Under California’s AB 12, the security deposit most landlords can collect is capped at one month’s rent, whether the unit is furnished or not.1California Legislative Information. Assembly Bill 12 The law took effect on July 1, 2024, replacing the older rule that let landlords ask for two months’ rent on unfurnished units and three months on furnished ones. For a typical tenant, that means the most you should pay to move in is two months of rent total: your first month plus the deposit.
Who the One-Month Cap Covers
The cap sits in Civil Code Section 1950.5 and applies to residential rentals across the state.2California Legislative Information. California Civil Code 1950.5 – Security for Rental Agreement Furnishing doesn’t change the number. A furnished beach cottage at $3,000 a month and an empty apartment at $3,000 a month have the same maximum deposit: $3,000. If a landlord asks for more than one month’s rent up front (on top of the first month), the request violates the statute.
The Small Landlord Exception
A narrow group of small landlords can still collect up to two months’ rent. To qualify, the landlord has to meet both of these tests:3California Department of Justice. Know Your Rights as a California Tenant – Security Deposits
- The landlord is a natural person, or an LLC where every member is a natural person. Corporations, trusts, and partnerships don’t qualify.
- The landlord owns no more than two residential rental properties, with a combined total of four or fewer units offered for rent.
Miss either test and the one-month cap applies. Someone who personally owns a single duplex qualifies; someone who holds five units across three properties does not. There’s also a carve-out inside the carve-out: if the tenant is an active-duty service member, the deposit is capped at one month’s rent even when the landlord would otherwise qualify for two.2California Legislative Information. California Civil Code 1950.5 – Security for Rental Agreement
What a Landlord Can Deduct
A security deposit is your money held in trust. A landlord can only keep parts of it for reasons the statute spells out:2California Legislative Information. California Civil Code 1950.5 – Security for Rental Agreement
- Unpaid rent owed at the end of the tenancy.
- Damage beyond normal wear and tear that you or your guests caused.
- Cleaning needed to return the unit to the level of cleanliness it had when you moved in.
That list is exhaustive. Faded paint, worn carpet, minor scuffs on hardwood floors, and loose door handles from years of use all count as normal wear and tear, and a landlord cannot bill you for them. Pre-existing damage is off the table too.
Photograph Everything Before You Unpack
The strongest defense against invented deductions is a record of the unit’s condition when you moved in. Walk every room, photograph anything that isn’t in perfect shape, and keep a dated written checklist. If your landlord will sign it, get the signature. Without that proof, a scratch or stain that was already there becomes a scratch or stain you may end up paying for.
What the Landlord Has to Give You
When any amount is withheld, the landlord must send an itemized statement listing every deduction and its reason. If the deductions add up to more than $125, receipts or invoices for the work must be attached.4Judicial Branch of California. Guide to Security Deposits in California When the landlord or an employee does the work personally instead of hiring a contractor, the statement has to describe the work, the time it took, and the hourly rate. That rate has to be reasonable. A $200-per-hour cleaning charge is not going to survive a challenge.
The 21-Day Deadline
After you move out, the landlord has 21 calendar days to return your full deposit, or to return the balance along with the itemized statement.2California Legislative Information. California Civil Code 1950.5 – Security for Rental Agreement Delivery must be by first-class mail or in person. If you originally paid the deposit or rent electronically, the landlord has to return it electronically to an account you designate in writing, unless you both agree in writing to another method.
Sometimes repairs genuinely can’t be finished in three weeks, or a contractor hasn’t sent invoices yet. In that case, the landlord can include a good-faith estimate in the itemized statement. If a vendor’s paperwork is the holdup, the statement has to give that vendor’s name, address, and phone number. Once the work is done or the receipts arrive, the landlord has 14 additional calendar days to send you the actual documentation and adjust the numbers.
Your Right to a Pre-Move-Out Inspection
When either side gives notice to end the tenancy, the landlord has to tell you in writing that you can request an initial inspection and be present for it.5California Legislative Information. California Civil Code 1950.5 – Security If you ask for one, it happens no earlier than two weeks before the end of the tenancy, with at least 48 hours’ written notice of the date.
The point of the walkthrough is to flag anything that would lead to a deduction so you can fix it before you leave. A stained countertop the landlord notices during the initial inspection is a countertop you can clean, rather than a $150 line item on the final statement. If you don’t request the inspection, the landlord’s obligation under this provision ends.
Penalties If the Landlord Keeps It in Bad Faith
A court that finds a landlord kept all or part of a deposit in bad faith can order the landlord to pay up to twice the deposit amount in statutory damages, on top of your actual losses.5California Legislative Information. California Civil Code 1950.5 – Security A judge can award those damages whenever the facts support it, even without a specific request from the tenant.
The burden of proof also sits with the landlord. In any dispute, the landlord has to show that each deduction was reasonable and permitted by the statute. Show up to court with no receipts, no photos, and no itemized statement, and you will lose.
Suing in Small Claims Court
If your former landlord won’t return the deposit or you disagree with the deductions, small claims court is the usual path. You can ask for the disputed amount and up to twice the deposit in bad-faith damages, capped at a total recovery of $12,500.6California Courts. Common Issues in Small Claims Filing fees typically run from $30 to $100 depending on the amount claimed, and lawyers aren’t allowed at the hearing.
Before filing, send a written demand letter that states the amount you’re owed and the basis for the claim. Many disputes settle at that stage once the landlord sees a case coming. If it doesn’t settle, bring everything to the hearing: your move-in checklist, dated photos, the lease, any messages about the deposit, and the itemized statement (or proof that one never came). The judge will expect the landlord to justify each dollar.