In a landlord tenant relationship it is often unclear how the security deposit should be handled. A security deposit is refundable money which is paid to the landlord as a security against damage to the property or as advanced rent. The rules regarding security deposits can be found in Florida Statutes Chapter 83.49.

Landlords have the following options when the tenant pays a security deposit:

1. Place the deposit in a separate non-interest bearing account in a Florida banking institution without commingling the tenant’s funds; or

2. Place the deposit in a separate interest bearing account in a Florida banking institution without commingling the tenant’s funds. Pay the tenant either 75% of the annualized average interest rate or 5% simple interest; or

3. Post a surety bond and pay the tenant 5% simple interest. Here the funds may be commingled but the Landlord posts a bond to protect the deposit.

When the lease ends and the tenant is moving the landlord has 15 days to return the security deposit along with any interest to the tenant. If the landlord does not intend to return the deposit he or she must provide written notice to the tenant within 30 days. The written notice shall state:

1. That the landlord intends to impose a claim on the security deposit;

2. How much of the security deposit is intended to be withheld and why;

3. That the tenant has 15 days from the date of receipt of the notice to object to the deduction of the security deposit;

and

4. Where any tenant objections should be sent.

If the landlord does not give the required notice within the 30 day period, the landlord forfeits the right to make a claim on the security deposit. That is, the landlord gives up any right to any portion of the security deposit.