Miami Property Manager Accused in Class Action of Illegally Withholding Tenant Security Deposits

Lawsuit alleges systematic violations of Florida rental law as housing costs leave South Florida renters with little margin for financial setbacks

MIAMI — A Miami-Dade property management company is facing a proposed class action lawsuit accusing it of systematically withholding tenant security deposits in violation of Florida law, allegations that come as South Florida renters face some of the highest housing cost burdens in the nation.

Jessica Fernandez, a former tenant in Hialeah, sued Smerling Management LLC in Miami-Dade County Circuit Court on May 15, alleging the company failed to follow legally required procedures before claiming thousands of dollars from her $4,000 security deposit after she moved out of a rental property in March.

According to the complaint, Fernandez provided a forwarding address after vacating the property but never received the certified mail notice required under Florida law when a landlord intends to make a claim against a tenant’s deposit. Instead, she allegedly received text messages stating she would receive a partial refund of $1,150, meaning the company intended to keep $2,850.

The lawsuit alleges the company’s practices extend beyond a single tenant and seeks class-action status for other renters across Florida who may have experienced similar treatment.

Smerling has not yet filed a response in court.

Security deposits become flashpoint in expensive rental market

The case lands amid mounting affordability pressures in South Florida, where renters often have little financial cushion to absorb the loss of a security deposit.

In Hialeah, where Fernandez rented the property, nearly two-thirds of renters are considered cost-burdened, meaning they spend more than 30% of their income on housing, according to census data cited in the case materials. A $4,000 deposit can represent nearly two months of rent in the area.

Florida law generally requires landlords seeking to keep part of a security deposit to notify tenants by certified mail within 30 days of move-out and provide an opportunity to dispute the claim.

Fernandez alleges Smerling bypassed that process entirely.

Broader allegations of systematic misconduct

The complaint alleges three recurring violations: failure to provide legally compliant notice, prematurely claiming tenant funds before dispute periods expired, and improperly commingling security deposits with company operating accounts.

If proven, the allegations could expose the company to broader liability because the complaint argues the practices were applied uniformly across multiple tenants rather than as an isolated error.

Class-action lawsuits over landlord deposit practices have become more common in Florida, where tenant attorneys have increasingly challenged standardized property management practices under the state’s landlord-tenant laws.

Unlike high-profile litigation involving large national landlords, however, the Smerling case centers on a local property management company, potentially offering a more direct look at how smaller operators handle tenant funds.

Early-stage case could test landlord compliance

The lawsuit remains in its earliest stages, with no ruling on whether the case will proceed as a class action.

Still, housing advocates say disputes over deposits can have outsized consequences for working renters, particularly in high-cost markets where deposits often represent one of the largest upfront expenses in securing housing.

For tenants already stretched by rising rents, a withheld deposit can mean the difference between financial stability and deeper hardship.