California Security Deposit Laws: What Tenants and Landlords Need to Know
California Security Deposit Laws: What Tenants and Landlords Need to Know
Solum Space Law APC
California Security Deposit Laws: What Tenants and Landlords Need to Know
Navigating California’s security deposit laws can be challenging, especially with recent changes brought by Assembly Bill 12, signed into law in 2023. These updates, which amend California Civil Code Section 1950.5, significantly alter how landlords handle security deposits for residential leases.
As of July 1, 2024, landlords can charge a maximum security deposit equal to one month’s rent for both furnished and unfurnished units. This new law eliminates the previous distinction that allowed higher deposits for furnished rentals. However, an exception applies to small landlords. To qualify, a landlord must be a natural person or part of a limited liability company owned solely by natural persons, and own no more than two residential properties that together include no more than four total dwelling units. This exception does not apply if the tenant is a service member, in which case the deposit is capped at one month’s rent regardless of the landlord’s status.
California law also prohibits non-refundable pet fees, as they are considered part of the security deposit. However, certain conditions allow landlords to charge pet-related fees. For example, under the Rent Stabilization Ordinance (RSO) in cities like Los Angeles, these fees may be permissible if they adhere to rent increase limits and relate to specific facilities or services, such as maintaining a dog park. In low-income housing developments receiving tax credits, monthly pet fees are entirely prohibited.
Tenants enjoy strong protections under California Civil Code Section 1950.5, which governs how deposits must be handled. Landlords are required to return security deposits within 21 days of the tenant vacating the property, along with an itemized list of deductions. These deductions are limited to unpaid rent, damages beyond normal wear and tear, and necessary cleaning to restore the property to its original condition. If landlords fail to comply, tenants can seek remedies in small claims court, where they may recover up to three times the deposit if the landlord acted in bad faith.
While the law provides clear guidelines, every situation is unique. The specifics of your lease agreement, the condition of the property, and the circumstances surrounding the security deposit can all affect your rights and obligations. Consulting with an experienced attorney is always recommended to ensure you understand your position and take the appropriate steps to protect your interests.
Whether you’re a tenant dealing with a security deposit dispute or a landlord aiming to comply with California’s regulations, Solum Space Law is here to help. Contact us today for personalized guidance and effective solutions.
