Florida Security Deposit Interest Rules

Does Florida require interest on security deposits?

No, not at the state level. Florida does not require landlords to pay interest on residential security deposits as a default. Under Fla. Stat. § 83.49(1), landlords have three permitted methods of holding the deposit: (1) separate non-interest-bearing account, (2) separate interest-bearing account, or (3) surety bond. Only method (2) generates interest, and the lease terms govern whether the interest is paid to the tenant.

When Florida deposits do generate interest

If a Florida landlord chooses method (2) and holds the deposit in a separate interest-bearing account, the lease must specify how the interest is handled: paid to the tenant annually, applied to the next month's rent, or retained by the landlord. If the lease is silent, the default is that interest is paid to the tenant annually. Most Florida landlords use method (1) or (3) to avoid the administrative burden.

Local Florida ordinances

Florida state law (Fla. Stat. § 125.0103) preempts most local landlord-tenant ordinances. Major Florida cities (Miami, Tampa, Orlando, Jacksonville) generally do not require deposit interest. The state framework is uniform on this point.

Worked example: calculating deposit interest in Florida

You hold a $2,000 security deposit for a tenant who has lived in your Florida rental for 2 years. Florida does not require interest at the state level. If you chose method (1), a non-interest-bearing account, you owe $0.00 in interest at move-out.

If you instead chose method (2) and placed the deposit in an interest-bearing account earning 0.5% APY, the interest earned over 2 years would be approximately $20.00. Whether you keep or credit that interest depends on your lease terms. If the lease is silent, the default is annual payment to the tenant.

Florida requires that you disclose the holding method to the tenant in writing within 30 days of receiving the deposit. Failure to disclose forfeits your right to retain any portion of the deposit (Fla. Stat. § 83.49(2)).

What experienced landlords do differently

• Open a dedicated interest-bearing account before collecting your first deposit. Commingling deposits with operating funds is a common violation that can void your right to any deductions.
• Send an annual interest statement even if the amount is small ($5-15/year on a typical deposit). The cost of a stamp is trivial compared to the penalty for noncompliance.
• Track each deposit in its own line item. If you manage multiple units, a simple spreadsheet with deposit date, amount, account number, and interest paid keeps you audit-ready.

Related Florida compliance tools

Landlords in Florida deal with more than just deposit interest. These free calculators cover the other compliance deadlines you need to track:

• Florida Eviction Timeline Estimator — Estimate the full eviction process from notice to possession
• Florida Maximum Late Fee Calculator — Calculate the highest late fee your lease can enforce
• Florida Rent Increase Notice Calculator — Find the required notice period for your planned increase
• Florida Security Deposit Return Deadline — Know exactly when the deposit must be returned or itemized

See all property management tools for investment, financing, and operations calculators.

Frequently asked questions about Florida deposit interest

What if I forgot to put the deposit in a separate account?

Fix it immediately: open a compliant account and deposit the funds. Going forward, document the correction. In some states, failure to use a proper account voids your right to claim deductions from the deposit. The sooner you correct, the better your legal position if the issue comes up.

Do Florida cities require deposit interest?

Generally no. Florida state law preempts most local landlord-tenant ordinances, and major Florida cities (Miami, Tampa, Orlando, Jacksonville) do not require deposit interest. The framework is uniform statewide.

What are the three permitted Florida deposit-holding methods?

Under Fla. Stat. § 83.49(1): separate non-interest-bearing account at a Florida bank; separate interest-bearing account; or surety bond. The method must be disclosed to the tenant in writing within 30 days of receiving the deposit.

If a Florida landlord uses an interest-bearing account, who gets the interest?

Depends on the lease terms. The lease must specify: paid to the tenant annually, applied to the next month's rent, or retained by the landlord. If the lease is silent, the default is annual payment to the tenant. Most Florida landlords use the non-interest-bearing or surety bond option to avoid the administrative burden.

What happens if a Florida landlord does not disclose the deposit-holding method?

The landlord forfeits the right to retain any portion of the deposit. The 30-day disclosure requirement is strictly enforced under Fla. Stat. § 83.49(2).