It's So Simple, But We See Mistakes All the Time
Having a correct last known address is crucial. The last known address is the address that you will be sending the Notice of Intention to Impose Claim on Security Deposit to. It's a very important notice — it must be sent out if you intend to make a claim on the security deposit. It's the law, found in Florida Statutes 83.49. Seems so easy and simple, but it's often done incorrectly.
What the Law Actually Says
According to Florida Law, the landlord must send out the Notice of Intention to Impose Claim on the Security Deposit or refund any money that is due to the tenant within a 30-day time frame or 15-day time frame respectively. This is to be sent to the "last known mailing address." Florida Statutes Section 83.49(3)(a) provides:
FS 83.49(3)(a) — Recently Amended
"Upon the vacating of the premises for termination of the rental agreement, if the landlord does not intend to impose a claim on the security deposit, the landlord must return the security deposit, together with interest if otherwise required, within 15 days after the termination of the rental agreement. If the landlord intends to impose a claim on the deposit, the landlord must, within 30 days after the termination of the rental agreement, provide the tenant written notice by certified mail to the tenant's last known mailing address or by e-mail in accordance with s. 83.505 of his or her intention to impose a claim on the deposit and the reason for imposing the claim."
Note: The amended statute now allows delivery by e-mail if the tenant has opted in to electronic notices under s. 83.505. For more information on electronic notices, visit evict.com/electronicnotices.
The Three Types of "Last Known Mailing Address"
1. The property where the tenant resided: If the tenant has not given you any other address to which to send mail, this will be the "last known mailing address." Of course, the tenant no longer resides at the property, but this is where you should send your Notice. The tenant may or may not have put in a forwarding address with the post office. You cannot control whether the tenant actually receives the notice, but you can make sure you send it to the address required by law.
2. The address where you have been sending correspondence: The tenant may have given you a mailing address at the beginning or during the tenancy, requesting that you send all mail to that address. Commonly, tenants and landlords alike do not like to use the exposed street side mailboxes due to the high incidence of theft from these mailboxes, resulting in the use of a post office box at the actual post office or at a mailbox/shipping store. If this is the only address you have, this is the "last known mailing address."
3. The address the tenant gives you when vacating: Often a vacating tenant will give you his or her new address. This may be done by phone or in writing. If the tenant has requested that you send any correspondence to this new address, do as you are instructed. If it was a verbal instruction, denote the date and time of the request in your file, and urge the tenant to give you this instruction in writing.
The Problem: It Gets Lost
If the tenant does not give you a new address, you will be sending it to the address of the property where they were living. We all know that, and we do this all the time. But wait — were you possibly given a new address, a forwarding address that you maybe forgot? You misplaced the tenant's note to you, that letter to you, that email to you, or maybe that phone message? Maybe the information was given to another staff member.
The Desk Pile Scenario
Here's the scenario. Your tenant comes into the office a month before they're leaving. They hand a letter to you or to someone else in your office, and it's got the new address. So that person happily takes this letter and puts it in the pile on the desk. And if you're like most of us, you have a pile on your desk — and in that pile there's all kinds of things. There's important things, and there's junk mail. It's the pile.
Picture it. The tenant runs into the office happily telling you that their new house is almost done and they provide you with a piece of paper showing their soon-to-be new address. Does that piece of paper go on the desk pile that most people have? That growing pile of miscellaneous items?
So now it comes time to send out the Notice of Intention to Impose Claim on Security Deposit, and you forget that the tenant had come in and notified you of their new address. You end up sending it to the address where they were living. It comes back unclaimed.
If you have a new forwarding address and you didn't realize it, you could be faced with having to return the full security deposit to the tenant. You might not be able to make a deduction at all. It's possible that you were going to take all of the deposit, but because you didn't send it to the last known address, and the tenant can prove that you had a new address, you can't make the deduction. You may have to return all the money. You now have an angry owner, a very happy tenant, and you're potentially out of pocket and liable for this mistake.
How Do We Avoid This?
Never assume that the address where the tenant was living is, in fact, the last known address. Look through your emails, look through your notes, look through that pile on your desk. Contact the tenant by email, phone, text messages, ask your staff members. Do everything possible to see if you have a new address. If you have that new address, you will use it.
Confirm first that you don't have a new address before you ever go ahead and use the address where the tenant was living.
Flip Your Assumption
If you're going to assume anything, assume that you do have a new address and work from there. Research what you have. Make your phone calls, send those emails, send those text messages, and then if you don't get any information and you've confirmed you don't have that new address, at last resort, you're going to use the address where the tenant was living. All too often, this is the first address property managers use. It should be the last. Remember — the last known address.
The Legal Ramifications
A lawsuit by the tenant — possibly the tenant gets an attorney. Now this lawsuit over a $500 security deposit refund turns into a massive lawsuit where you're now liable for the tenant's attorney's fees. This could be thousands. If you're returning the deposit in full, you want to have the correct address to return it. You don't want to be sued by the tenant, and you definitely don't want to be sued by the property owner for a big mistake that you made.
And if the refund never gets to the tenant? You have to hold that money in your escrow account for five years before you can follow the Florida unclaimed property procedures. Nobody wants that.
Train Your Staff
Train your staff to take new address notifications seriously. When a tenant provides a forwarding address, stop what you are doing. Write something on the resident's file. Update the information in your computer system immediately. Don't let it go on the pile. This is one of those easily avoidable problems.
Action Steps
- Don't assume you don't have a new address — assume you do and work from there
- Research your emails, notes, and desk pile before sending the notice
- Ask your staff members if the tenant provided a new address to anyone
- Contact the tenant by email, phone, and text to confirm
- Only use the rental address as a last resort after confirming no forwarding address exists
- Put this on your security deposit processing checklist — successful property managers use checklists
- When staff receives a new address, update the file and computer system immediately
From this point on, assume a new last known address was given to you and act accordingly. Change your policies, change your procedures, and put this on your security deposit processing checklist.
