Have you wondered if you're handling each security deposit well?
If you're a landlord in Fort Lauderdale, Florida, there are some important rules you need to know about these deposits. The rules are designed to protect both you and your tenants.
What should landlords keep in mind? Read on to go through what you need to understand about security deposits in simple terms.
Are Security Deposits Refundable?
Yes, security deposits are refundable if the tenant leaves the rental property in good condition. This means the property should be clean, and there should be no major damage beyond normal wear and tear. If the tenant meets these requirements, you should return their security deposit.
Florida Security Deposit Law
In Florida, landlords must follow specific rules about security deposits. One important rule is that landlords need to keep the deposit in a separate account. This account must be in a Florida bank and it must be either a regular bank account or an interest-bearing bank account.
If you keep the deposit in an interest-bearing bank account, you have to pay the tenant the interest earned on the deposit when you return it. If you use a regular bank account, no interest is needed.
Security Deposit Deductions List
As a landlord, you are allowed to deduct certain costs from the security deposit. These costs may include:
- Repairing things the tenant did beyond normal maintenance
- Cleaning the property if the tenant did not leave it in clean condition
- Unpaid rent or any other expenses the tenant owes
It's important to be fair when making deductions. Provide a list of the deductions to the tenant along with the remaining balance of their deposit. You must do this within 30 days of the tenant moving out.
Last Month's Rent
In Florida, it is common for landlords to ask for the last month's rent upfront along with the security deposit. This helps ensure that rent is paid even if the tenant leaves early. If you collect last month's rent, you should keep it separate from the security deposit.
When the tenant moves out, you will not return the last month's rent because it was already collected as payment for the last month the tenant stayed in the property.
Communicate with Your Tenant
Clear communication with your tenant is important. Make sure you explain how security deposits work when they move in. This includes telling them how you will keep the deposit, whether it will be in an interest-bearing bank account, and what could lead to deductions.
Also, keep your tenant informed if you plan to deduct anything from their security deposit. Provide them with an itemized list and a clear explanation of any costs. This way, there are no surprises, and both you and your tenant understand the situation.
Do You Need Help Managing Security Deposits?
Be fair with security deposit deductions and communicate openly with your tenants. By doing this, you can handle security deposits in a way that is beneficial for both you and your tenants.
Has running your Fort Lauderdale rental properties been tricky? Contact Metro Residential to learn about our property management solutions. We've been helping investors since 1996.