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.

Updated Security Deposit Law

Beginning April 1, 2025, the landlord must take photographs of the unit within a reasonable time after the possession of the unit is returned to the landlord. Assembly Bill 2801 provides that a landlord who collects a security deposit must take photographs of the unit:

• Immediately before, or at the start of the tenancy.
• Within a reasonable time after the unit is returned to the landlord, but prior to any repairs or cleaning for which the landlord will make a deduction from the security deposit.
• Within a reasonable time after repairs or cleaning are completed.

The landlord must provide these photographs to the departing tenant. For tenancies that begin on or after July 1, 2025, the landlord must take photographs of the unit immediately before, or at the start of, the tenancy.

Amount

In California, security deposits are capped at one month's rent, effective July 1, 2024, with a small landlord exception allowing two months' rent for those owning no more than two properties with a total of four rental units.

What security deposits are for

Landlords can deduct from a security deposit for:

• Past-due rent.
• The cost of repairing damages caused by tenants or guests, excluding ordinary wear and tear.
• The cost of cleaning the property to its original condition.
• The cost of replacing or restoring landlord's personal property, if stated in the rental agreement.

Return of Security Deposit

• Return of the security deposit minus applicable costs are due within 21 days.
• Must provide a detailed itemized statement of any deductions from the security deposit within 21 days of the tenant moving out.
• The statement must explain the work done, the time spent, and the hourly rate if the landlord did