Twain Harte, CA Rental Property Rules: Security Deposit Rules (2026)

1950.5. (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. (h) (1) No later than 21 calendar days after the tenant has vacated the premises... the landlord shall furnish the tenant, a copy of an itemized statement indicating the basis for, and the amount of, any security received and the disposition of the security, and shall return any remaining portion of the security to the tenant. (n) A lease or rental agreement shall not contain a provision characterizing any security as "nonrefundable."