Know Your Rights Security Deposits English

Consumer

Alert

Know Your Rights as a California Tenant

Security Deposits

California has strict rules about tenant security deposits that all residenal landlords and property managers must

follow. (Civ. Code, § 1950.5.) Knowing the rules can help tenants protect their hard-earned money.

• Security deposits are refundable. A security deposit belongs to the tenant, but the landlord is allowed to hold

on to it unl the tenant moves out. If a landlord sells the property, the landlord must either return the deposit or

give it to the new owner to hold on to. By law, security deposits must be returned when the tenant moves out,

minus allowed expenses.

• The law limits the amount of security deposits.

o Unl July 1, 2024, the limit is two mes the monthly rent (or, for furnished units, three mes the

rent).

o Aer July 1, 2024, the limit is one month’s rent. For landlords who own no more than two residenal

rental properes that collecvely include no more than four total units for rent, the limit is two mes

the monthly rent, but only if the landlord is a natural person or a limited liability company in which

all members are natural persons.

• Landlords can only use security deposits for the following specied expenses:

o Past-due rent.

o The cost of repairing damages caused by tenants or their guests, not including ordinary wear and

tear.

o The cost of cleaning the property so that it is as clean as when the tenant rst moved in.

o The cost of replacing or restoring the landlord’s personal property, such as furniture, but only if the

rental agreement says this is allowed.

• Security deposits MAY NOT be used for other costs, such as (1) damages that were already there when the

tenant moved in; (2) unreasonable or unnecessary expenses; or (3) ordinary wear and tear.

• Take advantage of the right to an inspecon before move-out. Aer learning that a tenant plans to move,

landlords must nofy tenants of the right to ask for an inial inspecon so that the tenant has a chance to x any

issues and avoid charges. If the tenant asks for an inspecon, it must happen within the two weeks before the

tenant moves out.

o The tenant has the right to be there during the inspecon.

o The landlord must idenfy the damages the landlord intends to deduct from the security deposit and

give the tenant an itemized statement so that the tenant has a chance to x the problems before

geng charged.

• Within 21 days aer move-out, the landlord must send the tenant an itemized statement explaining in detail any

deducons from the security deposit (unless they total less than $125), and return the rest of the deposit.

o If the landlord did the repairs, the statement must show the work done, the me spent, and the

hourly rate.

o If someone else did the work, the landlord must provide a copy of the bill for the work.

o If the work cannot be nished in 21 days, the statement must give a good faith cost esmate. The

landlord must then provide the nal statement and return the remaining deposit within 14 days of

nishing work.

• Check local city or county rules, which may have more tenant protecons or landlord requirements. For

example, some cies make landlords pay interest on security deposits.

California Department of Justice Office of the Attorney General

• Addional protecons apply to service members. If you are a service member, you may be entled to lower

security deposits and certain evicon protecons. Ask your base legal oce for help. For the legal oce’s contact

informaon, ask your command or visit legalassistance.law.af.mil.

• Landlords can face penales for breaking the security deposit laws.

o If a tenant les a court case claiming the security deposit laws were violated, the landlord has to

prove that the amounts deducted were reasonable. If the landlord acted in bad faith, courts can

award the tenant his or her actual loss plus up to twice the amount of the deposit.

o Get help from a lawyer! If you cannot aord a lawyer, you may qualify for free or low-cost legal aid.

To nd a legal aid oce near where you live, visit LawHelpCA.

Then click on the tab in the middle

of the page that says “Find Legal Help,” and enter your county. If you do not qualify for legal aid and

need help nding a lawyer, visit the California State Bar webpage

to nd a local cered lawyer

referral service, or visit the California Courts’ webpage

for tenants facing evicons.

For more informaon and resources, visit www.oag.ca.gov/housing.

1 hps://www.lawhelpca.org/issues/housing/evicons

2 www.calbar.ca.gov/Public/Need-Legal-Help/Using-a-Cered-Lawyer-Referral-Service