CA Civil Code 1950.5: Limits, Deductions, and the 21-Day Rule

California Civil Code Section 1950.5 is the state statute that governs residential security deposits. It caps most deposits at one month’s rent, lists the only things a landlord can deduct, and requires the landlord to return whatever is left within 21 days after you move out, along with an itemized statement.¹

How Much a Landlord Can Collect

As of July 2024, the default cap is one month’s rent, whether the unit is furnished or unfurnished.² That amount is in addition to the first month’s rent at move-in. The old rule allowing two months for unfurnished and three months for furnished units is gone.

One narrow exception raises the cap to two months’ rent. It applies only when the landlord is an individual (or an LLC whose members are all individuals) who owns no more than two rental properties with a combined total of four or fewer units.¹ Corporate landlords and larger portfolios are capped at one month regardless.

Active-duty service members always pay no more than one month’s rent, even if the landlord otherwise qualifies for the two-month exception. A landlord cannot refuse to rent to a service member because of this restriction.¹

No Portion Can Be Labeled Nonrefundable

The label on the charge does not matter. Move-in fee, cleaning fee, key deposit — if the money functions as security for the rental agreement, Section 1950.5 governs it, and any lease clause calling it nonrefundable is unenforceable.¹

Service and emotional support animals are also outside the deposit scheme entirely. A landlord cannot charge a pet deposit, pet rent, or any other upfront fee tied to an assistance animal, though the tenant remains financially responsible for actual damage the animal causes.³

What the Landlord Can Deduct

Section 1950.5 limits deductions to four categories. Anything outside them is improper.¹

Unpaid rent still owed at move-out.
Repair of damage caused by the tenant or the tenant’s guests, beyond ordinary wear and tear.
Cleaning necessary to return the unit to the level of cleanliness it was in at move-in — not a deep clean or upgrade.
If the lease specifically authorizes it, the cost of restoring or replacing personal property or fixtures the tenant failed to return, excluding ordinary wear and tear.⁴

Faded paint, minor scuffs, and carpet worn thin from years of normal use are ordinary wear and tear. Large holes, broken fixtures, cigarette burns, and significant stains are not.

The Pre-Move-Out Inspection

Before the tenancy ends, the landlord must offer a walkthrough inspection. Written notice of that right goes to the tenant within a reasonable time after either side gives notice to end the lease.¹

If you ask for the inspection, it can take place no more than two weeks before your move-out date. The landlord must give at least 48 hours’ written notice of the specific date and time unless you waive that in writing. After the walkthrough, the landlord gives you an itemized list of anything that could lead to a deduction, which is your chance to clean or repair those items before the final move-out and keep more of your deposit.

The 21-Day Return Rule

After you move out, the landlord has 21 calendar days to either return the full deposit or send the balance along with an itemized statement explaining each deduction.¹ Miss that deadline and the landlord can lose the right to withhold any portion, even for deductions that would otherwise have been valid.

When total deductions exceed $125, the landlord must attach copies of receipts and invoices for the cleaning or repair work. If the landlord or the landlord’s employees did the work themselves, the statement must describe what was done, how long it took, and the hourly rate charged.⁴

The landlord sends the refund to the address you provide. If you leave no forwarding address, the mailing goes to the vacated unit.¹ Give the landlord a forwarding address in writing before you move.

If the Property Is Sold Mid-Tenancy

When ownership changes, the outgoing landlord must either transfer the remaining deposit to the new owner or return it to the tenant with an itemized accounting, and must notify the tenant of the new owner’s name, address, and phone number by personal delivery or first-class mail.¹ If the outgoing landlord does neither, both the old and new owners are jointly liable to return the deposit, and the new owner cannot demand a replacement deposit from you until the original situation is resolved.

Suing Over a Wrongful Withholding

If a landlord keeps money you believe should have been returned, you can sue. Small claims court is the usual venue and handles cases up to $12,500 for individuals, which covers nearly every deposit dispute.⁵ The landlord carries the burden of proving each deduction was reasonable and legally authorized.¹

If the court finds the landlord acted in bad faith, it can award up to twice the deposit amount in addition to the amount wrongfully withheld, and it can impose those damages on its own motion.¹ A $2,500 deposit wrongfully kept could expose a landlord to as much as $7,500 — the $2,500 refund plus $5,000 in statutory damages.

Mind the filing deadline. For a written lease, you have four years from the date of the violation to sue. For an oral rental agreement, it’s two years.⁶ Strong claims lose all the time because the clock ran out.

1
California Legislative Information. California Civil Code 1950.5 – Security for Rental Agreement
2
California Attorney General. Know Your Rights as a California Tenant – Security Deposits
3
California Civil Rights Department. Emotional Support Animals and Fair Housing Law FAQ
4
California Legislative Information. California Code CIV 1950.5 – Security for Rental Agreement
5
Superior Court of California, County of Orange. Before You File – Small Claims
6
California Courts. Deadlines to Sue Someone