You need to know – What must a landlord do when receiving a security deposit or advance rent?

YouNeedToKnowWeb500When a landlord receives a security deposit or advance rent, he must notify the tenant in writing within 30 days of the manner in which the funds are being held

The landlord has three options:

  • hold the funds in a non-interest bearing account at a Florida bank
  • hold the funds in an interest-bearing account for the tenant’s benefit at a Florida bank, with the tenant receiving 75% of the interest earned or 5% simple interest

In both these cases the funds cannot be commingled with any other funds of the landlord

  • post a surety bond for the total amount of the security deposits and advance rents or $50,000 (whichever is less) and pay the tenant 5% per year simple interest

In this case the funds can be commingled with his other funds and there is no need to deposit the funds in a special account