What Does Florida Law Actually Require for Security Deposits? A Kissimmee and Orlando Landlord's Checklist

One of the most common questions we hear from new landlords in Orlando and Kissimmee is simple: how much can I charge for a security deposit, and what am I actually required to do with it? Florida law doesn't set a maximum deposit amount, which surprises many owners moving from stricter states. Instead, Section 83.49 of the Florida Statutes focuses on how a landlord must handle, disclose, and eventually return whatever deposit is collected.

Once you receive a tenant's deposit, you generally have three options for holding it. You can place the funds in a non-interest-bearing account for the tenant's benefit, put them in an interest-bearing account and pay the tenant a portion of the interest earned, or post a surety bond with the county and pay the tenant simple interest each year. Whichever method you choose, you're required to notify the tenant in writing within 30 days of receipt, telling them where the money is held and whether interest applies. Skipping this notice doesn't void the deposit requirement, but it does create unnecessary legal exposure if a dispute ever lands in small claims court.

The bigger risk area for most owners is what happens at move-out. When a tenancy ends, a landlord who does not intend to make any deduction must return the full deposit, plus any interest owed, within 15 days. If you do intend to keep part or all of the deposit for damage or unpaid rent, the law gives you 30 days to mail the tenant a written notice of intent to impose a claim, sent to their last known address. The tenant then has 15 days to object in writing. If a landlord misses that 30-day window, current law states that the landlord forfeits the right to impose a claim on the deposit and may not seek damages exceeding what's in the account. That single missed deadline is one of the most frequent — and most avoidable — mistakes landlords make.

For Central Florida owners specifically, the practical takeaways are straightforward: document the unit's condition at move-in and move-out with photos, keep receipts for any repairs you deduct, and put a reminder on your calendar the day a tenant vacates so the 30-day clock doesn't sneak up on you. Given how frequently deposit disputes end up in small claims court in Orange and Osceola counties, following the statute's notice and timing rules to the letter is far cheaper than defending a claim after the fact.

A professional management company can help by tracking these deadlines automatically and keeping deposit funds properly separated and documented, reducing the odds of a costly oversight. This article is general information based on current Florida statute language, not legal advice, and owners with a specific dispute should consult a licensed Florida attorney.