A rental security deposit is one of the most common rental guarantees in the market—and one that protects property owners the least.
The problem is not in the idea. It’s in the number. The Tenant Protection Law (Law no. 8.245/1991) caps the security deposit at a maximum of 3 times the monthly rent. For a property with R$ 3,000 monthly rent, the ceiling is R$ 9,000. That amount must go into a savings account in the tenant’s name.
When the tenant stops paying, an eviction process for non-payment takes an average of 6 months—and can exceed 1 year when there are challenges or appeals (Jusbrasil, 2025). During that period, the owner receives nothing. And the R$ 9,000 sitting in the savings account does not come close to covering the shortfall.
What the law says about rental security deposits
Article 38 of the Tenant Protection Law regulates the security deposit. The main points:
- Maximum limit is 3 times the monthly rent
- The deposit goes into a savings account in the tenant’s name
- The owner can only access the funds after the contract ends—and even then must formally demonstrate the debt
- If the contract ends with no outstanding issues, the amount is returned with monetary correction
The 3-month limit is non-negotiable. Even if owner and tenant want to agree to a higher amount, Article 38 makes that clause void.
What does a real non-payment event cost? The calculation security deposits don’t cover
Imagine monthly rent of R$ 3,000. The tenant stops paying in the third month of the contract.
What the security deposit covers:
3 × R$ 3,000 = R$ 9,000 deposited
What a 12-month non-payment event generates:
| Item | Estimated Value |
|---|---|
| Rent not received (12 months) | R$ 36,000 |
| Attorney fees (eviction) | R$ 3,000 to R$ 10,000 (OAB-SC fee table: R$ 2,351 + 15% of case value) |
| Court costs (TJSC) | Variable—calculated by TSJ simulator based on case value |
| Property damage (variable) | R$ 0 to R$ 20,000+ |
| Unpaid HOA fees and property tax | variable |
| Minimum total (no damage) | ~R$ 39,500 |
The R$ 9,000 security deposit covers less than one quarter of the minimum damage—and that’s without counting property damage.
Another detail few people consider: during the process, the property owner still must pay the HOA fees and property tax on the property, because those charges attach to the property, not the tenant. If the tenant also failed to pay these bills, the liability grows faster.
A property owner with Regente’s Total Guarantee does not pay any of these costs.
As long as the tenant is in the property—even without paying a single cent of rent—the owner keeps receiving the contracted amount every month. Attorney fees, court costs, unpaid property tax and HOA fees: all fall on Regente’s side, not the owner’s. The eviction process moves forward; the rent does not stop.
What are the drawbacks of security deposits for the property owner?
There are four concrete problems, not abstract ones:
1. The amount is insufficient by definition
The legal 3-month limit was not calibrated to cover extended non-payment. It covers short delays, isolated situations. Any court proceeding will exceed that timeline.
2. Access to the money is not immediate
The security deposit sits locked in a savings account in the tenant’s name. To use the money in case of debt, the owner must formally prove the damage—and there are situations where that goes to court.
3. Does not cover attorney fees
An eviction is a court case. Attorneys cost money. In any basic proceeding, attorney fees run between R$ 3,000 and R$ 10,000 (OAB-SC fee table: R$ 2,351 fixed + 15% of case value)—an amount the security deposit rarely covers on its own.
4. Does not cover the period of the court process
While the eviction is pending, the property remains occupied and the owner continues to receive nothing. The security deposit does not replace the monthly rent during that period—it is a fixed total amount, not continuing income.
Comparison: the 4 rental guarantee types and Total Guarantee
The law provides four types. The table below compares what each covers when the tenant really stops paying.
| Criterion | Security Deposit | Guarantor | Guarantee Insurance | Capitalization Bond | Regente Total Guarantee |
|---|---|---|---|---|---|
| Maximum coverage | 3× rent | Unlimited (theoretical) | As per policy | ~6× rent | Unlimited / no deductible |
| Covers rent during eviction | No | No direct | Partial (policy term) | No | Yes, no time limit |
| Covers property damage | Partially | Judicial | Depends on policy | No | Yes |
| Covers property tax and HOA | No | Judicial | Depends | No | Yes (Regente pays) |
| Cost to tenant | Low (returned on exit) | Zero (but difficult) | ~1 rent/year | ~6 months (redeemed on exit) | Included in management fee |
| Residual risk to owner | High | High | Medium | High | None |
To learn more about how the types compare in day-to-day use, see the guide Rental Guarantee: Guarantor, Security Deposit, Guarantee Insurance, and Capitalization Bond—Which to Choose.
Why is security deposit or guarantee insurance better?
From the tenant’s perspective
For the renter, the security deposit is financially rational: you pay out the amount, keep it in a savings account, and get it all back when you leave (with correction). No ongoing cost.
Guarantee insurance has a real, ongoing cost: about 1 rent per year, with no refund. For a 30-month lease, that equals 2.5 rents that do not come back.
From the property owner’s perspective
The logic completely reverses.
The security deposit is capped by law and does not grow as the court process extends. Well-structured guarantee insurance covers non-payment more nimbly and without requiring a prior court case—the insurer pays and then pursues the tenant.
The practical difference: with a security deposit, the owner has a small fixed ceiling. With guarantee insurance, has continuing coverage during the non-payment period (within policy limits).
Neither fully solves the problem. Guarantee insurance still has terms, waiting periods, and limits that vary by policy.
Regente’s position on security deposits: we do not accept them
Regente does not work with security deposits. This is not a business preference—it is a technical position grounded in what the numbers show.
In 25 years of rental management in Florianópolis, the pattern is consistent: when non-payment occurs, the process rarely ends in less than 6 months. No property with rent above R$ 2,500 has the security deposit cover a real eviction process.
Accepting a security deposit would mean taking on, on behalf of the owner, a risk that the numbers do not justify.
What Regente’s Total Guarantee covers
Total Guarantee is not an insurance product—it is Regente’s own guarantee over the rental management it performs.
Four coverages:
- Guaranteed rent to the owner—regardless of whether the tenant pays or not, and regardless of any court process. No deductible, no time limit.
- Coverage during eviction—Regente keeps paying rent to the owner while the court process moves forward.
- Repainting at end of lease—guaranteed at contract end.
- Property tax and HOA current—Regente pays; these charges do not accumulate on the property or burden the owner.
The management fee with Total Guarantee is 12% per month on rent—never on rent plus HOA plus property tax. Without Total Guarantee, the fee is 10%.
To learn what the inspection process guarantees about property condition, see Rental Property Inspection: How It Works and Why It Matters.
FAQ—Frequently Asked Questions About Rental Security Deposits
What is a rental security deposit?
A rental security deposit is a cash deposit made by the tenant at the start of the lease as a guarantee for the owner. It is regulated by Article 38 of the Tenant Protection Law (Law no. 8.245/1991). The amount sits in a savings account in the tenant’s name until the lease ends. The legal ceiling is 3 times the monthly rent.
How does a property security deposit work in practice?
The tenant deposits the amount (up to 3× the rent) into a savings account opened in their own name. The owner does not control that account. Can only access the funds at lease end, formally proving any debts. If the lease ends with no outstanding issues, the amount is returned with savings account correction. The practical limitation: the amount rarely covers an extended non-payment—in a 12-month eviction process, the deposit is exhausted before halfway through.
What are the drawbacks of security deposits for the property owner?
Legal 3-month cap with no negotiation. Amount held in the tenant’s account with no direct access. Does not cover attorney fees. Does not cover rent during the court case. In long non-payment, the balance depletes before the eviction completes.
Can the owner use the security deposit during the lease?
No. The security deposit can only be used at lease end. Even if the tenant is non-paying, the owner cannot withdraw or freeze the amount while the property is occupied. This creates a double bind in eviction processes: no rent and no access to the deposit at the same time.
Is security deposit or guarantee insurance better for the property owner?
For the owner, guarantee insurance protects more—the insurer pays rent during non-payment without requiring a prior court case. A security deposit is a fixed total amount accessible only after lease end. Guarantee insurance has its own constraints (policy term, deductibles). Maximum protection for the owner is Regente’s Total Guarantee: no deductibles, no time limit, paid by the real estate agency.
In what cases can the owner retain the security deposit?
The owner can retain all or part of the security deposit at lease end to cover: overdue rent, unpaid charges (HOA fees, property tax when tenant’s responsibility), property damage proven at move-out inspection, and contractual penalties. Retention requires formal proof—amounts without documentation must be returned with savings account correction.
What does the Tenant Protection Law say about security deposits?
Article 38 of Law no. 8.245/1991 establishes: ceiling of 3 times monthly rent, no exception; deposit in a savings passbook in the tenant’s name; earnings belong to the tenant; return of balance at lease end, except documented debts. Clauses setting security deposit above the legal limit are void—have no effect even if in the contract.
Security deposits protect little—and you already know it
If you’ve read this far, you have probably already lived through or are close to living what the numbers show: a property sitting empty, a tenant not paying, and a guarantee that does not add up.
Regente manages rentals in Florianópolis for over 25 years with one clear standard: the owner receives, no matter what happens with the tenant. No deductibles, no time limits, no waiting for court.
If you want to learn how rental management with Total Guarantee works, fill out the rental management form. The team will reach out for a no-obligation conversation.
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