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How to Handle Security Deposits Legally in Crestview, Florida
Handling security deposits might seem simple, but one mistake can cost Florida landlords thousands in penalties. From how deposits are stored to the timing of return, there are specific legal rules under Florida law that must be followed.
At Kuntz Property Group, we’ve helped Crestview landlords avoid legal pitfalls by managing security deposits correctly and compliantly. In this blog, we’ll walk you through everything landlords need to know about handling security deposits legally in Crestview—from collection to return—based on Florida’s Residential Landlord and Tenant Act.
Why Security Deposits Matter
Security deposits protect you from:
Unpaid rent
Property damage beyond normal wear and tear
Lease violations
Unapproved tenant alterations
But they also come with legal responsibility. Mishandling a deposit can result in court action, double damages, and loss of trust with tenants.
💡Need more legal basics? Check out: Florida Landlord-Tenant Law Basics Every Crestview Landlord Should Know
1. How Much Can You Collect?
Florida law doesn’t cap how much landlords can charge for a security deposit. However, in Crestview’s competitive market, most landlords charge:
One month’s rent for long-term rentals
Pet deposits
📌 Tip: Make sure the amount is clearly stated in the lease agreement, along with the conditions for return.
2. How Security Deposits Must Be Held in Florida
Once you receive a security deposit, Florida law requires you to store it in one of three legal ways:
Option 1: Non-Interest-Bearing Florida Bank Account
Deposit must be held in a separate account
Cannot be mixed with personal or business funds
You do not owe the tenant interest
Option 2: Interest-Bearing Florida Bank Account
Deposit held separately and accrues interest
You must pay interest to the tenant annually and upon return
🔗 Florida Statute 83.49 – Security Deposits
3. Security Deposit Notification Requirements
Florida requires landlords to send a written notice to the tenant within 30 days of receiving the deposit, stating:
Where the deposit is held (bank name and address)
Whether it’s interest-bearing or not
The interest rate (if applicable)
📝 This notification must be sent by certified mail to the tenant’s address as written in the lease. If you don’t follow this step, you lose your right to make any claim on the deposit.
📌 Best practice: Include a pre-written notice with the lease to simplify compliance.
4. Using Deposits for Damages
At the end of the lease, you may use all or part of the security deposit to cover:
Unpaid rent or fees
Excessive damage beyond normal wear and tear
Cleaning costs if the property is left unreasonably dirty
However, you must itemize all deductions and notify the tenant within 30 days of move-out if you intend to keep any portion.
5. Returning the Deposit: Timeline & Rules
Here’s where many landlords go wrong. Florida law has strict timelines:
If you are keeping part of the deposit:
You must send written notice by certified mail to the tenant within 30 days of move-out.
The tenant has 15 days to object in writing.
If you’re returning the full deposit:
You must return the full amount within 15 days of lease end.
Failure to follow these rules could result in forfeiture of the deposit claim, plus damages.
6. What Counts as Normal Wear and Tear?
Many disputes arise over what’s considered “damage.” Here’s a helpful distinction:
✅ Normal Wear and Tear:
Minor wall scuffs or nail holes
Worn carpet from foot traffic
Faded paint
Loose doorknobs or cabinet hinges
❌ Tenant Damage:
Large holes in walls
Broken appliances or doors
Burned or stained carpet
Unauthorized paint or remodeling
📸 Tip: Always take move-in and move-out photos to document the property’s condition.
🔍 Want better documentation? Read: Regular Property Inspections: Why They Matter & How to Do Them Right
7. How Kuntz Property Group Handles Security Deposits
As a licensed Crestview property management company, Kuntz Property Group ensures that all security deposit practices are:
✅ 100% compliant with Florida law
✅ Held in separate trust accounts
✅ Documented in detail
✅ Handled with transparency
We manage everything from initial collection and notice to final inspection and refund, giving landlords total peace of mind.
8. Common Security Deposit Mistakes to Avoid
Even experienced landlords can slip up. Here are a few common (and costly) errors:
❌ Failing to send deposit notice within 30 days
❌ Commingling deposits with other funds
❌ Charging for normal wear and tear
❌ Skipping move-in condition documentation
❌ Not returning the deposit on time
9. What Happens If a Tenant Disputes the Deduction?
If a tenant objects in writing to your deduction notice, and no resolution is reached, the matter can escalate to small claims court.
Best practices:
Keep clear documentation, including lease agreements, inspection reports, photos, and repair invoices
Avoid emotional or retaliatory decisions
Be professional and fair—courts favor landlords who follow the law precisely
10. Let Us Take the Guesswork Out of Security Deposits
Security deposits are more than just extra cash—they’re a legal responsibility. At Kuntz Property Group, we’ve helped Crestview landlords protect their properties while staying compliant with every regulation.
From collecting and storing deposits legally to resolving end-of-lease disputes, we ensure that every detail is handled right—so you don’t have to stress about getting it wrong.
Final Thoughts: Do It Right, or Don’t Do It Alone
Security deposit laws in Florida are clear—but they can be easy to overlook without a system. Protect your property, your tenant relationship, and your reputation by following the law to the letter or partnering with a professional.
At Kuntz Property Group, we’re proud to help Crestview landlords stay compliant, reduce legal risk, and manage their investments with confidence. This blog is not considered legal advice but for educational purposes, we highly recommend consulting with a industry specific Attorney before handling security deposits, the above referenced laws can also be subject to change.
📞 Ready for stress-free security deposit management? Schedule a free consultation with us today!
