One of the joys of hiring a qualified Palm Beach property management company is knowing its members are current with a wide range of Florida laws governing property transactions, saving investment owners the worry of being accidentally out of compliance if they try to manage the property themselves. Property management companies in West Palm Beach, FL, are schooled in the ever-changing legal landscape and are thus able to protect an owner’s interests.
Here are a few things you might not know about laws governing a tenant’s security deposit in the state of Florida:
- While a security deposit equal to no more than one-and-a-half to two months’ rent is deemed adequate to cover damage, eviction, and vacancy costs, and still keep you competitive, in Florida there is legal limit on the amount you can charge.
- Florida landlords may not commingle security deposit monies with other funds, nor may they use any of it before it is actually due to them.
- In the event a landlord places a security deposit in an interest-bearing Florida bank account, the landlord is required to pay the tenant the interest accumulated on the account annually, as well as at the end of the lease term. Alternatively, the interest can be credited back to the tenant in the form of rent. Again, the landlord is prevented from using or commingling the funds, and should the tenant break his lease, interest is deemed no longer due him.
- Within thirty days of receiving the security deposit, landlords are required by law to notify tenants in writing of the name and address of the bank or institution where the deposit is being held; whether the tenant’s funds are being kept separate or are joined with other tenant funds for the benefit of the tenant; and the interest rate, if any. Any changes to this information are to be shared with the tenant in writing within thirty days.