CS/CS/HB 537, Engrossed 1 2022
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
A bill to be entitled 1
An act relating to fees in lieu of security deposits; 2
creating s. 83.491, F.S.; authorizing a landlord to 3
offer a tenant the option to pay a fee in lieu of a 4
security deposit; requiring the landlord to notify the 5
tenant of certain unpaid fees and costs within a 6
specified time after the conclusion of the tenancy; 7
prohibiting the landlord from filing an insurance 8
claim within a specified period of time; providing 9
requirements for the landlord and insurer if an 10
insurance claim to recover certain losses is filed; 11
prohibiting the landlord from accepting certain 12
payments; requiring the landlord to provide certain 13
written notice to the tenant; requiring a written 14
agreement signed by the landlord, or the landlord's 15
agent, and the tenant if the tenant decides to pay a 16
fee in lieu of the security deposit; prohibiting the 17
written agreement from contradicting certain laws; 18
requiring that certain information be in the written 19
agreement; requiring a specified disclosure in the 20
written agreement; providing options for paying the 21
fee; specifying that certain fees, insurance products, 22
and surety bonds are not security deposits; specifying 23
that landlords have exclusive discretion a s to whether 24
to offer tenants the option to pay a fee in lieu of a 25
CS/CS/HB 537, Engrossed 1 2022
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
security deposit; prohibiting a landlord from 26
approving or denying an application for occupancy 27
based on a prospective tenant's choice to pay a fee in 28
lieu of a security deposit; requiring that landlords 29
who offer a tenant the fee option offer such option to 30
all new tenants renting a dwelling unit on the same 31
premises; providing an exception; providing 32
construction; providing applicability; providing an 33
effective date. 34
35
Be It Enacted by the Legislature of the State of Florida: 36
37
Section 1. Section 83.491, Florida Statutes, is created to 38
read: 39
83.491 Fee in lieu of security deposit. — 40
(1) If a rental agreement requires a security deposit, a 41
landlord may offer a tenant the option to p ay a fee in lieu of 42
the security deposit. 43
(2)(a) If a tenant agrees to pay a fee in lieu of a 44
security deposit, the landlord must notify the tenant within 30 45
days after the conclusion of the tenancy of any costs or fees 46
that are due resulting from unpaid rent, fees, or other 47
obligations under the rental agreement, including, but not 48
limited to, costs required for repairing damage to the premises 49
beyond normal wear and tear. 50
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
(b) A landlord may not submit a claim with an insurer to 51
recover the landlord's losses associated with unpaid rent, fees, 52
or other obligations under the rental agreement, including, but 53
not limited to, costs required for repairing damage to the 54
premises beyond normal wear and tear until at least 15 days 55
after providing the tenant with the required notice under 56
paragraph (a). 57
1. The landlord must include an itemized list of any 58
unpaid amounts and the dates such amounts were due, 59
documentation supporting any itemized damages and costs of 60
repairs, and a copy of any written objection or report of any 61
communication of objection by the tenant when he or she submits 62
a claim to an insurer. 63
2. If an insurer pays a claim that was submitted under 64
this subsection to a landlord and the insurer has subrogation 65
rights, the insurer may, within 1 ye ar after the tenancy that 66
was the subject of the claim ends, seek reimbursement from the 67
tenant for the amounts that were paid to the landlord. If the 68
insurer seeks reimbursement from the tenant, the following 69
apply: 70
a. The insurer must provide the tenan t with all 71
documentation for losses that the landlord provided to the 72
insurer in support of the landlord's claim and a copy of the 73
settlement statement documenting the insurer's payment of the 74
landlord's claim. 75
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
b. The tenant has any defenses against the insurer which 76
the insurer would otherwise have against the landlord. 77
3. A landlord may not accept payment from both a tenant 78
and an insurer for amounts associated with the same rent, fees, 79
or damages. 80
(3) If a landlord offers a tenant the option to pay a fee 81
in lieu of a security deposit, the landlord must notify the 82
tenant in writing of all of the following: 83
(a) That the tenant has the option to pay a security 84
deposit instead of the fee. 85
(b) That the tenant may, at any time, terminate the 86
agreement to pay the fee in lieu of the security deposit and 87
instead pay a security deposit in the amount that is otherwise 88
offered to new tenants for a substantially similar dwelling unit 89
on the date that the tenant terminates the agreement. 90
(c) Whether any additional charges apply for the options 91
provided in paragraphs (a) and (b). 92
(d) The amount of the payments required for each option 93
the landlord offers. 94
(e) That the fee is nonrefundable, if applicable. 95
(f) That the fee is only for securing occ upancy without 96
paying a required security deposit. 97
(g) That the fee payment does not limit or change the 98
tenant's obligation to pay rent and fees, if any, under the 99
rental agreement or limit or change the tenant's obligation to 100
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
pay the costs of repairing damage to the premises beyond normal 101
wear and tear. 102
(h) That if the landlord uses any portion of the fee to 103
purchase insurance, the tenant is not insured and is not a 104
beneficiary of the landlord's insurance coverage, and that the 105
insurance does not limi t or change the tenant's obligations to 106
pay rent and fees, if any, under the rental agreement or change 107
the tenant's obligation to pay the costs of repairing damage to 108
the premises beyond normal wear and tear. 109
(4)(a) If a tenant decides to pay a fee in l ieu of a 110
security deposit, a written agreement to collect the fee must be 111
signed by the landlord, or the landlord's agent, and the tenant. 112
The written agreement may not contain any clause that 113
contradicts s. 83.45 or s. 83.47. The written agreement must, a t 114
a minimum, specify all of the following: 115
1. The amount of the fee. 116
2. How and when the fee is to be collected. 117
3. The process and timeframe in which a tenant must pay 118
the security deposit specified in the rental agreement if the 119
tenant defaults on the fee. 120
4. That the written agreement may be terminated at any 121
time as long as the tenant pays the amount of the security 122
deposit specified in the rental agreement. 123
5. If the tenant pays the amount of the security deposit 124
specified in the rental agree ment, then the tenant's default on 125
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
paying the fee or termination of the written agreement may not 126
adversely impact the tenant's credit report. 127
(b) The written agreement specified under paragraph (a) 128
must also include a disclosure in substantially the fol lowing 129
form: 130
131
FEE IN LIEU OF SECURITY DEPOSIT 132
THIS AGREEMENT HAS BEEN ENTERED INTO VOLUNTARILY BY BOTH PARTIES 133
AND THE TENANT AGREES TO PAY THE LANDLORD A FEE IN LIEU OF A 134
SECURITY DEPOSIT AS AUTHORIZED UNDER SECTION 83.491, FLORIDA 135
STATUTES. THIS FEE IS NOT A SECURITY DEPOSIT AND PAYMENT OF THE 136
FEE DOES NOT ABSOLVE THE TENANT OF ANY OBLIGATIONS UNDER THE 137
RENTAL AGREEMENT, INCLUDING THE OBLIGATION TO PAY RENT AS IT 138
BECOMES DUE AND ANY COSTS AND DAMAGES BEYOND NORMAL WEAR AND 139
TEAR THAT THE TENANT OR HIS OR HER GUESTS MAY CAUSE. IF THE 140
LANDLORD USES ANY PORTION OF THE TENANT'S FEE TO PURCHASE 141
INSURANCE, THE TENANT IS NOT INSURED AND IS NOT A BENEFICIARY OF 142
SUCH COVERAGE. SUCH INSURANCE DOES NOT LIMIT OR CHANGE THE 143
TENANT'S OBLIGATION TO PAY RENT AND FEES, IF ANY, UNDER THE 144
RENTAL AGREEMENT OR TO PAY THE COSTS AND DAMAGES BEYOND NORMAL 145
WEAR AND TEAR THAT THE TENANT OR HIS OR HER GUESTS MAY CAUSE. 146
THE TENANT MAY TERMINATE THIS AGREEMENT AT ANY TIME AND STOP 147
PAYING THE FEE AND INSTEAD PAY A SECURITY DEPOSIT AS PR OVIDED IN 148
SECTION 83.491, FLORIDA STATUTES. 149
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
THIS DISCLOSURE IS BASIC. PLEASE REFER TO PART II OF CHAPTER 83, 151
FLORIDA STATUTES, TO DETERMINE YOUR LEGAL RIGHTS AND 152
OBLIGATIONS. 153
154
(5) A fee in lieu of a security deposit may be: 155
(a) A recurring monthly fee , payable on the same date that 156
the rent payment is due under the rental agreement; or 157
(b) Payable upon a schedule that the landlord and tenant 158
choose and as specified in the written agreement. 159
(6) A fee collected under this section, or an insurance 160
product or a surety bond accepted, by a landlord in lieu of a 161
security deposit is not a security deposit as defined in s. 162
83.43(12). 163
(7) A landlord has exclusive discretion as to whether to 164
offer tenants the option to pay a fee in lieu of a security 165
deposit and is not required to offer such fee option to tenants. 166
However, if a landlord offers a tenant an option to pay a fee in 167
lieu of a security deposit, the landlord may not use a 168
prospective tenant's choice to pay, or offer to pay, a fee in 169
lieu of a security deposit as criteria in the determination to 170
approve or deny an application for occupancy, and the landlord 171
must also offer all new tenants renting a dwelling unit on the 172
same premises the option to pay a fee in lieu of a security 173
deposit, unless the landlord chooses to prospectively terminate 174
the fee option for all new rental agreements. 175
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
(8)(a) This section does not: 176
1. Require a fee collected in lieu of a security deposit 177
to be used to purchase an insurance product or surety bond; or 178
2. Prohibit a tenant from being offered or sold an 179
insurance product or a surety bond to present to the landlord in 180
lieu of a security deposit if the offer or sale of such 181
insurance product or surety bond complies with the laws of this 182
state. 183
(b) Acceptance by a landlord of an insurance product or a 184
surety bond that is purchased or procured by a tenant, a 185
landlord, or an agent of the landlord may not be considered an 186
offer on the part of the landlord to allow a tenant to pay a fee 187
in lieu of a security d eposit for the purposes of subsection 188
(7). 189
(9) This section applies to rental agreements entered into 190
or renewed on or after July 1, 2022. 191
Section 2. This act shall take effect July 1, 2022. 192