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

California Assembly Bill 12 took effect July 1, 2024, amending Civil Code Section 1950.5 to cap residential security deposits at one month's rent (furnished or unfurnished) for the vast majority of Napa rentals. A narrow small-landlord exception preserves the historical two-month cap for natural-person landlords (including LLCs whose members are all natural persons) who own no more than two residential rental properties and a combined total of no more than four units. The exception does not apply to service-member tenants under Section 1950.5(b)(1), who remain at the one-month cap regardless of landlord size. Deposits are still strictly limited to security against unpaid rent, repair of damage beyond ordinary wear and tear, cleaning to restore the unit to its move-in condition, and replacement of personal property as authorized by the lease. Under Section 1950.5(g), the landlord must return the deposit or send an itemized accounting plus remaining balance within 21 calendar days of the tenant vacating. For deductions over $125, the landlord must provide copies of receipts or invoices, unless the tenant waives that requirement in writing. The City of Napa has not adopted any supplemental local deposit rule, so Section 1950.5 governs entirely.