Are you about to become a landlord in Fort Walton Beach, FL? Almost every property owner in the state requests that tenants hand over a security deposit before giving them a set of keys.
Security deposits are what they sound like. It's an amount of money that a tenant gives their landlord to fix damages once they move out. Most landlords request the equivalent of two months' rent as a security deposit.
There are a variety of security deposit rules and regulations you'll need to familiarize yourself with. Continue reading to learn what they are.
1. Deposit Limits
When it comes to apartments for rent in Fort Walton Beach, FL, there is no security deposit limit. Meaning, you can charge almost whatever you want. However, if you set the price too high, potential tenants will back out before signing a lease.
As stated above, most landlords ask that tenants provide the equivalent of one or two months' rent as a security deposit. If the renter has pets, you can request an additional security deposit in the form of a pet deposit. This will cover any damages caused by a tenant's furry friends.
That being said, if the tenant has a service animal, you won't be allowed to charge them a pet deposit.
2. Storing Your Tenant's Deposits
Once a tenant hands you their security deposit, you'll need to secure it in a safe location. If you put it in an interest-bearing account, you'll have to credit your tenants 5% of the interest that's generated every year. You'll be able to use this account for security deposits and security deposits only.
A non-interest-bearing account can be used for security deposits and other financial-related matters pertaining to you as the landlord.
The last option you have is to post a security bond with a surety company. Every year, you'll need to pay 5% interest toward the bond.
3. Written Notice Requirement
After you receive your tenant's security deposit, you'll need to give them a written notice within 30 days to let them know.
The letter should contain the name of the facility holding the deposit. It should also tell them if their deposit is being kept separate from the landlord's other funds or combined with them. If their security deposit is generating interest, that's something they'll need to know as well.
If you get a little lost while writing your written notice letter, a Fort Walton Beach property manager can help you. Property managers can also take the security deposit and put it in a secure location so you don't have to.
Everything You Need to Know About Security Deposits in Fort Walton Beach, FL
As a landlord in Fort Walton Beach, FL, you have a lot of responsibilities on your plate. One of them includes collecting security deposits. While there's no limit to the amount you can charge, it's best not to go over the two-month rent mark.
You'll also need to send your tenant a written notice once you receive their security deposit and find a bank to store it in.
Let All American Realty and Investment Group help. Unlike with other property management companies, you'll always have access to our owner for guidance. Contact us today to learn more.
