Written by: Luis Teran, Co-founder, CEO, TenantEvaluation
Key Takeaways for Condo Security Deposits
- Condo security deposits differ from standard apartment deposits because Florida associations may collect a separate, purpose-limited deposit under Chapter 718 to protect common elements.
- Unit owners remain the landlord under Florida Statute § 83.49, so they alone handle the landlord deposit, return timelines, and holding-account rules.
- Florida imposes no statutory cap on landlord deposits, but associations face a $150 transfer-fee ceiling and must follow separate return procedures for any association deposit.
- States such as California, New York, Pennsylvania, Michigan, and Arizona each set their own deposit caps, return deadlines, and interest rules that landlords must track alongside Florida requirements.
- TenantEvaluation digitizes deposit collection, lease tracking, and compliance workflows for Florida associations. See how a connected, audit-ready system replaces manual processes in a live demo.
How Florida CAMs Manage Deposits Across Owners and Associations
Florida Community Association Managers (CAMs) sit at the intersection of landlord-tenant law and condominium or HOA governance. When a unit owner rents their condo, the CAM typically screens the incoming tenant, collects association-authorized fees, and maintains records that satisfy both the board and any future audit.
Deposit handling touches every stage of that workflow. During onboarding, the association may collect a transfer-approval fee and, if authorized, its own deposit. The unit owner at the same time collects a landlord security deposit governed by Florida Statute § 83.49. Both amounts must be tracked, held correctly, and returned on separate statutory timelines.
Manual processes, such as spreadsheets, email chains, and paper receipts, create audit gaps and compliance risk at every handoff. TenantEvaluation, built specifically for Florida community associations since 2007, digitizes this entire workflow. Its Lease Tracking capability connects resident onboarding, unit data, approvals, and lease documentation in one centralized, real-time, audit-ready workflow.
TEpayments by Zinc, a connected payment workflow inside TenantEvaluation, collects application fees, deposits, and other required resident payments within the onboarding process. Payments go directly from the applicant to the association’s designated account, and TenantEvaluation never holds the funds.
Explore TenantEvaluation in a customized demo and see one connected deposit workflow in action.
Florida Condo Security Deposit Rules in 2026
Florida imposes no statutory cap on residential security deposits under F.S. § 83.49, so the lease controls the amount. The unit owner, not the HOA, is the landlord responsible for all deposit obligations.
Return timelines follow a split structure under Florida Statute § 83.49:
- 15 days to return the full deposit when no deductions are claimed.
- 30 days to send a written notice of intent to claim deductions by certified mail to the tenant’s last known mailing address.
- An additional 15-day window for the tenant to object after receiving the deduction notice.
Holding requirements: Florida law requires the deposit to be held in a separate non-interest-bearing Florida bank account or a separate interest-bearing account. Commingling with personal funds is prohibited. The landlord must provide written notice of the deposit location.
Interest: Interest is owed only if the landlord elects an interest-bearing account, at 75% of the annualized average rate earned or 5% simple interest, whichever applies.
HOA transfer fees: Under Chapter 718, Florida Statutes, condominium association transfer-approval fees are capped at $150 per applicant, adjusted every five years by the DBPR based on the Consumer Price Index. Associations may not charge a transfer fee for lease renewals with the same tenant.
Non-refundable fee option: Since July 1, 2023, Florida landlords may offer a non-refundable monthly fee in lieu of a security deposit under § 83.491, provided a written agreement exists. This fee does not eliminate tenant liability for unpaid rent or damage beyond normal wear and tear.
Maximum Deposit Limits by State in 2026
The table below summarizes statutory deposit caps and standard return deadlines for key states as of 2026. Florida and several other states impose no cap, so the lease sets the amount.
| State | Maximum Deposit | Return Deadline | Interest Required? |
|---|---|---|---|
| Florida | See above — lease controls | 15 days (no claim) / 30 days (with claim) | Only if interest-bearing account elected |
| California | 1 month’s rent (most leases); 2 months for qualifying small landlords | 21 days | No statewide requirement (Berkeley: yes) |
| Texas | No statutory cap | 30 days | No |
| New York | 1 month’s rent (post-2019 HSTPA) | Statutory requirements apply | Yes for buildings with 6+ units |
| Pennsylvania | 2 months’ rent (year 1); 1 month thereafter | 30 days if forwarding address provided | Yes, after 2 years of tenancy |
| Michigan | 1.5 months’ rent | 30 days | No statewide requirement |
| Arizona | 1.5 months’ rent | 14 business days | No |
California Security Deposit Changes Under AB 2801
California’s most significant recent change is AB 2801, effective for leases starting July 1, 2025 or later. Landlords must now photograph the unit immediately before or at the beginning of every tenancy. Failure to comply results in forfeiture of deduction rights.
The deposit cap was reduced to one month’s rent for most new or renewed residential leases, with a narrow exception allowing up to two months for qualifying small landlords. The return deadline remains 21 calendar days after the tenant vacates and the landlord regains possession.
If repairs cannot be completed within 21 days, a good-faith estimated itemized statement is permitted within the deadline. A final statement is then due within 14 days of the last invoice. Bad-faith withholding can result in a penalty of up to twice the wrongfully withheld amount.
Pennsylvania Security Deposit Rules
Pennsylvania caps deposits at two months’ rent during the first year of tenancy and one month’s rent for subsequent years. Pennsylvania requires landlords to return a tenant’s security deposit or provide an itemized list of deductions within 30 days after the lease ends or move-out, provided the tenant has supplied a forwarding address in writing. Interest is required on deposits held for two or more years of tenancy.
Michigan Security Deposit Requirements
Michigan caps security deposits at 1.5 months’ rent. Landlords must return the deposit within 30 days of the tenant vacating, accompanied by an itemized list of any deductions. Michigan does not impose a statewide interest requirement on security deposits.
Michigan requires landlords to furnish tenants two blank copies of a commencement inventory checklist at lease start for each rental unit requiring a security deposit. Failure to provide this checklist can limit the landlord’s ability to make deductions.
Arizona Security Deposit Law Overview
Arizona caps security deposits at 1.5 months’ rent under the Arizona Residential Landlord and Tenant Act. Arizona requires landlords to return a security deposit or provide an itemized statement within 14 business days after the tenant vacates and returns possession. Arizona does not require interest on security deposits.
Landlords who fail to return the deposit within this timeframe may forfeit the right to make deductions and face liability for double the wrongfully withheld amount.
Texas Security Deposit Amount and Deadlines
Texas imposes no statutory cap on security deposits, so the lease agreement controls the amount. Under Sections 92.101–92.110 of the Texas Property Code, landlords must return the deposit within 30 days after the tenant surrenders the premises, provided the tenant has supplied a written forwarding address.
Deductions require a written itemized list. Bad-faith withholding exposes landlords to a penalty of three times the deposit plus $100 and attorney fees.
New York Security Deposit Limits and Interest Rules
Following the 2019 Housing Stability and Tenant Protection Act, New York caps security deposits at one month’s rent. Landlords must return the security deposit within the statutory timeframe, with a penalty of twice the deposit for late return in rent-stabilized units.
Buildings with six or more units must hold deposits in interest-bearing accounts, and the landlord may retain an administrative fee.
How Landlord Deposits Differ from HOA Move-In Fees
Florida condo renters frequently encounter two separate charges at move-in. The table below clarifies each obligation.
| Feature | Landlord Security Deposit | HOA / Condo Association Deposit or Fee |
|---|---|---|
| Who collects it | Unit owner (landlord) | Condominium or HOA association |
| Statutory authority | Florida Statute § 83.49 | Chapter 718 or 720, Florida Statutes |
| Cap (Florida) | See above — no statutory cap | $150 transfer fee (see above); association deposit if authorized |
| Permitted use | Unpaid rent and tenant-caused damage per lease | Damage to common elements or association property only |
TenantEvaluation’s TEpayments by Zinc collects both types of charges within one resident onboarding workflow. Each association defines what is collected and at which stage, and payments go directly from the applicant to the association’s designated account.
7 Practical Steps to Protect Your Condo Security Deposit
- Request a written move-in checklist. Document the unit’s condition before taking possession and have the landlord co-sign it. This checklist creates a baseline record for any future dispute.
- Photograph every room. California now mandates landlord photos under AB 2801, and tenants in all states benefit from their own dated photo record that supports the checklist.
- Obtain a written receipt for your deposit. Florida landlords must provide written notice of the deposit location, and a receipt confirms both payment and the amount.
- Confirm the holding account. Verify whether the deposit is in a non-interest-bearing or interest-bearing account, because that choice determines whether interest is owed in Florida.
- Clarify both deposit layers. Ask the association whether it holds a separate deposit under Chapter 718 and confirm its authorized purpose and return process.
- Provide a written forwarding address at move-out. Texas landlords are not obligated to return a deposit until a written forwarding address is supplied, and Florida tenants protect themselves by following the same practice.
- Track the return deadline. In Florida, the clock starts at lease end, with 15 days for a full return and 30 days for a deduction notice. Calendar both dates and follow up in writing if the deadline passes.
Frequently Asked Questions
Can a Florida condo association charge both a transfer fee and a security deposit?
Yes, but each charge is governed by separate rules. A transfer-approval fee under Chapter 718 is capped at $150 per applicant and is only permitted when the association’s governing documents authorize it and the association’s approval of the transfer is required. A separate association security deposit may be charged when authorized by the governing documents and is restricted to protecting association property.
These charges are distinct from the landlord’s security deposit collected under Florida Statute § 83.49, so a tenant may face all three obligations simultaneously. Renters should review the lease, the association’s governing documents, and any move-in fee schedule before signing.
What happens to a Florida security deposit if the condo owner sells the unit during the tenancy?
The security deposit obligation follows the tenancy, not the property title. The incoming owner takes on the landlord’s responsibilities under Florida Statute § 83.49, including the obligation to hold the deposit correctly and return it within the statutory timeline.
Tenants should request written confirmation from both the outgoing and incoming owner that the deposit has been transferred and is being held in compliance with Florida law. Failure to transfer the deposit does not extinguish the tenant’s right to its return.
Does Florida require landlords to pay interest on security deposits?
Florida does not mandate interest on security deposits in all cases. Interest is owed only if the landlord elects to hold the deposit in an interest-bearing account.
When interest applies, the landlord must pay either 75% of the annualized average interest rate earned on the account or 5% simple interest, depending on the account or bond structure. Landlords who use a non-interest-bearing account or a surety bond posted with the clerk of court owe no interest. Tenants should confirm the holding method in writing at the start of the tenancy.
How does TenantEvaluation help Florida associations manage deposit collection and compliance?
TenantEvaluation is an all-in-one resident screening and onboarding platform built specifically for Florida community associations and management companies. TEpayments by Zinc, a connected payment workflow inside TenantEvaluation, collects application fees, deposits, and other required resident payments within the onboarding process associations already use.
Payments go directly from the applicant to the association’s designated account, and TenantEvaluation never holds the funds. Lease Tracking connects resident onboarding, unit data, approvals, and lease documentation in one centralized, real-time, audit-ready workflow, replacing spreadsheets and scattered email chains.
QuickApprove accelerates the approval process for CAMs and boards without removing oversight or compliance controls. IDVerify adds biometric identity verification directly inside the screening workflow. For age-restricted communities, 55+ Communities Verification standardizes how age-restricted requirements are handled across applications, which reduces manual work and improves documentation consistency.
What deductions can a Florida landlord legally take from a security deposit?
Florida landlords may deduct unpaid rent and damages caused by the tenant beyond normal wear and tear. Deductions for HOA assessments, fines, or special levies are generally not permissible unless the lease specifically provides for them and state law allows it.
If deductions are claimed, the landlord must follow the 30-day certified-mail notice procedure described above. Missing this deadline forfeits the right to make any deductions, even legitimate ones, and the full deposit must be returned.
Conclusion: Bringing Condo Deposit Compliance Under Control
Condo security deposit compliance in 2026 requires navigating two overlapping legal frameworks: Florida landlord-tenant law under § 83.49 and condominium or HOA governance under Chapters 718 and 720. No statutory cap on landlord deposits, a split 15/30-day return timeline, a $150 transfer-fee ceiling, and a separate association deposit layer create a compliance environment that manual processes rarely manage well.
TenantEvaluation digitizes every step of this process for Florida community associations and management companies. The platform supports deposit collection via TEpayments by Zinc, centralized lease documentation via Lease Tracking, biometric identity verification via IDVerify+, accelerated board approvals via QuickApprove, and standardized age-restricted onboarding via 55+ Communities Verification.
With 5,000+ communities served, 100,000+ applications processed annually, and FCRA compliance as the foundation, TenantEvaluation gives Florida associations one connected, audit-ready onboarding process. Book a personalized demo and see how TenantEvaluation streamlines deposit collection and resident onboarding for your community.
