In Florida, whenever a landlord does not hold security deposits in either a dedicated interest-bearing or non-interest-bearing account, the landlord must secure a Landlord and Tenant Security Deposit Bond.
The Landlord/Tenant Security Deposit Bond is a financial tool, provided by Jet Insurance Company, that protects the Florida public from landlord wrongdoings, whether intentional or unintentional. If a landlord commits a violation of the Florida Statutes that harms a tenant financially, the tenant can seek recompense from the surety bond.
The cost of the Landlord and Tenant Security Deposit is directly related to the applicant’s personal credit and the bond’s limit. Regardless, the price at Jet is only ever a small percentage of the total bond limit.
The bond limit is based on the total dollar amount of security deposits held by the landlord or $50,000, whichever is lesser. This bond would be filed to the circuit court in the county where the property is located.
However, if a landlord owns properties in several Florida counties (five or more), the bond limit is based on the dollar amount of the security deposits held by the landlord or $250,000, whichever is less. This bond is filed with the Florida Secretary of State.
Note: if a landlord chooses to utilize the surety bond option, the landlord is required to pay the tenant interest at the rate of 5% per year.
See example pricing below for an applicant with preferred credit, keeping in mind that limits vary.
Our monthly payment plan is a great option for landlords, as it allows for the bond to remain active without additional paperwork at “renewal”. Also, whenever you’re ready to cancel, you’re able to do so hassle-free.
The State of Florida seeks to protect its citizens. With the Landlord and Tenant Security Deposit Bond, Florida is ensuring financial compliance for rental properties. By involving a third-party surety company (Jet), there is a guarantee of reimbursement to harmed tenants.
Thankfully, Jet has created an application that is stress-free. All we ask for is some basic information and your social security number for the soft credit check. There are two scenarios that can happen once you submit your application:
Higher surety bond limits just require a further review, but don’t fret—our underwriting process is quick.
Whether you need the bond filed with a county circuit court or the Florida Secretary of State, Jet can take care of it! You always have the option to send the bond form yourself (perhaps with other paperwork), which you can choose when making payment. Here’s the Florida Secretary of State’s address, just in case:
Florida Department of State
R.A. Gray Building
500 South Bronough Street
Tallahassee, FL 32399
As for filing the bond at the county level, the Florida Courts website has a circuit court locator.
Just like filling out the application, renewing the Landlord Security Deposit Bond only takes a few minutes. Jet sends an invoice to your mailing address and your email, so you can choose which way to renew—either mail in your payment with the prepaid envelope or click the button in your email to submit payment!
If you pay monthly, you don’t even have to think about renewal. Each recurring payment ensures your bond stays active with the ability to cancel at any time. Read more about cancellations in the “How to Cancel My Bond” article below.
We all hope a claim never happens, but here’s what to expect if it does.
By following the Florida Statutes Chapter 83, you can ensure you are in compliance with the laws relating to you and your business of renting properties. More specifically, you’ll want to focus on Chapter 83, Section 49, which details the laws associated with the collection, holding, and return of tenant security deposits. Failure to uphold your obligations under this section means a tenant can bring suit against you in court and potentially get a payout from the Landlord and Tenant Security Deposit Bond. For example, don’t forget to refund the security deposit within 15 days of the tenant vacating the dwelling unit.
If you have acted in a negligent or fraudulent way, the court may request reimbursement from the surety bond. Jet will make payment for legitimate claims, but you are responsible to pay it back. Read more in the “Bond Claims Process” blog above.