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San Diego, CA Rental Property Rules: Security Deposit Rules (2026)

Some Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified May 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

Summary

California Civil Code §1950.5, amended by AB-12 effective July 2024, caps residential security deposits at one month's rent statewide. San Diego 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. [...] (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.

Source: Cal. Civ. Code §1950.5 (AB-12)View official code

Full Breakdown

Under 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 allows owners of two or fewer properties with four or fewer total units to charge up to two months, except when the tenant is an active-duty service member. Landlords must return the deposit within 21 days of move-out together with an itemized statement of deductions. Allowable deductions cover unpaid rent, cleaning to the move-in level, and tenant-caused damage beyond ordinary wear. San Diego has not enacted local rules expanding or contracting this state cap.

Violations & Fines

Bad-faith withholding can trigger statutory damages up to twice the deposit amount plus the retained sum, recoverable in small claims court. Landlords also forfeit defenses if no itemization is provided within 21 days.

Frequently Asked Questions

Can a San Diego landlord demand last month's rent plus a deposit?
The combined total of any deposit plus advance rent beyond the first month counts as a security deposit and is capped at one month's rent under Civil Code §1950.5.
Does San Diego have its own deposit rule?
No. The city follows state Civil Code §1950.5 without modification. There is no separate municipal cap or local deposit registration requirement in San Diego.

Sources & Official References

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