Los Angeles, CA Rental Property Rules: Security Deposit Rules (2026)
Key Facts
- Code
- Cal. Civ. Code §1950.5
- Cap
- One month's rent
- Effective
- July 1, 2024 (AB-12)
- Return deadline
- 21 days after move-out
- Bad-faith penalty
- Up to twice deposit amount
Summary
California Civil Code §1950.5, amended by AB-12 effective July 2024, caps residential security deposits at one month's rent for most landlords. Los Angeles follows state law without adding a local cap or registration requirement.
(a) This section applies to security for a rental agreement for residential property that is used as the dwelling of the tenant.
(b) As used in this section, “security” means any payment, fee, deposit, or charge, including, but not limited to, any payment, fee, deposit, or charge, except as provided in Section 1950.6, that is imposed at the beginning of the tenancy to be used to reimburse the landlord for costs associated with processing a new tenant or that is imposed as an advance payment of rent, used or to be used for any purpose, including, but not limited to, any of the following:
(1) The compensation of a landlord for a tenant’s default in the payment of rent.
(2) The repair of damages to the premises, exclusive of ordinary wear and tear, caused by the tenant or by a guest or licensee of the tenant.
(3) The cleaning of the premises upon termination of the tenancy necessary to return the unit to the same level of cleanliness it was in at the inception 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.
(5) (A) Notwithstanding paragraph (1), a landlord shall not demand or receive security, however denominated, in an amount or value in excess of an amount equal to two months’ rent, in addition to any rent for the first month paid on or before initial occupancy if the landlord meets both of the following requirements:
(i) The landlord is a natural person or a limited liability company in which all members are natural persons.
(ii) The landlord owns no more than two residential rental properties that collectively include no more than four dwelling units offered for rent.
Full Breakdown
Under California Civil Code §1950.5 as amended by AB-12, residential security deposits are capped at one month's rent regardless of whether the unit is furnished. A narrow small-landlord exception lets owners of two or fewer properties with four or fewer total units charge up to two months, but only if the tenant is not a service member. Landlords must return the deposit within 21 days of move-out with an itemized statement of any deductions. Allowable deductions cover unpaid rent, cleaning to the level at move-in, and tenant-caused damage beyond ordinary wear. Los Angeles does not preempt or expand these state rules.
Violations & Fines
Wrongfully withholding a deposit can trigger statutory damages of up to twice the deposit amount in addition to the wrongfully retained sum, recoverable in small claims court.
Frequently Asked Questions
Can a Los Angeles landlord ask for last month's rent on top?
Does the small-landlord exception apply in LA?
Sources & Official References
Other rules in Los Angeles
California rules heatmap·Compare Los Angeles to another location·View the California rental property rules overview
See something wrong?
Help us keep this page accurate. If you notice an error or outdated information, let us know.
Security Deposit Rules in Nearby Cities
How other cities in Los Angeles County handle security deposit rules.