We have a minimum surety bond requirement of $10,000 for the Fl landlord/tenant bond. Qualifying is based on a determination of good credit and providing supporting documentation, as requested. The annualized premium is 2% of the amount of the surety bond required.
Landlords in Florida who accept security deposits and/or advanced rents are statutorily required to have those funds segregated from other funds, and maintain those funds in an interest bearing account.
As an alternative to holding and maintaining the funds in a separate account, you are allowed to obtain a surety bond.
While the surety bond option is required of the landlord, the surety bond is a financial guarantee for the state of Florida --- namely the state’s Department of Agriculture and Consumer Services --- and your tenants --- that funds will able to be returned; as also your compliance with Section 83.49 ( c ) of Florida statutes, which obliges you to engage in additional fiduciary responsibilities on behalf of those tenants.
The Florida landlord/tenant security deposit bond is in an amount that is the sum total of all the deposits held by you as landlord, or $50,000, whichever amount is less.
If, as a Florida landlord, or representative of the same, you have properties in 5 or more counties within the state, the total surety bond amount shall be $250,000 or whatever amount you are holding from your tenants, whichever amount is less.
Therefore, in the one case, the maximum bond amount is $50,000; and in the second case where properties are spread out over 5 or more counties in Florida, the maximum bond amount is $250,000.
Qualifying for the Florida landlord/tenant security deposit bond is by means of an application, which we’ll take from you, initially, by phone. Before the bond is issued, we’ll need you to sign a physical application.
There is also a standard personal credit check inquiry. To be approved, good credit will be required.
For larger surety bond requirements, you will likely be asked to produce financial statements, including bank statements, and supporting documentation to obtain approval. It is a good idea to have these documents handy.
Approval is at a standard rate of a minimum 2% of the bond amount required. We have a minimum requirement of $10,000.
Upon approval of your landlord/tenant security deposit bond, our agency issues it to you and it is mailed to you along with a Power of Attorney form.
You’ll sign your bond as Principal, and thereafter you’ll file it with the Department of Agriculture and Consumer Services.
The premium for your bond will renew annually on the anniversary of its issuance. Premiums paid are earned in full and are nonrefundable both in whole or in part.
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