Security deposits are one of the money rules covered in California landlord-tenant law. The sections below explain how much a landlord can collect, when the deposit has to come back, what a landlord can subtract from it, the inspection a tenant can request before moving out, and the penalty for keeping a deposit without cause. Nearly all of it comes from a single statute, Cal. Civ. Code § 1950.5.
How much a landlord can collect
As of July 1, 2024, Cal. Civ. Code § 1950.5 limits a residential security deposit to an amount equal to one month’s rent, whether the unit is furnished or unfurnished. The one-month cap was set by Assembly Bill 12 (2023), which replaced the older rule that allowed two months’ rent for an unfurnished unit and three months’ for a furnished one. The first month’s rent, paid at move-in, sits outside the cap; the limit applies only to the security itself.
One exception raises the ceiling. A landlord who is a natural person, or a limited liability company whose members are all natural persons, and who owns no more than two residential rental properties that together contain no more than four dwelling units, may collect up to two months’ rent under Cal. Civ. Code § 1950.5. That two-month allowance does not apply to a tenant who is an active-duty service member. For a service member, the limit stays at one month’s rent regardless of who owns the property. “Service member” has the meaning it carries in the Military and Veterans Code.
The label a landlord puts on the money does not change the rule. A “last month’s rent” payment, a key deposit, a pet deposit, and a cleaning fee all count as security under Cal. Civ. Code § 1950.5 if the landlord can apply them to unpaid rent or damage, and they count toward the one-month total. California separately limits how much a landlord can raise the rent in California, so the rent figure that sets the deposit ceiling is itself regulated once a tenancy is underway.
The 21-day deadline to return the deposit
Cal. Civ. Code § 1950.5 gives the landlord 21 calendar days after the tenant returns possession of the unit to do one of two things: return the full deposit, or return whatever is left along with an itemized statement listing each deduction. The clock runs on calendar days, not business days, and it starts when the tenancy ends and the tenant hands back the unit.
Under Cal. Civ. Code § 1950.5, when deductions for repairs and cleaning come to more than $125, the itemized statement has to include copies of the bills, invoices, or receipts behind the charges. If the landlord’s own staff did the work, the statement describes the work and the time and rate charged. A tenant who receives a statement without the backup documents can request them in writing within 14 days of getting the statement, and the landlord then has to provide them.
The tenancy ends and possession returns
The 21-day period begins when the tenant moves out and returns the unit to the landlord. The date possession is returned, not the last day named in the lease, starts the count.
The landlord inspects and calculates deductions
The landlord reviews the unit’s condition against its condition at the start of the tenancy and identifies any unpaid rent, cleaning, or repair of damage beyond ordinary wear and tear.
The deposit and statement go out within 21 days
No later than the 21st calendar day, the landlord delivers the remaining deposit and an itemized statement. Deductions over $125 for repairs and cleaning arrive with copies of the supporting receipts or invoices.
What a landlord can deduct
The statute lists the only purposes a deposit can be used for. Under Cal. Civ. Code § 1950.5, a landlord may deduct for unpaid rent, for cleaning the unit to return it to the level of cleanliness it had at the start of the tenancy, for repairing damage caused by the tenant or the tenant’s guests, and, if the rental agreement allows it, for restoring or replacing furnishings or other personal property the deposit was meant to cover.
The line that produces most disputes is the one between damage and ordinary wear and tear. The statute forbids charging the deposit for ordinary wear and tear or its effects, whether the wear existed before the tenancy or built up during it. Faded paint, carpet worn from normal walking, and small nail holes are the kind of gradual wear a landlord absorbs. A large stain, a broken fixture, or a hole in the wall is damage a landlord can charge for.
- Unpaid rent: rent owed for the tenancy, including any rent left unpaid at move-out.
- Cleaning: the cost of returning the unit to its cleanliness at the start of the tenancy, no higher standard.
- Repairs: fixing damage caused by the tenant or a guest, excluding ordinary wear and tear.
- Personal property: replacing or restoring items the lease authorizes the deposit to cover.
The inspection a tenant can request before moving out
California gives departing tenants a way to fix problems before they turn into deductions. Under Cal. Civ. Code § 1950.5, a tenant may ask for an initial inspection during the final two weeks of the tenancy. When the tenant requests it, the landlord conducts a walk-through and provides an itemized statement of the repairs or cleaning that would otherwise be deducted, giving the tenant a chance to do the work first.
The inspection is a right the tenant chooses to use, not a step the landlord imposes. A tenant who remedies the items on the statement removes them from the final deduction, though the landlord can still charge at move-out for new damage that appears after the inspection or for conditions hidden by the tenant’s belongings during the walk-through. Damage that falls outside ordinary wear and tear can overlap with a landlord’s own repair duties under California’s warranty of habitability, which governs the conditions a landlord must maintain during the tenancy.
When a landlord keeps the deposit without cause
A landlord who retains a deposit in bad faith faces a penalty beyond returning the money. Under Cal. Civ. Code § 1950.5, a court may award the tenant statutory damages of up to twice the amount of the security, on top of any actual damages, when the landlord’s retention was in bad faith. Bad faith means more than a good-faith mistake about the condition of the unit; it describes a landlord who keeps the money without a legitimate basis.
Deposit disputes are money claims, and the amounts usually fall within the small claims limit. The factors a court weighs in a deposit case include whether the landlord returned a statement within 21 days, whether the deductions were itemized and documented, and whether the tenant has evidence of the unit’s condition at move-in and move-out. The California Attorney General’s landlord-tenant guidance explains tenant rights and the kind of documentation a tenant keeps to support a deposit claim.
Frequently asked questions
How much can a landlord charge for a security deposit in California?
For most residential tenancies, the deposit is capped at one month’s rent as of July 1, 2024, whether the unit is furnished or unfurnished, under Cal. Civ. Code § 1950.5. A small landlord (a natural person or an LLC of natural persons owning no more than two properties with four units or fewer) may collect up to two months’ rent, but only one month from a service member.
Does the security deposit include last month’s rent?
It can. Money a landlord collects and can apply to unpaid rent or damage is security, regardless of the label. A “last month’s rent” payment that the landlord can use for those purposes counts toward the one-month deposit cap under Cal. Civ. Code § 1950.5. Rent paid for the first month of the tenancy is separate and does not count against the cap.
What happens if the landlord misses the 21-day deadline?
Returning the deposit late, or failing to provide the itemized statement, can support a claim for the full deposit. If a court finds the landlord kept the deposit in bad faith, it may award up to twice the deposit amount in statutory damages in addition to actual damages under Cal. Civ. Code § 1950.5.
Can a landlord deduct for normal wear and tear?
No. The statute bars charging the deposit for ordinary wear and tear or its effects, whether the wear predated the tenancy or developed during it. A landlord can deduct for damage beyond ordinary use, such as a broken window or a large stain, but not for the gradual aging of paint, carpet, or fixtures.
Is a “nonrefundable” cleaning or pet fee legal in California?
No. Under Cal. Civ. Code § 1950.5, a lease cannot characterize any part of the security as nonrefundable. A cleaning fee or pet deposit is treated as refundable security, and the landlord can keep it only to the extent of an allowed deduction, supported by the itemized statement due within 21 days.