A recent statute says that Florida landlords are now able to charge fees rather than deposits, but many landlords and tenants are resisting this change. If you're a Florida landlord who'd prefer to stick with what you already know, you're not alone. Many people prefer security deposits.
But just how much is a security deposit for an apartment? How much can you legally charge, and is there an upper or lower limit? Let's talk about it.
Read on to learn more.
Is There a Lower Limit for a Security Deposit?
There is actually no lower limit when it comes to a rental security deposit, though many tenants and landlords are unaware of this. As a matter of fact, landlords don't have to require a security deposit at all.
So why do they?
A security deposit protects both landlords and tenants from paying for damage out-of-pocket at the end of a tenancy. It also secures the unit for the tenant before they move in.
Some landlords choose to waive deposits for a variety of reasons. They may be dealing with a long-term vacancy they'd like to fill, for example. Some will also lower the security deposit for the same reason.
Is There an Upper Limit for a Security Deposit?
In the state of Florida, there is no "max" security deposit amount. This isn't true everywhere, so if you're trying to be a tenant or landlord in another state, you should look up local laws first.
This isn't to say that you can charge for whatever you'd like. While there are no price-related security deposit rules on paper, you have to remember that tenants will have their own personal limits. They won't enter into an unreasonable security deposit agreement.
How Much Is a Security Deposit for an Apartment?
So with no upper limit and no lower limit, how much is a security deposit?
There's no one true answer. In general, landlords will charge the equivalent of one month of rent for a security deposit. Some will charge up to two month's rent.
This is standard and what most tenants expect. As we mentioned, landlords can raise or lower the deposit if they see fit. For example, a landlord may charge a higher security deposit if they accept tenants who have poor credit or no rental history.
Because all security deposits are refundable, tenants can expect to get the money back at the end of the tenancy regardless of how much the landlord charges.
Security Deposits Are Simple
So how much is a security deposit for an apartment? At the end of the day, it depends.
Tenants expect deposits to cost the same as one month of rent, so landlords should stay around that amount if they want to avoid long-term vacancies.
Are you a landlord who's struggling with rental management in Southwest Florida? At Gulf Coast Property Management, we have a team of professional property managers who are ready to help you fill vacancies, manage tenants, and more.
Reach out to learn more about how our property managers can help you.
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