California Statewide Rule
California Caps Security Deposits at One Month's Rent
Key Facts
- Deposit cap
- 1 month's rent (2 months small-landlord exception)
- Return deadline
- 21 days after move-out
- Itemized statement
- Required for any deductions; receipts attached if deductions exceed $125
- Statute
- Cal. Civ. Code § 1950.5
- Bad-faith penalty
- Up to 2x deposit + actual damages
Summary
As of July 1, 2024, California landlords may collect no more than one month's rent as a security deposit, regardless of whether the unit is furnished. The deposit, minus any lawful deductions, must be returned with an itemized statement within 21 days after move-out, or the landlord risks penalties of up to twice the deposit.
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.
Full Breakdown
Under Cal. Civ. Code § 1950.5, a landlord 'shall not demand or receive security... in excess of an amount equal to one month's rent,' on top of first month's rent, for both furnished and unfurnished units. A narrow exception lets a small landlord, a natural person (or LLC of natural persons) owning no more than two residential properties totaling four or fewer units, charge up to two months' rent. The deposit may be applied only to unpaid rent, cleaning the unit to its move-in condition, and repairing tenant-caused damage 'exclusive of ordinary wear and tear.' Within 21 calendar days of the tenant vacating, the landlord must return the balance with an itemized statement; receipts must be attached when repair and cleaning deductions exceed $125.
Violations & Penalties
Per Cal. Civ. Code § 1950.5(l), the bad-faith claim or retention of a deposit may subject the landlord to statutory damages of up to twice the amount of the security deposit, in addition to actual damages. Tenants typically pursue these claims in small claims court.
Frequently Asked Questions
How much can a landlord charge for a security deposit in California?
How long does a landlord have to return a security deposit in California?
What can a landlord deduct from a security deposit in California?
Sources
See something wrong?
Help us keep this page accurate. If you notice an error or outdated information, let us know.