Security Deposits

A security deposit is a sum of money a tenant pays to a landlord, typically at the beginning of a tenancy, to cover potential damages to the rental property or unpaid rent, with the expectation that it will be returned at the end of the lease if the property is left in good condition.

Under Civil Code section 1950.5, nearly any payment collected at the start of a tenancy beyond the first month's rent and the application screening fee — whether it is called last month's rent, a pet deposit, a key fee, or a cleaning fee — is legally part of the security deposit, and no deposit may be labeled "nonrefundable."

Amount

Effective July 1, 2024, security deposits are capped at one month's rent, whether the unit is furnished or unfurnished. A small-landlord exception allows up to two months' rent when the owner is a natural person (or an LLC made up entirely of natural persons) owning no more than two rental properties with a combined total of four units. Military servicemembers may only be charged one month's rent in either case.

Photograph Requirements (AB 2801)

Assembly Bill 2801 requires a landlord who makes deductions from a security deposit to take photographs of the unit:

• Immediately before, or at the start of, the tenancy (required for tenancies that begin on or after July 1, 2025)
• Within a reasonable time after the unit is returned to the landlord, but before any repairs or cleaning the landlord will deduct for (effective April 1, 2025)
• Within a reasonable time after the repairs or cleaning are completed

The landlord must provide these photographs, along with the itemized statement, to you as the departing tenant. It is also a good idea to take your own photos at move-in and move-out.

What Security Deposits Are For

Landlords can deduct from a security deposit only for:

• Past-due rent
• The cost of repairing damage caused by tenants or guests, excluding ordinary wear and tear
• The cost of cleaning the unit back to the level of cleanliness it had at move-in
• The cost of restoring or replacing the landlord's personal property (such as keys), if stated in the rental agreement

Ordinary wear and tear — moderately worn carpet, faded paint, minor wall marks — is not deductible, and neither are conditions that existed before you moved in. For items with a limited useful life, such as carpet and paint, deductions are commonly prorated to their remaining life.

Return of the Security Deposit

• The refund, minus lawful deductions, is due within 21 days after you move out.
• The landlord must provide a detailed itemized statement of any deductions within that period. The statement must describe the work done, the time spent, and the hourly rate if the landlord did the repairs, or include a copy of the bill or invoice if someone else did the work. Receipts are not required when total deductions are under $125, though you may request them within 14 days of receiving the statement.
• Beginning January 1, 2026, if you paid your deposit or rent digitally (bank transfer or a payment portal), the refund must also be sent digitally unless you agree in writing to another method.

You also have the right to request an initial inspection during the last two weeks of your tenancy. The landlord must then provide an itemized list of the repairs or cleaning needed to avoid deductions, giving you the chance to take care of them before moving out.

If a deposit is withheld in bad faith, a court can award up to twice the deposit as a penalty in addition to the amount improperly withheld, and disputes up to $12,500 can be brought in small claims court.