If people are not on the same page, managing a rental security deposit can be stressful. To make things worse, about one in four renters don't get their security deposit back. That makes it even more important that tenants and landlords alike be very clear about how to manage security deposits.
Of course, it is also important to make sure that you are following the rules of your state. Florida has some rules about security deposits that do not apply to the security deposits in every state.
So what do you need to know to manage your rental security deposit in Florida? Read on to learn all about security deposits and what you can do with them!
Be as Clear as Possible With Your Tenants
Sometimes, following security deposit law is not enough. It is also essential that tenants know what the law is so that they do not try to resist you following it. The clearer you can be as soon as possible in the lease process, the better the chance is that your tenant will not contest legal proceedings with your security deposit.
Try to mention the security deposit policy multiple times before signing the lease. Make sure to also include a very clear section about the security deposit in the lease itself. When a tenant signs, make sure to ask them if they had any questions.
If necessary, it can even help to specifically mention the clauses about security deposits again. This might seem like overkill. However, taking a few extra minutes at the beginning for repetition can potentially save you many hours of headaches down the road.
Understand Security Deposit Interest Rules
Some states have explicit rules saying that security deposits collect interest. Others explicitly say that security deposits do not collect interest. In Florida, the law allows for both options.
That leaves it up to you to determine along with your tenants.
Security Deposits Cannot Be Used as Last Months Rent
Some tenants try to use their security deposit to pay the last month's rent. However, if they have done damage to the property, you will not have a security deposit to cover those damages. That is why this practice is not allowed.
Of course, it may not be worth going to court over. Therefore, you want to avoid the chance of a tenant trying to do this.
Emphasize to tenants very strongly from the very beginning that this is not allowed so that they do not try it. Professional property management services often know how to decrease the chance that this will happen.
Make Sure to Return Your Security Deposit on Time
In Florida, security deposit return timelines require that landlords return the security deposit within 15 days of the end of a lease. This applies whether the security deposit is kept in escrow accounts or anywhere else.
Understand What to Do With Your Rental Security Deposit
We hope that some of the ideas in this brief article about rental security deposits were helpful for you. It can take a little bit of time studying to learn how to manage all the intricacies of security deposits. However, that time is generally more than worth increasing your ability to navigate this aspect of the rental world.
To learn more about how to manage security deposits and other aspects of property management, feel free to reach out and get in touch with us here at any time!
