Overview
California has some of the most tenant-friendly security deposit laws in the United States. Recent legislation (AB 12, effective July 1, 2024) significantly reduced the maximum security deposit amount, making California one of the few states to cap deposits at just one month's rent.
This guide covers everything landlords and tenants need to know about security deposits in California.
Deposit Limits
As of July 1, 2024, California Assembly Bill 12 (AB 12) sets the following limits:
- Most landlords: Maximum of 1 month's rent, regardless of furnished or unfurnished status
- Small landlords (owning no more than 2 residential rental properties with a combined total of 4 or fewer units): Maximum of 2 months' rent
Before AB 12
Prior to July 1, 2024, the limits were:
- Unfurnished units: 2 months' rent
- Furnished units: 3 months' rent
cite: Cal. Civ. Code § 1950.5(c)
Allowable Deductions
Landlords may only deduct from the security deposit for the following reasons:
- Unpaid rent: Any rent owed at the time of move-out
- Cleaning: Costs to restore the unit to the same level of cleanliness as at move-in
- Damage beyond normal wear and tear: Repairs for tenant-caused damage (not ordinary wear)
- Lease restoration: Costs to restore alterations made by the tenant if required by the lease
What Constitutes Normal Wear and Tear?
Normal wear and tear includes:
- Minor scuffs on walls
- Small nail holes from hanging pictures
- Worn carpet from regular use
- Faded paint due to sunlight
Damage beyond normal wear and tear includes:
- Large holes in walls
- Stained or burned carpet
- Broken windows or fixtures
- Unauthorized paint colors
Return Timeline
Landlords must return the security deposit within 21 calendar days of the tenant vacating the unit. The return must include:
- The remaining deposit amount (if any deductions were made)
- An itemized written statement listing each deduction and the amount
- Copies of receipts for any repair or cleaning charges, or if work has not yet been completed, a good-faith estimate (with actual receipts to follow within 14 days)
If the landlord fails to return the deposit or provide the required documentation within 21 days, the tenant may sue for up to twice the deposit amount in damages.
cite: Cal. Civ. Code § 1950.5(g)
Pre-Move-Out Inspection
Tenants have the right to request an initial inspection of the rental unit before moving out. The landlord must:
- Notify the tenant of their right to request an inspection
- Conduct the inspection no earlier than 2 weeks before the lease ends
- Provide the tenant with an itemized list of repairs needed to avoid deductions
- Give the tenant a reasonable opportunity to make those repairs before the final move-out
This process helps tenants maximize their deposit return by addressing issues before the final accounting.
Dispute Resolution
If a tenant believes their deposit was wrongfully withheld, they can:
- Send a demand letter to the landlord requesting the return
- File a claim in Small Claims Court (up to $10,000 for individuals)
- File a complaint with the local tenant protection agency
Courts may award the tenant up to twice the security deposit amount as a penalty if the landlord acted in bad faith.