Fairfield, CA Rental Property Rules: Security Deposit Rules (2026)

Civil Code §1950.5, as amended by AB 12, is now one of the most tenant-protective security deposit statutes in the United States. Effective July 1, 2024, the maximum deposit a landlord may demand and receive (including any 'last month's rent' or other deposit-like funds) is one month's rent regardless of whether the unit is furnished or unfurnished, replacing the prior framework of 2x rent for unfurnished and 3x for furnished. The 'small landlord' exception preserves a 2x cap for landlords who are natural persons or LLCs with all members being natural persons, who own no more than two residential rental properties with a combined total of four or fewer units; this exception does not apply when the tenant is an active-duty service member (relevant in Fairfield given the Travis Air Force Base population, which protects most military tenants under the 1x cap). On termination, the landlord must return the deposit (less itemized deductions for unpaid rent, repair of damages beyond ordinary wear and tear, cleaning to return to the level at move-in, and restoration of personal property pursuant to lease) within 21 calendar days. If deductions exceed $125, the landlord must provide receipts or invoices. Failure to comply can subject the landlord to statutory damages of up to two times the deposit amount plus actual damages under §1950.5(l). Landlords must also provide tenants with the right to an initial inspection prior to move-out (the 'pre-move-out walkthrough') under §1950.5(f). Fairfield's CRO program does not change the deposit rules; statewide statute controls.