Security deposits on Napa residential rentals are capped at one month's rent under California AB 12, effective July 1, 2024, codified at Civil Code Section 1950.5(c). A narrow small-landlord exception preserves a two-month cap for natural-person landlords owning two or fewer rental properties with no more than four total units. Deposits must be returned within 21 days of move-out with an itemized statement of deductions and receipts for any deduction over $125.
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.
A Napa landlord who fails to return the deposit, charges an unlawful amount, or makes bad-faith deductions may be liable to the tenant for the wrongfully withheld amount plus statutory damages of up to twice the amount of the deposit under Civil Code Section 1950.5(l). Small-claims jurisdiction in Napa County Superior Court reaches up to $12,500. Pattern violations may be referred to the California Attorney General under the Unfair Competition Law (Business & Professions Code Section 17200).
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