Florida Senate - 2023 SB 494 By Senator DiCeglie 18-00249-23 2023494__ Page 1 of 7 CODING: Words stricken are deletions; words underlined are additions. A bill to be entitled 1

An act relating to fees in lieu of security deposits; 2 creating s. 83.491, F.S.; authorizing a landlord to 3 offer a tenant the option to pay a fee in lieu of a 4 security deposit; requiring the landlord to notify the 5 tenant of certain unpaid fees and costs within a 6 specified time after the conclusion of the tenancy; 7 prohibiting the landlord from filing an insurance 8 claim within a specified period of time; providing 9 requirements for the landlord and insurer if an 10 insurance claim to recover certain losses is filed; 11 prohibiting the landlord from accepting certain 12 payments; requiring the landlord to provide certain 13 written notice to the tenant; requiring a written 14 agreement signed by the landlord, or the landlord’s 15 agent, and the tenant if the tenant decides to pay a 16 fee in lieu of the security deposit; prohibiting the 17 written agreement from contradicting specified laws; 18 requiring that the written agreement contain certain 19 information; requiring a specified disclosure in the 20 written agreement; providing options for paying the 21 fee; specifying that certain fees, insurance products, 22 and surety bonds are not security deposits; specifying 23 that landlords have exclusive discretion as to whether 24 to offer tenants the option to pay a fee in lieu of a 25 security deposit; prohibiting a landlord from 26 approving or denying an application for occupancy 27 based on a prospective tenant’s choice to pay a fee in 28 lieu of a security deposit; requiring that landlords 29

Florida Senate - 2023 SB 494 18-00249-23 2023494__ Page 2 of 7 CODING: Words stricken are deletions; words underlined are additions. that offer a tenant the fee option offer it to all new 30 tenants renting a dwelling unit on the same premises; 31 providing an exception; providing construction; 32 providing applicability; providing an effective date. 33 34 Be It Enacted by the Legislature of the State of Florida: 35 36

Section

Section 83.491, Florida Statutes, is created to 37 read: 38 83.491 Fee in lieu of security deposit.— 39

(1) If a rental agreement requires a security deposit, a 40 landlord may offer a tenant the option to pay a fee in lieu of a 41 security deposit. 42 (2)(

a) If a tenant agrees to pay a fee in lieu of a 43 security deposit, the landlord must notify the tenant within 30 44 days after the conclusion of the tenancy if there are any costs 45 or fees due resulting from unpaid rent, fees, or other 46 obligations under the rental agreement, including, but not 47 limited to, costs required for repairing damage to the premises 48 beyond normal wear and tear. 49 (

b) A landlord may not submit a claim to an insurer to 50 recover the landlord’s losses associated with unpaid rent, fees, 51 or other obligations under the rental agreement, including, but 52 not limited to, costs required for repairing damage to the 53 premises beyond normal wear and tear, until at least 15 days 54 after providing the tenant with the required notice under 55 paragraph (a). 56 1. The landlord must include an itemized list of any unpaid 57 amounts and the dates such amounts were due, documentation 58

Florida Senate - 2023 SB 494 18-00249-23 2023494__ Page 3 of 7 CODING: Words stricken are deletions; words underlined are additions. supporting any itemized damages and costs of repairs, and a copy 59 of any written objection or report of any communication of 60 objection by the tenant when the landlord submits a claim to an 61 insurer. 62 2.

If an insurer pays a claim that was submitted under this 63 subsection to a landlord and the insurer has subrogation rights, 64 the insurer may, within 1 year after the tenancy that was the 65 subject of the claim ends, seek reimbursement from the tenant 66 for the amounts paid to the landlord. If the insurer seeks 67 reimbursement from the tenant, the following apply: 68 a.

The insurer must provide the tenant with all 69 documentation for losses which the landlord provided to the 70 insurer in support of the landlord’s claim and a copy of the 71 settlement statement documenting the insurer’s payment of the 72 landlord’s claim. 73 b. The tenant retains any defenses against the insurer 74 which the insurer would otherwise have against the landlord. 75 3. A landlord may not accept payment from both a tenant and 76 an insurer for amounts associated with the same rent, fees, or 77 damages. 78

(3) If a landlord offers a tenant the option to pay a fee 79 in lieu of a security deposit, the landlord must notify the 80 tenant in writing of all of the following: 81 (

a) That the tenant has the option to pay a security 82 deposit instead of the fee. 83 (

b) That the tenant may, at any time, terminate the 84 agreement to pay the fee in lieu of the security deposit and 85 instead pay a security deposit as listed in a rental agreement 86 between landlord and tenant or, if a security deposit was not 87

Florida Senate - 2023 SB 494 18-00249-23 2023494__ Page 4 of 7 CODING: Words stricken are deletions; words underlined are additions. agreed upon in a rental agreement between the landlord and 88 tenant, in the amount that is otherwise offered to new tenants 89 for a substantially similar dwelling unit on the date that the 90 tenant terminates the agreement. 91 (

c) Whether any additional charges apply for the options 92 provided in paragraphs (

a) and (b). 93 (

d) The amount of the payments required for each option the 94 landlord offers. 95 (

e) That the fee is nonrefundable, if applicable. 96 (

f) That the fee is only for securing occupancy without 97 paying a required security deposit. 98 (

g) That the fee payment does not limit or change the 99 tenant’s obligation to pay rent and fees, if any, under the 100 rental agreement or limit or change the tenant’s obligation to 101 pay the costs of repairing damage to the premises beyond normal 102 wear and tear. 103 (

h) That if the landlord uses any portion of the fee to 104 purchase insurance, the tenant is not insured and is not a 105 beneficiary of the landlord’s insurance coverage, and that the 106 insurance does not limit or change the tenant’s obligations to 107 pay rent and fees under the rental agreement or change the 108 tenant’s obligation to pay the costs of repairing damage to the 109 premises beyond normal wear and tear. 110 (4)(

a) If a tenant decides to pay a fee in lieu of a 111 security deposit, a written agreement to collect the fee must be 112 signed by the landlord, or the landlord’s agent, and the tenant. 113 The written agreement may not contain any clause that 114 contradicts s. 83.45 or s. 83.47. The written agreement must, at 115 a minimum, specify all of the following: 116

Florida Senate - 2023 SB 494 18-00249-23 2023494__ Page 5 of 7 CODING: Words stricken are deletions; words underlined are additions. 1. The amount of the fee. 117 2. How and when the fee is to be collected. 118 3. The process and timeframe during which a tenant must pay 119 the security deposit specified in the rental agreement if the 120 tenant defaults on paying the fee, and that such default will 121 not adversely affect the tenant’s credit rating if the security 122 deposit is timely paid. 123 4.

That the written agreement may be terminated at any time 124 as long as the tenant pays the amount of the security deposit 125 specified in the rental agreement. 126 5. If the tenant pays the amount of the security deposit 127 specified in the rental agreement, then the tenant’s default on 128 paying the fee or termination of the written agreement may not 129 adversely impact the tenant’s credit report. 130 (

b) The written agreement specified under paragraph (a) 131 must also include a disclosure in substantially the following 132 form: 133 134 FEE IN LIEU OF SECURITY DEPOSIT 135 136 THIS AGREEMENT HAS BEEN ENTERED INTO VOLUNTARILY BY 137 BOTH PARTIES, AND THE TENANT AGREES TO PAY THE 138 LANDLORD A FEE IN LIEU OF A SECURITY DEPOSIT AS 139 AUTHORIZED UNDER

SECTION 83.491, FLORIDA STATUTES. 140 THIS FEE IS NOT A SECURITY DEPOSIT, AND PAYMENT OF THE 141 FEE DOES NOT ABSOLVE THE TENANT OF ANY OBLIGATIONS 142 UNDER THE RENTAL AGREEMENT, INCLUDING THE OBLIGATION 143 TO PAY RENT AS IT BECOMES DUE AND ANY COSTS AND 144 DAMAGES BEYOND NORMAL WEAR AND TEAR WHICH THE TENANT 145

Florida Senate - 2023 SB 494 18-00249-23 2023494__ Page 6 of 7 CODING: Words stricken are deletions; words underlined are additions. OR HIS OR HER GUESTS MAY CAUSE. IF THE LANDLORD USES 146 ANY PORTION OF THE TENANT’S FEE TO PURCHASE INSURANCE, 147 THE TENANT IS NOT INSURED AND IS NOT A BENEFICIARY OF 148 SUCH COVERAGE. SUCH INSURANCE DOES NOT LIMIT OR CHANGE 149 THE TENANT’S OBLIGATION TO PAY RENT AND FEES, IF ANY, 150 UNDER THE RENTAL AGREEMENT OR TO PAY THE COSTS AND 151 DAMAGES BEYOND NORMAL WEAR AND TEAR WHICH THE TENANT 152 OR HIS OR HER GUESTS MAY CAUSE.

THE TENANT MAY 153 TERMINATE THIS AGREEMENT AT ANY TIME AND STOP PAYING 154 THE FEE AND INSTEAD PAY A SECURITY DEPOSIT AS PROVIDED 155 IN

SECTION 83.491, FLORIDA STATUTES. 156 157 THIS DISCLOSURE IS BASIC. PLEASE REFER TO

PART II OF 158

CHAPTER 83, FLORIDA STATUTES, TO DETERMINE YOUR LEGAL 159 RIGHTS AND OBLIGATIONS. 160 161

(5) A fee in lieu of a security deposit may be: 162 (

a) A recurring monthly fee, payable on the same date that 163 the rent payment is due under the rental agreement; or 164 (

b) Payable upon a

schedule that the landlord and tenant 165 choose and as specified in the written agreement. 166

(6) A fee collected under this section, or an insurance 167 product or a surety bond accepted, by a landlord in lieu of a 168 security deposit is not a security deposit as defined in s. 169 83.43(12). 170

(7) A landlord has exclusive discretion as to whether to 171 offer tenants the option to pay a fee in lieu of a security 172 deposit and is not required to offer such fee option to tenants. 173 However, if a landlord offers a tenant an option to pay a fee in 174

Florida Senate - 2023 SB 494 18-00249-23 2023494__ Page 7 of 7 CODING: Words stricken are deletions; words underlined are additions. lieu of a security deposit, the landlord may not use a 175 prospective tenant’s choice to pay, or offer to pay, a fee in 176 lieu of a security deposit as criteria in the determination to 177 approve or deny an application for occupancy, and the landlord 178 must also offer all new tenants renting a dwelling unit on the 179 same premises the option to pay a fee in lieu of a security 180 deposit, unless the landlord chooses to prospectively terminate 181 the fee option for all new rental agreements. 182 (8)(

a) This

section does not: 183 1. Require a fee collected in lieu of a security deposit to 184 be used to purchase an insurance product or a surety bond; or 185 2. Prohibit a tenant from being offered or sold an 186 insurance product or a surety bond to present to the landlord in 187 lieu of a security deposit if the offer or sale of such 188 insurance product or surety bond complies with the laws of this 189 state. 190 (

b) Acceptance by a landlord of an insurance product or a 191 surety bond that is purchased or procured by a tenant, a 192 landlord, or an agent of the landlord may not be considered an 193 offer on the part of the landlord to allow a tenant to pay a fee 194 in lieu of a security deposit for the purposes of subsection 195 (7). 196

(9) This

section applies to rental agreements entered into 197 or renewed on or after July 1, 2023. 198

Section 2. This act shall take effect July 1, 2023. 199