If you are a commercial landlord in Florida, it helps to understand the circumstances under which you can legally withhold a commercial tenant’s security deposit. Security deposits are your safeguards against unfulfilled tenants’ lease obligations.
Essentially, security deposits serve as a financial safety net, helping to ensure that you can cover any damages or unpaid rent once a tenant vacates the property. However, withholding a security deposit must be done in compliance with Florida law, as well as in accordance with the terms detailed in the commercial lease, to avoid legal disputes.
Unpaid rent and late fees
One legitimate reason to withhold a security deposit is due to unpaid rent. If a tenant vacates the property without paying the entire amount of rent due according to the lease, you can deduct the outstanding amount from their security deposit. It is important for commercial landlords to keep a detailed record of all payments made by tenants, as well as any notices provided to the tenant regarding unpaid rent.
Repairing damage beyond normal wear and tear
You are also entitled to withhold part or all of a security deposit to cover repair expenses for damage that exceeds normal wear and tear. Normal wear and tear is the anticipated deterioration of the commercial property with regular use. Examples of damage that might warrant withholding a deposit include:
- Large holes in walls
- Broken windows
- Missing or damaged fixtures
- Extreme carpet stains or burns
The key here is to differentiate between anticipated property deterioration and damage caused by the tenant’s actions or lack of care. When assessing damages, consider the property’s condition when the tenant moved in and document everything with photographs or a move-in/move-out inspection report signed by both parties.
If you’re a commercial landlord in the Sunshine State, withholding a tenant’s security deposit should be handled with care and adherence to both the lease and state laws. A real estate attorney can help you understand your rights as a landlord.