Holding Deposit vs. Security Deposit in Florida: What's the Difference?

What's the difference between a holding deposit and a security deposit in a Florida rental?

A holding deposit is collected before a lease is signed to reserve a property for an applicant. A security deposit is collected at lease signing to protect the landlord against unpaid rent or property damage during the tenancy. They serve different purposes, and Florida law treats them differently.

Holding Deposits

A holding deposit takes a property off the market while a landlord completes screening or while an applicant finalizes their decision. Florida doesn't have a specific statute governing holding deposits the way it does security deposits — which means the terms are largely governed by whatever the landlord and applicant agree to in writing.

That makes the written agreement critical. If an applicant backs out, can the landlord keep the deposit? Only if that was clearly documented upfront. If the landlord rejects the applicant or backs out themselves, the deposit should generally be returned. Unclear or one-sided terms can be challenged in court, so landlords who collect holding deposits should spell out exactly what happens to the funds under every scenario — and get it in writing before any money changes hands.

Security Deposits

Security deposits in Florida are governed by Florida Statute § 83.49 and come with strict requirements. Key rules for Jacksonville and Northeast Florida landlords to know:

• Security deposits must be held in a separate Florida bank account, not commingled with personal or business funds

• The landlord must notify the tenant in writing within 30 days of receiving the deposit, stating where and how it's being held

• If no deductions are made at move-out, the deposit must be returned within 15 days

• If deductions are claimed, written notice must go out within 30 days with itemized reasons

• Security deposits are fully refundable — no portion can be designated as nonrefundable. Separate nonrefundable fees (such as pet fees) must be clearly distinct from the deposit in the lease

Florida also now allows landlords to offer a nonrefundable monthly fee as an alternative to a traditional security deposit under Florida Statute § 83.491 — giving both parties more flexibility at lease signing.

Handling deposits correctly from the start protects you legally and keeps the landlord-tenant relationship on solid footing. CrossView Property Management manages deposit compliance for rental owners across Jacksonville, Orange Park, St. Johns, and Clay County. Visit our Owner FAQ or reach out directly if you have questions about your specific situation.