Florida is as shiny a destination as ever! So it's no surprise that the state has become a hotspot for real estate investors.
If you're a landlord in Jacksonville, then you'll potentially have an avenue to build a successful rental business.
But before you start collecting rent, you've got to collect security deposits. Do you know the rules regarding a security deposit for your property in Jacksonville, FL?
Here's what you should know:
1. Charging Security Deposits
In Florida, there are no limits on how much you can charge for a security deposit. In most cases, it'll be the same cost as one month of rent. You can charge more, but you'll deter many potential tenants.
The deposit confirms that the tenant wishes to commit to staying at your property. It's best to request a security deposit at the time of signing the lease agreement.
2. Collecting Security Deposits
Within 30 days of receiving the deposit, you'll have to provide a written confirmation to your tenant. In this confirmation, you'll have to specify where the deposit is being kept.
For example, if you keep it in your bank, you'll have to provide the name and address of the bank. You can include this information in your lease agreement if you wish.
If the security deposit is in a bank account that accrues interest, you must inform the tenant.
You'll have to pay the interest to your tenant when the lease expires and at the end of the year. You can also choose to deduct the interest earnings from the rent. Make sure you avoid spending any portion of the deposit prematurely.
3. Returning Security Deposits
You'll have to return the security deposit at the end of the lease agreement. There are only a few circumstances in which you can keep part or the whole amount of the security deposit.
If you need to return the security deposit, you have between 15 and 30 days. If you need to keep any amount, you'll have to provide a written notice to your tenant.
In the written notice, you'll have to specify why you need to keep any part of the security deposit. Specify what the money will be used for-covering a missing rent payment, repair costs, etc.
To avoid any issues with the property, you may want to consider an inspection process before the lease ends. If there are any issues, it's best to charge the tenant in advance before the lease agreement ends.
To ensure that the rental process works smoothly, you may wish to hire a property manager to help you.
Rent Your Jacksonville Property
Now you know the rules for charging, collecting, and returning security deposits in Jacksonville, FL.
Florida law allows you to charge as much as you wish for security deposits. Provide the name of the bank where you'll hold the security deposit.
You must return the security deposit no later than 30 days after the lease agreement ends, if applicable. For the best experience, you need a property manager to help you.
Round Table Property Management is your best option in Jacksonville with over 40 years of experience. Be sure to give us a call!