California security deposits: limits, deductions and the 21-day return rule

How much security deposit can a landlord charge?

Since July 1, 2024, a landlord may not demand or receive security of more than one month’s rent, in addition to the first month’s rent (§ 1950.5(c)). “Security” includes any payment, fee, deposit or charge imposed at the start of a tenancy to reimburse the landlord for costs of processing a new tenant, or as an advance payment of rent. Exceptions:

• Small landlords. The limit is two months’ rent if the landlord is a natural person (or an LLC whose members are all natural persons) who owns no more than two residential rental properties with no more than four dwelling units in total. This does not apply if the prospective tenant is a service member, who may be charged no more than one month.
• Advance rent. Advance payment of six months’ rent or more is allowed if the lease term is six months or longer.
• Service members and higher deposits. If a landlord charges a service member a higher-than-standard deposit because of credit or housing history, the landlord must explain the reason in writing, and the extra amount must be returned after six months of residency if rent is not in arrears.

A lease may not call any deposit “nonrefundable” (§ 1950.5(n)).

What can a landlord deduct from the deposit?

Only amounts “reasonably necessary” for four purposes: unpaid rent; repair of damage beyond ordinary wear and tear caused by the tenant, guests or licensees; cleaning needed to return the unit to the cleanliness it had at move-in; and restoring or replacing personal property or appurtenances if the lease allows it.

• A landlord may not charge for damage that existed before the tenancy or for ordinary wear and tear — including its cumulative effect over several tenancies.
• Repair and cleaning charges are limited to a reasonable amount to restore the unit to its condition at the start of the tenancy.
• Professional carpet or other professional cleaning can be charged only if reasonably necessary to return the unit to its move-in condition.

Are photos required?

Yes. Under § 1950.5(g): for tenancies that begin on or after July 1, 2025, the landlord must photograph the unit immediately before or at the start of the tenancy. Since April 1, 2025, the landlord must photograph the unit within a reasonable time after possession is returned (before any repairs or cleaning that will be charged) and again after those repairs or cleanings are completed. If a deduction is made, the photos must be sent with the itemized statement (by mail, email, flash drive or an online link).

What is the initial inspection?

Within a reasonable time after either side gives notice to end the tenancy (or before a lease ends), the landlord must tell the tenant in writing about the option to request an initial inspection and the right to be present. If requested, the inspection takes place no earlier than two weeks before move-out, with at least 48 hours’ written notice (unless both sign a waiver). The landlord then gives an itemized statement of proposed deductions, so the tenant can fix problems first. Deductions for items that were visible and not listed are limited, except for later damage or items hidden by the tenant’s belongings. The initial-inspection rules do not apply when the tenancy ends under certain three-day notices (CCP § 1161(2)–(4)).

When must the deposit be returned?

No later than 21 calendar days after the tenant has vacated, the landlord must give the tenant an itemized statement showing the basis for and amount of any deductions and return the remainder (§ 1950.5(h)).

• How to return it. Personal delivery, or a check by first-class mail. If the landlord received the deposit or rent electronically, the remainder must be returned electronically to an account the tenant designates in writing (or another method agreed in writing), and the landlord must tell the tenant about this right before the tenancy ends.
• How to send the statement. By personal delivery or first-class mail, or by email or another address if the tenant has agreed.
• Multiple adult tenants. By default, one check payable to all adult tenants on the lease, unless all agree in writing to a different method.
• Receipts and invoices. If deductions for repairs and cleaning together exceed $125, the statement must include copies of bills, invoices or receipts (or a description with hours and hourly rate where the landlord did the work). A tenant can request documents within 14 days after getting the statement even if the amount is $125 or less.
• Repairs that take longer. A good-faith estimate may be used if work can’t be finished, or documents obtained, within 21 days; final documentation is due within 14 days of completion.

What are the penalties for keeping a deposit improperly?

A landlord who withholds or keeps a deposit in bad faith may owe up to twice the deposit in statutory damages, plus actual damages. The landlord has the burden of proving the amounts claimed were reasonable. If the landlord, in bad faith, fails to follow the return procedure, the landlord loses the right to claim any of the deposit. Tenants can sue in small claims court (§ 1950.5(m), (o)).

What happens to the deposit if the property is sold?

Within a reasonable time after the landlord’s interest ends, the landlord must either transfer the remaining deposit to the new owner (and notify the tenant) or return it with an accounting. Before a voluntary transfer, the seller must give the buyer a written statement of the deposit and deductions. If the old owner doesn’t comply, the new owner can be jointly liable (§ 1950.5(i)–(l)).

Frequently asked questions

Which official sources should I read?

• Civ. Code § 1950.5 (as amended by AB 414, effective Jan. 1, 2026)
• California Tenants guide — security deposits (DRE, 2026 edition)
• Judicial Council self-help — landlord eviction information