Being a landlord in Orlando, FL, can be an excellent-paying job. According to Ziprecruiter.com, landlords make an annual average of $74,000, and the top 4 percent earn over $125 grand!
However, being an Orlando landlord also comes with many legal responsibilities, some of which involve your tenants' security deposits.
Join our team at Verandah Properties as we discuss Orlando security deposit laws and Florida rental regulations you must know as a landlord.
What Is the Legal Maximum Security Deposit in Orlando, FL?
There's none. In the Sunshine State, landlords can decide how much security deposit to charge their tenants.
However, that doesn't mean you should just charge an amount equivalent to multiple months of rent. If you do, it'll only put off prospective tenants, leaving your property vacant for long periods. Even if you find renters, exorbitant security deposit requirements can make them unwilling to renew their lease.
So, as a general rule of thumb, consider charging a security deposit equivalent only to one or two months' rent. It's an excellent way to attract tenants since it's part of a competitive rental pricing strategy.
How Long Can the Landlord Hold the Security Deposit in Orlando, FL?
Remember: Security deposits aren't part of your rental income or profits. They're more of a "collateral" if your tenants damage your property or leave it in a condition beyond normal wear and tear. You'll use the deposit to cover the costs of fixing your rental or returning it to its original condition.
For those reasons, you must return security deposits you don't have to use within 15 days of the tenant leaving your property after terminating the lease, per Florida Statutes Title VI Chapter 83 Section 49. If you plan to or must impose a claim on the deposit, you must issue a written notice to the tenant within 30 days of them leaving. The notice must tell them of your intention to use the security deposit and why you must use part or all of it.
What Else Must Orlando Landlords Know About Security Deposits?
Florida Statutes Chapter 83 Section 49 also requires landlords to put their tenants' security deposits in an interest-bearing account in a Florida bank. They must then give the tenant either at least:
- 75% of the annualized average interest rate
- 5% annual simple interest
The interest payment requirement applies to the entire landlord deposit holding period. To ensure you adhere to tenant rights in Orlando, you must send the correct interest payment with their returned security deposit (or part of it if you'll make deductions).
Need Expert Help Navigating Tenant Security Deposits in Orlando, FL?
Lucrative as being an Orlando landlord may be, it's rife with legal complexities. Landlords, especially new and accidental ones, may have trouble navigating such laws.
Fortunately, Verandah Properties is here to help. Founded in 2003 by proud Orlando native Pamela Syvertson, our full-service property management company can assist you throughout the lease process, from marketing to establishing security deposits, collecting rent, and maintaining your properties. Pamela also brings the company decades of real estate and property management expertise.
If you're ready to transform your Orlando properties into income generators without the headaches associated with being a landlord, speak with us today. We'll happily answer all your questions and provide a free rental price analysis!