Security Deposit Rules: Palo Alto vs San Jose
How do security deposit rules rules compare between Palo Alto, CA and San Jose, CA?
Palo Alto and San Jose have similar restriction levels.
Palo Alto, CA
Santa Clara County
California Civil Code §1950.5, amended by AB-12 effective July 2024, caps residential security deposits at one month's rent statewide. Santa Clara County adds no local cap, so the state rule governs unincorporated and incorporated rentals alike.
View full Palo Alto rules →San Jose, CA
Santa Clara County
California Civil Code 1950.5, amended by AB-12 effective July 2024, caps residential security deposits at one month's rent for most landlords. San Jose follows state law without adding a local cap or registration requirement.
View full San Jose rules →Key Facts Comparison
| Fact | Palo Alto | San Jose |
|---|---|---|
| Code | Cal. Civ. Code §1950.5 | Cal. Civ. Code 1950.5 |
| Cap | One month's rent | One month's rent |
| Effective | July 1, 2024 (AB-12) | July 1, 2024 (AB-12) |
| Return deadline | 21 days after move-out | 21 days after move-out |
| Bad-faith penalty | Up to twice deposit amount | Up to twice deposit amount |
Highlighted rows indicate differences between cities.
Palo Alto FAQ
Can a Santa Clara landlord ask for last month's rent on top of a deposit?
Combined deposit plus advance rent beyond the first month is treated as a security deposit and capped at one month's rent under §1950.5. Anything more is recoverable as wrongful retention.
Where do I file a deposit dispute in unincorporated Santa Clara County?
Santa Clara County small claims court hears deposit cases up to $12,500. The county does not run a deposit mediation program, but Project Sentinel offers free pre-litigation assistance to qualifying tenants.
San Jose FAQ
Can a San Jose landlord ask for last month's rent on top?
The combined total of any deposit plus advance rent beyond the first month is treated as a security deposit and capped at one month's rent under California Civil Code 1950.5.
Does the small-landlord exception apply in San Jose?
Yes. Owners of no more than two properties totaling four or fewer units may charge up to two months, except when renting to active-duty service members.
Compare other topics
See how Palo Alto and San Jose compare on other ordinance categories.
Want to add a third city?
Use our full comparison tool to compare up to three cities.
Open Comparison Tool