tear — The key distinction: normal wear and tear (faded paint, minor scuffs, carpet compression from furniture) is not deductible; actual damage (holes in walls, broken fixtures, stained carpeting beyond normal use, missing items) is deductible
• Cleaning to restore to move-in condition — Only if the unit was professionally cleaned at move-in and the tenant left it in significantly worse condition

Deductions for cosmetic improvements (repainting because you want a new colour, replacing carpets at end of useful life) are not permissible. Florida courts apply a depreciation analysis — a carpet with a 10-year useful life that is 7 years old at move-in is worth only 30% of its new value; a tenant who destroys it owes only 30% of the replacement cost.

Canadian-owner tips for security deposit compliance

• Use a U.S. bank account — Open a U.S. bank account (ideally at a bank with Florida branches) specifically for holding security deposits. Many Canadian owners use the same account they use for rental income; just ensure the deposit amount is trackable as a separate liability in your records.
• Document move-in condition — Take dated, timestamped photos and video of every room at move-in. Both you and the tenant should sign a written move-in inspection checklist. Without this documentation, deductions for damage are nearly impossible to defend.
• Pet deposits vs. pet fees — A refundable pet deposit is subject to §83.49 rules. A non-refundable pet fee is not a deposit and is not governed by §83.49 (but must be clearly labeled as non-refundable). Never label a non-refundable fee as a deposit, and never label a deposit as a non-refundable fee.
• Track the 30-day clock from move-out — Property managers sometimes miss the 30-day notice deadline while waiting for repair estimates. Set a hard calendar reminder at move-out; late notice = forfeited deductions = out-of-pocket for repairs.