Security Deposits

The Law:
Florida State Statutes in full
Landlord Tenant Act, Florida Statute 83.49


Early Terminations: Tenant Moves Out Early
If the tenant abandons the property without notice, and without cause... they may be liable for damages such as the amount owed for the remainder of the lease term, etc. It is important to make sure your lease addresses this topic specifically with a definitive remedy... otherwise, it will be difficult to collect from tenants any money you believe they may owe you.

Landlords, be careful. Make SURE you are maintaining the property according to the law. Tenants have every right to abandon the property if you are not complying with your maintenance obligations.

Basic three options for landlords:

- retake property - retake property, relet property and hold tenant liable for the difference in rent - do nothing and sue the tenants for the lost rent

Sure, you're angry the tenants abandoned the property without notice. Especially if they left the property dirty and/or damaged. Landlords should weigh all options logically. Look at the lease and remaining lease term closely. Look at the security being held. And get estimates for any repairs that need to be done to bring the property back to "move-in" condition. Are these lease terms written clearly, and win-able in court? And if so, is the amount owed to you above and beyond what you are holding in security enough to justify the(currently in Miami-Dade County) $411 fee to file in court plus any potential legal fees?

LESSON: Make sure to address "Early Termination" in your lease, as a very specific lease term. And include a monetary remedy in the event it happens. The norm tends to be "two month's rent" owed for an early termination... which covers one month of vacancy (the time it can take to find a new tenant) and commission you would pay to your real estate agent to find your new tenants. Or, you can very specifically state that early termination means the landlord has the right to collect the remaining amount of money owed for the lease term in court. Make sure landlord and tenant read, agree on which or whatever terms, and initial or sign that term within the lease.


Early Termination: Getting Tenants Out Early
Coming


Amount: How much to require and why?
coming


Holding Security Deposits
Overview:

The landlord has certain obligations to the tenant for any security deposits given or advanced by tenants. There are three basic options available to the landlord:

1- Hold the money in separate non-interest bearing account in Florida bank

2- Hold money in separate interest bearing account in Florida bank, and share interest earned with the tenant. Then pay tenant at least 75% of the annualized interest rate OR simple interest rate of 5% per year, whichever landlord chooses.

3- Post a Surety Bond with the Clerk of Circuit Court in the county where the property is located, for the amount of security and/or advancements. Landlord is then required to pay tenant simple interest of 5% per year.


Interest on Security Deposits
coming


Claims on Security
coming