Berkeley, CA Rental Property Rules: Security Deposit Rules (2026)
Key Facts
- Unfurnished cap
- Two months rent
- Return deadline
- 21 days
- Interest
- Annual, Board-set
- Code
- BMC 13.78
Summary
Berkeley caps residential security deposits at two months rent for unfurnished units and requires landlords to pay annual interest to tenants, layered atop California Civil Code Section 1950.5 protections.
1950.5. (a) This section applies to security for a rental agreement for residential property that is used as the dwelling of the tenant. (b) "Security" means any payment, fee, deposit, or charge imposed at the beginning of the tenancy. (c) (1) Except as provided in paragraph (2), (3), or (5), a landlord shall not demand or receive security, however denominated, in an amount or value in excess of an amount equal to one month's rent, in addition to any rent for the first month paid on or before initial occupancy. (2) This subdivision does not prohibit an advance payment of not less than six months' rent if the term of the lease is six months or longer.
Full Breakdown
Berkeley Municipal Code Chapter 13.78 mandates that landlords pay annual interest on security deposits held longer than twelve months. The Rent Stabilization Board publishes the interest rate each December based on local bank rates. Deposits remain capped at two months unfurnished or three months furnished consistent with state law. Landlords must return deposits within 21 days of move-out with itemized deductions. Berkeley layers the interest requirement onto Costa-Hawkins-protected pre-1995 stock without preemption issues, since interest rules are not rent control.
Violations & Fines
Failing to pay deposit interest, withholding without itemization, or holding amounts beyond legal caps exposes landlords to twice the wrongful retention plus statutory damages and attorney fees.
Frequently Asked Questions
What is the current interest rate?
Does AB 12 affect Berkeley caps?
Sources & Official References
Other rules in Berkeley
California rules heatmap·Compare Berkeley to another location·View the California rental property rules overview
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