How Does A Florida Landlord Need To Keep a Tenant's Security Deposit?  

The state of Florida allows you a few different options when holding a tenant’s security deposit. You can do one of three things:

1.  Hold the deposit in a Non-Interest Bearing Florida Bank Account- The landlord can hold the tenant’s security deposit in a non-interest bearing bank account in the state of Florida. The landlord must not commingle the money with any other funds.  

2. Hold the deposit in an Interest Bearing Florida Bank Account  This option gets kind of complicated.  The landlord is required to pay the tenant the interest accumulated on the account annually and at the end of the lease term. (The landlord can elect to pay the tenant at least 75% of the annualized interest or simple interest of 5%). The interest can be paid directly to the tenant or the interest can be credited back to the tenant in the form of rent. The landlord must not commingle the money with any other funds.  If the tenant breaks their lease, no interest is due to the tenant.

3. Post a Surety Bond The landlord can post a surety bond for the amount of the security deposit, or $50,000, whichever is less. The surety bond must be posted in the same county that  the rental property is located. A surety bond is meant to protect the obligee if the principal does not fulfill their obligations. In this case, the tenant is the obligee and the landlord is the principal. The landlord must also pay the tenant five percent interest annually on the bond.