TL;DR — Key Takeaways
- California security deposit law is almost entirely contained in Civil Code section 1950.5. Since July 1, 2024, subdivision (c)(1) caps security at one month’s rent, in addition to the first month’s rent, whether the unit is furnished or unfurnished.
- A narrow exception survives at subdivision (c)(5). A landlord who is a natural person, or an LLC whose members are all natural persons, and who owns no more than two residential rental properties containing no more than four dwelling units in total, may collect two months’ rent – but not from a service member.
- The return deadline is 21 calendar days after the tenant vacates. Within that window the landlord must deliver an itemized statement, the supporting invoices and receipts, the photographs the statute now requires, and any remaining balance.
- Deductions are limited to unpaid rent, repair of damage beyond ordinary wear and tear, cleaning to the unit’s condition at the start of the tenancy, and restoring personal property where the lease allows it. Subdivision (e)(2) bars claims for preexisting damage and for professional cleaning that is not reasonably necessary.
- Bad faith retention carries statutory damages of up to twice the deposit, on top of actual damages, and the landlord bears the burden of proving the amounts claimed were reasonable. The claim can be brought in small claims court.
The Direct Answer
California security deposit law caps a residential deposit at one month’s rent under Civil Code section 1950.5, with a two-month exception for small landlords. The landlord must return the balance with an itemized statement within 21 calendar days after the tenant vacates, and may deduct only for unpaid rent, damage beyond ordinary wear and tear, and necessary cleaning.
California Security Deposit Law: What Counts as Security
The statute defines the term far more broadly than most leases do, and the breadth is deliberate.
Section 1950.5(b) defines “security” as any payment, fee, deposit, or charge imposed at the beginning of the tenancy to reimburse the landlord for the costs of processing a new tenant, or imposed as an advance payment of rent, used or to be used for any purpose. The subdivision then lists four familiar purposes: compensating the landlord for default in rent, repairing damage exclusive of ordinary wear and tear, cleaning the unit to return it to the level of cleanliness it had at the inception of the tenancy, and remedying future defaults in restoring or returning personal property where the rental agreement authorizes it.
Sections below are marked for the side they speak to. This definition matters to both.
For landlords, renaming a charge does not move it outside the statute. A “move-in fee,” a “cleaning deposit,” a “key deposit,” or a “pet deposit” is security if collected at the start of the tenancy for any of those purposes; it counts against the cap and has to be accounted for on the way out. Subdivision (n) closes the loop: a lease may not characterize any security as nonrefundable. The only carve-out is the tenant screening fee governed by section 1950.6.
For tenants, it means the number to compare against the cap is the total of everything collected up front other than the first month’s rent and a screening fee – not just the line item labeled “security deposit.”
The Security Deposit Limit California Imposes
The one-month cap is recent and it is the change most likely to be missed in a lease drafted from an old template.
Section 1950.5(c)(1) provides that, except as provided in paragraphs (2), (3), or (5), a landlord shall not demand or receive security 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. Those two verbs are the trigger, and they are what decide which cap applies to any given deposit. Subdivision (c)(6) uses the same pair from the other direction: the subdivision “shall not apply to a security collected or demanded by the landlord before July 1, 2024.” So the question is never when the tenancy started or whether it has since renewed. It is when the money was asked for or taken. A deposit demanded in June 2024 and paid in July 2024 was demanded under the old rule. What the statute does not say is what happens on renewal, and it does not need to for the common case: a renewal that moves no money makes no new demand, so it does not pull an existing deposit under the new cap. Asking for more on renewal is a new demand, and that one is capped. Subdivision (c)(6) confirms the timing: the subdivision does not apply to security collected or demanded before July 1, 2024.
The old distinction between furnished and unfurnished units is gone. There is one number.
| Situation | Maximum security | Authority |
|---|---|---|
| Standard residential tenancy, deposit demanded on or after July 1, 2024 | One month’s rent | Sec. 1950.5(c)(1) |
| Landlord is a natural person or an all-natural-person LLC owning no more than two rental properties with no more than four units total | Two months’ rent | Sec. 1950.5(c)(5)(A) |
| Same small landlord, but the prospective tenant is a service member | One month’s rent | Sec. 1950.5(c)(5)(B) |
| Lease term of six months or longer | Advance payment of not less than six months’ rent permitted, separate from security | Sec. 1950.5(c)(2) |
| Security collected or demanded before July 1, 2024 | Prior law | Sec. 1950.5(c)(6) |
Two details inside the small-landlord exception get overlooked. The property test is conjunctive: no more than two residential rental properties and no more than four dwelling units across them. And the natural-person test at (c)(5)(C) reaches settlors and beneficiaries of a family trust.
Separately, subdivision (c)(4) applies to service members from April 1, 2025. A landlord charging a service member a higher-than-standard security because of credit history, credit score, housing history, or another tenant-related factor must state the amount and the reason in writing on or before the lease signing, return the extra amount after no more than six months if the tenant is not in arrears, and state that return date in the lease.
How Long Does a Landlord Have to Return the Deposit?
Twenty-one calendar days after the tenant vacates the premises. Not 21 business days, and not 21 days from the end of the lease term.
Section 1950.5(h)(1) sets the deadline and its front edge: the landlord may not send the accounting earlier than the point at which either party gives a termination notice under Civil Code section 1946 or 1946.1 or Code of Civil Procedure section 1161, or earlier than 60 calendar days before a fixed-term lease expires. Within the window the landlord must furnish an itemized statement showing the basis for and the amount of any security received and its disposition, and return the remainder.
The mechanics now follow how the rent was paid. Under (h)(1)(A)(ii), if the landlord received the security or the rent electronically, the remainder must go back electronically to an account the tenant designates in writing, unless the parties agreed in writing to a different method, and the landlord must notify the tenant of that right before the tenancy ends. Where multiple adult tenants share the unit, (h)(1)(C) requires a single check payable to all of them unless all signed a written agreement specifying a different split.
Documentation travels with the statement. Under (h)(2), the landlord must include copies of the bills, invoices, or receipts for work and materials, and where the landlord or an employee did the work, a description with the time spent and the reasonable hourly rate. Two relief valves exist: (h)(4)(A) excuses the documentation where deductions for repairs and cleaning together do not exceed $125 – the statutory figure as of drafting – and (h)(4)(B) allows a written waiver signed at or after the termination notice. Even then, (h)(5) requires the landlord to produce the documents within 14 calendar days if the tenant asks within 14 calendar days of receiving the statement.
If a repair cannot reasonably be finished, or the invoices have not arrived, within the 21 days, (h)(3) permits a good faith estimate with the statement, followed by the actual documentation within 14 calendar days of completion or receipt.
Security Deposit Deductions California Landlords Can Legally Make
Four categories, and no fifth.
The permitted purposes are the four in subdivision (b): unpaid rent, repair of damage to the premises exclusive of ordinary wear and tear caused by the tenant or the tenant’s guest or licensee, cleaning necessary to return the unit to the level of cleanliness it had at the inception of the tenancy, and restoring or replacing personal property where the rental agreement authorizes it. Subdivision (e)(1) adds that the landlord may claim only amounts reasonably necessary for those purposes.
Subdivision (e)(2) is where most disputes are actually decided.
| Deductible | Not deductible |
|---|---|
| Unpaid rent and lawful charges | Damage or defective conditions that preexisted the tenancy |
| Repair of tenant-caused damage beyond ordinary wear and tear | Ordinary wear and tear, whenever it arose |
| Cleaning to the level of cleanliness at the inception of the tenancy | The cumulative effects of ordinary wear and tear across one or more tenancies |
| Restoring personal property where the lease authorizes it | Professional carpet or other professional cleaning not reasonably necessary to restore the unit |
| A reasonable amount for materials, supplies, and labor to restore the unit | Amounts beyond what restoring the unit reasonably requires |
The professional cleaning rule at (e)(2)(C) is worth stating plainly because it reverses a widespread lease practice: a landlord may not require a tenant to pay for, or charge the deposit for, professional carpet cleaning or other professional cleaning services unless it is reasonably necessary to return the premises to the condition it was in at the inception of the tenancy, exclusive of ordinary wear and tear. A blanket lease clause requiring professional carpet cleaning at move-out does not survive that sentence.
The Photo Requirements Most Landlords Have Not Caught Up With
Subdivision (g) was added by Assembly Bill 2801 (Friedman), Chapter 280 of the Statutes of 2024, and it phases in on two different dates that are easy to collapse into one. The distinction decides whether a given tenancy carries a move-in photograph requirement at all.
April 1, 2025 – every tenancy. Under subdivision (g)(2), from that date the landlord must photograph the unit within a reasonable time after possession is returned but before any repairs or cleaning for which a deduction will be made, and again within a reasonable time after that work is completed. This duty does not depend on when the tenancy began. A tenancy that started years earlier is covered.
July 1, 2025 – new tenancies only. Under subdivision (g)(1), for tenancies that begin on or after that date the landlord must photograph the unit immediately before, or at the inception of, the tenancy. A tenancy that began before July 1, 2025 carries no move-in photograph requirement, and that matters, because the move-in set is the comparison against which a move-out photograph is read.
Those photographs are not for the file. Subdivision (h)(2)(D) requires the landlord to provide them to the tenant along with the itemized statement, with a written explanation of the cost, and permits delivery by mail, email, flash drive, or a link to view them online.
For landlords, the sequence for a tenancy that started on or after July 1, 2025 is three sets – move-in, post-possession, post-work – and for an older tenancy it is two. A deduction supported by none of them is a deduction a court is being asked to take on faith. For tenants, a deduction for damage that arrives without a before photograph is worth questioning in writing before paying it, and on a tenancy that began before July 1, 2025 the absence of a move-in photograph is not itself a violation.
What Penalties Apply When a Landlord Withholds in Bad Faith?
Two provisions, and they operate differently.
Subdivision (h)(7) is the procedural one: a landlord who in bad faith fails to comply with the accounting requirements of subdivision (h) is not entitled to claim any amount of the security. That is forfeiture of the deduction, not a damages award.
Subdivision (m) is the damages provision. Bad faith claim or retention of the security, or a bad faith demand for replacement security, may subject the landlord or the landlord’s successors to statutory damages of up to twice the amount of the security, in addition to actual damages. The court may award bad faith damages whenever the facts warrant it, whether or not the tenant specifically asked for that relief. And the burden of proof on the reasonableness of the amounts claimed sits on the landlord, not the tenant.
That burden allocation is the quiet reason deposit cases go the way they do. The tenant does not have to prove the charges were unreasonable. The landlord has to prove they were reasonable, with the documents and photographs the statute already required.
The Initial Inspection: The Step That Prevents Most Disputes
Subdivision (f) creates a pre-move-out process that both sides underuse.
Within a reasonable time after either party gives notice of intent to terminate, or before the end of the lease term, the landlord must notify the tenant in writing of the tenant’s option to request an initial inspection and the right to be present. If the tenant requests one, the landlord must inspect no earlier than two weeks before the termination date, give at least 48 hours’ written notice of the date and time unless both sign a waiver, and proceed whether or not the tenant attends.
The payoff is at (f)(2) and (f)(4). Based on the inspection the landlord gives the tenant an itemized statement of the repairs and cleaning proposed as deductions, including the text of the four permitted purposes, and the tenant has until termination to fix those items. If the unit was not so full of the tenant’s possessions that the landlord could not see it, the landlord may not later deduct for repairs or cleaning that statement did not identify.
If the tenant does not request the inspection, the landlord’s duty is discharged. The requirement also does not apply where the tenancy is terminated under Code of Civil Procedure section 1161(2), (3), or (4).
When to Bring Counsel Into a Deposit Dispute
Three situations justify a call. A deposit collected before July 1, 2024 under the old rule and carried into a renewed tenancy, because which cap applies turns on the timing language in subdivision (c)(6) and is not obvious. A claim that materially exceeds the deposit, because at that point it is a damages case with a deposit component and the burden allocation in subdivision (m) no longer covers the whole dispute. And bad faith, because statutory damages of up to twice the deposit plus actual damages change the arithmetic of settling.
For a straightforward dispute over an unreturned balance, subdivision (o) allows the action in small claims court where the damages claimed, actual or statutory or both, are within the jurisdictional limit – $12,500 for a natural person under Code of Civil Procedure section 116.221. The dollar figures here are the statutory amounts as of drafting; the Legislature adjusts them periodically, so confirm the current numbers before relying on them. Subdivision (p) adds that the existence and amount of a deposit may be proved by any credible evidence, including a canceled check, a receipt, or the lease itself.
Several adjacent questions are covered separately rather than here: what happens to the deposit when a tenant breaks the lease early, the photo documentation rules in detail, what normal wear and tear actually means in practice, how the move-out inspection works from the tenant’s side, and how to serve notice on a landlord so that it counts.
Work with Bay Legal
Bay Legal, PC advises California landlords and tenants on security deposit compliance, itemized accountings, wrongful withholding claims, and bad faith exposure under Civil Code section 1950.5. If a deposit accounting is overdue, or the deductions do not match the documentation, call (650) 668-8000 in Northern California or (213) 668-8000 in Southern California, or schedule a consultation at https://baylegal.com/contact-us/.
Frequently Asked Questions
How much can a California landlord charge for a security deposit?
For deposits demanded on or after July 1, 2024, one month’s rent, in addition to the first month’s rent, whether the unit is furnished or unfurnished. A narrow exception lets a landlord who is a natural person, or an LLC whose members are all natural persons, and who owns no more than two residential rental properties with no more than four dwelling units between them, collect two months’ rent. That exception does not apply where the prospective tenant is a service member. Anything collected up front for a deposit purpose counts toward the cap regardless of what the lease calls it.
How long does a landlord have to return the deposit?
Twenty-one calendar days after the tenant vacates. Within that window the landlord must furnish an itemized statement of the basis and amount of any deduction, copies of the bills, invoices, or receipts supporting the charges, the photographs the statute requires, and the remaining balance. If a repair cannot reasonably be completed or the invoices have not arrived in time, the landlord may provide a good faith estimate with the statement and supply the actual documentation within 14 calendar days of completing the work or receiving the paperwork.
What can and cannot be deducted from a security deposit?
A landlord may deduct unpaid rent, the cost of repairing damage beyond ordinary wear and tear caused by the tenant or a guest, cleaning necessary to return the unit to the level of cleanliness it had at the start of the tenancy, and restoring personal property where the lease authorizes it. A landlord may not charge for conditions that preexisted the tenancy, for ordinary wear and tear whenever it arose, for the cumulative effects of wear across tenancies, or for professional cleaning that is not reasonably necessary to restore the unit.
What penalties apply when a landlord wrongfully withholds a deposit?
Two things happen. A landlord who in bad faith fails to comply with the accounting requirements forfeits the right to claim any amount of the security at all. Separately, bad faith retention exposes the landlord to statutory damages of up to twice the amount of the security, on top of actual damages, and a court may award them whenever the facts warrant even if the tenant did not request that relief. The landlord carries the burden of proving that the amounts claimed were reasonable.
How does a tenant dispute or sue over an unreturned deposit?
Start in writing, with a dated demand that identifies the move-out date, the amount held, and what the accounting did or did not say. Ask for the supporting documents; the landlord must produce them within 14 calendar days if the request comes within 14 calendar days of the itemized statement. If that does not resolve it, the claim can be filed in small claims court, where the limit for an individual is $12,500. The deposit’s existence and amount can be proved by a canceled check, a receipt, or the lease.
