Legal Question in Landlord & Tenant Law in Florida

Re: Security Deposit

NOTE: This communication is not intended as and should not be interpreted as legal advice. Rather, it is intended solely as a general discussion of legal principles. You should not rely on or take action based on this communication without first presenting ALL relevant details to a competent attorney in your jurisdiction and then receiving the attorney's individualized advice for you. By reading the "Response" to your question or comment, you agree that the opinion expressed is not intended to, nor does it, create any attorney-client relationship, nor does it constitute legal advice to any person reviewing such information, nor will it be considered an attorney-client privileged communication. If you do not agree, then stop right here, and do not read any further.

In Florida, security deposits are covered under Florida Statute 83.49 which states in part:

(1) Whenever money is deposited or advanced by a tenant on a rental

agreement as security for performance of the rental agreement or as advance

rent for other than the next immediate rental period, the landlord or the landlord's agent shall either:

(a) Hold the total amount of such money in a separate non-interest-bearing account in a Florida banking institution for the benefit of the tenant or tenants. The landlord shall not commingle such moneys with any other funds...

(b) Hold the total amount of such money in a separate interest-bearing

account in a Florida banking institution for the benefit of the tenant or tenants, in which case the tenant shall receive and collect interest in an amount of at least 75 percent of the annualized average interest rate payable on such account or interest at the rate of 5 percent per year, simple interest, whichever the landlord elects. The landlord shall not commingle such moneys with any other funds of the landlord... or

(c) Post a surety bond, executed by the landlord as principal and a

surety company authorized and licensed to do business in the state as surety, with the clerk of the circuit court... In addition to posting the surety bond, the landlord shall pay to the tenant interest at the rate of 5 percent per year, simple interest.

(Continued)

Re: Security Deposit

Part II

NOTE: This communication is not intended as and should not be interpreted as legal advice. Rather, it is intended solely as a general discussion of legal principles. You should not rely on or take action based on this communication without first presenting ALL relevant details to a competent attorney in your jurisdiction and then receiving the attorney's individualized advice for you. By reading the "Response" to your question or comment, you agree that the opinion expressed is not intended to, nor does it, create any attorney-client relationship, nor does it constitute legal advice to any person reviewing such information, nor will it be considered an attorney-client privileged communication. If you do not agree, then stop right here, and do not read any further.

83.49 (2) The landlord shall, within 30 days of receipt of advance rent or a security deposit, notify the tenant in writing of the manner in which the

landlord is holding the advance rent or security deposit and the rate of

interest, if any, which the tenant is to receive and the time of interest

payments to the tenant. Such written notice shall:

(a) Be given in person or by mail to the tenant.

(b) State the name and address of the depository where the advance rent

or security deposit is being held, whether the advance rent or security

deposit is being held in a separate account for the benefit of the tenant

or is commingled with other funds of the landlord, and, if commingled,

whether such funds are deposited in an interest-bearing account in a

Florida banking institution.

(c) Include a copy of the provisions of subsection (3).

Subsequent to providing such notice, if the landlord changes the manner

or location in which he or she is holding the advance rent or security

deposit, he or she shall notify the tenant within 30 days of the change

according to the provisions herein set forth. This subsection does not

apply to any landlord who rents fewer than five individual dwelling

units. Failure to provide this notice shall not be a defense to the

payment of rent when due.

Scott R. Jay, Esq.