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

California Assembly Bill 12 took effect July 1, 2024, amending Civil Code §1950.5 to cap residential security deposits at one month's rent — whether the unit is furnished or unfurnished — for the vast majority of Redding rentals. A narrow small-landlord exception preserves the historical two-month cap (or three months furnished) 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 Civil Code §1950.5(b)(1), who remain at the one-month cap regardless. 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 §1950.5(g), the landlord must return the deposit (or 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. Redding has no supplemental local deposit rule, so §1950.5 governs entirely.