This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h0537a.CIV
DATE: 1/20/2022
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/HB 537 Fees in Lieu of Security Deposits
SPONSOR(S): Civil Justice & Property Rights Subcommittee, Mooney
TIED BILLS: IDEN./SIM. BILLS: CS/SB 884
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Civil Justice & Property Rights Subcommittee 13 Y, 3 N, As CS Brascomb Jones
2) Judiciary Committee
SUMMARY ANALYSIS
A lease is an estate interest in real property held under a rental agreement by which the owner (landlord) gives
another (tenant) the right to occupy or use land for a period of time. As part of a rental agreement, a landlord
may require a tenant to pay a security deposit, which is a dollar amount that is often intended to cover damage
to the premises beyond normal wear and tear. There is no limit to the security deposit amount a landlord may
charge, but generally speaking, most landlords charge the equivalent of one to two month’s rent.
For low-income families, a security deposit may pose a significant barrier to safe and affordable housing. A
security deposit equal to one or more month’s rent may be more than a low-income family can afford,
preventing the family from accessing housing, or keeping the family in substandard housing even when the
family could otherwise afford to move. Moreover, since Florida law permits landlords to keep security deposits
for 15 days after a tenant has vacated a unit, the delay may keep a low-income tenant from being able to
immediately move into new housing.
CS/HB 537 creates s. 83.491, F.S., authorizing a landlord to offer a tenant the option to pay a fee in lieu of the
security deposit. The bill does not require a landlord to offer a tenant this option; however, if a landlord offers
this option, the landlord must notify the tenant in writing of all of the following:
That the tenant has the option to pay a security deposit instead of the fee;
That the tenant may terminate the agreement and instead pay a security deposit in the amount that is
otherwise offered to new tenants for a substantially similar unit; and
Whether any additional charges apply.
The bill also:
Requires the landlord (or the landlord’s agent) and the tenant to sign a written agreement to collect a
fee in lieu of a security deposit;
Provides that a fee collected under the bill is not a security deposit as defined in Florida statute;
Provides that a fee in lieu of a security deposit may be:
o A recurring monthly fee, payable on the same date that the rent payment is due under the rental
agreement; or
o Payable upon a schedule that the landlord and tenant choose and as specified in the written
agreement; and
Applies to rental agreements entered into or renewed on or after July 1, 2022.
The bill does not appear to have any fiscal impact on state or local governments.
The bill provides an effective date of July 1, 2022.
STORAGE NAME: h0537a.CIV PAGE: 2
DATE: 1/20/2022
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Background
Security Deposits
A lease is an estate interest in real property held under a rental agreement by which the owner
(landlord) gives another (tenant) the right to occupy or use land for a period of time.
1
As part of a rental
agreement, a landlord may require a tenant to pay a security deposit, which is a dollar amount that is
often intended to cover damage to the premises beyond normal wear and tear.
2
Section 83.49, F.S.,
establishes landlord duties pertaining to security deposits for residential tenancies. There is no limit to
the security deposit amount a landlord may charge, but generally speaking, most landlords charge the
equivalent of one to two month’s rent.
3
In Florida, a landlord may hold a tenant’s deposit in three ways:
By posting a surety bond;
By storing the deposit in an account that bears interest;
4
or
By storing the deposit in a non-interest yielding account.
5
Florida law requires a landlord to notify a tenant in writing within 30 days after receiving the tenant’s
deposit. The notice must:
Be given to the tenant in person or by mail;
Either state:
o The name and address of the financial institution holding the tenant’s deposit; or
o That the landlord has posted a surety bond; and
State whether the tenant is entitled to interest on the deposit.
6
If the landlord changes the location or terms at which the deposit is being held, he or she must notify
the tenant in writing within 30 days.
7
Florida law requires a landlord to return a tenant’s deposit, and any interest accrued, within 15 days
after the tenant vacates the premises at the end of the lease term.
8
If the landlord intends to impose a
claim on part or all of the security deposit, the landlord must notify the tenant within 30 days. If the
landlord fails to notify the tenant within 30 days, the landlord forfeits his or her right to make any
deductions.
9
If the tenant does not object to the deductions, the landlord has 30 days after the initial written notice to
return the balance of the deposit to the tenant.
10
However, if the tenant objects, either party may file a
civil action to adjudicate the party’s right to the security deposit.
11
Security Deposits as a Barrier to Affordable Housing
For low-income families, security deposits may pose a significant barrier to safe and affordable
housing.
12
A security deposit equal to one or more month’s rent is often more than a low-income family
1
West’s Encyclopedia of American Law, Leasehold (2008), https://legaldictionary.thefreedictionary.com/leasehold (last visited Jan. 19,
2022). See s. 689.01, F.S.
2
S. 83.43, F.S.
3
Amy O’Connell, Florida Security Deposit Limits and Deadlines, Nolo Legal Encyclopedia (2020), https://www.nolo.com/legal-
encyclopedia/florida-security-deposits-36204.html (last visited Jan. 19, 2021).
4
The interest accrued should be paid to the tenant annually and at the end of the lease period. S. 83.49(1), F.S.
5
S. 83.49(1), F.S.
6
S. 83.49(2), F.S.
7
Id.
8
S. 83.49(3), F.S.
9
Id.
10
Id.
11
Id. STORAGE NAME: h0537a.CIV PAGE: 3
DATE: 1/20/2022
can afford, preventing the family from accessing housing, or keeping the family in substandard housing
even when the family could otherwise afford to move.
13
Moreover, since Florida law permits landlords
to keep security deposits for 15 days after a tenant has vacated a unit, the delay may keep a low-
income tenant from being able to immediately move into new housing.
14
Effect of Proposed Changes
CS/HB 537 creates s. 83.491, F.S., authorizing a landlord to offer a tenant the option to pay a fee in
lieu of the security deposit. The bill does not require a landlord to offer a tenant this option; however, if
a landlord offers this option, the landlord must notify the tenant in writing of all of the following:
That the tenant has the option to pay a security deposit instead of the fee;
That the tenant may, at any time, terminate the agreement to pay the fee in lieu of the security
deposit and instead pay a security deposit in the amount that is otherwise offered to new
tenants for a substantially similar dwelling unit on the date that the tenant terminates the
agreement; and
Whether any additional charges apply.
If a tenant decides to pay a fee in lieu of the security deposit, the bill requires the landlord (or the
landlord’s agent) and the tenant to sign a written agreement to collect. The bill further requires the
written agreement to specify:
The amount of the fee;
How the fee will be collected; and
When the fee will be collected.
The bill also provides disclosure language which the written agreement must include in a substantially
similar form.
A fee collected under the bill is not a security deposit as defined in s. 83.43(12), F.S. Under the bill, a
fee in lieu of a security deposit may be:
A recurring monthly fee, payable on the same date that the rent payment is due under the rental
agreement; or
Payable upon a schedule that the landlord and tenant choose and as specified in the written
agreement.
If a landlord offers a tenant the option to pay a fee in lieu of a security deposit, the bill requires a
landlord to offer all new tenants renting a dwelling unit on the same premises the option to pay a fee in
lieu of a security deposit, unless the landlord chooses to terminate the fee option for all tenants.
This bill applies to rental agreements entered into or renewed on or after July 1, 2022.
The bill provides an effective date of July 1, 2022.
B. SECTION DIRECTORY:
Section 1: Creates s. 83.491, F.S., relating to fee in lieu of security deposit.
Section 2: Provides an effective date of July 1, 2022.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
12
Kathryn A. Sabbeth, (Under)Enforcement of Poor Tenants’ Rights, 27 Geo. J. on Poverty L. & Pol'y 97 (2019),
https://www.law.georgetown.edu/poverty-journal/wp-content/uploads/sites/25/2020/01/05_Sabbeth_Article_v2.pdf (last visited Jan. 19,
2022).
13
Id.
14
Id. STORAGE NAME: h0537a.CIV PAGE: 4
DATE: 1/20/2022
1. Revenues:
None.
2. Expenditures:
None.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
None.
D. FISCAL COMMENTS:
None.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not applicable. This bill does not appear to affect county or municipal governments.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
Not applicable.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
On January 19, 2022, the Civil Justice & Property Rights Subcommittee adopted an amendment and
reported the bill favorably as a committee substitute. The amendment clarified that a landlord has the
exclusive discretion to offer a tenant the option to pay a fee in lieu of security deposit.
This analysis is drafted to the committee substitute as passed by the Civil Justice & Property Rights
Subcommittee.