November 11, 2025 • 8 mins
On balance there appears to be a bit of an information disconnect about this recently enacted state law. In 2023, prior to the passage of the legislation, 51% of Florida’s renters surveyed said they would opt for a reasonable non-refundable fee given the opportunity as 72% of renters said they struggled to come up with the needed money for first, last and a security deposit.
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Episode Transcript
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Speaker 1 (00:04):
Your questions, Brian's answers. It's time for today's Q and
A of the day. This is the Brian Mud Show.
Today's Q and.
Speaker 2 (00:12):
A paying a fee versus the security deposit when renting
in Florida. This is brought to you by my listen
ashes check mark collections. Each day a feature and listener
question that is sent by one of these methods. You
may email me Brian Mud at iHeartMedia dot com, hit
me up on social at Brian Mud Radio. May also
(00:34):
use the iHeart Radio talk back feature we love it.
If you would love us, go into the app MCWJ
and O or Vero Patriot your number one precept Brian
Mudshow podcast your number two pre so would be awesome too.
And while you're in there, you'll see a little microphone button.
See it, tap it You may lay down the message
right there, maybe for a future Q and A. Today's note,
do you know anything about the new law that doesn't
(00:55):
allow landlords to require first, last and security in Florida?
So yes, remember covering this at the time. I got
brushed up on it. For today's Q and A. The
long question is twenty twenty three's fees in lieu of
Security Deposits Law, and it took effect July first, twenty
(01:17):
twenty three. Was established for the purpose of attempting to
aid in affordability for low income tenants while balancing landlord rights.
So as the legislature determined, for a low income family,
a security deposit may be unaffordable, preventing the family from
obtaining housing, or maybe keeping them in substandard housing even
(01:38):
when they could otherwise afford to move. So recognizing this,
some landlords began to offer their tenants security deposit alternatives,
including fees paid in lieu of a security deposit. However,
there weren't any protections under law for either party in
those instances, and that's what prompted the passage of the
(02:00):
new law to put in some guardrails on both sides
of this equation to The law authorizes, but does not require,
a landlord to offer a tenant the option to pay
a fee instead of a deposit. If a landlord offers
the option, they must then give the tenant written notice
(02:22):
of these things. The tenant has the option to pay
a security deposit instead of the fee. The fee may
not be increased during the rental agreement's term. The tenant
may at any time terminate the fee payment agreement and
instead pay a security deposit in the amount specified of
(02:43):
a rental agreement if that was offered originally. Otherwise, they
can be offered twant offered the same rate. The new
tenants with substantially similar units are pain for security deposits.
The fee is non refundable. The fee is only for
(03:06):
securing occupancy without needing to pay a security deposit. The
fee payment does not change the tenant's obligation to pay
rent and fees or the cost of repairing damage above
normal wear and tear. If the landlord uses any portion
of the fee to purchase insurance, the tenant is not
the insured or beneficiary of that insurance, and the insurance
(03:29):
does not change the tenant's obligation to pay rent and
fees or the cost of repairs above normal wear and tear. Okay,
so those are kind of like the meat and potatoes
things that went into this new law. It also created
these changes in the rental processes. It authorizes a landlord
to give the tenant the option of paying the security
(03:51):
deposit in monthly installments while participating in the fee program,
and it also specifies notice requirements for those kinds of options,
requires that if the tenant chooses the THEE option, the
landlord in the tenant must sign a written fee payment agreement.
It provides that a fee in lieu of a security
(04:11):
deposit may be a recurring monthly fee payable on the
same date that the rent is due under at lease,
or payable on a different chosen schedule that again is
signed off on by both parties, and it sets requirements
for a landlord claiming unpaid rent or fees under a
lease agreement, or damages where the tenant paid a fee
(04:33):
in lieu of a security deposit.
Speaker 1 (04:35):
Okay, so that is the hole ball of wax.
Speaker 2 (04:38):
One of the things that is unclear with this what
the impact has been through the first couple of years
that the law has been in effect, because there's not
a legal reporting requirement for landlords to disclose whether their
tenants have paid fees or deposits. And it's also unclear
just how many people are even aware of this, How
(04:59):
many people know that you could do a fee instead
of security deposits, and that's true both of tenants and
of landlords. To give you an idea, the one bit
of research I could find on this last year is
a twenty twenty four study of property management companies. It
showed that about a quarter about twenty five percent, we're
offering deposit alternatives and thirty three percent a third of
(05:24):
renters preferred having access to a non refundable fee over
a refundable first, last, and security deposit.
Speaker 1 (05:32):
So on balance, there.
Speaker 2 (05:35):
Might be a bit of an information disconnect because, to
give you an idea, there had been pulling done on
this prior to the passage of this legislation in twenty
twenty three. You had members of the state legislature that
wanted to know, hey, is there really this need? Is
this really going to be helpful to people? And in
that survey work that was done prior to this law
(05:56):
having been passed, fifty one percent of Floridas at the
time said they would opt for a reasonable non refundable
fee given the opportunity, because seventy two percent of renders
that they struggle to come up with a needed money.
Speaker 1 (06:10):
For first, last, and security.
Speaker 2 (06:13):
So, with three quarters of property management companies not offering
the feel alternative as of last year, whether it appear
that most landlords prefer the status quo, or maybe just
are not versed in the changes in law supporting feel
alternatives to security deposits. And this is one of the
other things I was thinking about and going through this,
(06:34):
the change in real state feed transactions.
Speaker 1 (06:36):
I know that's been something that caught on pretty quickly.
Speaker 2 (06:39):
So for example, that was a federal change in law
where buyers are now responsible for the buyer's real state fees.
It's no longer the case of this seller just automatically
has to pay for whatever. And most recently, what we've
seen is that sixty five percent of real estate transactions
have involved negotiations over which party is going to pay
(06:59):
how much in those real estate fees. So it's the
case where basically two thirds of real estate transactions have
changed as a result of that federal law to.
Speaker 1 (07:09):
At least a certain extent.
Speaker 2 (07:11):
But we're in this situation out two years into Florida's law,
and still only about a quarter of renters have been
presented with the option to be able to go ahead
and do the non refundable fee over a deposit.
Speaker 1 (07:25):
So I do feel like there's.
Speaker 2 (07:27):
Probably more work to inform renters and maybe landlords too
about the change in state law and the options that
are existing under it now.
Speaker 1 (07:36):
Now speaking of affordability.
Speaker 2 (07:38):
One of the housing affordability challenges, of course, has been
trying to figure out how to purchase a home. President
Trump offering up an idea by says Sharon Halpern.
Speaker 3 (07:48):
The Trump administration is giving serious consideration creating a fifty
year mortgage product. There's a way to expand home ownership.
Speaker 4 (07:56):
Extending the length of mortgages could reduce monthly payments by
hundreds of dollars.
Speaker 3 (08:01):
White House National Economic Council Director Kevin Hassett says fewer
Americans are buying homes.
Speaker 4 (08:06):
The average age of a first time home buyer has
gone up by about ten years in just a few years.
That it's something that we're very serious about addressing.
Your questions, Brian's answers. It's time for today's Q and
A of the day. This is the Brian Mud Show.
Today's Q and.
Speaker 2 (00:12):
A paying a fee versus the security deposit when renting
in Florida. This is brought to you by my listen
ashes check mark collections. Each day a feature and listener
question that is sent by one of these methods. You
may email me Brian Mud at iHeartMedia dot com, hit
me up on social at Brian Mud Radio. May also
(00:34):
use the iHeart Radio talk back feature we love it.
If you would love us, go into the app MCWJ
and O or Vero Patriot your number one precept Brian
Mudshow podcast your number two pre so would be awesome too.
And while you're in there, you'll see a little microphone button.
See it, tap it You may lay down the message
right there, maybe for a future Q and A. Today's note,
do you know anything about the new law that doesn't
(00:55):
allow landlords to require first, last and security in Florida?
So yes, remember covering this at the time. I got
brushed up on it. For today's Q and A. The
long question is twenty twenty three's fees in lieu of
Security Deposits Law, and it took effect July first, twenty
(01:17):
twenty three. Was established for the purpose of attempting to
aid in affordability for low income tenants while balancing landlord rights.
So as the legislature determined, for a low income family,
a security deposit may be unaffordable, preventing the family from
obtaining housing, or maybe keeping them in substandard housing even
(01:38):
when they could otherwise afford to move. So recognizing this,
some landlords began to offer their tenants security deposit alternatives,
including fees paid in lieu of a security deposit. However,
there weren't any protections under law for either party in
those instances, and that's what prompted the passage of the
(02:00):
new law to put in some guardrails on both sides
of this equation to The law authorizes, but does not require,
a landlord to offer a tenant the option to pay
a fee instead of a deposit. If a landlord offers
the option, they must then give the tenant written notice
(02:22):
of these things. The tenant has the option to pay
a security deposit instead of the fee. The fee may
not be increased during the rental agreement's term. The tenant
may at any time terminate the fee payment agreement and
instead pay a security deposit in the amount specified of
(02:43):
a rental agreement if that was offered originally. Otherwise, they
can be offered twant offered the same rate. The new
tenants with substantially similar units are pain for security deposits.
The fee is non refundable. The fee is only for
(03:06):
securing occupancy without needing to pay a security deposit. The
fee payment does not change the tenant's obligation to pay
rent and fees or the cost of repairing damage above
normal wear and tear. If the landlord uses any portion
of the fee to purchase insurance, the tenant is not
the insured or beneficiary of that insurance, and the insurance
(03:29):
does not change the tenant's obligation to pay rent and
fees or the cost of repairs above normal wear and tear. Okay,
so those are kind of like the meat and potatoes
things that went into this new law. It also created
these changes in the rental processes. It authorizes a landlord
to give the tenant the option of paying the security
(03:51):
deposit in monthly installments while participating in the fee program,
and it also specifies notice requirements for those kinds of options,
requires that if the tenant chooses the THEE option, the
landlord in the tenant must sign a written fee payment agreement.
It provides that a fee in lieu of a security
(04:11):
deposit may be a recurring monthly fee payable on the
same date that the rent is due under at lease,
or payable on a different chosen schedule that again is
signed off on by both parties, and it sets requirements
for a landlord claiming unpaid rent or fees under a
lease agreement, or damages where the tenant paid a fee
(04:33):
in lieu of a security deposit.
Speaker 1 (04:35):
Okay, so that is the hole ball of wax.
Speaker 2 (04:38):
One of the things that is unclear with this what
the impact has been through the first couple of years
that the law has been in effect, because there's not
a legal reporting requirement for landlords to disclose whether their
tenants have paid fees or deposits. And it's also unclear
just how many people are even aware of this, How
(04:59):
many people know that you could do a fee instead
of security deposits, and that's true both of tenants and
of landlords. To give you an idea, the one bit
of research I could find on this last year is
a twenty twenty four study of property management companies. It
showed that about a quarter about twenty five percent, we're
offering deposit alternatives and thirty three percent a third of
(05:24):
renters preferred having access to a non refundable fee over
a refundable first, last, and security deposit.
Speaker 1 (05:32):
So on balance, there.
Speaker 2 (05:35):
Might be a bit of an information disconnect because, to
give you an idea, there had been pulling done on
this prior to the passage of this legislation in twenty
twenty three. You had members of the state legislature that
wanted to know, hey, is there really this need? Is
this really going to be helpful to people? And in
that survey work that was done prior to this law
(05:56):
having been passed, fifty one percent of Floridas at the
time said they would opt for a reasonable non refundable
fee given the opportunity, because seventy two percent of renders
that they struggle to come up with a needed money.
Speaker 1 (06:10):
For first, last, and security.
Speaker 2 (06:13):
So, with three quarters of property management companies not offering
the feel alternative as of last year, whether it appear
that most landlords prefer the status quo, or maybe just
are not versed in the changes in law supporting feel
alternatives to security deposits. And this is one of the
other things I was thinking about and going through this,
(06:34):
the change in real state feed transactions.
Speaker 1 (06:36):
I know that's been something that caught on pretty quickly.
Speaker 2 (06:39):
So for example, that was a federal change in law
where buyers are now responsible for the buyer's real state fees.
It's no longer the case of this seller just automatically
has to pay for whatever. And most recently, what we've
seen is that sixty five percent of real estate transactions
have involved negotiations over which party is going to pay
(06:59):
how much in those real estate fees. So it's the
case where basically two thirds of real estate transactions have
changed as a result of that federal law to.
Speaker 1 (07:09):
At least a certain extent.
Speaker 2 (07:11):
But we're in this situation out two years into Florida's law,
and still only about a quarter of renters have been
presented with the option to be able to go ahead
and do the non refundable fee over a deposit.
Speaker 1 (07:25):
So I do feel like there's.
Speaker 2 (07:27):
Probably more work to inform renters and maybe landlords too
about the change in state law and the options that
are existing under it now.
Speaker 1 (07:36):
Now speaking of affordability.
Speaker 2 (07:38):
One of the housing affordability challenges, of course, has been
trying to figure out how to purchase a home. President
Trump offering up an idea by says Sharon Halpern.
Speaker 3 (07:48):
The Trump administration is giving serious consideration creating a fifty
year mortgage product. There's a way to expand home ownership.
Speaker 4 (07:56):
Extending the length of mortgages could reduce monthly payments by
hundreds of dollars.
Speaker 3 (08:01):
White House National Economic Council Director Kevin Hassett says fewer
Americans are buying homes.
Speaker 4 (08:06):
The average age of a first time home buyer has
gone up by about ten years in just a few years.
That it's something that we're very serious about addressing.
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