Security deposits
Most landlords require tenants to pay a security deposit
A security deposit is money, usually 1 to 2 month's rent, that a landlord holds in case the tenant causes any damage to the rental unit or breaks the lease and doesn't pay rent. When the tenant moves out the landlord must return the deposit but can keep some of it to pay for certain items, like damage to the rental unit.
After the tenant gives notice, the landlord must tell the tenant in writing that they have the right to ask for a pre-inspection. This gives the tenant a chance to repair things before moving out so they get their security deposit back. Get more information about how to give notice andinspections before moving outfrom the California Department of Real Estate.
Returning security deposits
After a tenant moves out, a landlord has 21 days to either
- Return all of the security deposit
- Return the security deposit minus any deductions along with an itemized statement. The itemized statement must list what was deducted and why.
If the deductions are for more than $125.00, the landlord must attach a copy of any invoices or receipts with the itemized statement. If the landlord or their employee did the work themselves, they must include a description of the work, how long it took, and the hourly rate they charged. Any rates must be reasonable.
If the repairs aren't finished within the 21-day period for a good reason, the landlord can sendthe tenant a reasonable (good faith) estimate of the repair costs. Then, within 14 days of the repairs being done, the landlord must sendthe tenant the receipts.
A landlord can only deduct certain items from a security deposit
The landlord can deduct for:
- Cleaning the rental unit when a tenant moves out, but only to make it as clean as when the tenant first moved in
- Repairing damage, other than normal wear and tear, caused by the tenant and the tenant's guests
- Restoring or replacing furniture or other personal items, but only if this was included in the rental agreement and the damage isn't from normal wear and tear
Generally, a landlord can keep part of the security deposit for rent owed.But there are some exceptions when a landlord can't do this. For example, a landlord can't use a security deposit to cover COVID-19 rental debt.
COVID-19 rental debt
A landlord can't use a security deposit to cover unpaid COVID-19 rental debt (rent or other money owed under a rental agreement, like parking fees, due from March 1, 2020 to September 30, 2021). If rent is due from another time, the landlord can use the security deposit to cover the unpaid rent.
Ending a rental agreement early due to violence
If a tenant sends a written noticeunder Civil Code section 1946.7 that they are ending the rental agreement early because they or someone they live with was a victim of violence in the last 180 days, the landlord can't use the security deposit as a penalty for ending the lease early or to cover the rental period after the tenant ended the lease.
If a landlord doesn't return a security deposit
1. Write the landlord a letter and try to reach an agreement
If the landlord doesn't return the entire security deposit within 21 days or the tenant doesn't agree with the deductions they canwrite a letter asking the landlord to return the security deposit. The tenant should keep a copy of the letter for their records.
2. Sue in small claims court (or civil court)
If the tenant and landlord can't agree the tenant can sue the landlord about the security deposit return. They can sue for both
- The amount of the deposit
- Two times the amount of the security deposit in damages
The judge may give the tenant these additional damages if the landlord retained the deposit in bad faith. A person who's a tenant can only sue for up to $12,500 in small claims court.
Get more information about security deposits and moving out from the California Department of Real Estate's A Guide to Residential Tenants' and Landlords' Rights and Responsibilities. Or read the law in California Civil Code sections 1950.5.
FAQs
By law, security deposits must be returned when the tenant moves out, minus allowed expenses. The law limits the amount of security deposits. o Until July 1, 2024, the limit is two times the monthly rent (or, for furnished units, three times the rent). o After July 1, 2024, the limit is one month's rent.
What is the new deposit law in California? ›
Security deposit limits
Starting July 1, 2024, California's new Assembly Bill 12 (AB 12) will limit security deposits to one month's rent. This law applies to both furnished units and unfurnished units.
How much can you sue for security deposit California? ›
The judge may give the tenant these additional damages if the landlord retained the deposit in bad faith. A person who's a tenant can only sue for up to $12,500 in small claims court.
What is considered normal wear and tear in a California security deposit? ›
Normal wear and tear generally refers to the expected deterioration of a rental unit as a result of the tenant's everyday use. This can include things like loose doorknobs, worn out carpet, and minor scratches on the walls and floors.
Are nail holes normal wear and tear in California? ›
Normal Wear and Tear California
Fading of curtains, paint, or wallpaper due to sunlight exposure. Minor scuffs or marks on the walls. Naturally worn down or slightly dirty carpet (not deep stains or soiling). Small nail holes or minor dents in the walls from picture hangings.
Do security deposits have to be in a separate account in California? ›
State law does not require security deposit to be kept in separate bank account. State law does not require landlord to pay interest on security deposit. Local law may impose such requirements.
What is the new renters law in California in 2024? ›
✨Security Deposits: Assembly Bill 12, effective July 1, 2024, caps security deposits at one month's rent, even for furnished units. ✨Eviction Regulations: The Tenant Protection Act tightens requirements for no-fault evictions and adds penalties for violations.
Do landlords have to pay interest on security deposits in California? ›
Deductions from the deposit: Landlords can only deduct for unpaid rent or damages beyond normal wear and tear. They must provide receipts or estimates for any repairs or cleaning done. 6. Security deposit interest: Landlords are not required to pay interest on security deposits.
What happens if landlord does not return security deposit in 21 days in California? ›
You can get your deposit back by suing in small claims court. If the landlord misses the 21-day deadline, he forfeits the right to deduct anything. If he keeps the money in bad faith, you can sue for up to 3 times the amount of the deposit. The process is quick, easy, and inexpensive.
Can a landlord deduct painting from a security deposit in California? ›
Security Deposit Deductions: If the tenant's unauthorized painting constitutes damage or a breach of the lease agreement, the landlord can deduct the costs from the tenant's security deposit. However, the landlord must follow proper procedures for documenting and providing an itemized list of deductions.
Deposit Returns
After the renter vacates the rental unit in California, the landlord has 21 calendar days to refund the tenant's security deposit.
Can a landlord increase the security deposit in California? ›
Your landlord may not be allowed to raise your deposit if: You have already paid the maximum security deposit allowed by law: two months rent for unfurnished units and three months rent for furnished; You live in a rent-controlled unit, You have a lease that prevents your rent from being raised.
Is dirty grout normal wear and tear? ›
Wear and tear is simply the decline of the property's condition with continued use. One could say wear and tear is simply the property getting older, not damage caused by any form of carelessness or neglect. Here are a few examples of wear and tear: Dirty floor grout.
Are broken blinds normal wear and tear in California? ›
If you broke the blinds, the landlord can charge you for damage as it is no considered wear and tear. If the blinds were broken before you moved in and were listed on the move in inspection as broken, you cannot be charged for them.
Can a landlord charge first, last, and security deposit in California? ›
Can you charge the First and Last Month's Rent? You can certainly charge the first month's rent upfront, you have to. However, you cannot charge the “last month's” rent upfront and hold it separate from the security deposit as rent.
What happens if landlord doesn't return security deposit in 21 days in California? ›
You can get your deposit back by suing in small claims court. If the landlord misses the 21-day deadline, he forfeits the right to deduct anything. If he keeps the money in bad faith, you can sue for up to 3 times the amount of the deposit. The process is quick, easy, and inexpensive.
What is normal wear and tear after 5 years in California? ›
Definition: Normal wear and tear refers to the natural deterioration that occurs over time due to regular use of the property. It includes things that happen as a result of everyday living. Examples: Faded paint, small scuffs on walls, worn carpeting, or minor scratches on hardwood floors are examples of wear and tear.
Can a landlord charge for painting in California? ›
Security Deposit Deductions: If the tenant's unauthorized painting constitutes damage or a breach of the lease agreement, the landlord can deduct the costs from the tenant's security deposit. However, the landlord must follow proper procedures for documenting and providing an itemized list of deductions.
