California AB 12 caps security deposits at one month's rent for nearly all Orange County residential tenancies starting July 2024, regardless of furnished or unfurnished status. Small mom-and-pop landlords retain a limited two-month exception.
AB 12 amended Civil Code 1950.5 to cap residential security deposits at one month's rent for both furnished and unfurnished units, replacing the prior two/three-month framework. The change applies countywide in Orange County. A narrow exception lets landlords who own no more than two residential properties (with up to four total units) collect up to two months. Deposits must be returned within twenty-one days of move-out with itemized deductions. Service members are protected by additional federal limits. Pre-AB-12 deposits remain valid but cannot be increased above the new cap.
Collecting more than one month's deposit, failing to return within twenty-one days, omitting itemized deductions, or withholding for ordinary wear can trigger statutory penalties, restitution, and small-claims awards.
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