Under Florida Statute 83.491, landlords may offer tenants the option to pay a nonrefundable fee instead of a security deposit. The tenant may pay the fee in monthly installments in addition to rent, or according to a payment schedule outlined in the lease.
The nonrefundable fee is available to help tenants secure the rental home when they cannot or do not wish to pay the required security deposit. It does not limit or change your obligation to pay rent, fees, or the cost of repairing damage to the unit beyond normal wear and tear.
The fee agreement must be in writing. The tenant may cancel the fee agreement at any time, and instead pay the security deposit in full. The security deposit would be the amount specified in the lease or what is normal for a similar rental home at the time the agreement is canceled.
A landlord is not required to offer the option of a nonrefundable fee instead of the full, upfront, security deposit. However, if it is offered, landlords may not deny a rental application based on someone’s decision to pay the fee. Additionally, landlords must offer the fee option to either all new applicants or no one at all.
What Are Your Rights?
- the amount of the fee,
- how and when the tenant must pay the fee,
- if the tenant misses a payment, the process and timeframe for which the tenant must instead pay the security deposit,
- language indicating the tenant has the right to cancel the agreement at any time, and
- a basic disclosure of the tenant’s rights and obligations.
The fee agreement must be in writing, signed by the tenant and the landlord, and include the following details:
After the end of your tenancy, your landlord must still comply with the notice requirements outlined in Florida Statute 83.49(3).
A landlord may submit a claim to an insurer to recover losses from unpaid rent, fees, or damages. However, a landlord cannot accept payment from both the tenant and an insurer for the same losses.
What Do You Need to Do?
- contact you within 1 year after your lease ends, and
- provide documentation for losses provided by your landlord, including a copy of the settlement statement.
If an insurer seeks reimbursement from you for amounts paid to your landlord, the insurer must do the following:
If you dispute the insurer’s claim for reimbursement, you may use any defenses against the insurer you would have had against your landlord
What to Consider Before Taking Action?
The option to pay a fee instead of a security deposit only applies to leases or renewals signed on or after July 1, 2023.
No. There is no limit on the amount of the fee your landlord may charge. The landlord may charge a fee as low or as high as they wish.