So you've just bought your first rental property and now you need to move some tenants in. What will you charge for a security deposit?
Security deposits are there to protect both landlords and tenants. They "secure" the unit for the tenant and they cover any potential damage so the landlord and tenant don't pay out-of-pocket.
But what should you know before charging your first tenant a deposit? Let's talk about it. Read on to learn all about security deposits in the Sunshine State.
Security Deposit Requirements
According to security deposit rules in Dunedin, the deposit cannot exceed the equivalent of two months' rent. That means if rent is $1,000 per month, the deposit can not be more than $2,000. There is no required minimum, however, and many landlords will lower security deposits during times of long vacancies to attract new tenants.
Remember, high deposits may deter high-quality tenants.
Landlords must keep deposits in a separate account and not comingle funds. If the account is interest-bearing, the landlord should pay interest annually or credit that interest towards rent.
Returning Security Deposits
When the lease is up and tenants choose not to renew, landlords must return the deposit within 15 days, minus any deductions for unpaid rent, damages beyond normal wear and tear, or cleaning costs. However, landlords must provide a detailed list of deductions, along with supporting documentation.
Landlords must be able to prove that any damage is beyond normal wear and tear or the tenant will get their deposit back. It is in the best interest of the landlord to be totally certain before keeping the deposit to avoid any legal trouble.
Best Practices for Landlords
To avoid disputes, it's best to document everything, including the property's condition, with photos and videos. It's one of many Dunedin landlord responsibilities that can make a big difference.
Conducting joint walk-throughs with tenants at move-in and move-out is also a good idea. This way, everyone is on the same page.
Clear communication is key, so make sure the lease or rental agreement clearly outlines the terms of the deposit. Answer any questions tenants may have as soon as possible.
Penalties for Non-Compliance
Failure to comply with Florida's security deposit rules and regulations can result in penalties. Landlords will have to forfeit the deposit, they may be responsible for any lawyer fees from the tenant, and they may owe additional damages, including triple the deposit amount.
By understanding and following the regulations, landlords can protect their rights and maintain a positive relationship with tenants and a good reputation.
Security Deposits Are Simple
Remember, security deposits are refundable, and landlords must handle them the right way to avoid legal issues. By following simple guidelines, Florida landlords can ensure a smooth and successful rental experience for everyone involved.
Are you looking for more landlord tips for Dunedin landlords? What about property management in Dunedin, FL? At PMI Palms, we offer full-service property management. From tenant placement to evictions, we can help with it all.
