Wondering how to hold security deposit money? Florida gives you three specific options.
1- Hold the money in separate non-interest bearing account in Florida bank. This is the most common, easiest way to hold security deposit money.
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.
Remember, if you move the security deposit at any time during the tenancy, you must notify the tenant of the change. And if the tenant is owed any interest, make sure to calculate and include it when returning the rest of the tenant's security after move out. Best practice is to add a paragraph to the security deposit refund form that specifically explains the interest computation (or no interest, if none), separately from listing any claims and deductions, late fees, etc.