Question 1
We have two applicants applying for a two-bedroom unit, and will be paying the security deposit while the other will not. The applicant paying the deposit, John, wants to be assured that when he vacates that in the event the deposit is returned, he receives it and it is not sent to the other resident James on the lease. This seems reasonable to me and we certainly do not want to lose the rental. Is this a possibility or even advisable?
Answer
It is absolutely possible and legal to segregate the security deposit. If all parties are in agreement, you can hold it on behalf of one resident and not all the residents. Agreement is the key here, so you would want to either use a Security Deposit Payer Addendum or clearly write up the agreement in the Special Stipulations section of your lease.
It is understandable in some instances that one resident is indeed the primary person responsible for the deposit. However, whenever you make an exception to your standard company policy, you have to consider whether your computer system can properly reflect this exception or if the exception will be overlooked at lease end.
Tip: We are big proponents of heavily notating files where an exception has been made so that at move out, there is a higher chance of not making a mistake or overlooking the special arrangement.
Question 2
Our maintenance tech recently went out on a service call, replaced a broken garbage disposal and made a big mistake. He left the key to the dwelling in the front door, did not realize he had done this, and when the resident came home, she found it in her door. Needless to say, she came into our office screaming and yelling but did not say anything was missing. We have had other situations in the past in which our maintenance staff was accused of taking things, but at least in this case, she did not claim anything was gone. Is there anything we should do in these types of situations?
Answer
This is definitely a serious security breach that needs immediate attention. Even though nothing was reported missing in this case, leaving a key in the door creates significant liability exposure for your company.
First, document the incident thoroughly and have the maintenance technician complete an incident report. Consider whether the locks should be changed as a precautionary measure, especially if the resident requests it.
Moving forward, implement a mandatory key control protocol for your maintenance staff. If you are an apartment community you should already have a protocol this is compliance with Miya's Law. Staff should remember to check their pockets before leaving any unit and establishing a buddy system for service calls when possible.
Important: Use this as a training opportunity for all maintenance staff. Regular reminders about key security and Miya's Law requirements can prevent future incidents and potential liability issues.
Question 3
We collect security deposits in Florida but our parent company is holding all our security deposits in a bank in Denver. Our residents really have no idea that this is happening, but I read in the Landlord/Tenant Act that deposits must be held in a Florida bank. Can we get in trouble?
Answer
Yes, you are in violation of Florida law, and the fact that your residents don't know about it tells me that your company is further violating Florida law. According to Florida Statutes Section 83.49, you must notify the resident of the name and address of the Florida bank and how the money is being held within 30 days of the resident paying you the money.
This disclosure is usually simply included right in the lease itself, so it should be straightforward to implement. The deposits must be held in a Florida banking institution, not out of state.
Action Required: Please notify your company as soon as possible in writing that they need to follow the law. Better yet, include a copy of Florida Statutes Section 83.49 in your letter or email so they can clearly see what the requirements are.
